China’s Sustainable Energy Policy Ping He Ph.D. International Fund for China’s Environment

Current status China is the second largest energy consumption country in the world China’s energy is 90% self-sufficient China’s per capital energy consumption is about the world average. China’s energy is heavily relying on coal ( 1.9 billion TOE , about 50% production of the world)

Challenges China’s economic growth was 10.5%/year from 2001-2010, expect 7-8% /year from 2010-2020, significantly higher than the world average. China’s energy demand is expected to continue to increase China’s CO2 emission is the largest in the world. China’s cities are badly polluted.

China’s energy demand is expected to continue to increase

CO2 emission by countries

Air pollution in Beijing

Energy targets in the 12th five-year plan (from 2011 to 2015/2020)

Sustainable Energy Policies Principles Energy conservation first Based on domestic sources Diversifying Protecting environment Innovation in science & tech Deepening reforming International cooperation Improving livelihood

Sustainable Energy Policies Priorities Fully implement energy conservation Develop clean and renewable energies Promote clean use of fossil energies

Sustainable Energy Policies Fully implement energy conservation Adjust industrial structures Enhance industrial energy saving Implement building energy conservation Improve energy saving in transportation Promote public participation

Energy Efficiency- Iron & Steel Industry 2005-2010 Change in Energy Intensity, China Iron & Steel Industry, 2005-2010, Source: CISIA, May 2011 (Unit: kg of coal / ton )

Energy Efficiency- Transportation Corporate Average Fuel Economy of China, Australia and USA (Unit: MPG)

Energy Efficiency-A cement plant with waste heat power plant in Shanxi

Sustainable Energy Policies Priorities Develop clean and renewable energies Hydropower Nuclear energy Solar energy Wind energy Biomass energy Others

Coal problems health problem environmental problem safety problem coal efficiency

Hydroelectricity China has a goal to generate at least 15 percent of total energy output by 2020 using renewable energy sources as the government aims to shift to a less-resource intense economy. According to the consultancy EC Harris, in 2010, China is the world's top investor in renewable energy projects, having invested around $120 billion to $160 billion between 2007 and 2010. In 2009, China was the world’s largest producer of hydroelectric power. In the same year, China generated 549 Bkwh of electricity from hydroelectric sources, representing 16 percent of its total generation. Also, according to FACTS Global Energy, installed generating capacity was around 197 GW in 2009, accounting for over a fifth of total installed capacity. These figures are likely to increase given the number of large-scale hydroelectric projects planned or under construction in China, and the government’s State Energy Bureau announced plans to increase hydro capacity to 380 GW by 2020. The largest power project is the Three Gorges Dam along the Yangtze River, which includes 32 separate 700-MW generators, for a total of 22.5 GW.

solar energy-solar power 50% solar PV panels are manufactured in China In 2010, China produced .58 GW solar power, a relatively small number. The cost is still 3-4 times higher than coal power For grid-connected generation, a fixed purchase price is set For rooftop solar power, gov. provides financial aids up to 50% of the cost Target for 2015, 10 GW

Biomass comprehensive utilization as a symbol of green living in rural area of Shaanxi

nuclear power China is actively promoting nuclear power as a clean and efficient source of electricity generation. China’s government forecasts that over 70 GW will be generated by 2020, about 6% of total energy. As of 2012, China has 16 operating reactors, 26 new nuclear power plants under construction.

Wind power

Cost comparison across energy sources

Sustainable Energy Policies Priorities Promote clean use of fossil energies Mining coal with high efficiency and safety Developing power plants with high efficiency and clean production Exploring unconventional oil/gas actively Enhancing energy transporting system

Sustainable Energy Policies Opportunities for international cooperation/investments Advanced technologies in clean energy development Advanced technologies in energy conservation, esp. in industrial sectors Advanced technologies in clean energy vehicles Energy service systems (smart grid, energy management contract, etc.) Capacity building (tech training, policy consulting, etc.)

Growth of China’s Energy Service Industry 2005-2010 Year Revenue Total Investment EMC Project Investment 2005 47.3 30.6 13.1 2006 82.6 63.3 18.9 2007 217.6 114.6 65.5 2008 417.3 253.2 116.5 2009 587.7 360.4 186.3 2010 780.4 287.5 Unit: 100 million RMB. $1=6.8 RMB Source: ESCO Committee of China’s Energy Conservation Association

Sustainable Energy Policies Contact Ping He phe@ifce.org 202-822-2141, www.ifce.org