power revolution. International collaboration and
capital investment should be strengthened to
explore and develop advanced nuclear technologies like fusion power.
(3) Forward-looking research on marine
energy
China has a vast coastline, which means it has
abundant marine energy. R&D is pivotal to
finding ways to convert marine energy into reliable and accessible energy carriers like electricity. As these technologies progress, marine
energy is expected to become an important part
of China’s future energy system.
7.2 Measures for the Secondary
Energy Revolution
Electricity-centred energy supply becomes
increasingly important in the energy revolution.
It is an efficient and easily accessible secondary
energy carrier, with the potential to be clean and
carbon-free. The strategy of replacing coal and
oil with electricity and long-distance clean power
transmission is a priority goal of China’s secondary energy supply revolution.
7.2.1 Combine Centralised
and Distributed Energy
Optimally
Centralised power generation and supply have
dominated China’s energy system and driven
China’s socioeconomic development forward.
However, because distributed energy systems
have lower electrical losses, are more efficient and
more environmentally friendly, China’s energy
system is shifting towards a combination of centralised and distributed energy supply. This is an
irreversible trend in China, and the only way to
ensure an optimised and clean energy system.
7.2.2 Replace Fossil Energy
with Electricity
Replacing fossil energy with electricity means
coal, oil, gas and direct fossil fuel burning.
Electrical equipment should be extensively
deployed to reduce fossil energy consumption.
This conserves energy resources and reduces
wastewater, residuals and exhaust gas, thus
helping to deliver China’s energy efficiency and
emissions reduction strategy.
7.2.3 Increase Demand-Side Response
Reasonable pricing and incentive mechanisms
should be developed, and flexible demand-side
response resources coordinated—such as distributed energy systems, energy storage and
electric vehicles—to drive users to implement
demand-side response. This will help reduce peak
loads and peak-valley differences. It will lessen the
need for new power generating capacity and for
more power transmission and distribution systems. The efficiency and reliability of existing
systems will improve, as will the use of critical
resources like land, capital and human resources.
7.3 Policies and Proposals
for Supply-Side Investment
and Reemployment
Replacing fossil primary and secondary energy
with cleaner alternatives and electricity respectively will shift China’s energy supply system
towards a low-carbon future. New investment
opportunities will arise. There will, however, be
costs. Shutting down outdated capacity will
result in unemployment in conventional energy
companies. Investment in clean energy needs to
be guided and conventional energy companies
helped to reposition their surplus workers. Both
factors are important to a successful delivery of
the energy revolution.
7.3.1 Supply-Side Investment Guidance
Development of clean energy is one of the major
tasks of the energy revolution. Investment guidance is therefore important. In recent years,
several problems have been exposed, such as:
increasingly severe wind and solar curtailment,
despite a sharp increase in installed capacity; and
weak market competitiveness and low marketisation due to instability in clean power generation. Policies and suggestions for supply-side
investment are necessary.
Special Report 1: A Study of China’s Energy Supply Revolution
177
capital investment should be strengthened to
explore and develop advanced nuclear technologies like fusion power.
(3) Forward-looking research on marine
energy
China has a vast coastline, which means it has
abundant marine energy. R&D is pivotal to
finding ways to convert marine energy into reliable and accessible energy carriers like electricity. As these technologies progress, marine
energy is expected to become an important part
of China’s future energy system.
7.2 Measures for the Secondary
Energy Revolution
Electricity-centred energy supply becomes
increasingly important in the energy revolution.
It is an efficient and easily accessible secondary
energy carrier, with the potential to be clean and
carbon-free. The strategy of replacing coal and
oil with electricity and long-distance clean power
transmission is a priority goal of China’s secondary energy supply revolution.
7.2.1 Combine Centralised
and Distributed Energy
Optimally
Centralised power generation and supply have
dominated China’s energy system and driven
China’s socioeconomic development forward.
However, because distributed energy systems
have lower electrical losses, are more efficient and
more environmentally friendly, China’s energy
system is shifting towards a combination of centralised and distributed energy supply. This is an
irreversible trend in China, and the only way to
ensure an optimised and clean energy system.
7.2.2 Replace Fossil Energy
with Electricity
Replacing fossil energy with electricity means
coal, oil, gas and direct fossil fuel burning.
Electrical equipment should be extensively
deployed to reduce fossil energy consumption.
This conserves energy resources and reduces
wastewater, residuals and exhaust gas, thus
helping to deliver China’s energy efficiency and
emissions reduction strategy.
7.2.3 Increase Demand-Side Response
Reasonable pricing and incentive mechanisms
should be developed, and flexible demand-side
response resources coordinated—such as distributed energy systems, energy storage and
electric vehicles—to drive users to implement
demand-side response. This will help reduce peak
loads and peak-valley differences. It will lessen the
need for new power generating capacity and for
more power transmission and distribution systems. The efficiency and reliability of existing
systems will improve, as will the use of critical
resources like land, capital and human resources.
7.3 Policies and Proposals
for Supply-Side Investment
and Reemployment
Replacing fossil primary and secondary energy
with cleaner alternatives and electricity respectively will shift China’s energy supply system
towards a low-carbon future. New investment
opportunities will arise. There will, however, be
costs. Shutting down outdated capacity will
result in unemployment in conventional energy
companies. Investment in clean energy needs to
be guided and conventional energy companies
helped to reposition their surplus workers. Both
factors are important to a successful delivery of
the energy revolution.
7.3.1 Supply-Side Investment Guidance
Development of clean energy is one of the major
tasks of the energy revolution. Investment guidance is therefore important. In recent years,
several problems have been exposed, such as:
increasingly severe wind and solar curtailment,
despite a sharp increase in installed capacity; and
weak market competitiveness and low marketisation due to instability in clean power generation. Policies and suggestions for supply-side
investment are necessary.
Special Report 1: A Study of China’s Energy Supply Revolution
177