Xu KuangdiSeptember of 2010, US

The Recent Situation and Development of

China’s Energy sector

I. Dramatic Changes in

Economy and Society of China

Since Reform and Opening to

Outside World (1980-2009)

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2009

-4000

1000

6000

11000

16000

21000

26000

GDP GDP per capita100 billion RMB/Yuan

After Mr. Deng

Xiaoping’s

Southern Tour

Talks

Asian

Financial

Crisis

After China’s

Entering

WTO

China’s GDP of 2009 was 33,530 billion yuan (USD$ 4,910 billion), only

next to USA and Japan, but its GDP per capita was 25,271 yuan

(USD$3,700, ranked around 100th in the world)

Urbanization of China Accelerated Since The

Reform and Opening Policy

Rate of Urbanization（％）

Tu

rbu

lent

Reco

verin

g

Sta

gn

atin

g

1957 1965 1978 1984 1992 2009

Sta

rting

Sta

blin

gd

evelo

pin

g

Accelera

tedd

evelo

pin

g

19490

5

10

15

20

25

30

35

40

4546.6%

Prediction of Chinese Urbanization

20022020

Rural

782 mil.Rural

630 mil.

Cities

840 mil.

Cities

502 mil.

150 mil. (pop. natural

growth)

38 mil. (pop. natural

growth)

*

◆

●■

▲

2003

3.6

7.30

12.39

174.95

180.98

Highway

Civil Aviation

Inland Water

Railway

Pipeline

The most recent statistics

show:

Railway: exceeds 86,000km

2nd of the world

Highway: exceeds 3.73

million km

Express Highway: 65,000km

2nd of the world

Civil Aviation: 2.46M km/y

Air Cargo: 9.45M ton/y

2nd of the world

Significant Achievement in China’s Infrastructure Building

The Primary Energy Production Increased by Over 100 Times

in the Sixty Years Since The Founding of The New Republic

year

mtce

Growth of Energy Consumption

Since the Reform and Opening Up

5 times

90%

increase

10 times

Pe

r C

ap

ita

tc

e

Year

Change in Per Capita Consumption of

Primary Energy

II. General Situation of

China’s Energy Sector

Change in Structure of Energy Consumption

＞90% 75%

68%

Note: Unit: Oil Mt, Natural Gas bM3, Coal M tce

The Output And Consumption Volume Of

Fossil Energy In China In The Last Five Years

The Net Import Volume Of Crude Oil

And Refined Oil Products And Import

Dependency In 2004-2008

Installed Capacity of Hydro Power In

sta

lle

d C

ap

ac

ity

Gw

Year

0

5

10

15

20

251994

…

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

1.22.6

5.95

12.1

22.68当年新增

年底累计

Annual Increase and Accumulated Installed

Capacity of Wind PowerC

ap

acit

y o

f W

ind

Po

wer

Gw

Year

Note: as all turbines installed capacity

Annual

Increase

Accumulated

by year-end

World Production of Solar Cell (2002-2009)（Unit：MW）

Power Generation by Solar

Photovoltaic Cells Getting Stable Start

By the end of 2009, the national total installed

capacity of photovoltaic power reached 300 Mw, a

100% increase comparing with the previous year.

Among them, 200 Mw off the grid, 100 Mw were

connected to grid.

Solar Heat Utilization Leading

the World in Scale

By the end of 2009, the total area of heat

collection of solar heaters in China reached 145

million m2, with annual capacity of production of 42

million m2. Both account for over half of the world

total in terms of utilization and annual production.

III. The Most Urgent

Task in China’s

Energy Sector Is

Conservation and

Emission

Reduction

20

Trend Curve of Environmental Pollution at Different

Development Stages of Traditional Industrialization

Energy intensity: international practicePeak: lowering down with time proceeding Shape: “∩” tending to “︵”

Energy Saving Will Affect the Peak Value of Energy

Consumption in Modernization

China

Germany

France

Japan

Energy Consumption Per Unit GDP (At The Price of

2005) Reduced 4% Annually In The Last 30 YearsG

DP

p

er

un

it tc

e

Year

Unit 2005 2006 2007 Rate(%)

Coal Power gce/kWh 343 342 333 -2.92

Steelmaking kgce/t 714 676 668 -6.44

Aluminium

Electrolytic kWh/t 14680 14671 14488 -1.31

Cement kgce/t 167 161 158 -5.39

Ethylene kgce/t 1073 1013 984 -8.29

Synthetic Ammonia kgce/t 1650 1581 1553 -5.88

Reduction of Energy Consumption in China’s

Energy Intensive Industries in Recent Years

ResourcesProduction

System Consumption

System

Energy

Wa

ste

Circular

Economy

Reduction Production

SystemConsumption

SystemResources

Energy

Ob

jects Ha

rd to

Use

Reu

seRecycle

Recycle

Linear

Economy

Circular Economy Is The Handling of Energy

Conservation And Emission Reduction in China

Circular Economy Trial Practice in Thermo Power:

Beijing Thermal-power Plant of China Shenhua Energy Co. Ltd. remains

the lowest coal consumption in the country for many years.

Company

Coal Consumption in Power

Generation (g/kWh)

Guohua Electric Power, China Shenhua 325

Beijing Thermal-power Plant, Guohua

Electric Power, China Shenhua 270

China Huaneng Group 334

China Datang Corp. (CDT) 335

China Huadian Corporation 340

China Guodian Corporation 341

China Power Investment Corporation 350

Coal consumption

in power generation

leading in domestic

power industry

Coal consumption in power generation

reduced 80g/kWh in 9 years

The first treatment line for urban industrial wastes in China was built in 2006. Its annual capacity reached 100,000 tons.

The line was approved as one of the national “Torch” projects.

Practice of

Beijing

Cement Plant

Cement plant

slag

Power Plant

Gas

blast

furnaceconverter

continuous

casting

hot

continuous

rolling

cold

continuous

rolling

products

coking

sintering

1.2 mt scrap steel

140~280 kt waste plastics

8~10 mt steel plant

1.2 GW power plant

3 mt cement plant

Circular Economic

Chain Based on a

Steel Enterprise

A New Generation of Circular Steel Making Process

coking coal

iron ore

Incom Resources Recovery Co. Ltd

global PET and renewable PET production capacity

global bottle grade PET

production capacity

total of global renewable

PET

pro

du

cti

on

cap

acit

y (

un

it:

10,0

00 t

on

s)

新饮瓶

“BTB” Recycle Process Contributes Significantly

to Energy Conservation and Emission Reducing

Renewable Bottle PET Chip

Circular Production Chain

diversified recoveryprofessional sorting and

packaging

use of renewables in

INCOM thorough cleaning thorough purification

renewable bottle grade chip

original PET chipcasting blank in bottle blank

factoryglass blowing in factorybottling in beverage factoryentering consumer

market

waste beverage

bottles

reduce

CO2

emission

150 kt

Achievement in

Energy

Conservation

and Emission

Reduction

Energy

Conservation

Emission

Reduction

save Oil

300 kt

50 kt waste

plastic

equal to 60

ktce

save gas

65 million L

Energy Conservation And Emission

Reduction Turning Waste Into Valuables

The Targets of Industrial Energy Saving

Unit 2020 2030 2050

Coal Power Gce/kWh 305 290 271

Steel Kgce/t 650 564 525

Cooper Kgce/t 1063 931 920

Aluminium kWh/t 12870 12170 12000

Cement Kgce/t 101 86 81

Synthetic

AmmoniaKgce/t 1328 1189 1170

Ethylene Kgce/t 796 713 705

Papermaking Kgce/t 840 761 740

An Office Building in

Beijing

113kWh/m2.a

A Mansion in

Shanghai

215kWh/m2.a

Tsinghua Hall

34kWh/m2.a

UPENN Office

Building in US

356kWh/m2.a

New office

building with the

most advanced

technologies

consumes energy

per unit area 10

times higher than

that of the old

building!

From the report of

Prof. Jiang Yi,

Member of CAE

Urgent Needs in Energy Saving of Buildings

Many irrational phenomena in the whole energy system;

many technologies and energy improperly used.

Increase in Construction Area Caused

by Urbanization of China by 2030

61 66 71 74 77

110

132141

149165

175

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1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

城镇

建筑

面积

(亿

平方

米)

Construction Area of China’s Cities and Towns《China Statistical Yearbook》

Build another China in 25

years!

30 billion m2

Increase 1 billion m2 /y30 billion m2 by 2030

Const

ruct

ion A

rea

in C

itie

s an

d T

ow

ns

(100 m

illi

on m

2)

* OSRAM estimation, only Illumination

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Billion €

Year

Traditional Light Source

Stable with Slight

Declining

Total Light

Source Market

9''

10''7

12''9

15''9

LED Rapid Growth

Changes in Global Market of Light Sources

Key Way to Energy Saving: Applying LED Illumination

◆ If LED illumination takes 1/3 of the market, it will save 168 billion kwh of

electricity annually (equal to the production of 2 Three-gorges power

stations)

◆ Road lamp is the stepping-stone for new illuminating technology.

IV. Sustainable Development

Requires To Adjust

Energy Structure

Technologies in 1990’s New

technologiesMax Min

lignite 336 261 228 (2005~2020)

coal 357 264 206 (2005~2020)

oil 246 219 149 (2005~2020)

solar 76.4 27.3 8.2 (2010~2020)

hydro 64.4 1.1

biomass 16.6 8.4

wind 13.1 2.5

nuclear 5.7 2.5

GHG Emission Index of Power

Generation by Different Sources（carbon equivalent g/kwh）

Roadmap for China’s Nuclear Power

Unit: GW 2020 2030 2050

Total Installed

Capacity70-80 200 400

Among them: 2nd

Generation PWR61.1-64.9 90-120 100

3rd Generation PWR 8.9-15.1 80-110 270

Breeder Reactor（Fast

Reactor）30

38

2007 9.1GW 1.2%

2020 70GW 5%

2030 200GW 10%

Based on the mature techno-

logies and international experience,

China should develop self-designed

1000 MW PWR power stations.

Natural Gas Be Developed

Into Pillar of Clean Energy

By 2030, domestic natural

gas production is projected to

reach 300 billion m3 and will

remain stable till 2050. The

import of natural gas will be 150

billion m3. All these will make

natural gas contribute to 15% of

primary energy in China by 2030.

Turn Hydro Power To A Pillar Of Green Energy

By 2020, China’s installed capacity of hydro power

will reach 340 GW. By 2030 when the exploitable hydro

resources are used, the installed capacity will be 400 GW.

41

China’s Wind Energy Resource Map

The total resource of wind energy in

China is about 700～1200 GW, with

annual generation of electricity of

1,400-2,400 TWh.

42

China’s Solar Energy Resource Map

（Except Islands in South China Sea）

If the photovoltaic facilities cover 2% of

the Gobi desert (20,000 km2) and 20% of

roof area, the generation of electricity

will reach to 2,900 TWh.

Biomass Energy

Current biomass resources are 540

mtce, of which, 290 mtce can be used

as a source of energy by producing

fuels for power generation and

materials for methane production.

Strategic

PositionSupplement

Energy

Alternative

Energy

Mainstream

Energy

Leading

Energy

Renewable

Energy

(excluding

hydro power)

2% 5-10% 9-19% 17-34%

Renewable

Energy

(including

hydro power)

10% 16-23% 20-31% 27-45%

Equal to

Fossil Energy

(100 MTCE)3.0 5.6-8.1 8.6-13.1 13.6-22.8

2010 2020 2030 2050

Roadmap for Low Carbon Economy

and Green Energy in China

Conclusion

1. China is in the stage of rapid development of

industrialization and urbanization. The CO2 emission

of China ranks the first in the world because of the

coal dominated energy structure; However, China’s

per capita emission is still much lower than those of

the developed countries. Therefore, China takes

common but differentiated responsibility;

2. To vigorously save energy and reduce emission

and to reduce energy consumption per unit GDP;

The foundation for building a low-carbon society lays

on the development of nuclear power and renewable

energy;

3. To advocate a low-carbon and energy-saving life

style guarantees the building of low carbon society.

46

Thank You!