
Chapter 3
Actions and Achievements
in the Major Fields of Sustainable Development
Section 6 Energy Production and Consumption
I. Background
3.34 Coal is a major component of China's energy structure, but the
technology for its energy production and utilisation is comparatively backward.
The energy industry faces the dual pressure of increasing supply and protecting
the environment. The Chinese Government considers it crucial to develop
the energy industry, improve the energy utilisation efficiency, and decrease
the amount of soot pollution.
II. Actions and Achievements
3.35 Implementation of both energy conservation and development (with
emphasis on energy conservation)
The Chinese Government has made it a priority to carry out the sustainable
development of the energy industry through energy conservation, technological
progress, and improvement in efficiency. At the beginning of 1996, the
government promulgated the "Policy Outline for Energy-Conserving Technology".
Combined with technological reform, the industrial departments eliminated,
by compulsory devices, a large number of facilities and products with high
energy consumption and worked to strengthen overall energy control. This
has obviously improved the efficiency. The energy consumption per 10,000
yuan of GDP decreased from 5.3 tons of standard coal in 1990 to 3.94 tons
of standard coal in 1995. This means that there was an accumulated saving
of 358 million tons of coal. The average yearly energy conservation rate
was 5.8%. The accumulated conserved energy by petroleum departments from
1991 to 1995 was equivalent to 8.2 million tons of standard coal. The coal
consumed per ton of steel in the steel industry decreased from 1.61 tons
in 1990 to 1.44 tons in 1995. The energy consumption for 10 major products
in the nonferrous industry decreased from 7.6 tons in 1990 to 6.4 tons
of standard coal in 1995.
Table 3-1 Forecast of China's Energy Consumption (from the
Energy Institute of the SPC)
Items 1990 2000
2010 2020 2030 2050
Primary Energy
Consumption (Mtce) 987 1490 1980 2760 3242
3683
Energy Consumption
per capita(tce/year) 0.864 1.148 1.715
1.904 2.176 2.456
CO2 Production
per capita(t-c/year) 0.520 0.639 0.941
1.045 1.193 1.244
GDP Energy
Consumption (kgce/USD) 2.544 1.431 1.170 0.729 0.478 0.225
Note: Monetary units are calculated at 1990 constant prices(1 USD=RMB
4.78 yuan)
Table 3-2 Forecast of China's Primary Energy Production
(from the Energy Institute of the SPC)
Proportion(%) 1995 2010(minimum) 2010(maximum)
Coal 75.5 66.4 69.0
Petroleum 16.7 20.0 17.3
Gas 1.8 5.7 3.7
Hydro- and Nuclear Power 6.0 7.8 9.8
New Energy Resources ---- ---- 0.2
3.36 Adjustment of energy production and consumption structures
In energy structure development, electricity production is taken as
the key aim and coal resources as the basis. The proportion of coal transformed
into clean power energy has been increased, and the energy utilisation
efficiency improved. Transportation of coal has been replaced by the transportation
of electricity, and the proportion of clean energy in the energy structure
has increased. During the Eighth Five-Year Plan, the installed capacity
was increased by 75 million kW. The annual average increase of installed
capacity was 9%. The development of thermal plants has been closely combined
with environmental protection. Coal-cleaning technology has been developed
and de-sulfurising technology has also been introduced and applied. Measures
were taken to control the production of high-sulfur coal and in some areas,
where possible, to facilitate the exploration and exploitation of coal
gas. In restructuring power resources, small-scale condensation thermal
power has been limited, hydropower has been greatly promoted, and petroleum
and natural gas have been significantly developed. In the production of
power, installed capacity of hydropower has increased from 32.7 million
kW in 1988 to 55,577,900 kW in 1996 (representing an increase of 1.7 times).
The proportion of hydropower in the total energy production had been raised
from 4.8% in 1990 to 5.6% in 1996.
3.37 Development of new and renewable energy
Efforts have been made in developing and promoting the application of
solar, wind, geothermal, tidal, and biomass energy. By the end of 1996,
the total capacity of 225 wind power generating units was nearly 56,500
kW. In some coastal areas, especially in Guangdong Province, the energy
consumption structure, which relies primarily on coal, has begun to change.
The proportion of petroleum and its by-product has also been raised to
a relatively high degree.


Picture 3-10 Utilisation of New Energy
Upper Passive Solar Energy Utilisation - Model Building in the Teacher's
College of Gannan Autonomous Prefecture, Gansu Province
Lower Wind Power Station in Shangdu Daishanwan, Inner Mongolia Autonomous
Region
3.38 Development of techniques and facilities for clean combustion of
coal
The Chinese Government attaches importance to the development and application
of coal-cleaning technology. It limits the direct burning of raw coal and
has reached great achievements in the development of de-sulferisation techniques,
circle boilers, low NOx combustion technology, and the comprehensive utilisation
of the soot from thermal power plants. The government also adopted the
policy of encouraging residents and enterprises to use shaped coal. In
1995, shaped coal accounted for 40% of the coal used in urban households
and 70% of the civil coal consumption. On the basis of in-depth research
and development of industrial shaped coal, experiments have been conducted
in some enterprises and the results are being disseminated. Some outdated
boilers and combustion facilities have been eliminated by compulsory measures
and high-efficiency energy-conserving boilers introduced.
3.39 New progress in rural energy development
Since 1991, comprehensive energy construction projects has been carried
out in more than 330 counties across the country. Methane combustion, solar
energy, wind energy, geothermal energy, small hydropower, energy-conserving
stoves, and designated fuel forests and firewood have been widely applied
in rural China. By the end of 1995, a capacity for annually conserving
80 million tons of standard coal had been reached and the serious shortage
of energy in rural areas had been more or less eased. The construction
of small-scale hydropower plants has been significantly developed in the
countryside. From 1992 to 1996, the needs of 50 million rural people, who
did not have electricity in the past, were met by the development of small
hydropower.
In the more than 300 counties where the electricity supply is mainly
dependent on small hydropower, primary electrification has been realised.
Among China's 800 mountainous counties which primarily rely on medium-
and small-scale hydropower, 318 counties and one region have realised
rural primary electrification. More than 40 regional electricity networks
have been formed.

Picture 3-11 Domestic and Foreign Experts Inspect a Rural
Biomass Energy
Site in Xiaozhuang Village in Yinshang County of Fuyang City of Anhui
Province - One of "The Global Best 500"
Box 3-10 Methane Technology in the Countryside
Since 1992, methane-generating pits have been
built for more than 200,000 households. By the end of 1995, 5.7 million
rural families were using methane. The yearly production was 1.54 billion
cubic metres (equal to 1.35 million tons of standard coal). Over 25 million
people had access to good quality methane.
Integrated utilisation of methane has also seen
great progress. Seed-soaking in liquid methane has been applied to 1 million
hectares. Good results have also been achieved in the raising of pigs,
fishes, and mushrooms. In northern China, the "energy ecology pattern
in northern rural areas" has been promoted which combines the methane-generating
pit, pig house, toilet, and greenhouse. This has brought an average of
more than RMB 4,000 yuan to each family.
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