Electric Power and Energy in China

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  • Format: Hardcover
  • Copyright: 2013-12-31
  • Publisher: Wiley

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The acute energy problems facing China today are characterized by their own histories and realities. Some have come about because of China's energy endowment and stage of development, while others have been created by a combination of domestic and global factors. Some are the results of an accumulation of longstanding contradictions, while others are new challenges posed by the new order. There are no "miracle cures" to solve these problems instantly. What is needed is a tireless enquiry, with goals, planning and procedures, guided by a clear energy strategy. With China's increasing dependence on foreign energy sources, and the global energy situation and greenhouse gas issue exerting an increasingly prohibiting effect on China's energy development, energy diplomacy has become an important component of Chinese diplomatic affairs.

Based on a "broad energy outlook", this book studies and analyzes China's energy issues and energy strategies from the perspective of electric power. 

  • Discusses a variety of issues, including energy transportation and allocation, end-user consumption, markets, early warning and emergency, technical innovation
  • As a leading player in the power and energy area, China’s strategies attracts global attention 
  • Proposes the innovative idea of "Macro Energy Perspective"     
  • As a key player in China's energy industrial circle, the author's perspective can help global audiences to understand China's energy strategies better

Electric Power and Energy in China is ideal for government energy policy makers, engineers, scientists and enterprise managers to understand China’s strategy in electric power and energy. It is also a good reference for energy economics researchers, consultants and university students.

Author Biography

Zhenya Liu, General Manager of State Grid Corporation of China, and Professor-level senior engineer, Beijing, China. The State Grid Corporation of China (SGCC) is the largest electrical utilities company in the world. The company is the seventh largest in the world according to the 2012 Fortune Global 500. Liu is also a senior engineer, who has been engaged in electric power and energy work for nearly 40 years. He received his Master of Engineering at Shandong University, majoring in electrical engineering.

Table of Contents

About the Author xi

Preface xiii

1 Energy: An Overview 1

1.1 An Overview of the World’s Energy Situation 1

1.1.1 The Global Energy Situation 1

1.1.2 Characteristics of the Global Energy Situation 8

1.2 An Overview of China’s Energy Situation 17

1.2.1 Energy Endowment 17

1.2.2 Energy Production 19

1.2.3 Energy Consumption 23

1.2.4 International Energy Cooperation 26

1.3 Major Energy Problems that China Faces 28

1.3.1 The Problem of Sustained Supply 28

1.3.2 The Problem of Transport and Allocation 35

1.3.3 The Quality Problem of Development 37

1.4 Causes that Affect China’s Energy Development 41

1.4.1 The Economic Development Model 41

1.4.2 The Energy Development Model 42

1.4.3 The Global Competitive Environment 43

2 Strategic Thinking on Energy 45

2.1 Basic Thinking Behind the Energy Solution 45

2.1.1 Complexity of the Energy Problem 45

2.1.2 Grand Energy Vision 47

2.1.3 Solutions to the Energy Problems 47

2.2 The Way to Change the Mode of Energy Development 51

2.2.1 Transformation Phase of China’s Energy Strategy 52

2.2.2 The Way to Change the Mode of Energy Development 55

2.3 The Central Link in the Energy Strategy 58

2.3.1 The Position of Electricity in the Energy Strategy 59

2.3.2 The Significance of an Electricity-centred Energy Strategy 60

2.4 The ‘One Ultra Four Large’ (1U4L) Strategy 65

2.4.1 The Core Mission of Electric Power Development 66

2.4.2 The Need to Implement the 1U4L Strategy 66

2.4.3 The Key to Implementing the 1U4L Strategy 69

3 Energy Exploration and Utilisation 73

3.1 General Thinking Behind Energy Exploration and Utilisation 73

3.1.1 Main Problems in Energy Exploration and Utilisation 73

3.1.2 Principles of Energy Exploration and Utilisation 76

3.1.3 Focus of Energy Exploration and Utilisation 77

3.2 The Exploitation and Utilisation of Coal Resources 79

3.2.1 Coordinated Planning of the Exploitation and Utilisation of Coal Resources 79

3.2.2 Construction of Large Coal-fired Power Bases in the West and North 81

3.2.3 The Clean and Integrated Utilisation of Coal 89

3.2.4 Scientifically Developing the Coal Chemical Industry 93

3.3 The Exploitation and Utilisation of Hydropower Resources 94

3.3.1 Construction of Large-scale Hydropower Bases 94

3.3.2 Development of Small Hydropower 99

3.3.3 Planning and Construction of Pumped Storage Power Plants 100

3.3.4 Environmental Protection and Migrant Relocation 102

3.4 The Exploitation and Utilisation of Nuclear Power 104

3.4.1 Construction of Large-scale Nuclear Power Base 104

3.4.2 Advancement of Nuclear Power Technology 105

3.4.3 Building up a Nuclear Energy Safety System 106

3.4.4 Supply of Nuclear Fuel 107

3.5 The Exploitation and Utilisation of New and Renewable Energies 108

3.5.1 Building Large-scale Renewable Energy Power Bases 109

3.5.2 Various Forms of Renewable Energy Development 117

3.5.3 Distributed Energy Development 119

3.5.4 Exploitation and Utilisation of New Energy 122

3.6 The Exploitation and Utilisation of Oil and Gas 125

3.6.1 Exploration and Development of Oil Resources 126

3.6.2 Exploitation and Utilisation of Natural Gas Resources 128

3.7 The Exploitation and Utilisation of Overseas Energy Resources 131

3.7.1 Development and Import of Overseas Oil and Gas Resources 131

3.7.2 Import of Overseas Coal and Electricity 135

4 Energy Transport and Allocation 137

4.1 Modern Comprehensive Energy Transport System 137

4.1.1 The Significance of Establishing a Modern Comprehensive Energy Transport System 139

4.1.2 The Guiding Principles for Developing a Modern Comprehensive Transport System for Energy 141

4.2 Optimisation of the Modes of Coal Transport 143

4.2.1 The Present Situation of Coal Transport 144

4.2.2 The Future Coal Transport Patterns 150

4.2.3 Equal Emphasis on Coal Transport and Power Transmission 151

4.3 Strong and Smart Grid Development 159

4.3.1 Overview of Power Grid Development 159

4.3.2 The Future Landscape of Power Flows 164

4.3.3 The Thinking Behind SSG Development 167

4.3.4 Development of UHV Grids and Grids of All Levels 170

4.3.5 R&D and Application of Grid Technology 183

4.4 Construction of UHV Synchronous Grids in Northern, Eastern and Central China 186

4.4.1 Development of Large Synchronous Grids in Overseas Countries 187

4.4.2 The Necessity of Building UHV Synchronous Power Grids in Northern, Eastern and Central China 189

4.4.3 Safety of UHV Synchronous Grids in Northern, Eastern and Central China 190

4.5 Smart Grid Development 192

4.5.1 The Essence and Features of Smart Grids 193

4.5.2 Strategic Significance of Smart Grids 193

4.5.3 The Priorities and Practices of Smart Grid Development 195

4.5.4 The Development Principles of Smart Grids 204

4.6 Oil and Gas Pipeline Networks 206

4.6.1 Present Situation of Oil and Gas Pipeline Networks 206

4.6.2 The Main Problems of Oil and Gas Pipeline Networks 208

4.6.3 The Basic Thinking Behind the Development of Oil and Gas Pipeline Networks 210

5 Terminal Energy Consumption 213

5.1 Model of Green Energy Consumption 213

5.1.1 Challenges for Energy Consumption 213

5.1.2 Establishment of a Green Energy Consumption Model 215

5.2 Energy Conservation as a Strategic Priority 217

5.2.1 Thinking behind Energy Conservation as a Strategic Priority 218

5.2.2 Focus Areas of Energy Conservation as Strategic Priority 219

5.2.3 Implementing Measures to Ensure Strategic Priority of Energy Efficiency 225

5.3 Electrification in Socioeconomic Development 228

5.3.1 Substitution of Electric Energy in Terminal Energy Consumption 228

5.3.2 Electrification in the Industrial Sector 231

5.3.3 Electrification in the Transport Sector 232

5.3.4 Electrification for Businesses and Urban Population 233

5.3.5 Rural Electrification 235

5.4 Development of Electric Vehicles 236

5.4.1 Important Implications of Electric Vehicle Development 237

5.4.2 Key Areas of Electric Vehicle Development 238

5.4.3 EV Energy Supply Model 241

5.4.4 Policies Supporting the Development of Electric Vehicles 244

6 Energy Market 247

6.1 Overview and Development Ideas in Respect of the Energy Market 247

6.1.1 Overview of Energy Market Development 248

6.1.2 Basic Thinking Behind Energy Marketisation 250

6.2 The Building of Coal Market 251

6.2.1 Management of Coal Market Order 251

6.2.2 Coal Market Trading 254

6.2.3 Regulation of the Coal Market 255

6.3 Establishment of an Electricity Market 257

6.3.1 Reform of International Electricity Market 258

6.3.2 The Principles for China’s Electricity Market Reform 261

6.3.3 Ideas on Building an Electricity Market System in China 263

6.3.4 The Tariff System and Building of Tariff Pricing Mechanism 267

6.4 Development of Pricing Mechanism for Oil and Gas 274

6.4.1 Reform of Pricing Mechanism for Refined Products 274

6.4.2 Natural Gas Pricing Reform 276

6.4.3 The Bargaining Power in International Oil and Gas Pricing 280

6.5 Regulation of Energy Markets 282

6.5.1 Building a Big Energy Regulatory Framework 282

6.5.2 The Thinking Behind Energy Market Regulation 285

6.5.3 Building Support System for Energy Market 287

7 Energy Early Warning and Emergency Response 289

7.1 Importance of Building Capacity for Energy Early Warning and Emergency Response 289

7.1.1 Risks Posed to Energy Security 289

7.1.2 Significance of Strengthening the Building of Energy Early Warning and Emergency Response 293

7.2 Energy Early Warning Mechanism 294

7.2.1 Focus of Energy Early Warning 295

7.2.2 Organisational Structure and Management System of Energy Early Warning 300

7.3 Energy Emergency Response System 302

7.3.1 Organisational and Management Structure of Energy Emergency Response 302

7.3.2 Emergency Response Programmes for Energy Emergencies 302

7.3.3 Supplies Reserves for Energy Emergency Response 303

7.3.4 Energy Emergency Response Publicity Campaign and Emergency Drills 305

7.3.5 Scientific Management of Energy Emergency Response 307

7.4 Energy Reserves 310

7.4.1 Present Situation of Energy Reserves in China 310

7.4.2 Experience in International Energy Reserves 312

7.4.3 The Thinking Behind Building Energy Reserves in China 314

8 Innovation in Energy Technology 321

8.1 The Situation of Energy Technology Innovation 321

8.1.1 Technology Innovations in International Energy Sector 321

8.1.2 The Situation of Energy Technology Innovation in China 324

8.2 Principles and Focuses of Energy Technology Innovation 327

8.2.1 The Fundamental Principle of Energy Technology Innovation 328

8.2.2 Focus Areas of Energy Technology Innovation 329

8.2.3 The Goal of Energy Technology Innovation 333

8.3 Development of System for Energy Technology Innovation 334

8.3.1 Integration of Resources of Energy Technology Innovation 334

8.3.2 Development of Mechanism for Energy Technology Innovation 335

8.3.3 Building Talent Team in Energy Technology Innovation 337

8.3.4 Innovation Strategy for Energy Technology 338

9 Ensuring Energy Sustainability 341

9.1 Energy Laws, Regulations and Policies 341

9.1.1 Establishment of a Legal Regime for Energy 341

9.1.2 Policy Guidance and Assurance 345

9.2 Establishment of an Energy Standards System 350

9.2.1 The Significance of Establishing an Energy Standards System 350

9.2.2 Formulation of Energy Standards 352

9.2.3 Bargaining Power over Development of International Energy Standards 354

9.3 Large Energy Groups 355

9.3.1 Significance of Developing Large Energy Groups 356

9.3.2 Supporting the Development of Large Energy Groups 361

9.3.3 Market Position of Large Energy Groups 366

9.3.4 Social Responsibilities of Large Energy Groups 368

References 371

Postscript 375

Index 379

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