EcoSynergy EcoEnergy Affiliation Opportunity Freebies  
"No amount of oil we discover from Alaska or new power plants we may build, there will be never be enough to meet the demand of this growing and dynamic economy" Spencer Abraham, Energy Secretary of United States
In Asia Pacific
Our Mission
Our Biz Focus
Economic Plan
News-Stand
Care Policy

EcoSynergy login ::

User ID

Password


New User?
Sign Up

 

 

Eco-Synergy China Chapter

         

Office Location

The Team

Guest Signing In for

Opening Ceremony

Armstrong President for

Asia Pacific Operation

Presenting Concept

of EcoSynergy

Retail Showcase

in Pudong

Sales presentation of

Intellpower Products

Product presentation at

Mobile Kiosk in one of

Shanghai's hypermarkets

Intellpower showcase

attracting large crowd

 

产品说明

Industry Background

 

The new China, with rapid economic growth and industrialization, also witness increasing strain on power infrastructure.

 

For the common folks, they know just one thing; power rationing is becoming more and more frequent especially during winter and summer.

 

Since 1996, China’s energy output has dropped by 17%, while primary energy use has fallen by 4%, driven almost entirely by shrinking output from coal mines and declining direct use.

 

Since China is the world’s second-largest emitter of greenhouse gases. Generation of electric power has risen, implying a steep fall in end uses, particularly in industry.


Available information points to a variety of forces contributing to this phenomenon, including rapid improvements in coal quality, structural changes in industry, shutdowns of factories in both the state-owned and non-state segments of the economy, improvements in end-use efficiency, and greater use of gas and electricity in households.

 

A combination of slowing economic growth, industrial restructuring, broader economic system reforms, and environmental and energy efficiency policies has apparently led to at least a temporary decline in, and perhaps a long-term reduction in the growth of energy use, and therefore greenhouse gas emissions.

 

Electrical Energy


Power generation has risen faster than production of any other form of energy, rising at an average rate of 7.8% per year since 1980 to reach nearly 1,179 TWh in 1998 (Figure 6). Growth was fastest in the early 1990s, reaching the double digits in several years, slowed to 2.8% in 1998, and has recovered somewhat in 1999. In 1997, coal-fired power plants accounted for 92% of power generated by fossil fuel-fired units, with small oil- and gas-fired units making up the remainder.


Installed generating capacity has risen slightly faster than generation, at 8.2% per year since 1980, reaching 270 GW in 1998 (SSB, 1998a; People’s Daily, 14 September 1999). Installed capacity at the end of 1998 was 6.2% higher than in 1997, as projects already underway were completed. Many power plant construction projects have slowed, however, and approvals and financing of new projects have been delayed, and preferential treatment for foreign power developers has been scaled back (SCMP, 1998a). This slowdown comes as capacity has surpassed demand in many areas of China, particularly along the coast and in the northeast. In 1998, the State Development and Planning Commission (SDPC) estimated that roughly 40% of China’s area experienced surpluses of generating capacity, while 20% still suffered power shortages, with the remaining 40% in balance (SCMP, 1998b). This excess is reflected in falling average capacity factors since 1995.


Another factor contributing to slower growth in power generation is the closing of small power plants. For years, the central government has prohibited (with varying degrees of effectiveness) the construction of small power plants, and has advocated that existing ones be taken out of service. Coal-fired power plants of 50 MW and under tend to be less efficient and more highly polluting per kW of generating capacity than larger plants. With growth in demand slowing, and sensitivity to environmental pollution gaining strength, the government has renewed its commitment to shutting plants down. According to one report, 2.84 GW of plants smaller than 100 MW were closed in 1997 and 1998, and a further 1.8 GW were slated for closure in 1999. This is to be followed by closure of an additional 7.74 GW in 2000, so additional efficiency gains will be likely be forthcoming. Shutting down of old, inefficient, and rarely used plants could account for reduced coal use in the utility sector of 5 to 10 Mt of coal per year.

 

In general, the size of the average power plant in China is growing, since most new plants are larger than older ones. From 1993 to 1997, when installed capacity of coal-fired generating units grew from 119 GW to 171 GW and the installed capacity in all size categories rose, the fraction
of coal-fired units 300 MW and larger grew from 21% to nearly 29%.

 

A major implication is that the average efficiency of generation should be rising substantially, always assuming, of course, that efficiencies for larger plants are higher, and that average efficiencies for each plant remain constant. Even with relatively rapid efficiency improvements through this kind of structural change in the utility sector, though, coal consumption per kWh generated would probably not decline faster than 1% to 2% per year,11 or 5 to 10 Mt per year. In 1998, for example, the amount of coal required to generate one kWh in the average plant fell by 5 grams of standard coal equivalent (gce), or about 1.3%, avoiding consumption of more than 6 Mt coal. Such improvements in generation efficiency would account for a small, but significant portion of the recent annual declines in coal demand.


On the other hand, many industrial enterprises have their own power generation capacity, including cogeneration units, diesel- and coal-fired units, and equipment that uses waste heat and combustible gases from industrial processes to generate power. This self-generation capacity has been growing in recent years. This would most likely have the effect of bringing down the average efficiency of power generation, since the smaller power units typically have efficiencies far below those of central power plants. The situation is complicated, however, since cogeneration units, which provide both heat and steam, and units using waste heat and gas typically raise the efficiency of power generation. A more thorough understanding of the structure and trends among self-generators would be needed to determine the net impact on coal use.


Assuming that China avoids a recession, it is likely that power demand and output will continue to grow at a more rapid rate than in 1998. Preliminary indications suggest that power generation will rise by about 4% in 1999. Along with economic growth, there is a long-term trend in China—as in other developing economies—towards electrification in industry and households, as new end-use applications become widespread (e.g., computers, office equipment, and environmental control equipment) and as electricity substitutes for fuels in current end-use applications (e.g., cooking). There is also tremendous latent consumer demand for power in China. Many households across China pay high premiums to upgrade wiring to handle larger loads, indicating that limits to transmission and distribution constrain demand. Even if overall energy use continues to drop, it is quite possible that power demand will keep growing.


Biomass and Other Renewable Energy
 

Biomass energy remains a significant source of energy for much of China’s rural population. Most biomass fuels are used for home cooking and heating and for agriculture, and are not tied to major portions of economic activity. In energy terms, the amount used is approximately equivalent to oil consumption. Unlike oil, however, biomass use has been dropping since the 1980s, as greater supplies of coal and electricity have become available to rural residents, who make up the largest portion of China’s population. Between 1991 and 1996 alone, biomass energy use in China’s rural areas fell by nearly one fourth, while the ratio of biomass energy use to commercial energy use fell from 0.26 to 0.15. Biogas use has been rising, but it still accounts for less than 1% of biomass energy.


Most areas of China have at least one large renewable energy resource. More than most developing countries, China has made significant¾and relatively successful efforts to promote renewable energy use, particularly as an adjunct to the overall programs for rural development and electrification. China expects to have around 20 GW of renewable power generation capacity often have heat rates twice as high as the national average, but, even assuming national average heat rates, they would have used 5 to 6 Mt of coal per year in the early 1990s.
 

 

 

 

 

 

 

 

 

Useful Links

 
 ARMSTRONG PARTNERS