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Nation to ramp up energy security initiatives

By Zheng Xin | China Daily | Updated: 2024-03-23 07:50
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Employees install solar panels at a village in Tangshan, Hebei province. ZHANG YONGXIN/FOR CHINA DAILY

Amid its green energy transition, China will further ensure domestic energy security through technological innovation and by deepening reform and opening-up, in order to stimulate development vitality, the National Energy Administration said on Friday.

China is committed to further increasing the proportion of nonfossil energy and optimizing industrial development policies. The proportion of nonfossil energy installed capacity in power generation is targeted to increase to around 55 percent, while wind and solar power generation is aimed to contribute over 17 percent of national electricity generation.

The proportion of nonfossil energy in the total energy consumption is expected to rise to around 18.9 percent, it said in a guideline on energy work in 2024.

The government will also steadily advance the construction of large-scale wind and solar energy bases while promoting the construction of offshore wind power bases, toward deep-sea and far-offshore areas, it said.

To further ensure domestic energy supply, total energy production nationwide is expected to reach around 4.98 billion metric tons of standard coal. Coal production has remained stable with increased output, while crude oil production has stabilized at over 200 million tons, and natural gas has maintained a rapid growth trend, it said.

The latest guidance will further accelerate China's energy transition by setting clear goals for this year's development, said Zhu Yicong, senior analyst in renewables and power at independent research firm Rystad Energy.

China had experienced a historical year for renewable capacity installation in 2023, with close to 300 GW of wind and solar capacity put into operation, Zhu said.

On the other hand, the rapid development had also led to rising curtailment rates in the second half of 2023 as well as grid congestion issues in areas where distributed energy development had been rapid.

"Goals set in the latest guidance are feasible and realistic, setting a tone for steadier growth in the power sector," she said.

"The administration's latest guidance is aimed at a balanced power system as part of an energy transition pathway that not only promotes the development of renewables but also recognizes the important role of thermal power, and improving the grid's capability of integrating power from various sources."

According to the administration, the government will also advance the approval of coastal nuclear power projects in an orderly manner, while ramping up efforts in the construction of electric vehicle (EV) charging points in urban areas, along highways, and in residential communities, as the nation's NEV sector booms amid a green transformation nationwide.

According to the International Energy Agency, China, which has become a dominant force in the field of renewable energy, has several advantages that others do not possess, including the ability to approve and build transmission grids and renewable energy projects more efficiently and finance projects more easily thanks to policy priorities.

The agency believes China was the major driving force behind the world's rapid expansion of renewable power generation capacity last year, which grew by 50 percent to 510 gigawatts.

China is expected to see its position further consolidate in the next five years, as lower costs make utility-scale solar power generation more attractive compared to coal and gas power generation, it said.

The IEA forecasts that almost half of China's electricity generation will come from renewable energy sources by 2028.

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