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January 18, 2017

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China vows to deepen energy reform

CHINA will deepen reforms in the energy industry to improve energy consumption structure and cut carbon emissions in the years through 2020, the National Development and Reform Commission said yesterday.

By 2020, China expects an annual energy consumption of below 5 billion tons of coal equivalent, or TCE — a unit of energy generated by burning one metric ton of coal — from 4.3 billion TCE in 2015. This will ensure that the average annual growth rate is kept at below 3 percent in the coming years, the NDRC’s five-year (2016-2020) energy plan envisaged.

China’s energy consumption growth is set slower than the previous five years as “the main energy-using products such as steel and nonferrous metals will post negative growth” as the authorities promote advanced industries and green development, the report said.

But the domestic energy generation will be sufficient to ensure energy security. Of the 5 billion TCE, “at least 80 percent, or 4 billion, should be generated by domestic producers rather than by imports,” the report said.

Reduction of carbon emissions will be achieved by boosting the development of non-fossil fuels and enhancing energy consumption efficiency.

By 2020, the consumption of coal should be cut to below 58 percent of the total energy use from 64 percent in 2015, while the proportion of non-fossil fuels should rise above 15 percent from 12 percent in 2015. Natural gas should account for at least 10 percent of the energy consumption, the report added.

To enhance energy consumption efficiency, construction of scattered and smart distribution networks equipped with intelligent sensors will be encouraged, the report said.

“Upon completion, energy consumption per unit of GDP would drop 15 percent from 2015 while carbon emissions would be slashed by 18 percent,” the report said.


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