5 Reality and Challenges of China’s Water Resources Management …
181
5.3 Addressing Changes in Water Resources Demand
in Key Industries in the Context of Climate Change:
A Case Study of Power Sector
5.3.1 Current Development of Power Industry in China
5.3.1.1 Analysis of Power Supply in China
Power sector in China has enjoyed booming development over the last decades,
especially since the turn of the century. As is pointed out in 2018 Annual Development
Report on Power Enterprises in China, the power sector has entered a critical stage of
transformation, restructuring and gear shifting. Driving its high quality growth shall
underpin the “clean substitution” on the supply side and the “power substitution” on
the consumption side of energy (Fig. 5.15).
Overall, electricity generation in China has been climbing steadily in recent years.
In 2017, total power production hit 64,951.4 TWh, an annual increase of 6.4%. In
contrast, thermal power generation showed lackluster annual growth at 4.9% on
average throughout eight years. Despite the dominant position of thermal power
in terms of absolute quantity, clean energy has sustained superior growth rate that
overtook thermal power by a large margin. The annual growth of wind, hydro and
nuclear power averaged at 31.0%, 7.3% and 18.9% respectively, higher than that of
total power generation. An overview of the power sector in China shows that the
trend of clean substitution is taking shape.
5.3.1.2 Analysis of Power Demand in China
Of the seven sectors on the consumption side (1-agriculture, 2-industry, 3construction, 4-transport, storage and post, 5-wholesale, retail trade and hotel,
restaurants, 6-others and 7-residential consumption), industry has always been the
dominant electricity consumer, followed by residential consumption. Agriculture
consumes the least electricity (Fig. 5.16).
Figure 5.17 illustrates total power consumption in China from 2010 to 2017 and
the absolute growth and annual growth rate by sector. Power consumption from 2010
to 2017 grew by 22,886.5 TWh, averaging at 6.4% on a yearly basis, of which over
half of the increase was attributable to the industrial sector. Despite this, the sector
only reported annual growth of only 5.5%. Likewise, the consumption growth in
agriculture was also below the annual average, standing at 198.6 TWh with a growth
of 2.7%. Overall, the power use increase in transportation, wholesale and retail trade
and others was lower than that of industry and residential consumption, yet the above
three sectors, a major part of the tertiary industry, hit 9.9%, 10.1% and 10.3% in
annual growth respectively, taking the top three spots out of seven sectors. What lies
underneath is the profound impact of industrial restructuring on power consumption.
181
5.3 Addressing Changes in Water Resources Demand
in Key Industries in the Context of Climate Change:
A Case Study of Power Sector
5.3.1 Current Development of Power Industry in China
5.3.1.1 Analysis of Power Supply in China
Power sector in China has enjoyed booming development over the last decades,
especially since the turn of the century. As is pointed out in 2018 Annual Development
Report on Power Enterprises in China, the power sector has entered a critical stage of
transformation, restructuring and gear shifting. Driving its high quality growth shall
underpin the “clean substitution” on the supply side and the “power substitution” on
the consumption side of energy (Fig. 5.15).
Overall, electricity generation in China has been climbing steadily in recent years.
In 2017, total power production hit 64,951.4 TWh, an annual increase of 6.4%. In
contrast, thermal power generation showed lackluster annual growth at 4.9% on
average throughout eight years. Despite the dominant position of thermal power
in terms of absolute quantity, clean energy has sustained superior growth rate that
overtook thermal power by a large margin. The annual growth of wind, hydro and
nuclear power averaged at 31.0%, 7.3% and 18.9% respectively, higher than that of
total power generation. An overview of the power sector in China shows that the
trend of clean substitution is taking shape.
5.3.1.2 Analysis of Power Demand in China
Of the seven sectors on the consumption side (1-agriculture, 2-industry, 3construction, 4-transport, storage and post, 5-wholesale, retail trade and hotel,
restaurants, 6-others and 7-residential consumption), industry has always been the
dominant electricity consumer, followed by residential consumption. Agriculture
consumes the least electricity (Fig. 5.16).
Figure 5.17 illustrates total power consumption in China from 2010 to 2017 and
the absolute growth and annual growth rate by sector. Power consumption from 2010
to 2017 grew by 22,886.5 TWh, averaging at 6.4% on a yearly basis, of which over
half of the increase was attributable to the industrial sector. Despite this, the sector
only reported annual growth of only 5.5%. Likewise, the consumption growth in
agriculture was also below the annual average, standing at 198.6 TWh with a growth
of 2.7%. Overall, the power use increase in transportation, wholesale and retail trade
and others was lower than that of industry and residential consumption, yet the above
three sectors, a major part of the tertiary industry, hit 9.9%, 10.1% and 10.3% in
annual growth respectively, taking the top three spots out of seven sectors. What lies
underneath is the profound impact of industrial restructuring on power consumption.