Meta Data
Title in national language: 
中国的能源政策(2012)白皮书
Draft: 
No
Revision of previous policy?: 
No
Draft Year: 
2012
Effective Start Year: 
2012
Scope: 
National
Document Type: 
Overarching Policy, Other
Economic Sector: 
Energy, Power
Energy Types: 
All, Oil, Power, Gas, Renewable, Hydropower, Solar, Other
Issued by: 
Information Office of the State Council, People's Republic of China
Overall Summary: 
To curb excessive consumption of energy resources and achieve the comprehensive, balanced and sustainable development of the economy, society and ecology, China keeps strengthening its efforts in energy conservation and emission reduction, and strives to raise the efficiency of energy utilization. As a result, energy consumption per unit of GDP has been decreasing year by year. China will continue to take the Scientific Outlook on Development as its guiding principle, and work hard to transform its development pattern, giving prominence to building a resource-conserving and environment-friendly society. It relies on scientific, technological and system innovation to raise efficiency in all aspects of energy utilization, further develops new and renewable energy resources, and promotes the clean and efficient development and utilization of fossil energy resources. The basic contents of China's energy policies are: "giving priority to conservation, relying on domestic resources, encouraging diverse development, protecting the environment, promoting scientific and technological innovation, deepening reform, expanding international cooperation, and improving the people's livelihood."
Access
Energy access priorities: 
The state coordinates energy development in both urban and rural areas[...]strives to eliminate energy poverty and improve civil energy-use conditions. --China makes great efforts to equalize access to basic energy service for its entire population. --[B]oosting energy development in rural areas. --Natural gas supply networks will be built or improved in cities so that more urban residents will gain access to natural gas. In northern cities, where the district heating system is applied, the government will develop co-generation units based on local conditions to improve the heating quality.
Energy access action plan: 
Providing universal access to electric power. In order to provide the people who have no access to electricity yet in the Tibet, Xinjiang Uygur and Inner Mongolia autonomous regions, as well as Qinghai, Yunnan and Sichuan provinces with electric power, the Chinese government increases investment to[...]develop distributed renewable energy sources. In areas without grid connection, China establishes and completes the universal electric service system.
Energy access targets: 
[...]By 2015, most of the people who at present don't have electricity in China will gain access to it.
Clean cooking solutions: 
China will spread [...] solar cookers and solar houses in the countryside, border areas, and small cities and towns.
Efficiency
EE priorities: 
China exercises control over both total energy consumption and intensity. It is working to build an energy-saving production and consumption system, promote transformation of the patterns of economic development and household consumption, and accelerate the pace of building an energy-efficient country and an energy-saving society. -- China exercises strict control over low-level duplicated construction, and eliminates industries with high consumption[...]. -- Strengthening energy conservation in industry. --[D]eveloping the coal industry in a safe and highly efficient way.
EE action plans: 
To promote building energy conservation, it sets and improves the standards for green buildings, and implements rating and identification of green buildings. It actively promotes energy-saving renovation of existing buildings, and sets quotas for energy consumption by public buildings and publicizes their energy efficiency rates. It has set up a management system for the life cycles of buildings, and exercises strict control over demolition of buildings. China has also made and implemented an energy-saving plan for public institutions, and strengthened the establishment of a supervisory system for energy conservation in public buildings. It carries forward heat metering and energy efficiency renovations on existing residential heating systems in the northern regions of China, builds energy-saving greenhouses, improves the old heat-supply network, and practices metered heat-supply charging and energy consumption quota management. In terms of transportation, China continues to give priority to public transport, actively develops intercity rail transportation, and rationally encourages green commuting. China implements the fuel economy standard of the world's advanced level for automobiles, and popularizes energy-saving and environment-friendly vehicles. It speeds up the elimination of old automobiles, locomotives and ships. Vigorous efforts are made to optimize the transportation structure and develop green logistics. China increases the electrification rate in rail transportation, and launches energy-saving renovations at airports, piers and railway stations. It actively develops and popularizes new energy vehicles, and makes scientific plans for the construction of supporting facilities, including compressed natural gas filling and electricity charging facilities. [...]China speeds up the elimination of small thermal power units marked by high energy consumption[...]. --[...]China rebuilds old hydropower stations in rural areas to increase their capacity and efficiency[...]
EE industry standards: 
Strengthening energy conservation in industry. With its energy consumption taking up about 70 percent of China's total, industry is the major energy consumer in China. The state has drawn up catalog of advanced and applicable technologies in the fields of energy conservation and emission reduction for key industries such as iron and steel, petrochemicals, non-ferrous metals and building materials, for the purpose of eliminating backward technology, equipment and products, and developing energy-saving and high-value-added products and equipment. It has established and improved a mandatory standards system of quotas for energy consumption per-unit product in key industries, and strengthened the energy-saving evaluation and supervision system. It has undertaken key energy-saving projects, including simultaneous generation of heat and power, recycling of industrial by-product gas, construction of enterprise energy-control centers, and fostering of energy-saving industries, so as to increase its enterprises' energy utilization efficiency.
EE public awareness/promotional programmes: 
The Chinese government will intensify efforts in energy-saving education and publicity. It works hard to bring into being a green mode of consumption and green lifestyle among urban and rural residents, and strengthens the public awareness of the importance of resource conservation. It strictly enforces the energy-saving standards of public institutions, and gives full play to the demonstration and leading role of government organs in energy conservation. It mobilizes all sectors of society to participate in energy conservation by conducting relevant activities in residential areas, schools, government organs, the armed forces and enterprises. --[...]Attention is also paid to energy conservation and emission reduction in rural areas, such as the construction of energy-saving houses.
Renewable Energy
RE priorities: 
Vigorously developing new and renewable energy is a key strategic measure for promoting the multiple and clean development of energy, and fostering emerging industries of strategic importance. ---For hydropower, China will speed up the construction of large hydropower stations on key rivers, develop medium- and small-sized hydropower stations based on local conditions, and construct pumped-storage power stations in appropriate circumstances.---For wind power, in accordance with the 12th Five-Year Plan period, China will stress both intensive and distributed exploitation, and optimize the development layout of wind power. [...].By means of speeding up grid construction, increasing the grid's dispatch level, improving the performance of wind-power equipment, and strengthening wind-power prediction and forecast, China aims to improve its power grids' wind-power integration ability.--[...] Intensified efforts will be made to popularize solar water heaters, and promote the development of solar central hot-water supply, solar heating and cooling, and medium- and high-temperature industrial applications of solar energy. It will spread solar water heaters, solar cookers and solar houses in the countryside, border areas, and small cities and towns.---For other renewable sources, China will develop biomass energy and other renewable energy resources under the principle of "orderly development based on local conditions and comprehensive utilization with all factors taken into consideration." It will promote power generation using crop stalks, grain-processing residues and bagasse as fuels in major producing areas of grain and cotton; and carefully develop woody biomass power generation in forest-covered areas. Attention will be given to the promotion of electricity generation by means of waste incineration and landfill gas in urban areas. China will spread the technology of efficiently using geothermal energy on the condition that underground water is protected. It will reinforce the tracking and R&D of electricity generation technologies by using tidal energy, wave energy and hot dry rocks.
RE targets: 
China endeavors to increase the shares of non-fossil fuels in primary energy consumption and installed generating capacity to 11.4 percent and 30 percent, respectively, by the end of the 12th Five-Year Plan. To achieve the goal, more than half will rely on development of hydropower. ---Specific Renewable Energy target values are as follows: - Installed hydropower generating capacity is expected to reach 290 million kw by 2015. - Installed generating capacity of wind power is expected to reach 100 million kw by the end of 2015, with 500 kw of generating capacity coming from offshore wind farms. - Installed generating capacity of solar energy is expected to exceed 21 million kw by 2015, with a total solar heat collection area of 400 million sq m. --In order to attain the goal of increasing non-fossil energy consumption to 15 percent of the total energy consumption by 2020, more than half will come from hydropower development. --[...]By 2015, a total of 200 green-energy counties and 1,000 villages using solar energy will be set up as examples.
RE action plans: 
For solar energy, during the 12th Five-Year Plan period, China will promote diverse patterns of solar-power development by integrating intensive exploitation with distributed utilization. It will construct large on-grid photovoltaic power stations and solar power generation projects in Qinghai and Gansu provinces, and the Xinjiang Uygur and Inner Mongolia autonomous regions, which boast abundant solar energy and scattered plots of unutilized land, for the purpose of increasing local supplies of electricity. It will encourage the central and eastern regions to construct distributed photovoltaic power generation systems linked to local buildings.---For wind power, in accordance with the 12th Five-Year Plan period, China will stress both intensive and distributed exploitation, and optimize the development layout of wind power. It will push forward wind power construction in an orderly way in the northwestern, northern and northeastern regions, which boast abundant wind energy, and speed up the development and utilization of distributed resources. It will steadily develop offshore wind farms, and improve the standards for wind-power equipment and the supervision system of this industry. --[...]China rebuilds old hydropower stations in rural areas to increase their capacity and efficiency. It accelerates the electrification of hydropower-based rural areas, and builds more small-sized hydropower stations, so as to get rid of the use of wood as fuel in some rural areas. In addition, the Chinese government promotes the use of solar water heaters around the country.
Environment
Energy environmental priorities: 
The state encourages fostering the concept of environment-friendly and low-carbon development, coordinates the development and use of energy resources with the protection of the eco-environment while paying equal attention to both, and actively fosters an energy development pattern that meets the requirements of ecological civilization. --[...]China endeavors to raise the proportion of clean, low-carbon fossil energy and non-fossil energy in the energy mix, promotes the efficient and clean utilization of coal, develops substitute energy resources in a scientific way, and speeds up the optimization of energy production and the consumption mix. --[C]hina exercises strict control over low-level duplicated construction, and eliminates industries with high consumption and high pollutant emission, and backward productivity. --[...]China will continue to plan fossil exploitation and utilization, with environmental protection taken into account. It will speed up the construction of advanced production capacity, eliminate outdated capacity, push forward the clean development of fossil energy, protect the ecological environment and cope with climate change, so as to attain the goal of energy conservation and emission reduction.
Pollution control action plans: 
--China speeds up the elimination of small thermal power units marked by[...] heavy pollution. In order to strictly control pollutant emissions from coal-fired power plants, newly built coal-fired power generating sets must install dust-removing, desulfurization and denitration facilities, and the existing plants are asked to speed up their dust removal, desulfurization and denitration upgrading.
Land use change for energy production purposes: 
In accordance with rational river basin planning for hydropower development, China will speed up the construction of large hydropower stations on key rivers, develop medium- and small-sized hydropower stations based on local conditions, and construct pumped-storage power stations in appropriate circumstances. --China will strengthen environmental protection and ecological construction in the mining areas by way of comprehensive ecological management and land reclamation in mining-subsidence and other areas affected by coal-mining operations.
Energy-water nexus: 
On the condition that the ecological environment is protected and resettlement of local people affected are properly handled, China will energetically develop hydropower[...]China will strengthen ecological-protection and environmental-impact assessment, strictly implement measures to protect the environment of existing hydropower stations, and improve the comprehensive utilization level and eco-environmental benefits of water resources.
Pricing
Energy pricing: 
Efforts will be made to set standards for distributed energy, and improve the formation mechanism and polices for on-grid price. Hard work will be done to realize direct supply, and non-discriminatory and barrier-free connection to the grid of power generated in the distributed manner. --The government will press on with institutional reform in the power sector and steadily carry out trials to separate power transmission from power distribution. Proactive efforts will be made in the pricing mechanism of electricity to gradually let the market decide the prices of electricity generated and marketed, while the prices of transmission and distribution are to be decided by the government. [...]The Chinese government will intensify and regulate the administration of coal exploration and development rights, gradually eliminate the double-track price system for contracted coal supply and market coal supply, and create a mechanism to balance the development of coal and coal-bed gas.[...]The state will regulate the prices of coal for electricity generation and prices of electricity marketed, and explore ways to set up a renewable energy trading mechanism.[...]China will continuously rationalize the refined oil price and form a pricing mechanism, and start the experimental reform of natural gas pricing mechanism.
Energy Supply and Infrastructure
Energy supply priorities: 
-- Relying on domestic resources. The country relies on domestic resource advantages and its own development basis, makes special efforts to enhance its energy supply capability and security, improves its emergency energy reserve and emergency response systems, and controls its dependence on foreign energy sources. --[...]China will push ahead with the building of 14 large coal-mining bases, including the Shaanbei, Huanglong and Shendong coalfields. By means of integration of coal resources, and merger and reorganization of coal mining enterprises, the country will bring into being large coal mining conglomerates. Priority will be given to the development of large open-pit and super-large coal mines. --[I]ntensified efforts in prospecting and exploitation of conventional oil and gas resources. China will continue to implement the policy of "simultaneous development of oil and gas," with the target of stabilization in the east, acceleration in the west, development in the south and exploitation in the offshore areas. The country will steadily increase crude oil output and reserves by means of stepping up efforts in prospecting for and exploiting oil in major oil-production areas, including those in the Tarim and Ordos basins, and improving renovation for stable yields and increasing the recovery ratio in old oilfields. In its efforts to speed up the development of natural gas, the country will enhance the productivity and increase the output of natural gas in major gas fields in the central and western regions, push forward the development of offshore oil-gas fields, and gradually increase the proportion of natural gas in the primary energy structure. -- [A]ctively promoting the development and utilization of non-conventional oil and gas resources.
Infrastructure development priorities: 
For hydropower, China will speed up the construction of large hydropower stations on key rivers, develop medium- and small-sized hydropower stations based on local conditions, and construct pumped-storage power stations in appropriate circumstances.---For wind power, in accordance with the 12th Five-Year Plan period, China will stress both intensive and distributed exploitation, and optimize the development layout of wind power[...].It will push forward wind power construction in an orderly way in the northwestern, northern and northeastern regions, which boast abundant wind energy, and speed up the development and utilization of distributed resources. It will steadily develop offshore wind farms, and improve the standards for wind-power equipment and the supervision system of this industry. --- It will construct large on-grid photovoltaic power stations and solar power generation projects in Qinghai and Gansu provinces, and the Xinjiang Uygur and Inner Mongolia autonomous regions, which boast abundant solar energy and scattered plots of unutilized land, for the purpose of increasing local supplies of electricity. --[...]China rebuilds old hydropower stations in rural areas to increase their capacity and efficiency. It accelerates the electrification of hydropower-based rural areas, and builds more small-sized hydropower stations, so as to get rid of the use of wood as fuel in some rural areas. In addition, the Chinese government promotes the use of solar water heaters around the country. China encourages coal-electricity integration, and steadily pushes forward the construction of large coal-fired power bases. --[...]China will optimize the distribution of the refining industry, construct some large refining and chemical bases, and establish three major refining cluster areas in the Bohai Rim, Yangtze River Delta and Pearl River Delta, so as to realize upstream and downstream integration, refining and chemicals integration, and refining-reserve integrated management. --[E]nhancing the construction of energy storage and transportation facilities. [...]It will increase the cross-regional coal transport capacity through technological renovation of existing railway lines, construction of new coal-transport channels, and building of supporting piers. [...]strengthen the building of regional power grids, improve the technology of ultra-high voltage transmission, and enhance the grids' ability to optimize resource allocation. [...]The country will expedite the construction of networks of crude oil, product oil and natural gas pipelines, increase the proportion of oil and gas transported by pipelines, improve regional networks of oil and gas pipelines, and build large coastal loading and unloading stations. --[...]China upgrades rural power grids to improve electric power conditions for rural life and production, and hence establish new-type rural power grids[...] --China will accelerate the electrical grid construction in Tibet and Xinjiang as well as the Tibetan-inhabited areas in Qinghai, Sichuan, Yunnan and Gansu provinces, enlarge the coverage of the distribution grid, and strengthen the reliability of power supply.
Regional integration priorities: 
Expanding international cooperation. China gives simultaneous consideration to both domestic and international energy development, works to increase the scope, channels and forms of international cooperation, enhances its capability to "introduce" and "go global," propels the establishment of a new international energy order and promotes mutually beneficial cooperation.
Trade
Energy trade priorities: 
China will improve policies for fair trade and optimize the trade structure, and conduct energy imports and exports in accordance with the WTO rules. It will diversify the modes of trade and comprehensively use such methods as futures trade, long-term agreements, entrepot and barter trade. --China will improve the market system for energy and develop more forms of trade, including spot trade, long-term contracts and futures trade.
Investment
Energy sector investment priorities: 
China is actively promoting market-oriented reform in the energy sector by giving full play to the fundamental role of the market in the allocation of resources. All projects listed in the national energy program, unless forbidden by laws or regulations, are open to private capital. The Chinese government encourages private capital to participate in the exploration and development of energy resources, oil and natural gas pipeline network construction and the electric power industry, encourages the involvement of private capital in coal processing and oil refining, and supports the entry of private capital into the new energy and renewable energy fields. China will invest more in nuclear power technological innovations, promote application of advanced technology, improve the equipment level, and attach great importance to personnel training. --[...]In order to provide the people who have no access to electricity yet in the Tibet, Xinjiang Uygur and Inner Mongolia autonomous regions, as well as Qinghai, Yunnan and Sichuan provinces with electric power, the Chinese government increases investment to expand the coverage of the power grids and develop distributed renewable energy sources.[...] --The government will draw up and implement the "Tibet Energy Development Program," and provide extra funding to Tibet for its electric power development - the direct investment during the 12th Five-Year Plan period to exceed 900 million yuan.
Financial incentives for energy infrastructure: 
[...]China increases financial input in energy infrastructure in rural areas and ameliorates rural energy management and services.[...] --[E]nhancing energy development in border regions.[...]The Chinese government will appropriate financial funds to improve energy infrastructure and build energy projects that have a direct bearing on the people's livelihood in the border regions, especially in Tibet and Xinjiang, to support leapfrogging development there.
Investment climate development: 
To provide a favorable environment for foreign investment and protect the legitimate rights and interests of investors, it has promulgated a series of laws and regulations in succession, like the Law on Sino-foreign Equity Joint Ventures, Law on Sino-foreign Cooperative Joint Ventures and Law on Foreign Investment Enterprises, and framed such policy documents as the Catalogue of Industries for Guiding Foreign Investment and the Catalogue of Advantageous Industries for Foreign Investment in the Central and Western Regions. Chinese government encourages foreign investment to engage in the exploration and development of both conventional and unconventional energy types. ---China is actively promoting market-oriented reform in the energy sector by giving full play to the fundamental role of the market in the allocation of resources. All projects listed in the national energy program, unless forbidden by laws or regulations, are open to private capital. The Chinese government encourages private capital to participate in the exploration and development of energy resources, oil and natural gas pipeline network construction and the electric power industry, encourages the involvement of private capital in coal processing and oil refining, and supports the entry of private capital into the new energy and renewable energy fields. Improving the market mechanism: China is actively promoting market-oriented reform in the energy sector by giving full play to the fundamental role of the market in the allocation of resources. All projects listed in the national energy programme, unless forbidden by laws or regulations, are open to private capital. The Chinese government encourages private capital to participate in the exploration and development of energy resources, oil and natural gas pipeline network construction and the electric power industry, encourages the involvement of private capital in coal processing and oil refining, and supports the entry of private capital into the new energy and renewable energy fields. [...]China will improve the market system for energy and develop more forms of trade, including spot trade, long-term contracts and futures trade. --The Chinese government encourages foreign investment to engage in the exploration and development of oil, natural gas and unconventional oil and gas resources, such as shale gas and coal-bed gas, by way of cooperation; invites foreign investment in the building of new-energy power stations, hydroelectric power stations, clean-combustion power stations, and nuclear power stations as long as the Chinese partners have control[...]
Overseas investment support: 
Following the principle of equality, mutual benefits and reciprocity, Chinese energy enterprises are actively involved in international energy cooperation, participating in overseas energy infrastructure projects and expanding cooperation in energy engineering and services.
Governance
Energy management principles: 
Deepening institutional reform in energy sector. -- Accelerating building of legal regime for the energy sector. China will improve its energy-related legal regime to regulate the energy market, protect the ecological environment and guarantee energy security. China attaches great importance to energy legislation and will press on with the improvement of the legal system related to the energy sector. Now, work has been going on an energy law, as well as a series of administrative regulations on oil reserves, protection of submarine oil and natural gas pipelines, and nuclear power station management. China[...]has been making efforts to promote the enactment of laws concerning oil, natural gas and nuclear energy. -- The Chinese government will reduce its intervention in specific matters and simplify administrative examination and approval, while intensify supervision over monopoly and unfair competition by establishing an open, fair, scientific and effective supervision mechanism. Tightening administration of the energy sector. In order to increase the efficiency of energy development and utilization, promote the scientific development of the energy sector and safeguard the country's energy security, China is determined to strengthen administration in the energy sector. It takes strategic planning and macro-control for energy development, and carries out industry regulation by making use of plans, policies and standards..[...]
Statistics collection and management: 
It will strengthen statistics collection and forecasts related to the energy sector, and establish a comprehensive system covering statistics, monitoring, forecasting and early warning in this regard.
Technology
Clean energy technology priorities: 
Promoting scientific and technological innovation. The state strengthens basic scientific research and frontier technological research in the energy field to enhance its scientific and technological innovation capabilities. Through the implementation of key energy projects, the state advances independent innovation in key technologies and equipment, and speeds up the fostering of innovative personnel.--For nuclear power, China will implement the principle of "safety first" in the whole process of nuclear power station planning, site selection, R&D, design, construction, operation and decommissioning. -- Installed capacity of nuclear power is expected to reach 40 million kw by 2015. [...]China's installed capacity of nuclear power is expected to reach 40 million kw by 2015. --[...]China will spread the technology of efficiently using geothermal energy on the condition that underground water is protected.[...] -- Promoting distributes utilizaton of clean energy[...] --The Chinese government will put great efforts into developing renewable energy sources in rural areas, and launch various green energy demonstration projects in accordance with local conditions.
Clean energy technology deployment: 
Apart from "large oil-gas fields and coal-bed gas development," the other national high-tech program is "large and advanced pressurized-water reactor and high temperature gas-cooled reactor nuclear power stations" -- to facilitate key technological innovations, and enhance the innovation abilities, including "original innovation," "integrated innovation" and "secondary innovation" in the energy sector.---Chines government will provide more support in funding, technology and policy to launch major demonstration projects in fields such as large pressurized-water reactors, high-temperature gas-cooled reactors, development and utilization of coal-bed gas, exploration and development of shale gas, and deep processing of coal, energy storage and smart power grids, thus promoting application of technological and scientific research achievements in production. [...]By means of speeding up grid construction, increasing the grid's dispatch level, improving the performance of wind-power equipment, and strengthening wind-power prediction and forecast, China aims to improve its power grids' wind-power integration ability.[...] --China vigorously applies advanced technologies, including supercritical and ultra-supercritical power generation, in the construction of clean, highly efficient and environment-friendly coal-fired power generating sets and energy-saving power plants. --The country will expedite the construction of [...]natural gas pipelines, increase the proportion of [...] gas transported by pipelines, improve regional networks[...]gas pipelines[...].
Low-emission and cleaner coal technology: 
China will boost the technological advance of key equipment, such as high-capacity, high-parameter and ultra-supercritical generating units, gas turbines.
Low-emission and cleaner oil technology: 
China will press on with the two national high-tech programs -- "large oil-gas fields and coal-bed gas development,"
Advanced fuel extraction technology: 
The Chinese government encourages major enterprises and research institutes in the industry to carry out studies in advanced and adaptive technologies, and put them into practical use, like high-efficiency and intensive coal mining technology, exploration and development technology of unconventional oil and gas resources, high-efficiency clean technology, advanced oil and gas storage and transportation technology, and high-capacity, high-efficiency and long-distance power transmission technology.
Natural gas transportation technology: 
The country will expedite the construction of [...]natural gas pipelines, increase the proportion of [...] gas transported by pipelines, improve regional networks[...]gas pipelines[...].
R&D renewable energy: 
Efforts are also made to develop offshore wind power technology, solar thermal power technology. ---China will encourage wind-power equipment manufacturers to expedite R&D of key technologies, so as to accelerate the technological upgrading of this industry. --[...]China will reinforce the tracking and R&D of electricity generation technologies by using tidal energy, wave energy and hot dry rocks.[...]
R&D energy efficiency: 
China vigorously applies advanced technologies, including supercritical and ultra-supercritical power generation, in the construction of clean, highly efficient and environment-friendly coal-fired power generating sets and energy-saving power plants.