(2) Non-fossil energy
Non-fossil energy includes renewables and
nuclear power. The strategy of the energy revolution for renewables is as follows:
(1) hydropower—construct a fleet of hydropower plants, as planned, that comply with
stringent environmental protection standards,
as the ecologic protection redline should
never be crossed;
(2) wind power—develop a wind power control
and management system that fulfils the
requirements of large-scale grid connection,
improve equipment quality, establish a
sector-specific mechanism to remove inefficiency, and construct support facilities like
energy storage;
(3) solar power—build solar power plants in the
north-west desert region of China and
grid-connected rooftop solar power in east
and central China to ensure the development
of complementary solar energy technologies;
(4) bioenergy—increase R&D investment in
non-grain biofuels to replace petroleum fuel
with liquid biofuels at scale in several
industries; and
(5) heating—deploy proven solar, biomass and
geothermal energy technologies in heating
applications. The pace of solar and wind
energy development should match the speed
of the energy transition to prevent excessive
capacity build-up.
In nuclear, China should increase investment
in nuclear power stations in the eastern coastal
region, create Chinese nuclear power technology
brands and become a global centre for nuclear
power plant development and manufacturing.
(2) Changes in secondary energy
(1) Transition from primary to secondary energy
The energy revolution increases the share of
electricity (from fossil fuels and renewables) in
the energy mix. As electricity’s share increases,
and the proportion of non-fossil energy use rises,
the power supply system becomes cleaner and
more efficient. Power consumption in the service
industry and households will increase, while that
in manufacturing gradually decreases.
(2) Combination of centralised and distributed
energy systems
China has adopted a centralised approach to energy
supply and demand, which will remain dominant in
China’s energy system for some time. Distributed
energy systems provide less power per generating
unit and much lower generating efficiency than
centralised energy systems. However, their flexibility and environment-friendliness make them an
important means of addressing pollution and
energy shortage. As such, they are indispensable to
the energy revolution and integral to China’s future
energy system. An optimal combination of centralised and distributed energy systems would
guarantee a stable and efficient supply of energy
and optimise China’s energy mix.
1.2.2 Drivers
(1) Less pressure on global energy supply
Growth in global energy demand is slowing
down. Influenced by the shale gas revolution in
the USA, some Latin American countries are
developing their domestic oil and gas resources
and have made clear progress to reduce their
dependency on imports from other states. This
eases the pressure on global supply and demand
and encourages countries to diversify their
energy supply. As the share of renewable energy
grows globally, diversified energy supply will
become an irreversible trend.
(2) Opportunities in the energy revolution
At the opening ceremony of the 2018 Summer
Davos Forum, Li Keqiang, Premier of China’s
State Council, said the Chinese economy is at a
crucial stage of transition, from old to new
growth drivers. It is faced with structural contradictions and downward pressure in several
regions and industries. However, opportunities
coexist with challenges. In the energy industry,
China continues to implement its Internet + strategy and roll out the Energy Internet
which, by integrating the energy industry with
digitalisation, boosts innovation and new energy
forms and revitalises energy supply. Natural gas,
44
W. Xiaoming et al.
Non-fossil energy includes renewables and
nuclear power. The strategy of the energy revolution for renewables is as follows:
(1) hydropower—construct a fleet of hydropower plants, as planned, that comply with
stringent environmental protection standards,
as the ecologic protection redline should
never be crossed;
(2) wind power—develop a wind power control
and management system that fulfils the
requirements of large-scale grid connection,
improve equipment quality, establish a
sector-specific mechanism to remove inefficiency, and construct support facilities like
energy storage;
(3) solar power—build solar power plants in the
north-west desert region of China and
grid-connected rooftop solar power in east
and central China to ensure the development
of complementary solar energy technologies;
(4) bioenergy—increase R&D investment in
non-grain biofuels to replace petroleum fuel
with liquid biofuels at scale in several
industries; and
(5) heating—deploy proven solar, biomass and
geothermal energy technologies in heating
applications. The pace of solar and wind
energy development should match the speed
of the energy transition to prevent excessive
capacity build-up.
In nuclear, China should increase investment
in nuclear power stations in the eastern coastal
region, create Chinese nuclear power technology
brands and become a global centre for nuclear
power plant development and manufacturing.
(2) Changes in secondary energy
(1) Transition from primary to secondary energy
The energy revolution increases the share of
electricity (from fossil fuels and renewables) in
the energy mix. As electricity’s share increases,
and the proportion of non-fossil energy use rises,
the power supply system becomes cleaner and
more efficient. Power consumption in the service
industry and households will increase, while that
in manufacturing gradually decreases.
(2) Combination of centralised and distributed
energy systems
China has adopted a centralised approach to energy
supply and demand, which will remain dominant in
China’s energy system for some time. Distributed
energy systems provide less power per generating
unit and much lower generating efficiency than
centralised energy systems. However, their flexibility and environment-friendliness make them an
important means of addressing pollution and
energy shortage. As such, they are indispensable to
the energy revolution and integral to China’s future
energy system. An optimal combination of centralised and distributed energy systems would
guarantee a stable and efficient supply of energy
and optimise China’s energy mix.
1.2.2 Drivers
(1) Less pressure on global energy supply
Growth in global energy demand is slowing
down. Influenced by the shale gas revolution in
the USA, some Latin American countries are
developing their domestic oil and gas resources
and have made clear progress to reduce their
dependency on imports from other states. This
eases the pressure on global supply and demand
and encourages countries to diversify their
energy supply. As the share of renewable energy
grows globally, diversified energy supply will
become an irreversible trend.
(2) Opportunities in the energy revolution
At the opening ceremony of the 2018 Summer
Davos Forum, Li Keqiang, Premier of China’s
State Council, said the Chinese economy is at a
crucial stage of transition, from old to new
growth drivers. It is faced with structural contradictions and downward pressure in several
regions and industries. However, opportunities
coexist with challenges. In the energy industry,
China continues to implement its Internet + strategy and roll out the Energy Internet
which, by integrating the energy industry with
digitalisation, boosts innovation and new energy
forms and revitalises energy supply. Natural gas,
44
W. Xiaoming et al.