China’s Progress in Energy Conservation and Emission Reduction in Power Industry

1. China’s Progress in Energy Conservation and Emission Reduction in Power Industry Yan, Xiaolu State Electricity Regulatory Commission of CHINA Sydney, Nov 4, 2010

2. Main Content Overview of China’s Power Industry Development of Clean Energy in China Progress in Energy Conservation and Emission Reduction in China’s Power Industry

3. The Overview of China’s Power Industry Supply and demand of electricity grow fast Construction of power sector infrastructure continues to grow rapidly

4. Gross Domestic Product of China（2002——2009）

5. The Overview of China’s Power Industry Supply and demand of electricity grow fast By the end of 2009, the total electricity consumption reached 3660 TWh, which grew by 6.44% over the previous year.

6. The Overview of China’s Power Industry Electricity generation by fuel types in China

7. The Overview of China’s Power Industry • Supply and demand of electricity grow fast • In 2009, the total amount of generation across the country was 3,680 TWh, which increased by 6.67% over last year.

8. The Overview of China’s Power Industry Construction of power sector infrastructure continued to grow rapidly in 2009 total investment in power sector was RMB 770.16 billion ，a increase of 22.2% over previous year the investment in power sources development was RMB 380.33 billion, with a growth of 11.62% over previous year the investment in power network construction was RMB 389.83 billion, with a year-on-year increase of 34.66%

9. The Development of Clean Energy in China The development of renewable energy and new energy had been accelerated in 2009 The structure of thermal power units had been optimized gradually in 2009

10. The Development of Clean Energy in China The development of renewable energy and new energy had been accelerated in 2009

11. The Development of Clean Energy in China The development of renewable energy and new energy had been accelerated in 2009

12. The Development of Clean Energy in China The development of renewable energy and new energy had been accelerated in 2009 Installed capacity(MW)

13. The Development of Clean Energy in China The structure of thermal power units had been optimized gradually Newly installed thermal power units were large-capacity, highly efficient and environmental friendly ones By the end of 2009, total 21 1-GW ultra-supercritical units were up and running, and 14 being under construction in China. By the end of 2009, the thermal units of 300 MW and above accounted for 69% of the total installed thermal generation capacity; the thermal units of 600 MW and above accounted for 34% of the total installed thermal generation capacity.

14. The Development of Clean Energy in China The related regulatory measures Adjusting the economic policy For example, increase the add-ons in the retail tariff for renewable energy Regulating the purchase of the renewable energy “Renewable Energy Law” requires power grid companies must purchase all the power produced by the renewable energy generators.

15. The Progress in Energy Conservation and Emission Reduction in China’s Power Industry Shut down small-sized thermal power units Coal consumption rate and network loss keep decreasing (three indexes) The standard coal consumption rate of power supply The service power consumption rate of power plants The rate of network loss Improvement of sulfur dioxide emission reduction The regulatory measures

16. The Progress in Energy Conservation and Emission Reduction in China’s Power Industry Shut down small-sized thermal power Units 2007，553 small thermal units with a total capacity of 14380 MW were shut down. 2008, 3267 small thermal units with a total capacity of 16680 MW were shut down. 2009, small thermal units of a total capacity of 26170 MW were shut down. By the end of 15th July, 2010, another 468 small thermal units with a total capacity of 10710 MW had been shut down.

17. The Progress in Energy Conservation and Emission Reduction in China’s Power Industry The standard coal consumption rate of power supply keeps decreasing 500 450 Standard coal consumption(g/kWh) 400 350 300 1979 1980 1981 1984 1990 1993 1994 1995 1998 2000 2003 2008 2009 1978 1983 1985 1986 1987 1989 1992 1996 1997 1999 2001 2002 2004 2005 2006 2007 1982 1988 1991 year

18. The Progress in Energy Conservation and Emission Reduction in China’s Power Industry The service power consumption rate of power plants keeps decreasing 7.5 7 6.5 (rate %) 6 5.5 5 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 year

19. The Progress in Energy Conservation and Emission Reduction in China’s Power Industry The rate of network loss keeps decreasing 10 (%) 9 8 7 6 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Year

20. The Progress in Energy Conservation and Emission Reduction in China’s Power Industry Improvement of Sulfur Dioxide Emission Reduction The capacity of the generation units with FGD equipments keeps increasing 700 80 Unit with FGD 70 600 Thermal unit 60 500 Growth rate 50 400 40 300 30 200 20 100 10 0 0 2005 2006 2007 2008 2009 year Installed capacity (million kW) Increase rate%

21. The Progress in Energy Conservation and Emission Reduction in China’s Power Industry Improvement of Sulfur Dioxide Emission Reduction The emission of sulfur dioxide kept decreasing in recent years

22. The Progress in Energy Conservation and Emission Reduction in China’s Power Industry The regulatory measures First, to promote the generation right trading across the country. Second, to implement the energy-saving dispatch（ESD） Third, to improve the economic policies related to energy-saving and emission reduction. Fourth, to keep monitoring and supervising the FGD equipments operation of the thermal power plants.

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