Business / Industries

China to attract more social fund in energy sectors

(Xinhua) Updated: 2014-12-04 17:13

BEIJING -- China aims to lower the market threshold and absorb more social capital for state grid, pipelines, clean energy and mineral resources projects, the country's top economic planner announced Thursday.

The decision is a part of the move to fully mobilize social investment and maintain the pivotal role of investment in stabilizing economic growth, said Li Pumin, spokesman with the National Development and Reform Commission (NDRC).

The NDRC has given out similar urges in the sectors including food, water, transport, environmental protection and elder care last week.

The State Council, China's Cabinet, issued a guideline on Nov 26, saying that they will further ease market access to key industries in a bid to spur investment through innovating financing and investment regimes.

Li said easier market access should further break industrial monopolies, reduce market barriers and create a fairer investment environment, so as to rejuvenate the market.

Han Shui, director of the electricity department at the National Energy Administration (NEA), said 12 power transmission channels have been planned from west to east, expected to cut down the use of 100 million tons of coal per year in China's eastern areas.

Three of the 12 are now under construction with a total investment of 68.3 billion yuan, which will provide electricity of 90 billion kilowatt-hours every year and decrease coal cost of 27 million tons in eastern areas of Beijing, Tianjin, Shandong, Hebei and the Yangtze River Delta, Han added.

As important clean energies, solar and nuclear power are among the most important of China's energy sectors in need of a push from social capital.

Zhu Ming, deputy director of the NEA's new and renewable energy department, said the central government is promoting the pilot zones of distributed PV power generation.

He said 18 approved pilot zones will provide 1.82 million kilowatt-hours by the end of 2015, attracting social capital of 16 billion yuan.

The issues of increasing subsidies and easing financing are have been improved through better administration and policy supports, Zhu said.

Nuclear power generation takes up only 2 percent of the total in China, much lower than the world average 15 percent, director of the NEA's nuclear department Liu Baohua said.

As a green energy with high-density, nuclear power is crucial in the country's long-term energy security. The State Council has announced to restart nuclear power generation projects in coastal areas with the world's highest safety standard, Liu said.

China suspended the approvals of all the nuclear power generation projects after the Fukushima nuclear crisis in 2011.

Meanwhile, several other officials also stressed the important role of social capital in boosting sectors of mineral resources and telecommunications.

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