Power-Starved China Inks Energy Conservation Plan
CHINA: December 7, 2004


BEIJING - China, grappling with its worst energy crunch in two decades, aims to save millions of tonnes of coal and oil a year by putting "conservation first" and making industry more efficient, the government has said.

 


The State Development and Reform Commission recently issued China's first medium and long-term plan for energy conservation, setting targets to help the world's second-biggest energy user ensure sound economic growth.

"On the one hand, we should expand domestic exploration and development, speed up construction of energy projects and fully use overseas resources," said the report issued late last month.

"On the other hand, we should insist on conservation first ... and set up an energy-saving society."

Under the plan, China will aim to burn 2.25 tonnes of coal for every 10,000 yuan ($1,200) worth of GDP by 2010, down from 2.68 tonnes per 10,000 yuan in 2002.

By 2020, the level should be 1.54 tonnes of coal per 10,000 yuan of GDP.

China's economy, which grew 9.1 percent in the year through the third quarter, is driving demand for coal, oil and power that far outstrips domestic supplies.

In the first 10 months of this year, China's crude oil imports rose 34 percent from a year earlier to nearly 100 million tonnes. More than two-thirds of its provinces suffered from blackouts this summer.

ALTERNATIVE FUELS

Coal, which makes up two-thirds of China's energy consumption and is used in highly polluting ovens in homes and restaurants, would be mainly used for power generation in future, the report said.

Broader use of cleaner energy sources such as natural gas, ethanol and liquefied coal in industries like petrochemicals, metals and transport would replace an estimated 38 million tonnes of oil between 2006 and 2010, it said.

More efficient machines in power-intensive industries could save 20 billion kilowatt-hours of electricity a year between 2006 and 2010.

The introduction of energy-saving lighting in residential and public areas could save 29 billion kilowatt hours of power in those five years, it said.

Automobiles would be the fastest-growing driver of oil demand over the next few years, but authorities would enact fiscal and tax policies to favour energy-saving automobiles, it said.

For instance, petrol-saving economy cars, which have been discouraged in big cities for their slow speed, would no longer be banned from urban expressways, and private cars would be discouraged in favour of buses and subways, it said.

Other conservation measures included the use of high-tech, energy-efficient materials in new buildings and encouraging use of energy-saving home appliances.

($US1=8.276 yuan)

 


REUTERS NEWS SERVICE