China's New Energy Development Briefing

1. China's New Energy Development Briefing Shi Lishan New Energy Division of the National Energy Administration March 2013

2. Ⅰ. Global Energy Development Ⅱ. China's Energy Development Ⅲ. China's Renewable Energy Development Ⅳ. Content of the "12th Five-Year Plan" Ⅴ. Next Measures 2

3. 1 Global Energy Development

4. Global Energy Consumption The global energy consumption was about 17.5 billion tons of standard coal, and about 2.5 tons of standard coal per capita in 2011. Coal 30% Oil 5.3 billion tons of standard coal 33% 5.8 billion tons of standard coal 13% Non-fossil energy sources: Nuclear power, hydropower, wind power, etc. 24% 2.2 billion tons of standard coal Natural gas 4.2 billion tons of standard coal

5. Global Per Capita Energy Consumption Global per capita energy consumption is 2.5 tons of standard coal (Source: BP Energy Statistics, 2011)

6. Problems Faced by Global Energy Development 1 Contradictions between limited resources and unlimited demand 2 Fossil energy extraction brings destruction to the natural environment and ecology 3 Fossil energy consumption causes global climate change 6

7. Renewable energy represents the future development direction of the energy, and becomes the joint action of all countries Renewable Energy Has Become a Development Trend of Global Energy • EU: • Renewable energy will account for 20% of the total energy consumption in 2020 • Germany proposed that renewable energy would account for 60% of total energy consumption and 80% of all electricity by 2050. • Denmark proposed that the dependence on fossil energy could be got rid completely in 2050. • Japan: • Renewable energy will meet 20% of electricity demand by 2020 7

8. Global Wind Power Installed Capacity in 2012 8

9. Global PV Installed Capacity in 2012 9

10. 2 China's Energy Development 10

11. China's Energy Development Coal: 2.4 billion tons of standard coal 66.2% Non-fossil energy sources: 347 million tons of standard coal 9.6% Natural gas: 195 million tons of standard coal 5.4% Oil: 680 million tons of coal 18.8% The total energy consumption in 2012 and the structure

12. China's Energy Development Installed generation capacity and electricity consumption Coal output 12

13. One hundred million tons One hundred million cubic meters China's Energy Development Crude output Natural gas output 13

14. Problems in China's Energy Development Serious energy structure problem In 2012, total primary energy consumption was 3.62 billion tons of standard coal, where coal accounted for 66.2%. In 2012, total primary energy production was 3.33 billion tons of standard coal, where coal accounted for 76.3%. Over-reliance on coal 14

15. Problems in China's Energy Development Serious environmental pollution problem • Firstly, coal mining has brought environmental problem; • Secondly, fossil energy discharges sulfur dioxide and nitrogen oxides and others, causing acid rain and air pollution; (such as fog and haze in Beijing) • Thirdly, the problem of global climate change. 15

16. Problems in China's Energy Development Energy efficiency needs to be improved • China's energy consumption per GDP was 0.765 tons of standard coal/ten thousand Yuan in 2012, about two times of the world average, 2.4 times of the United States, and 4.4 times of Japan. • The proportion of secondary industry was high. The energy consumption of four energy-intensive industries, iron and steel, nonferrous metals, chemicals and building materials accounted for about 40% of all society energy consumption. 16

17. 3 China's Renewable Energy Development 17

18. Resource-rich Hydropower: The total capacity which can be technically developed is 540 million kilowatts, and the total capacity which can be economically developed is 400 million kilowatts Wind power: The onshore wind power capacity which can be technically developed is 2.57 billion kilowatts, and offshore wind power capacity which can be technically developed is 510 million kilowatts Solar energy resources: Two-thirds of Chinese land area have 2200 above sunshine hours annually, especially in the western region which is rich in solar energy resources Biomass resources: Crop straw and forestry residues resource can provide 460 million tons of standard coal annually. 18

19. Hydropower The installed hydropower capacity reached 249 million kilowatts by the end of 2012 (including conventional hydropower of 228 million kilowatts, pumped storage power of 21 million kilowatts), ranking first in the world. In 2012, the hydropower generating capacity was 864.1 billion kwh, a record high. Hydroelectric equipment utilization hours reached 3555 hours. 19

20. Wind Power Wind power integration installed capacity was 62.66 million kilowatts, ranking first in the world. The generating capacity was 100.4 billion kwh, becoming third-largest power source of China. Offshore wind power just broke the ice, with the installed capacity of 0.3 million kilowatts. Equipment manufacturing capacity accelerated quickly. Goldwind, Sinovel, United Power and Ming Yang entered into the world's Top 10 of wind power equipment. 20

21. Solar The solar photovoltaic reached 6.5 million kilowatts, the average efficiency of crystalline silicon cells was more than 18%, and the photovoltaic cell output accounted for more than 60% of the global market. The solar water heater installation and use reached 257 million square meters. Solar thermal power generation demonstration made breakthrough. 21

22. Biomass Biomass power installed capacity of 7.5 million kilowatts Annual gas supply of 16.5 billion cubic meters by biogas Briquettes fuel of 6 million tons Bio-ethanol of 2 million tons, bio-diesel of 500,000 tons 22

23. Problems in Renewable Energy Development • Firstly, market constraints exacerbate • Secondly, technical level is not high • Thirdly, policies still need to be improved 23

24. 4 Content of the "12th Five-Year Plan" 24

25. Vigorously Develop Hydropower • Installed capacity target - Reach 290 million kilowatts, including 260 million kilowatts of conventional hydropower, 30 million kilowatts of pumped storage, and about 50% of the degree of development by 2015 Start task - 1.6 Million kilowatts, including 40 million kilowatts of pumped storage Newly added - 80 million kilowatts, including 10 million kilowatts of small hydropower, and 13 million kilowatts of pumped storage 25

26. Promote Large-scale Development of Wind Power

27. Actively Start Solar Power Market Areas of focus Photovoltaic Power plants 2 Distributed PV 1 According to the 12th Five-Year Plan, the solar power generation capacity will reach 21 million kilowatts by 2015, including 20 million kilowatts of photovoltaic power generation, and 1 million kilowatts of solar thermal power . The State Council will soon introduce PV guidance, revising the photovoltaic power generation target to 35 million kilowatts. 27

28. Use Biomass Resources According to Local Conditions Each target Power generation Gas Briquettes fuel Liquid fuel 1 2 3 4 • 50 million households, 6000 large biogas, 22 billion cubic meters of annual biogas use • Reach 13 million kilowatts of installed capacity • Focus on the major grain producing areas • Reach 4 million tons of annual fuel ethanol use, and 1 million tons the annual bio-diesel use • Reach 10 million tons of annual use of agricultural and forestry biomass briquettes fuel The alternative biomass of whole China will be about a total of approximately 50 million tons of standard coal by 2015 28

29. 5 Next Measures 29

30. Wind Power • Support the development of wind power in central and southern • Encourage the central and southern provinces which are rich in wind energy resources and large in market space of electricity assimilateto actively develop wind power. • Encourage enterprises and individuals to build distributed wind power projects locally to access the low voltage distribution network. • Optimize the layout of offshore wind power, and actively and steadily push forward the development of offshore wind. 30

31. Wind Power • Promote wind power heating in northern areas Wind power plant Heat storage boiler • The north is rich in resources, with the rapid development of wind power and prominent contractions between winter cogeneration unit and wind power. • Use wind power heating to alternate coal-fired boilers, so as to increase consumptive wind power capacity and reduce coal consumption. • Promote energy conservation, and reduce air pollution. 31

32. Wind Power • Promote trans-regional power transmission • Speed ​​up the supporting integration construction, and use the trans-regional electricity distribution to expand wind power distribution range. • Actively extend the networking projects in Northeast and North China, speed up the construction of 500 kV transmission channel from Mondon to electricity load centers in the Northeast. • Perfect the 750 kV main net rack in Northwest, and accelerate the two channels construction of northwest networking of Xinjiang. 32

33. Solar • Focus on supporting distributed PV • Encourages units, communities and families to install and use distributed photovoltaic power generation system. • Implements electricity subsidies for distributed photovoltaic power generation, and reduce the electricity price and adjust the subsidy standards reasonably according to the changes in cost. • Improve the management approach for subsidy funds, increase efforts to financial support policies and improve the fiscal and taxation policies. 33

34. Hybrid&solar power plant Wind&solar power plant Solar • Appropriately develop photovoltaic power plants • Combine the needs of local power market development and energy structure adjustment, to appropriately develop all types of construction of photovoltaic power plants under the premise of the implementation of the market assimilate. • Coordinate photovoltaic power plants and supporting integration planning and construction, ensure the synchronization and efficient use of photovoltaic power plant in a timely manner, and encourage the existing electricity output engineering to construct photovoltaic power plants of hybrid&solar and wind&solar. 34

35. Thank you!