Internet-based multi-energy trading system
will go live; and iii) demonstration projects of
multiple interconnected energy networks and
energy sources will trigger the extensive use
of Energy Internet technologies.
• In 2021–25: (i) intelligent scheduling
between diversified energy carriers will be
possible and distributed power generation and
storage systems widespread among end users;
and (ii) smart and diversified urban energy
networks will be established to allow accurate
supply scheduling from different sources to
meet fluctuations in demand.
• In 2026–30: (i) new microgrids will be
developed nationwide and an interconnecting
network of non-fossil energy will be built to
help reduce the share of non-fossil energy in
primary energy to the target of 20%; and
(ii) an open and sharing Energy Internet
ecosystem will be formed to significantly
improve energy efficiency.
• After 2030: building on the achievements of
the Energy Internet, the use of renewable
energy will span many sectors—agriculture,
industry, transport, commerce and households. The ecosystem supporting the fast and
sound development of renewable energy will
continue to improve and push renewable
energy development firmly into the fast lane.
3.2.5 Natural Gas Should Play
a Dominant Role
in the Energy Revolution
According to China’s National Hydrocarbon
Resources Assessment (2015), China’s geological gas resources are:
• conventional gas, including tight gas: 90.3
trillion cubic metres, including 50.1 trillion
cubic metres of recoverable reserves;
• shallow shale gas within a depth of 4,500 m:
121.8 trillion cubic metres, including 21.8
trillion cubic metres of recoverable reserves;
and
• shallow coalbed methane within a depth of
2,000 metres: 30.1 trillion cubic metres,
including 12.5 trillion cubic metres of
recoverable reserves.
By the end of 2016, the cumulative proven
geological gas resources were:
• conventional gas, including tight gas:
9 11.7
trillion cubic metres, including 5.2 trillion
cubic metres of recoverable reserves;
• coalbed methane: 692.83 billion cubic metres,
including 334.40 billion cubic metres of
recoverable reserves; and
• shale gas: 544.13 billion cubic metres,
including 122.41 billion cubic metres of
recoverable reserves.
Currently, the conversion rate of natural gas
resources to reserves and recovery rate of proven
reserves in China are all relatively low. The proven
resource rate of conventional gas, coalbed methane
and shale gas are 13.0%, 2.3% and 0.4% respectively, so there is a huge potential to recover more
resources through technological innovation. In
addition, China has made great progress in exploring
for offshore natural gas hydrates, of which there is
huge resource potential to be unlocked.
Before non-fossil energy technologies mature,
natural gas (the cleanest burning fossil fuel) is the
best replacement for coal and oil to reduce pollution and greenhouse gas emissions from energy
consumption. Even after the technologies mature,
natural gas—thanks to its flexibility as an energy
carrier—still has great potential for extensive
deployment. As unconventional gas resources are
still being discovered, it makes sense to make
natural gas a dominant energy carrier after coal
and oil. This is also a key part of the energy
revolution.
3.3 Analysis of Strategic Pathways
for the Energy Revolution
3.3.1 Scenario Setting
(1) Strategic pathway design should follow the
principle of “letting the targets be the guide”
China’s Strategy of Energy Production and
Consumption Revolution is a clear strategic plan
9
Conventional gas here refers to gas field gas, excluding
solution gas.
Special Report 1: A Study of China’s Energy Supply Revolution
129
will go live; and iii) demonstration projects of
multiple interconnected energy networks and
energy sources will trigger the extensive use
of Energy Internet technologies.
• In 2021–25: (i) intelligent scheduling
between diversified energy carriers will be
possible and distributed power generation and
storage systems widespread among end users;
and (ii) smart and diversified urban energy
networks will be established to allow accurate
supply scheduling from different sources to
meet fluctuations in demand.
• In 2026–30: (i) new microgrids will be
developed nationwide and an interconnecting
network of non-fossil energy will be built to
help reduce the share of non-fossil energy in
primary energy to the target of 20%; and
(ii) an open and sharing Energy Internet
ecosystem will be formed to significantly
improve energy efficiency.
• After 2030: building on the achievements of
the Energy Internet, the use of renewable
energy will span many sectors—agriculture,
industry, transport, commerce and households. The ecosystem supporting the fast and
sound development of renewable energy will
continue to improve and push renewable
energy development firmly into the fast lane.
3.2.5 Natural Gas Should Play
a Dominant Role
in the Energy Revolution
According to China’s National Hydrocarbon
Resources Assessment (2015), China’s geological gas resources are:
• conventional gas, including tight gas: 90.3
trillion cubic metres, including 50.1 trillion
cubic metres of recoverable reserves;
• shallow shale gas within a depth of 4,500 m:
121.8 trillion cubic metres, including 21.8
trillion cubic metres of recoverable reserves;
and
• shallow coalbed methane within a depth of
2,000 metres: 30.1 trillion cubic metres,
including 12.5 trillion cubic metres of
recoverable reserves.
By the end of 2016, the cumulative proven
geological gas resources were:
• conventional gas, including tight gas:
9 11.7
trillion cubic metres, including 5.2 trillion
cubic metres of recoverable reserves;
• coalbed methane: 692.83 billion cubic metres,
including 334.40 billion cubic metres of
recoverable reserves; and
• shale gas: 544.13 billion cubic metres,
including 122.41 billion cubic metres of
recoverable reserves.
Currently, the conversion rate of natural gas
resources to reserves and recovery rate of proven
reserves in China are all relatively low. The proven
resource rate of conventional gas, coalbed methane
and shale gas are 13.0%, 2.3% and 0.4% respectively, so there is a huge potential to recover more
resources through technological innovation. In
addition, China has made great progress in exploring
for offshore natural gas hydrates, of which there is
huge resource potential to be unlocked.
Before non-fossil energy technologies mature,
natural gas (the cleanest burning fossil fuel) is the
best replacement for coal and oil to reduce pollution and greenhouse gas emissions from energy
consumption. Even after the technologies mature,
natural gas—thanks to its flexibility as an energy
carrier—still has great potential for extensive
deployment. As unconventional gas resources are
still being discovered, it makes sense to make
natural gas a dominant energy carrier after coal
and oil. This is also a key part of the energy
revolution.
3.3 Analysis of Strategic Pathways
for the Energy Revolution
3.3.1 Scenario Setting
(1) Strategic pathway design should follow the
principle of “letting the targets be the guide”
China’s Strategy of Energy Production and
Consumption Revolution is a clear strategic plan
9
Conventional gas here refers to gas field gas, excluding
solution gas.
Special Report 1: A Study of China’s Energy Supply Revolution
129