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Energy policy of China

From Wikipedia, the free encyclopedia

This article needs to beupdated. Please help update this article to reflect recent events or newly available information.(April 2024)

Most energy in China comes from coal
Development ofcarbon dioxide emissions in China
The 22,500MWThree Gorges Dam hydroelectric power plant in China, the largest hydroelectric power station in the world.

ThePeople's Republic of China is both theworld's largest energy consumer and thelargest industrial country. China is currently the world's largest emitter ofgreenhouse gases, andcoal in China is a major cause ofglobal warming.[1]China is also the world's largest renewable energy producer, and the largest producer ofhydroelectricity,solar power andwind power in the world. Theenergy policy of China is connected to itsindustrial policy, where the goals of China'sindustrial production dictate itsenergy demand management.[2]   

Being a country thatdepends heavily on foreignpetroleumimport for both domestic consumption and asraw materials forlight industrymanufacturing,electrification is a huge component of the Chinese national energy policy.

Summary

[edit]
Growth in ChineseGDP and energy use since 1983
Energy in China[3]
Population
(million)
Primary energy
TWh
Production
TWh
Import
TWh
Electricity
TWh
CO2 emissions
Mt
20041,29618,71717,8731,0512,0554,732
20071,32022,74621,0971,9393,0736,028
20081,32624,61423,1822,1483,2526,508
20091,33126,25024,2483,1973,5036,832
20101,33828,11125,6903,9053,9387,270
Change 2004–103.3%50%44%272%92%54%
Mtoe = 11.63 TWh, excludes Hong Kong.

Environment and greenhouse gas emissions

[edit]
This section needs to beupdated. Please help update this article to reflect recent events or newly available information.(September 2020)
Main articles:Climate policy of China andEnvironmental policy in China
CO2 emission per year per country (2017 data)
Consumption-based CO2 emission per capita per year per country (2016 data)

Between 1980 and 2000, China's emissions density (its ratio ofcarbon dioxide equivalent emissions togross domestic product) declined sharply.[4]: 26  The country quadrupled its GDP while only doubling the energy it consumed.[4]: 26  No other country at a similar stage of industrial development has matched this achievement.[4]: 26 

On June 19, 2007, theNetherlands Environmental Assessment Agency announced that a preliminary study had indicated thatChina's greenhouse gas emissions for 2006 had exceeded those of the United States for the first time. The agency calculated that China'sCO2 emissions fromfossil fuels increased by 9% in 2006, while those of the United States fell by 1.4%, compared to 2005.[5] The study used energy and cement production data fromBP which they believed to be 'reasonably accurate', while warning that statistics forrapidly changing economies such as China are less reliable than data onOECD countries.[6]

The Initial National Communication on Climate Change of the People's Republic of China calculated that carbon dioxide emissions in 2004 had risen to approximately 5.05 billion metric tons, with total greenhouse gas emissions reaching about 6.1 billion metric tons carbon dioxide equivalent.[7]

In 2002, China ranked 2nd (after theUnited States) in thelist of countries by carbon dioxide emissions, with emissions of 3.3 billion metric tons, representing 14.5% of the world total.[8] In 2006, China overtook the US, producing 8% more emissions than the US to become the world's largest emitter of CO2 emissions.[9] However per capita China was ranked 51st inCO2 emissions per capita in 2016, with emissions of 7.2 tonnes per person (compared to 15.5 tonnes per person in the United States).[10] In addition, it has been estimated that around a third of China's carbon emissions in 2005 were due to manufacturing exported goods.[11]

Energy use and carbon emissions by sector

[edit]

In the industrial sector, six industries – electricity generation, steel, non-ferrous metals, construction materials, oil processing and chemicals – account for nearly 70% of energy use.[12]

In the construction materials sector, China produced about 44% of the world's cement in 2006.[6] Cement production produces more carbon emissions than any other industrial process, accounting for around 4% of global carbon emissions.[6] By 2023 most of its installed electricity capacity came from renewable energy.[13]

National Action Plan on Climate Change

[edit]

China has been takingaction on climate change for some years, with the publication on June 4, 2007, of China's first National Action Plan on Climate Change,[14] and in that year China became the firstdeveloping country to publish a national strategy addressingglobal warming.[15] The plan did not include targets for carbon dioxide emission reductions, but it has been estimated that, if fully implemented, China's annual emissions of greenhouse gases would be reduced by 1.5 billion tons of carbon dioxide equivalent by 2010.[15] Other commentators, however, put the figure at 0.950 billion metric tons.[16]

The publication of the strategy was officially announced during a meeting of theState Council, which called on governments and all sectors of the economy to implement the plan, and for the launch of a publicenvironmental protection awareness campaign.[17]

The National Action Plan includes increasing the proportion ofelectricity generation fromrenewable energy sources and fromnuclear power, increasing the efficiency ofcoal-fired power stations,[18] the use ofcogeneration, and the development of coal-bed and coal-minemethane.[16]

In 2007 China stated that the (now reversed)one-child policy prevented 300 million births, saving 1.3 billion tons of CO2 emissions based on average world per capita emissions of 4.2 tons at 2005 level.[19]

11th Five-Year Plan

[edit]

Beginning with the 11th, each of China's five year plans have sought to move China away from energy-intensive manufacturing and into high-value sectors and have highlighted the importance oflow-carbon technology as a strategic emerging industry, particularly in the areas ofwind andsolar power.[4]: 26–27  The plan set a national energy intensity target.[4]: 54  of a 20% reduction.[20]: 167  It was identified as a "binding target" and focused on throughout the Plan's implementation.[20]: 167 Policymakers viewed emissions reductions and energy conservation as the highest priority environmental matters under the 11th Five-Year Plan.[20]: 136 

12th Five-Year Plan

[edit]

Successful achievement of emissions and energy conservation targets[which?] in the 11th Five-Year Plan shaped policymaker's approach for the 12th Five-Year Plan, prompting expanded use of binding targets to capitalize on successes in these areas.[20]: 136 

In January 2012, as part of its12th Five-year Plan, China published a report12th Five-year Plan on Greenhouse Emission Control (guofa [2011] No. 41), which establishes goals of reducingcarbon intensity by 17% by 2015, compared with 2010 levels and raising energy consumption intensity by 16%, relative toGDP.[21] More demanding targets were set for the most developed regions and those with mostheavy industry, includingGuangdong,Shanghai,Jiangsu,Zhejiang andTianjin.[21] China also planned to meet 11.4% of itsprimary energy requirements fromnon-fossil sources by 2015.[21]

The plan will also pilot the construction of a number oflow-carbonDevelopment Zones andlow-carbon residential communities, which it hopes will result in acluster effect among businesses and consumers.[21]

To facilitatecarbon trading and to more broadly help assess emissions targets and meet the transparency requirements of theParis Agreement, the Plan improved the system for greenhouse gas emissions monitoring.[4]: 55  This was the first time that carbon emissions trading had featured in one of China's Five-Year Plans.[22]: 80 

The plan also provided for the development of anultra-high-voltage (UHV) transmission corridor to increase the integration ofrenewable energy from the point of generation to its point of consumption.[4]: 39–41 

In addition, the Government will in future include data on greenhouse emissions in its official statistics.[21]

Carbon trading scheme

[edit]

In a separate development, on January 13, 2012,[23] theNational Development and Reform Commission announced that the cities ofBeijing,Tianjin,Shanghai,Chongqing andShenzhen, and the provinces ofHubei andGuangdong would become the first to participate in a pilotcarbon cap and trade scheme that would operate in a similar way to theEuropean Union Emission Trading Scheme.[21] The development follows an unsuccessful experiment with voluntary carbon exchanges that was set up in 2009 in Beijing, Shanghai and Tianjin.[21]

Fossil fuels

[edit]
A coal mine nearHailar,Inner Mongolia
Jinling Oil Refinery,Qixia,Nanjing
Oil well inQaidam Basin,Qinghai

Coal

[edit]
Main article:Coal power in China
See also:Coal by country andWorld energy consumption
Coal in China (Mt)[24]
ProductionNet importNet available
20052,226-472,179
20082,761nd2,761
20092,9711143,085
20103,1621573,319
20113,5761773,753
20153,5271993,726
Excludes Hong Kong

Coal remains the foundation of the Chinese energy system, covering close to 70 percent of the country's primary energy needs and representing 80 percent of the fuel used in electricity generation.[25] China produces and consumes more coal than any other country. Analysis in 2016 shows that China's coal consumption appears to have peaked in 2014.[26][27] According toGlobal Energy Monitor, China's government has limited the hours of 40% of coal-fired power stations built in 2019, due to overcapacity in electricity generation.[28]

As part of China's efforts to achieve its pledges of peak coal consumption by 2030 and carbon neutrality by 2060, a nationwide effort to reduce overcapacity resulted in the closure of many small and dirty coal mines.[29]: 70  Major coal-producingregions like Shaanxi, Inner Mongolia, and Shanxi instituted administrative caps on coal output.[29]: 70  These measures contributed to electricity outages in several northeastern provinces in September 2021 and a coal shortage elsewhere in China.[29]: 70  The National Development and Reform Commission responded by relaxing some environmental standards and the government allowed coal-fired power plants to defer tax payments.[29]: 71 Trade policy was adjusted to permit the importation of a small amount of coal fromAustralia.[29]: 72  The energy problems abated in a few weeks.[29]: 72 

In 2023, China accounted for about two-thirds of the global increase in coal capacity, commissioning 47.4 gigawatts (GW) of new coal plants. This level of expansion represents the largest annual increase in coal capacity initiated by any country since 2015.[30]

Petroleum

[edit]
Main article:Petroleum industry in China

China's oil supply was 4,855 TWh in 2009 which represented 10% of the world's supply.[31]

Although China is still a major crude oil producer, it became an oil importer in the 1990s. China became dependent on imported oil for the first time in its history in 1993 due to demand rising faster than domestic production.[14] In 2002, annual crude petroleum production was 1,298,000,000 barrels, and annual crude petroleum consumption was 1,670,000,000 barrels. In 2006, it imported 145 million tons of crude oil, accounting for 47% of its total oil consumption.[32][33]As of 2023, China's crude-oil imports reached approximately11.3 million barrels per day (b/d), an increase of about 10% over 2022, making it the world's largest crude-oil importer.[34] In 2024, China imported around11.1 million b/d, accounting for roughly74% of the country's apparent oil consumption, highlighting its increasing dependence on imported crude and the growing importance of supply-chain security.[35] Recent analyses indicate that China's demand for transport-fuel oil (gasoline, diesel, and jet fuel) has plateaued, with future oil consumption growth expected mainly from petrochemical feedstocks.[36]

As China's energy landscape continues to shift toward higher efficiency and diversification, its state-owned enterprises remain central to implementing national energy policies and managing the domestic petroleum market. Three state-owned oil companies —Sinopec,CNPC, andCNOOC — continue to dominate China's domestic market.

China announced on June 20, 2008, plans to raise petrol, diesel and aviation kerosene prices. This decision appeared to reflect a need to reduce the unsustainably high level of subsidies these fuels attract, given the global trend in the price of oil.[37]

Top oil producers were in 2010:Russia 502 Mt (13%),Saudi Arabia 471 Mt (12%),US 336 Mt (8%),Iran 227 Mt (6%),China 200 Mt (5%),Canada 159 Mt (4%),Mexico 144 Mt (4%),UAE 129 Mt (3%). The world oil production increased from 2005 to 2010 1.3% and from 2009 to 2010 3.4%.[38]

Natural gas

[edit]
Main article:Natural gas in China
Countries bynatural gas proven reserves (2014), based on data from The World Factbook

China's natural gas supply was 1,015 TWh in 2009 that was 3% of the world supply.[39]

CNPC,Sinopec, andCNOOC are all active in the upstream gas sector, as well as inLNG import, and in midstream pipelines. Branch pipelines and urban networks are run by city gas companies includingChina Gas Holdings,ENN Energy,Towngas China,Beijing Enterprises Holdings andKunlun Energy.

China was top seventh in natural gas production in 2010.[38]

Issued by China's State Council in September 2013, China's Action Plan for the Prevention and Control of Air Pollution illustrates government desire to increase the share of natural gas in China's energy mix.[14] In May 2014 China signed a 30-year deal with Russia to deliver 38 billion cubic metres of natural gas each year.[40] ThePower of Siberia pipeline is designed to reduce China's dependence on coal, which ismore carbon intensive and causes more pollution than natural gas.[41] The proposed western gas route from Russia'sWest Siberian petroleum basin to North-Western China is known asPower of Siberia 2.[42]

In November 2021, U.S. producer Venture Global LNG signed a twenty-year contract with China's state-ownedSinopec to supplyliquefied natural gas (LNG).[43] China's imports ofU.S. natural gas would more than double.[44]

Electricity generation

[edit]
By 2025, Asia is projected to account for half of the world's electricity consumption, with one-third of global electricity to be consumed in China.[45]
China depends mainly on fossil fuels for its electricity
Liujiaxia Dam inGansu, China.
Wind farm inXinjiang, China
See also:Electricity sector in China

In 2013, China's total annual electricity output was 5.398 trillionkWh and the annual consumption was 5.380 trillionkWh with an installed capacity of 1247 GW (all the largest in the world).[46]

This is an increase from 2009, when China's total annual electricity output was 3.71465 trillionkWh,[47] and the annual consumption was 3.6430 trillionkWh (second largest in the world).[48] In the same year, the total installed electricity generating capacity was 874 GW.[49] China is undertaking substantial long-distance transmission projects with record breaking capacities, and has the goal of achieving an integrated nationwide grid in the period between 2015 and 2020.[50]

Coal

[edit]
Main article:Coal power in China
See also:Coal by country

In 2015, China generated 73% of its electricity fromcoal-fired power stations, which has been dropping from a peak of 81% in 2007.[24]

In recent years, China has increased its use of coal power and continued to build new coal power plants. The National Energy Administration's early warning risk rating for coal plants approved the establishment of new power plants in 2020. China shut down roughly 7GW of power plants at the same time, continuing to decommission ageing coal-fired power reactors.[51]

Coal electricity in China (TWh)[24]
From coalTotal%
20041,7132,20078%
20072,6563,27981%
20082,7333,45779%
20092,9133,69679%
20103,2734,20878%
20113,7244,71579%
20123,8504,93778%
20134,2005,39878%
20144,3545,58378%
20154,1155,66673%

In 2024, global coal-power capacity reached a record 2,130 gigawatts, with China initiating 70 gigawatts of new coal plants—nearly 20 times more than the rest of the world combined. This expansion led to a 2% increase in the world's coal fleet, primarily to enhance China's energy security. Despite a global shift away from coal, this rise underscores potential conflicts with China's climate goals. Additionally, coal capacity also grew in Indonesia and India, marking the first global increase outside China since 2019.[52]

Renewables

[edit]
Main article:Renewable energy in China

China is the world's leading renewable energy producer, with an installed capacity of 152 GW.[53] China has been investing heavily in the renewable energy field in recent years. In 2007, the total renewable energy investment was US$12 billion, second only to Germany.[54] In 2012, China invested US$65.1 billion in clean energy (20% more than in 2011), fully 30% of the total investment by theG-20, including 25% (US$31.2 billion) of global solar energy investment, 37% percent (US$27.2 billion) of global wind energy investment, and 47% (US$6.3 billion) of global investment in "other renewable energy" (small hydro, geothermal, marine, and biomass); 23 GW of clean generation capacity was installed.[55][needs update]

Approximately 7% of China's energy was from renewable sources in 2006, a figure targeted to rise to 10% by 2010 and to 16% by 2020.[16] The major renewable energy source in China ishydropower. Total hydro-electric output in China in 2009 was 615.64 TWh, constituting 16.6% of all electricity generated. The country already has the most hydro-electric capacity in the world, and theThree Gorges Dam is currently thelargest hydro-electric power station in the world, with a total capacity of 22.5 GW. It has been in full operation since 2012.

China is the largest producer ofwind turbines andsolar panels.[56]

Nuclear power

[edit]
Qinshan Nuclear Power Plant, located inZhejiang China
Main article:Nuclear power in China

In 1991, China's first nuclear power plant became operational.[57]: 197  As of 2020, it had 49 operational reactors, China, 41 additional nuclear reactors planned, and 168 proposed reactors under consideration.[57]: 197 

As of at least 2023, China's goals for nuclear power expansion are the most ambitious of any country.[57]: 197 

China's domesticmarket for uranium is highly concentrated because Chinese policy identifies uranium as a strategic resource and only select companies are authorized tomine it.[57]: 201  The country's civilian nuclear industry and its mining are industry are largely concentrated inChina General Nuclear Power Group andChina National Nuclear Corporation, twostate-owned enterprise that report to theState Council.[57]: 201 

Rural electrification

[edit]
This section needs to beupdated. Please help update this article to reflect recent events or newly available information.(April 2024)

Following the completion of the similarTownship Electrification Program in 2005, theVillage Electrification Program plans to providerenewable electricity to 3.5 million households in 10,000 villages by 2010. This is to be followed by fullrural electrification using renewable energy by 2015.[58]

Large-scale transmission projects

[edit]

In 2015,State Grid Corporation of China proposed theGlobal Energy Interconnection, a long-term proposal to develop globally integratedsmart grids and ultra high voltage transmission networks to connect over 80 countries.[59]: 92–93  The idea is supported byCCP general secretaryXi Jinping andhis administration in attempting to develop support in various internal forums, including UN bodies.[59]: 92 

Renewable energy sources

[edit]
Main article:Renewable energy in China

Although a majority of the renewable energy in China is fromhydropower, other renewable energy sources are in rapid development. In 2006, a total of 10 billion US dollars had been invested in renewable energy, second only to Germany.[60]

China is a major source of clean energy technology transfer to other developing countries.[4]: 4  Approximately 54% of theBelt and Road Initiative's energy projects are in clean energy or alternative energy sectors.[61]: 216 

Bioenergy

[edit]
Jatropha curcas is to be grown for biofuel production
Main articles:Biofuel andBioenergy in China

In 2006, 16 million tons of corn were used to produce a first generation biofuel (ethanol).[62] However, becausefood prices in China rose sharply during 2007, China has decided to ban the further expansion of thecorn ethanol industry.

On February 7, a spokesman for the State Forestry Administration announced that 130,000 square kilometres (50,000 sq mi) would be devoted to biofuel production. Under an agreement reached withPetroChina in January 2007, 400 square kilometres ofJatropha curcas is to be grown forbiodiesel production. Local governments are also developing oilseed projects. There were concerns that such developments may lead toenvironmental damage.[63]

In 2018,The Telegraph reported that the biofuel industry was further on the rise.[64] There was[when?] also considerable interest in biofuels (for example biodiesel, green jet fuel)[65][66][67] which use waste material as the input source (second generation biofuel).

Solar power

[edit]
Main article:Solar power in China

China has become the world's largest consumer of solar energy.[68] It is the largest producer ofsolar water heaters, accounting for 60 percent of the world's solar hot water heating capacity, and the total installed heaters is estimated at 30 million households.[69]Solar photovoltaic (solar PV) production in China is also in rapid development. In 2007, 0.82 GW of solar PV was produced, second only to Japan.[53]

China'sSixth Five-Year Plan (1981–1985) was the first to address government policy support for solar PV panel manufacturing.[4]: 34  Policy support for solar panel manufacturing has been a part of everyFive-Year Plan since.[4]: 34 

As part of the stimulus plan of "Golden Sun", announced by the government in 2009, several developments and projects became part of the milestones for the development of solar technology in China. These include the agreement signed by LDK for a 500MW solar project, a new thin film solar plant developed by Anwell Technologies in Henan province using its own proprietary solar technology and the solar power plant project in a desert, headed by First Solar and Ordos City. The effort to drive the renewable energy use in China was further assured after the speech by theChinese leader, given at the UN climate summit on 22 September 2009 in New York, pledging that China would plan to have 15% of its energy from renewable sources by 2019. China is using solar power in houses, buildings, and cars.[70][71][72]

Because solar works well as a distributed power source, recent Chinese policies have focused on increasing the prevalence of distributed solar energy and for developing systems so that electricity from solar energy can be used at its point of generation instead of being transmitted over long distances.[4]: 34 

Wind power

[edit]
Huitengxile wind farm, Inner Mongolia, China
Main article:Wind power in China

China's totalwind power capacity reached 2.67 gigawatts (GW) in 2006 and 44.7 GW by 2010.[73][74] This figure reached 281 GW in 2020, an increase of 71.6 GW on the previous year.[75]

Energy conservation

[edit]

General work plan

[edit]

Officials were warned that violatingenergy conservation and environmental protection laws would lead tocriminal proceedings, while failure to achieve targets would be taken into account in the performance assessment of officials and business leaders.[12]

After achieving less than half the 4% reduction in energy intensity targeted for 2006, all companies and local and national government were asked to submit detailed plans for compliance before June 30, 2007.[76][77]

During the first four years of the plan, energy intensity improved by 14.4%, but dropped sharply in the first quarter of 2010. In August 2010, China announced the closing of 2,087 steel mills, cement works and other energy-intensive factories by September 30, 2010. The factory closings were made more palatable by a labor shortage in much of China making it easier for workers to find other jobs.[78]

Space heating and air conditioning

[edit]

A State Council circular issued on June 3, 2007, restricts the temperature ofair conditioning in public buildings to no lower than 26 °C in summer (78.8 °F), and of heating to no higher than 20 °C (68 °F) in winter. The sale of inefficient air conditioning units has also been outlawed.[79]

Public opinion

[edit]

The Chinese results from the 1st Annual World Environment Review, published on June 5, 2007, revealed that, in a sample of 1024 people (50% male):[80]

  • 88% are concerned aboutclimate change.
  • 97% think their government should do more to tackleglobal warming.
  • 63% think that China is too dependent onfossil fuels.
  • 56% think that China is too reliant on foreign oil.
  • 91% think that a minimum 25% of electricity should be generated from renewable energy sources.
  • 61% are concerned about nuclear power.
  • 79% are concerned about carbon dioxide emissions fromdeveloping countries.
  • 62% think it appropriate fordeveloped countries to demand restrictions on carbon dioxide emissions from developing countries.

Another survey published in August 2007 byChina Youth Daily and theBritish Council sampled 2,500 Chinese people with an average age of 30.1. It showed that 80% of young Chinese are concerned about global warming.[81]

See also

[edit]

References

[edit]
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  3. ^IEA Key World Energy Statistics2012Archived March 9, 2013, at theWayback Machine,2011Archived October 27, 2011, at theWayback Machine,2010Archived October 11, 2010, at theWayback Machine,2009Archived October 7, 2013, at theWayback Machine,2006Archived October 12, 2009, at theWayback MachineIEA October, crude oil p.11, coal p. 13 gas p. 15
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