domestic natural gas demand and a significant
increase in natural gas imports, China’s production of conventional natural gas was 136.9 billion
cubic metres, up slightly (1.7%) on 2015. Shale
gas production maintained strong momentum,
with production in 2016 reaching 7 billion cubic
metres, up 52.2% on 2015. CBM developed
slowly—CBM ground extraction reached 4.5
billion cubic metres, a slight increase of 1.7%, and
CBM use was 4.2 billion cubic metres. Production
of coal gas was 1.6 billion cubic metres, up 14.3%
on the previous year. In 2016, the production and
use of coalmine gas were 17.9 billion cubic metres
and 8.8 billion cubic metres respectively, an
increase of 96 and 148% compared to 2010.
Installed power capacity continued to grow,
and non-fossil energy’s share of the power mix
increased. According to data from the China
Electricity Council, by the end of 2016, China’s
installed power capacity reached 1,650 gigawatts
(GW). Specifically, installed capacity and output
of hydropower were 330 GW (up 3.92% on
2015) and 1,174,800 gigawatt-hours (GWh) (up
5.58% from 2015). The installed capacity and
output of nuclear power were 33.64 GW (up
23.83%) and 213,100 GWh (up 24.39%). The
installed capacity and output of grid-connected
wind power were 147.47 GW (up 12.79%) and
240,900 GWh (up 29.78%). The installed
capacity and output of grid-connected solar
power were 76.31 GW (up 80.91%) and 66,500
GWh (up 68.51%). The installed capacity of
non-fossil energy, including hydro, nuclear, wind
and solar power accounted for 36.6% of China’s
total installed power generation, while output
from non-fossil energy generating units amounted to 29.14% of the total. New installed capacity
in 2016 reached 120 GW, including 48.36 GW of
thermal power, 19.3 GW of wind power, 34.54
GW of solar power, 11.7 GW of hydropower and
7.2 GW of nuclear power. Non-fossil energy
accounted for 60% of China’s total new installed
power capacity, the fourth consecutive year it
exceeded 50%. This is clear evidence that China
is continuing to optimise its power system. In
2016, China’s total power output was 5,990,000
GWh and the share of non-fossil energy was
28.4%, up 1.5% points on 2015. The new power
output is equivalent to the 2016 output of two
Three Gorges hydropower stations.
10
The breakdown of China’s primary energy
production in 2006–15 is shown in Fig. 15. Raw
coal production gradually declined, but is still the
main component in energy production. In 2015,
raw coal’s share of total primary energy production reached 78.2%, while the share of other
energy sources exceeded 10%. Natural gas production increased at an average annual growth
rate of 5.27%, reaching 5.3% of total primary
energy production in 2015. The average annual
growth rate of primary electricity and other
energy sources was 6.94%. The share of other
energy sources also increased, the result of China’s changing energy system. In the future, the
market share of natural gas and renewable energy
sources will increase, and their production share
could also continue to increase.
China should: (i) develop an energy supply
system based on solar, wind, hydro, nuclear and
biomass as well as other clean energy sources,
complemented by fossil energy such as coal and
oil; (ii) encourage energy producers to invest
more in clean energy technologies and production, give clean energy priority access to the
market, and increase the share of clean energy in
the energy supply system; and (iii) implement
appropriate taxes and financial policies on fossil
fuel energy production and supply, and reduce
the development of existing conventional fossil
energy resources.
2.3 Energy Efficiency Policies
Gradually Take Effect
and Controls on Energy
Consumption and Energy
Intensity Produce Results
Energy efficiency is a key component in building
a greener civilisation. Energy efficiency is not
just about reducing energy use, but also about
improving energy productivity, sharpening
10
Xiao Jianxin et al., Analysis of China’s Energy
Development in 2016 and the 2017 Energy Outlook for
China, in Energy of China, Issue 3, 2017.
414
S. Yaodong and A. Gillespie
increase in natural gas imports, China’s production of conventional natural gas was 136.9 billion
cubic metres, up slightly (1.7%) on 2015. Shale
gas production maintained strong momentum,
with production in 2016 reaching 7 billion cubic
metres, up 52.2% on 2015. CBM developed
slowly—CBM ground extraction reached 4.5
billion cubic metres, a slight increase of 1.7%, and
CBM use was 4.2 billion cubic metres. Production
of coal gas was 1.6 billion cubic metres, up 14.3%
on the previous year. In 2016, the production and
use of coalmine gas were 17.9 billion cubic metres
and 8.8 billion cubic metres respectively, an
increase of 96 and 148% compared to 2010.
Installed power capacity continued to grow,
and non-fossil energy’s share of the power mix
increased. According to data from the China
Electricity Council, by the end of 2016, China’s
installed power capacity reached 1,650 gigawatts
(GW). Specifically, installed capacity and output
of hydropower were 330 GW (up 3.92% on
2015) and 1,174,800 gigawatt-hours (GWh) (up
5.58% from 2015). The installed capacity and
output of nuclear power were 33.64 GW (up
23.83%) and 213,100 GWh (up 24.39%). The
installed capacity and output of grid-connected
wind power were 147.47 GW (up 12.79%) and
240,900 GWh (up 29.78%). The installed
capacity and output of grid-connected solar
power were 76.31 GW (up 80.91%) and 66,500
GWh (up 68.51%). The installed capacity of
non-fossil energy, including hydro, nuclear, wind
and solar power accounted for 36.6% of China’s
total installed power generation, while output
from non-fossil energy generating units amounted to 29.14% of the total. New installed capacity
in 2016 reached 120 GW, including 48.36 GW of
thermal power, 19.3 GW of wind power, 34.54
GW of solar power, 11.7 GW of hydropower and
7.2 GW of nuclear power. Non-fossil energy
accounted for 60% of China’s total new installed
power capacity, the fourth consecutive year it
exceeded 50%. This is clear evidence that China
is continuing to optimise its power system. In
2016, China’s total power output was 5,990,000
GWh and the share of non-fossil energy was
28.4%, up 1.5% points on 2015. The new power
output is equivalent to the 2016 output of two
Three Gorges hydropower stations.
10
The breakdown of China’s primary energy
production in 2006–15 is shown in Fig. 15. Raw
coal production gradually declined, but is still the
main component in energy production. In 2015,
raw coal’s share of total primary energy production reached 78.2%, while the share of other
energy sources exceeded 10%. Natural gas production increased at an average annual growth
rate of 5.27%, reaching 5.3% of total primary
energy production in 2015. The average annual
growth rate of primary electricity and other
energy sources was 6.94%. The share of other
energy sources also increased, the result of China’s changing energy system. In the future, the
market share of natural gas and renewable energy
sources will increase, and their production share
could also continue to increase.
China should: (i) develop an energy supply
system based on solar, wind, hydro, nuclear and
biomass as well as other clean energy sources,
complemented by fossil energy such as coal and
oil; (ii) encourage energy producers to invest
more in clean energy technologies and production, give clean energy priority access to the
market, and increase the share of clean energy in
the energy supply system; and (iii) implement
appropriate taxes and financial policies on fossil
fuel energy production and supply, and reduce
the development of existing conventional fossil
energy resources.
2.3 Energy Efficiency Policies
Gradually Take Effect
and Controls on Energy
Consumption and Energy
Intensity Produce Results
Energy efficiency is a key component in building
a greener civilisation. Energy efficiency is not
just about reducing energy use, but also about
improving energy productivity, sharpening
10
Xiao Jianxin et al., Analysis of China’s Energy
Development in 2016 and the 2017 Energy Outlook for
China, in Energy of China, Issue 3, 2017.
414
S. Yaodong and A. Gillespie