First, by systematically cutting coal overcapacity and through efficient and
clean coal utilisation. To address air pollution and reduce greenhouse gas
emissions, China should continue to cut coal overcapacity and reduce coal’s
share of the energy mix. However, as coal will remain a main energy source
in the longer term, China should continue to promote efficient and clean coal
utilisation.
Second, by coordinated development of fossil fuels and renewable energy.
Thanks to technological progress and business model innovation, the cost of
renewable energy is decreasing rapidly, and its share of the energy mix has
risen significantly. Renewables have great growth potential. As energy
transition is a progressive process, fossil fuels will remain important in the
near future, and renewable energy must rely on them for support.
Third, by coordinated development of centralised and distributed energy
systems. Centralised energy supply is the long-standing mainstream model.
But as demand changes, China should focus more on distributed energy and
gradually shift to a modern energy supply system that adapts centralised and
decentralised energy supply to local needs and conditions.
Fourth, by increasing the share of natural gas in the energy mix. In the
short term, there are still many constraints on the development of renewable
energy, and natural gas has great potential to offset these constraints. China
will strive to ensure that the share of natural gas in primary energy consumption will reach 10% by the end of the 13th Five-Year Plan in 2020 and
increase to 15% by 2030, turning natural gas into the third largest energy
source after coal and oil.
Innovation is the foundation of the energy revolution. China should firmly
implement energy system reform, consider energy a commodity, and build a
market structure and system that feature effective competition. Moreover,
China should strengthen regulatory and policy incentives, and vigorously
promote the transition to clean and low-carbon energy that is efficiently
priced and affordable, secure and reliable. In addition, China should systematically consider how to open itself to the outside world and make greater
efforts to improve its participation in international energy cooperation and
governance.
As China enters a new era of economic development, and in the face of
advancing energy technologies and changing business models, the question
of how to promote energy revolution should be continuously explored. As
China can achieve its energy revolution only in phases, the research needs to
be continuously deepened over time. Dozens of experts at home and abroad
have contributed to this book, which means it will inevitably contain errors or
oversights. We kindly invite readers to provide corrections and suggestions.
Li Wei
Director of the Development Research
Center of the State Council of China
vi
Foreword 1
clean coal utilisation. To address air pollution and reduce greenhouse gas
emissions, China should continue to cut coal overcapacity and reduce coal’s
share of the energy mix. However, as coal will remain a main energy source
in the longer term, China should continue to promote efficient and clean coal
utilisation.
Second, by coordinated development of fossil fuels and renewable energy.
Thanks to technological progress and business model innovation, the cost of
renewable energy is decreasing rapidly, and its share of the energy mix has
risen significantly. Renewables have great growth potential. As energy
transition is a progressive process, fossil fuels will remain important in the
near future, and renewable energy must rely on them for support.
Third, by coordinated development of centralised and distributed energy
systems. Centralised energy supply is the long-standing mainstream model.
But as demand changes, China should focus more on distributed energy and
gradually shift to a modern energy supply system that adapts centralised and
decentralised energy supply to local needs and conditions.
Fourth, by increasing the share of natural gas in the energy mix. In the
short term, there are still many constraints on the development of renewable
energy, and natural gas has great potential to offset these constraints. China
will strive to ensure that the share of natural gas in primary energy consumption will reach 10% by the end of the 13th Five-Year Plan in 2020 and
increase to 15% by 2030, turning natural gas into the third largest energy
source after coal and oil.
Innovation is the foundation of the energy revolution. China should firmly
implement energy system reform, consider energy a commodity, and build a
market structure and system that feature effective competition. Moreover,
China should strengthen regulatory and policy incentives, and vigorously
promote the transition to clean and low-carbon energy that is efficiently
priced and affordable, secure and reliable. In addition, China should systematically consider how to open itself to the outside world and make greater
efforts to improve its participation in international energy cooperation and
governance.
As China enters a new era of economic development, and in the face of
advancing energy technologies and changing business models, the question
of how to promote energy revolution should be continuously explored. As
China can achieve its energy revolution only in phases, the research needs to
be continuously deepened over time. Dozens of experts at home and abroad
have contributed to this book, which means it will inevitably contain errors or
oversights. We kindly invite readers to provide corrections and suggestions.
Li Wei
Director of the Development Research
Center of the State Council of China
vi
Foreword 1