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Opinion / Op-Ed Contributors

China's energy policy 2012

(China Daily) Updated: 2012-10-25 07:50

VI.

Improving Universal Energy Service

The fundamental objective of China's energy development is to guarantee and improve the livelihood of its people. China makes great efforts to equalize access to basic energy service for its entire population. It balances the energy development in both urban and rural areas, enhances energy infrastructure and improves the energy conditions in the vast rural and border areas and areas inhabited by ethnic minorities in compact communities, so that energy development can benefit all Chinese people.

Providing universal access to electric power. In order to provide the people who have no access to electricity yet in the Tibet, Xinjiang Uygur and Inner Mongolia autonomous regions, as well as Qinghai, Yunnan and Sichuan provinces with electric power, the Chinese government increases investment to expand the coverage of the power grids and develop distributed renewable energy sources. In areas without grid connection, China establishes and completes the universal electric service system. By 2015, most of the people who at present don't have electricity in China will gain access to it.

Boosting energy development in rural areas. Energy development in rural areas is of great significance for the betterment of farmers' living standards and modern agricultural progress. Adhering to the principle of comprehensive and effective utilization of diverse energy sources according to local conditions, China increases financial input in energy infrastructure in rural areas and ameliorates rural energy management and services. It upgrades rural power grids to improve electric power conditions for rural life and production, and hence establish new-type rural power grids, which, backed by advanced technology and management, are safe, reliable, efficient and eco-friendly. The Chinese government will put great efforts into developing renewable energy sources in rural areas, and launch various green energy demonstration projects in accordance with local conditions. By 2015, a total of 200 green-energy counties and 1,000 villages using solar energy will be set up as examples. China rebuilds old hydropower stations in rural areas to increase their capacity and efficiency. It accelerates the electrification of hydropower-based rural areas, and builds more small-sized hydropower stations, so as to get rid of the use of wood as fuel in some rural areas. In addition, the Chinese government promotes the use of solar water heaters around the country.

Enhancing energy development in border regions. Since 1978, when China launched its reform and opening-up drive, great progress has been witnessed in both the society and economy of the country's border regions. However, the energy conditions in these areas, despite great improvement that has been made, still lag far behind the eastern and central regions. The Chinese government will appropriate financial funds to improve energy infrastructure and build energy projects that have a direct bearing on the people's livelihood in the border regions, especially in Tibet and Xinjiang, to support leapfrogging development there. It will accelerate the electrical grid construction in Tibet and Xinjiang as well as the Tibetan-inhabited areas in Qinghai, Sichuan, Yunnan and Gansu provinces, enlarge the coverage of the distribution grid, and strengthen the reliability of power supply. The government will draw up and implement the "Tibet Energy Development Program", and provide extra funding to Tibet for its electric power development, the direct investment during the 12th Five-Year Plan period to exceed 900 million yuan. The energy projects to improve the people' s livelihood, such as the "Electrification of Southern Xinjiang" and "Electrification of Northern Xinjiang", will be sped up. The state will press on with the project to connect Xinjiang power grid to the northwest China grid so as to form an energy channel as soon as possible to get Xinjiang' s redundant electric power transmitted to other parts of China to generate more funds for the development of Xinjiang. The government will build a group of solar power and solar-wind hybrid power plants in the farming and herding areas far from towns to improve the quality of life of the farmers and herdsmen there.

Improving energy conditions in urban areas. The Chinese government will upgrade the urban grids to raise the quality and reliability of power supply in urban areas. It guarantees urban power supply, especially household electricity consumption. The state accelerates natural gas development. Natural gas supply networks will be built or improved in cities so that more urban residents will gain access to natural gas. In northern cities, where the district heating system is applied, the government will develop co-generation units based on local conditions to improve the heating quality. VII.

Accelerating Progress of Energy Technology

China's energy technology has developed rapidly since the country launched the reform and opening-up program in late 1978, and has played an increasingly significant role in energy conservation, emission reduction, energy structure optimization and energy security. However, China still lags behind the developed countries in this field, particularly marked by its flimsy basis for independent innovation, backwardness in core technology, and dependence on imports for some key technologies and equipment. Therefore, the Chinese government will attach more importance to technological innovation. It will establish and complete at full speed an energy technology innovation system that suits China's reality, and combines efforts of enterprises, colleges and research institutes. The National Energy Technology Program During the 12th Five-Year Plan Period, issued in 2011 as China's first scheme to improve its energy technology, has outlined the four key aspects of China's energy technology, namely, exploration and exploitation; processing and conversion; power generation, transmission and distribution; and new energy. The program also contains an overall plan to build a national energy technology innovation system that integrates research into key technology, manufacturing of key equipment, key demonstration projects and a technological innovation platform.

Reinforcing energy technology R&D. China will launch a series of strategic and advanced research projects on frontier technologies in basic sciences like geology, materials, environmental studies, power and energy, and information and control, with the aim of making breakthroughs in basic energy sciences. The Chinese government encourages major enterprises and research institutes in the industry to carry out studies in advanced and adaptive technologies, and put them into practical use, like high-efficiency and intensive coal mining technology, exploration and development technology of unconventional oil and gas resources, high-efficiency clean technology, offshore wind power technology, solar thermal power technology, advanced oil and gas storage and transportation technology, and high-capacity, high-efficiency and long-distance power transmission technology. China will press on with the two national high-tech programs - "large oil-gas fields and coal-bed gas development," and "large and advanced pressurized-water reactor and high temperature gas-cooled reactor nuclear power stations" - to facilitate key technological innovations, and enhance the innovation abilities, including "original innovation," "integrated innovation" and "secondary innovation" in the energy sector.

Promoting progress of energy equipment technology. Based on major technological equipment projects, China strives to make technological breakthroughs, improve supporting facilities, set up and enforce technical standards for energy equipment, establish a complete testing and certification system, and raise its ability for energy equipment design, manufacturing and system integration. China will further enhance the supporting policy system, boost the technological advance of key equipment, such as high-capacity, high-parameter and ultra-supercritical generating units, gas turbines, third-generation nuclear power, renewable energy generating units, exploration and development of unconventional oil and gas resources, and spreading the application of state-of-the-art equipment. The government will also strengthen planning and guidance for the energy equipment manufacturing industry to prevent redundant construction.

Launching major technological demonstration projects. Centering on the transformation of energy development mode and upgrading of the energy industry, the Chinese government will give more support in funding, technology and policy to launch major demonstration projects in such fields as large pressurized-water reactors, high-temperature gas-cooled reactors, development and utilization of coal-bed gas, exploration and development of shale gas, and deep processing of coal, energy storage and smart power grids, thus promoting the application of technological and scientific research achievements in production.

Improving the innovation system of energy technology. The Chinese government will continue to support large enterprises, R&D institutes, colleges and universities to set up national innovation platforms that can conduct independent R&D and make breakthroughs in core technologies, especially technologies for coal exploration, development and utilization of coal-bed gas, exploration and development of shale gas, marine engineering equipment, high-capacity high-efficiency and low-pollution power generating equipment, smart grids and advanced nuclear reactors. It will improve the policy system supporting technological innovation platforms. The government will give full play to the role of enterprises in innovation, and encourage them to spread and apply innovative technologies. It will guide R&D institutes and institutions of higher learning to serve enterprises in the field of innovation, and better integrate the efforts of enterprises with that of the research institutes and institutions of higher learning. The state will set up an evaluation and reward mechanism for technological development, and establish and improve a training system and an incentive mechanism for innovations.

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