Measures for the Administration of Energy Efficiency Labels—helped drive energy saving.
With policy support, China began to promote
energy efficiency in key sectors. In 2016, the
Energy Efficiency Forerunner Programme,
designed to make China a leader rather than a
follower in energy efficiency, was extended. In
the same year, the NDRC and the General
Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of
China published the Energy Efficiency Forerunner Product Catalogue for household refrigerators, flat-panel TVs and adjustable-speed air
conditioners. The NDRC provided investment
support to improve energy efficiency in
energy-intensive sectors, promote energy conservation, and improve energy use in urban street
lighting, airports, stations and ports. China issued
the Measures for the Administration of Energy
Conservation in Major Energy-Consuming
Enterprises, launched the “100-1,000-10,000”
energy conservation programme,
11 and drove the
development of an online energy consumption
monitoring system of major energy-consuming
enterprises. The Ministry of Housing and
Urban-Rural Development made great progress
in implementing the green building initiative.
The Ministry of Transport promoted the development of a modern, integrated transport system
and established a green transport network.
Thanks to the efforts made by these stakeholders, China’s total energy consumption was
effectively controlled in 2016, and the energy
consumption per unit of GDP reduced by 5%
compared to the previous year, thus exceeding
the targets for 2016. Overall, China reduced
energy consumption by 230 Mtce, equivalent to
about 500 Mt of CO 2 emissions.
2.4 Fossil Fuel Energy Prices
Rebound and the Electricity
Price Continues to Decline
In 2016, oversupply in the international market
slackened and China’s energy supply reforms
were strengthened. As a result, the price of major
energy sources rebounded after levelling out,
though there was much variation among them.
The price of coal increased slightly in the first
half of 2016, rose significantly in the third quarter
(Q3), then stabilised at the end of 2016. The price
rise in those six months could be seen in the
Bohai-Rim Steam-Coal Price Index (BSPI) for
5,500 kilocalories per kg (kcal/kg) thermal coal,
which reached RMB 401 per tonne at the end of
June, RMB 30/t higher than earlier in the year.
Between July and October the price rose quickly,
and by the end of October exceeded RMB 600/t,
RMB 236/t higher than at the start of the year. At
the beginning of Q3, several advanced capacity
projects came into operation and dealers released
their stockpiles, substantially increasing the
amount of coal on the market. Between November and December, the coal price slowly declined,
RMB 14/t lower at the end of 2016 than its high
point for the year. The coal market then stabilised.
The international oil price rose irregularly
after hitting the bottom, and prices of oil products
in China increased correspondingly. At the
beginning of 2016, Brent and West Texas Intermediate (WTI) prices had plunged to $27.88 per
barrel (bbl) and $26.21/bb respectively, the
lowest point of the year, after which they gradually picked up. By the end of 2016, Brent and
WTI prices had doubled—both exceeding
$50/bbl. However, due to an easing in both
supply and demand, rebalancing was slower than
expected. In addition, the lowering costs and
improving efficiency of US shale oil also
restricted a rise in oil price. In 2016, of the 25
adjustment cycles for oil products in China, there
were five downward adjustments, 10 upward
adjustments and 10 non-adjustments. The annual
cumulative price rises of petrol and diesel were
RMB 1,015/t and RMB 975/t.
The international natural gas price remained at
a low level, while that of imported natural gas
11
The “i00, 1,000, 10,000” energy conservation initiative
places the top 100 energy-consuming enterprises in China
under
national
regulation,
the
top
1,000
energy-consuming enterprises under the regulation of
their respective provincial governments, and other high
energy consuming enterprises under the regulation of
lower-level governments.
416
S. Yaodong and A. Gillespie
With policy support, China began to promote
energy efficiency in key sectors. In 2016, the
Energy Efficiency Forerunner Programme,
designed to make China a leader rather than a
follower in energy efficiency, was extended. In
the same year, the NDRC and the General
Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of
China published the Energy Efficiency Forerunner Product Catalogue for household refrigerators, flat-panel TVs and adjustable-speed air
conditioners. The NDRC provided investment
support to improve energy efficiency in
energy-intensive sectors, promote energy conservation, and improve energy use in urban street
lighting, airports, stations and ports. China issued
the Measures for the Administration of Energy
Conservation in Major Energy-Consuming
Enterprises, launched the “100-1,000-10,000”
energy conservation programme,
11 and drove the
development of an online energy consumption
monitoring system of major energy-consuming
enterprises. The Ministry of Housing and
Urban-Rural Development made great progress
in implementing the green building initiative.
The Ministry of Transport promoted the development of a modern, integrated transport system
and established a green transport network.
Thanks to the efforts made by these stakeholders, China’s total energy consumption was
effectively controlled in 2016, and the energy
consumption per unit of GDP reduced by 5%
compared to the previous year, thus exceeding
the targets for 2016. Overall, China reduced
energy consumption by 230 Mtce, equivalent to
about 500 Mt of CO 2 emissions.
2.4 Fossil Fuel Energy Prices
Rebound and the Electricity
Price Continues to Decline
In 2016, oversupply in the international market
slackened and China’s energy supply reforms
were strengthened. As a result, the price of major
energy sources rebounded after levelling out,
though there was much variation among them.
The price of coal increased slightly in the first
half of 2016, rose significantly in the third quarter
(Q3), then stabilised at the end of 2016. The price
rise in those six months could be seen in the
Bohai-Rim Steam-Coal Price Index (BSPI) for
5,500 kilocalories per kg (kcal/kg) thermal coal,
which reached RMB 401 per tonne at the end of
June, RMB 30/t higher than earlier in the year.
Between July and October the price rose quickly,
and by the end of October exceeded RMB 600/t,
RMB 236/t higher than at the start of the year. At
the beginning of Q3, several advanced capacity
projects came into operation and dealers released
their stockpiles, substantially increasing the
amount of coal on the market. Between November and December, the coal price slowly declined,
RMB 14/t lower at the end of 2016 than its high
point for the year. The coal market then stabilised.
The international oil price rose irregularly
after hitting the bottom, and prices of oil products
in China increased correspondingly. At the
beginning of 2016, Brent and West Texas Intermediate (WTI) prices had plunged to $27.88 per
barrel (bbl) and $26.21/bb respectively, the
lowest point of the year, after which they gradually picked up. By the end of 2016, Brent and
WTI prices had doubled—both exceeding
$50/bbl. However, due to an easing in both
supply and demand, rebalancing was slower than
expected. In addition, the lowering costs and
improving efficiency of US shale oil also
restricted a rise in oil price. In 2016, of the 25
adjustment cycles for oil products in China, there
were five downward adjustments, 10 upward
adjustments and 10 non-adjustments. The annual
cumulative price rises of petrol and diesel were
RMB 1,015/t and RMB 975/t.
The international natural gas price remained at
a low level, while that of imported natural gas
11
The “i00, 1,000, 10,000” energy conservation initiative
places the top 100 energy-consuming enterprises in China
under
national
regulation,
the
top
1,000
energy-consuming enterprises under the regulation of
their respective provincial governments, and other high
energy consuming enterprises under the regulation of
lower-level governments.
416
S. Yaodong and A. Gillespie