Wu Xinxiong：Create “upgraded version” of Chinese energy
Source: www.mlr.gov.cn Citation: www.chinamining.com.cn Date: Feb.18, 2014
Energy work matters a great deal for every aspect of national economy and people’s livelihood. Our country has made great progress in energy in recent years. On the basis of domestic energy security, we have gained more discourse power on the field of international energy. In the past year, what progress has been made? What target tasks are in the following year? How to develop various works smoothly to guarantee national energy security? With these questions, our journalist interviewed Wu Xinxiong who is the vice director of National Development and Reform Commission and Director of National Energy Administration.
Journalist: Please talk about the achievement we’ve got in 2013.
Wu: In 2013, all members of energy system all over the country worked hard together, tackled tough, take practical measures and spared no efforts to guarantee energy supplies. What’s more, we did everything we can to optimize allocation of energy structure and devote great efforts to drive energy reform and innovation. As a result, we have made a great contribution to keeping the energy situation balanced and improving the energy-using condition of the masses. The main results are as follows:
Energy supply＆demand has been stable and energy efficiency has been increased a lot. In 2013, the total energy production increased by 2.1％, compared with the year before. Among them, coal output increased by about 1％. Crude production increased by about 2％to 210 million more or less. Gas production was about 11.7 billion , which increased by 9％. Electric energy production increased by 7.5％ and reached 5.35 trillion. About 0.7 billon standard coal was imported. The increasing rate of GDP is 7.7％. Total energy consumption increased by 3.9％. GDP (10,000 Yuan) consumed 0.731 tons of standard coal which descended about 3.7%.
Plans for Controlling Air Pollution made by State Department have been carrying out. At the same time, we have drawn up a scheme about how to prevent and cure air pollution. We also proposed several energy security measures such as providing more exotic electricity, guaranteeing natural gas supplies, supplying State-V oil in advance, developing renewable energy, starting the construction of nuclear power duly and so on.
We took several measures to speed up the development of clean - energy and renewable energy. In 2013, China’s newly installed capacity reached 2993 GW of hydropower, making the total capacity 0.28 billion kilowatt. Newly installed capacity of wind power was 14.06 GW, 75.48 GW in total. Wind power production was 140 billion kilowatt which increased by 36.4%. Newly installed photovoltaic power generation system was 1130 GM, the whole capacity got to 1479 GM and total power production was more than 8 billion kilo watt per hour, which increased 43%. Biomass power generation reached 850 GW and total power production was 32 billion GW hour.
Taking the opportunity of promoting the results of high-level-visit, energy international cooperation has made great progress. In the field of oil and gas, we have signed a series of protocols and memorandums about promoting. Russia will supply more crude as well as natural gas. Turkmenistan will add more natural gas for China, 25 billion cubic meters in total. We subscribed the summary of conversations which were about inter-governmental route of natural gas channel-D in central Asia and pipeline-transiting protocols. We purchased 20% of the equity of program LNG (in Yamal, Russia ) and 8.33% of the equity of Kashia oil field ( in Kazakhstan ) by bidding. In the territory of nuclear power, Karachi Nuclear Plant No.2, which is in Pakistan was undertook and Set No.3 began to work. The cooperation agreement between Romania and China has been achieved so that we will exploit the Cernavode Nuclear Plant No.3 and No.4 together. What’s more, the phased objectives were obtained on Sino-US AP1000 and Sino-Russia nuclear power. In the field of coal, electric power, 20 million tons of coal was imported in 2013. Steady progress in development cooperation between the US, Australia, Mongolia, India, etc. has been made. Electric trade with the countries around has been increasing persistently. In the territory of new and renewable energy, China joined the International Renewable Energy Agency (IRENA) officially. Memorandum of understanding and framework agreement has been subscribed among China and the UK, Canada and so on. We have come to an important agreement on solar energy with Saudi Arabia, Kazakhstan, etc. The cooperation with other counties such as Denmark，German, other districts like Taiwan and organizations such as the World Bank, Asian Development Bank (ADB ) has been deepened day by day.
In 2013, we have devoted many efforts to advance energy technology innovation. As a result, the important national special project in science and technology has been carried out. Nationalization and industrialization on energy technology equipment has had new breakthrough as well. In the field of nuclear electricity, some pivotal devices such as main pump AP100, explosion valve, large - sale forge pieces and so on. have developed independently. CAP1400 has passed the preliminary design investigation. High-temperature gas-cooled (HTGR) has always been evolved well. As for the shale gas, the system of horizontal well, drilling and completion, large-volume fracture technology has been formed rudimentarily and independently. The world’s first type3000 fracturing truck has been made successfully and put into field application. The Sinopec Nationally Designated Demonstration Region in Fuling, Chongqing brought into production test. The highest daily oil yield of every single well has reached 380,000 cube meters. As respects of long-distance pipeline and LNG, large domestic electric compressors have realized batch orderings. The main equipment used in the east part of the West-east natural gas transmission line-3, program LNG in Tai’an which is able to produce 600.000 tons per year has been all made in China. As for clean coal, the 60GW capacity Circulating Fluid Bed(CFB) in units went into operation formally. Baima power station (Sichuan) owned the intellectual property right independently, which stands for China’s leading position in CFB boiler technology.
Journalist: Could you talk about our energy working task in 2014?
Wu: The guiding thoughts of 2014’s energy work are as follows: Fully implement the spirits of the 18th National Congress and 2nd / 3rd plenary session of the 18th Central Committee of the Communist Party; carefully implement all decisions of the Central Government and the State Council; complete the following four basic task: be sure to guarantee energy strategy safety; change the way of consuming energy; optimize the layout structure and make innovations in energy system and mechanism. We will put more efforts on transferring mode, adjusting structure, promoting reform, reinforcing supervision , guaranteeing all kinds of supplies and benefit masses. Market impetus and vitality will be stimulated by reforming dividends, as a result, we will make a Chinese energy “updated version”, providing a firm safeguard for economic development.
The main aims of energy work in 2014 are as follows: Energy efficiency must be increased. GDP energy consumption per unit must be controlled within the range of 0.71 tons of standard coals per ten thousand Yuan, reduced 12%, compared with 2010; Elasticity of energy consumption will be about 0.43 while electricity consumption elasticity will be about 0.93; The total energy consumption will be controlled within 3.88 billion tons of standard coal more or less, increased 3.2%, compared with last year; electricity consumption will be controlled at 5,720 billion kilo watt, increased 7%, compared with last year; coal consumption will be controlled under 3.8 billion tons, increased 1.6%, compared with last year; By means of optimizing energy structure, the ratio of non-fossil energy consumption will increase to 10.7%, the ratio of non-fossil energy installed power generation will reach 32.7%; the proportion of natural gas will increase to 6.5% while coal consumption will reduce below 65%.; The total energy production will reach 3.54 billion tons of standard coal to guarantee energy supplies, which increased by 4.3%. Among those, coal production will be 2.5 billion tons of standard coal, increasing 2.7%; crude oil production will reach 0.21 billion tons, increasing 0.5%; natural gas production will reach 131 billion stereos, increasing 12%; electric production from non-fossil energy will reach 1,300 billion kilo watt hour, increasing 11.8%.
Journalist : In order to accomplish those target tasks above, what aspects of work should we do?
Wu: In 2014, we will emphasize the following aspects of work.
First, we will change the way of consuming energy, control the excessive growth of total energy consumption. Energy consumption and economic growth will be connected. The gross energy consumption of energy-intensive production and excessive production capacity industries will be restrained strongly; other industries will be restrained strongly according to their average advanced energy efficiency, existing capacity must be up to the standard before deadline. Newly increased capacity must meet advanced energy efficiency standard. Selecting the superior and eliminating the interior will be accelerated. Put regions-differential energy policies. According to the affordability of ecosystem and water resource in the western part of our country, we can pursue efforts to energy development properly and maximize the ability of inter-regional calling-out in the condition of energy efficiency and advanced technology; energy development intensity in the central part should be controlled and the energy development structure in the eastern part should be optimized, fossil energy excessive increase should be controlled strictly.
Second, air pollution prevention measures must be carried out carefully to promote energy structure perfection. Taking the opportunity of air pollution prophylaxis and treatment, we will accelerate the speed in closing down backward production facilities. We will do more to reduce the ratio of coal consumption and increase the proportion of natural gas and non-fossil energy. We will do some research to set a national standard of product coal’s quality. Coal quality control measures will be released as well; complete the policy about differential coal import tariff to encourage to import high-class coal and limit the import of high ash , high sulfur coal. Upgrades of oil quality will be implemented more rapidly, the plan about refined oil product will be introduced. Upgrading reconstruction of refineries will be propelled and the capacity distribution will be advanced to make sure that motor gasoline and diesel oil in national -V-standard will be supplied for key cities in Beijing, Tianjin and Hebei region, Yangtze river delta and Pearl river delta by the end of 2015, the supplies will reach all over China by the end of 2017. We will improve the support capacity of natural gas and make a long-run supply plan according to the requirement from every province. We will quicken exploiting unconventional gas like coal bed gas and shale gas. Coal gas industry will be developed scientifically and sequentially. We will speed up boosting pipelines, gas storage facilities and LNG reception station program construction. We will increase the efforts of eliminating backward production facilities and the energy-saving emission reduction. We will stop approving and building new coal whose production capacity is below 300,000 tons every year, the coal and gas-outburst mine whose production capacity below 900 thousand also will be forbidden. In this way, mines which produce below 90 thousand will be eliminated gradually and the mines which are danger to miners will be shut down more quickly so that coal mine enterprise annexation and reorganization will be impelled continually. In 2014, the backward production capacity which is eliminated will be 30 million tons; the number of coal enterprise will be reduced within 5500. The pollution-treatment infrastructure and remolding of coal-fired power plants in Beijing, Tianjin and Hebei region, Yangtze River delta and Pearl River delta will be completed by 2015.
Third, we will strive to develop clean energy to promote the green growth of energy. We will develop hydroelectric power actively by expediting large-scale hydropower base constructions such as Jinsha River, Lantsang River, Dadu River, Yalong River and so on. Wind power will be developed sequentially. We will formulate, perfect and carry out the regulations about renewable electricity standard and guaranteeing the purchasing in full amount, in this way, the wind power cost will be reduced gradually and we will try our best to make the cost of wind power be equipped for thermal power by 2020. Solar power generation will be developed faster, Some opinions on promoting the healthy development of photovoltaic industry signed by the state council will be carried out. Strengthen the whole- process supervision of photovoltaic grid-connected service and indemnify purchasing in order to make sure the subsidized capital in place; distributed PV business model will be explored and formed practically, the electricity cost will be reduced gradually. We will make an active use of biomass and geothermal energy. We will give more support to biomass cogeneration. Geothermal energy can be used preferentially in the area rich in geothermal energy. Nuclear electricity must be developed safely and efficiently. The major projects of nuclear power must be started in proper time. Nuclear power in coastal region should be carried forward step by step. We also should protect the address of our inland nuclear plants well.
Fourth, petroleum and natural gas will be developed more rapidly. We will increase the capacity of insuring energy safety. We will follow the guideline which required us to develop conventionally and unconventionally, to lay equal stress on land and sea. Oil gas exploration and development will be reinforced and oil gas self-sufficient ability will be increased. In 2014, national crude production plan to be 2100 million tons. Natural gas (not contain coal gas) production will reach 131 billion cube meters. We will increase the gas probing development dynamics and do a good job on deep layer, offshore, deep water oil-gas field exploration. We will focus on the six main manufacturing bases which are Song-liao, Bohai Bay, Ordos, Northwest, Sichuan and at sea. The exploration and recovery rate will be increased faithfully to endeavor to secure more reserves. Unconventional and oil gas resources in the sea will be made new breakthrough in. We will summarize and popularize the experience from Sinopec Nationally Designated Demonstration Region in Fuling. Nationally Designated Demonstration Region of shale gas should be constructed more quickly. We will do all we can to accelerate the speed of exploration in Sichuan-Chongqing area. New breakthrough will be made in Hunan-Hubei , Yunnan-Guizhou and Kiangsu-Anhui region. Demonstration industries of coal gas will be advanced step by step. We will carry forward the demonstration industries of coal gas actively and safely, following the strictest standard for energy efficient and environmental protection. Making use of coal according to different qualities will be encouraged.
Fifth, we will optimize structures to boost the construction of coal giant base and large channel. We will focus on building 14 large coal bases, 9 large coal electricity bases, 12 transmission accesses for West-east electricity transmission project to optimize energy development space and increase energy al locative efficiency. The yield of the coal bases will reach 3.46 billion tons, taking up 91% of the whole country; the preliminary working scale will reach 70 million kilo watt, taking up 8% of the coal installed capacity all over the country. The general management plan in mining area will be enhanced, the exploring order will be standardized and the preliminary work and checking work in large or medium modern coal programs will be facilitated steadily; we will boost mining safely and greenly, generalize technical of backfill mining; we will speed up the constructions of these mining lots, which are used for gas drainage in large scale and gas governance demonstration, increase gas utilization as well; we will expedite the updating demonstration of coal’s further processing with steady steps and promote the conversion to high-efficiency and cleanness as well as comprehensive utilization. We will build large scale coal-fired power plants in coal-gathering area such as Sinkiang, Inner Mongolia, Shan-xi, Ningsia and so on. We will propel the construction of large scale kilowatts coal bases, which are delivery-based in Ordos, Xilinguole, the north, center, east of Shan-xi, the northern part of Shaanxi, Ningdong, Kumul, Huaidong, etc.
Sixth, we will take the major projects as a medium to advance energy technological innovation strongly. We will bring into full play to the leading role of national energy development center ( key laboratory). We will focus on boosting the key technological research like unconventional oil gas, deepwater hydrocarbon, advanced nuclear electricity, new energy, 700℃ ultra supercritical power generation, coal-fired power generation according with the standard of gas turbine letting-out, coal further processing, exploration of coal bed gas, smart grid, distributed energy resource, high-capacity accumulation energy, etc. We will start and do a good job on 25 major applied technology and special demonstration projects. We will work hard to make a new breakthrough in unconventional oil gas such as abyssal sea gas oil, compact gas oil, shale gas oil, etc and new generation of nuclear technology. We will impel the domestication of key equipment and focus on propelling the equipment domestication of shale gas and coal bed gas, the exploration of sea oil gas, the liquefaction and reception of natural gas, nuclear gas and pumped storage power, etc. Independent research and development on large-size gas turbines will be boosted. The development of high-temperature components and the construction of verification platform will be accelerated. We will make some instructions to promote the sound development in energy equipment-making industries. The self-dependent innovation platform construction of energy enterprises and energy equipment-making enterprises will be quickened, equipment localization will be impelled, the level of energy equipment independence will be higher, as a result, internationally competitive energy equipment industry system will be formed, which will be an active support for energy equipment enterprises.
Seventh, we will deepen energy international cooperation. Sino-Russia natural gas negotiation will be impelled actively, We will speed up propelling the pipeline-D natural gas program. We will impel the cooperation between Yamal liquefied natural gas program in Russia and Tianjin refinery plants. We will consolidate and enhance the ten major energy-cooperation relationships such as Sino-Russia, China-Kazakhstan, China-Turkmenistan, China-Uzbekistan and so on. We will cement and enlarge the four oil gas transmission pipeline construction which include the northwest, northeast, southwest and oil gas at sea. Energy resource importation will be boosted practically. We will impel construction of the economic zones on the Silk Road, the Maritime Silk Road in the 21th century, the economic corridor among China, India, Myanmar, Bangladesh and China-Pakistan. We will focus on energy cooperation and drive upstream-downstream industries, engineering construction, technical equipment and relevant service industries to develop smoothly. The cooperation program such as Venezuela’s heavy oil, Canada’s oil sand, America’s shale oil and gas, Brazil’s oil under salt in deep sea and so on will be brought into force successfully. The international cooperation in coal, electricity, new energy will be quickened. Technical equipment export and project contracting on coal equipment, new energy equipment, electrical＆electronics and dam design technology will be propelled.
Journalist: Please talk about the effects of the National Energy Administration on tightening industry management, transformation of functions, shifting the paradigm?
W: The National Energy Administration will emphasize transforming the function of government, reducing administrative examination and approval, innovating the way of energy management, straightening strategies, planning, policies, measures, supervision and service, we will increase the energy efficiency practically.
Energy legal construction will be propelled. We will carry forward revising Power Law. We will promote the introduction of natural gas pipeline protection regulations, nuclear power management regulations, and national petroleum reserve management regulations. Renewable Energy Source Act and supporting measures for Oil and Gas Pipeline Protection will be perfected. We will study and formulate energy regulations and establish a sound energy regulatory rules and regulations.
We will strengthen strategic planning and policy guidance. Major strategic energy planning like national energy strategic action plan will be unveiled. The preliminary study and compiling work of the 13th Five Year Plan will be started. We will protocol a plan of annual energy development and strengthen the energy policy research. We need complete the industrial policy of major energy as well.
The mechanism of examination and approval for the record will be innovated. The way of energy program management should be innovated as well. We will implement the project mainly through “four-in-one” management including program, plan, policy and supervision. Canceling and delegating power to local government will be continued. All power that can be transferred to a lower level should be transferred. All that can be delivered to market should be delivered to market. The government approved investment projects catalogue in 2013 will be carried out practically. For matters that was subject to examination and approval, authorization of archival filing, we will further optimize the administrative examination and approval procedures as well as simplifying the preconditions for examination and approval of projects, establish online public and approval system, accelerate the fairness for examination and approval, completing in time and improving the service efficiency ＆transparency.
We will serve for local social development. We will abide by the difficulties for the local places, in the light of the overall situation of energy security, closely in combination with the practical situation of local economic and social development and aiming at the existing outstanding problems of energy security. We will give full play to the province matchmaking service and contact energy resources work mechanism＆corresponding liaison mechanism of local energy work. We should understand and settle the claim reasonably in a timely manner. Regional differentiation in energy policy should be implemented to promote the eastern, central, western regions’ economic and social coordination＆sustainable development.
Energy service companies will be developed scientifically. The role of seven energy enterprises’ scientific development coordination mechanism, which are coal, electricity, oil gas, new＆renewable energy and so on, will be fully exerted. The symposium shall be convened once each quarter. We will help enterprises grasp the opportunities, response to challenges and resolve problems timely in order to make them enlarged and fortified in the market competition through the analysis of the situation ＆ countermeasure research.
(Translated by TLRHVC)
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