evolutionary. When the existing energy system
can no longer adapt to social and economic
change, a new energy system is required to
replace it. This triggers transformation in supply
and demand, including significant change in
energy resources, technologies, management
and public perception. The current energy revolution is adopting a scientific approach to
energy use and replacing the conventional
energy system with one that is efficient, clean,
low-carbon and smart to help drive society
forward.”
4
At the 6th meeting of the Central Leading Group
for Financial and Economic Affairs in June 2014,
President Xi launched his Four Types of Energy
Revolution and One Cooperation as the new energy
strategy for China’s energy security and development. This strategy requires a revolution in energy
demand to curb unreasonable consumption; a revolution in energy supply to develop a diversified
supply system of multiple sources; a revolution in
energy technology to stimulate innovation and
modernisation; a revolution in the energy system to
fast-track development; and strengthening international cooperation to guarantee energy security.
President Xi made clear that whichever definition is
adopted, energy revolution is a combination of
energy supply diversification, energy demand
changes, energy technology advances, energy
system innovations and far-reaching changes in the
global energy landscape.
1.1.2 Definition and Elements
of the Energy Supply
Revolution
China’s energy revolution is a significant attempt
to accelerate the energy transition, guarantee
national energy security, meet the nation’s
demand for energy, improve energy efficiency
and combat global climate change. Some
researchers have proposed
5 that this involves
optimising the energy mix, reducing the use of
coal and coal’s share in primary energy consumption, and developing a modern energy
supply system that is efficient, clean, low-carbon
and diversified. To understand the elements of
the energy revolution, the following three factors
need to be taken into consideration:
(1) The energy supply revolution will be a
revolution in the true sense of the word
Revolution implies the transition from something
old to something new, triggered by fundamental
change. There are many factors that may cause an
energy revolution, such as technological advances, changes in resource availability, environmental constraints or geopolitical disruptions. In
the energy revolution, the old refers to the
high-carbon and high-pollution energy supply
structure dominated by coal and oil, while the new
refers to a low-carbon, clean, diversified, stable
and smart energy system. With regard to the
objectives of energy revolutions, there are sharp
differences between countries. China, for example, has an abundance of coal and a shortage of oil
and gas. Despite recent technical advances, the
economic feasibility of renewable energy still falls
far behind fossil fuels. Therefore, in addition to
focusing on renewables in its energy revolution,
China also needs to attach great importance to the
clean and efficient use of coal.
Energy revolution also implies fundamental
change in energy supply. This does not happen
overnight, but systematically and gradually in
politics, technology, the economy and the environment. It is, therefore, important to weigh the
pros and cons of each factor to understand its role
in the energy revolution.
(2) The energy supply revolution will lead to
major changes in the supply chain
Revolution can optimise the effectiveness and
flexibility of supply and increase the share of
high-quality energy in the mix to better meet
demand and change the way energy is used.
Optimisation helps remove obstacles to technological advances and encourages system innovations, driving the energy revolution forward.
A revolution in supply is a cornerstone of the
broader energy revolution. But it needs to be
4
Ren Dongming, An Analysis of Energy Revolution, in
China Energy News.
5
Ying Guangwei, Guo Jiaofeng and Wu Xun, China’s
Energy Supply Revolution Urgently Requires Acceleration To Develop Gas as a Clear Energy, in China
Economic Times, August 17, 2015.
42
W. Xiaoming et al.
can no longer adapt to social and economic
change, a new energy system is required to
replace it. This triggers transformation in supply
and demand, including significant change in
energy resources, technologies, management
and public perception. The current energy revolution is adopting a scientific approach to
energy use and replacing the conventional
energy system with one that is efficient, clean,
low-carbon and smart to help drive society
forward.”
4
At the 6th meeting of the Central Leading Group
for Financial and Economic Affairs in June 2014,
President Xi launched his Four Types of Energy
Revolution and One Cooperation as the new energy
strategy for China’s energy security and development. This strategy requires a revolution in energy
demand to curb unreasonable consumption; a revolution in energy supply to develop a diversified
supply system of multiple sources; a revolution in
energy technology to stimulate innovation and
modernisation; a revolution in the energy system to
fast-track development; and strengthening international cooperation to guarantee energy security.
President Xi made clear that whichever definition is
adopted, energy revolution is a combination of
energy supply diversification, energy demand
changes, energy technology advances, energy
system innovations and far-reaching changes in the
global energy landscape.
1.1.2 Definition and Elements
of the Energy Supply
Revolution
China’s energy revolution is a significant attempt
to accelerate the energy transition, guarantee
national energy security, meet the nation’s
demand for energy, improve energy efficiency
and combat global climate change. Some
researchers have proposed
5 that this involves
optimising the energy mix, reducing the use of
coal and coal’s share in primary energy consumption, and developing a modern energy
supply system that is efficient, clean, low-carbon
and diversified. To understand the elements of
the energy revolution, the following three factors
need to be taken into consideration:
(1) The energy supply revolution will be a
revolution in the true sense of the word
Revolution implies the transition from something
old to something new, triggered by fundamental
change. There are many factors that may cause an
energy revolution, such as technological advances, changes in resource availability, environmental constraints or geopolitical disruptions. In
the energy revolution, the old refers to the
high-carbon and high-pollution energy supply
structure dominated by coal and oil, while the new
refers to a low-carbon, clean, diversified, stable
and smart energy system. With regard to the
objectives of energy revolutions, there are sharp
differences between countries. China, for example, has an abundance of coal and a shortage of oil
and gas. Despite recent technical advances, the
economic feasibility of renewable energy still falls
far behind fossil fuels. Therefore, in addition to
focusing on renewables in its energy revolution,
China also needs to attach great importance to the
clean and efficient use of coal.
Energy revolution also implies fundamental
change in energy supply. This does not happen
overnight, but systematically and gradually in
politics, technology, the economy and the environment. It is, therefore, important to weigh the
pros and cons of each factor to understand its role
in the energy revolution.
(2) The energy supply revolution will lead to
major changes in the supply chain
Revolution can optimise the effectiveness and
flexibility of supply and increase the share of
high-quality energy in the mix to better meet
demand and change the way energy is used.
Optimisation helps remove obstacles to technological advances and encourages system innovations, driving the energy revolution forward.
A revolution in supply is a cornerstone of the
broader energy revolution. But it needs to be
4
Ren Dongming, An Analysis of Energy Revolution, in
China Energy News.
5
Ying Guangwei, Guo Jiaofeng and Wu Xun, China’s
Energy Supply Revolution Urgently Requires Acceleration To Develop Gas as a Clear Energy, in China
Economic Times, August 17, 2015.
42
W. Xiaoming et al.