Introduction:

The energy policy of China is a policy decided on by the Central Government with regard to energy and energy resources. The country is currently the world's largest emitter of greenhouse gases according to a Dutch research agency. However, China's per capita emissions are still far behind some of the developed countries. In addition, China is also the world's leading renewable energy producer. Primary energy use in China was 26,250 TWh and 20 TWh per million persons in 2011. According to IEA the primary energy use grew 40% and electricity use 70% from 2007 to 2011. The energy import was three times bigger in 2011 compared to 2007. The share of energy import of the primary energy use was 12% in 2011. The CO2 emissions growth in five years (2007-2011) was 44%.

Environment and carbon emissions:

On June 19, 2007, the Netherlands Environmental Assessment Agency announced that a preliminary study had indicated that China's greenhouse gas emissions for 2006 had exceeded those of the United States for the first time. The agency calculated that China’s CO2 emissions from fossil fuels increased by 9% in 2006, while those of the United States fell by 1.4%, compared to 2005.The study used energy and cement production data from British Petroleum which they believed to be 'reasonably accurate', while warning that statistics for rapidly changing economies such as China are less reliable than data on OECD countries.

The Initial National Communication on Climate Change of the People's Republic of China calculated that carbon dioxide emissions in 2004 had risen to approximately 5.05 billion metric tons, with total greenhouse gas emissions reaching about 6.1 billion metric tons carbon dioxide equivalent.

In 2002, China ranked 2nd (after the United States) in the list of countries by carbon dioxide emissions, with emissions of 3.3 billion metric tons, representing 14.5% of the world total. However, due to its huge population size (the largest in the world), it only ranked 99 in the list of countries by carbon dioxide emissions per capita, with emissions of 3.2 metric tons per person (compared to 19.8 metric tons per person in the United States). In addition, it has been estimated that around a third of China's carbon emissions in 2005 were due to manufacturing exported goods. Since 2006, China has overtaken the USA, producing 8% more emissions than the US to become the world’s biggest emitter of pollution.

Energy use and carbon emissions by sector:

In the industrial sector, six industries – electricity generation, steel, non-ferrous metals, construction materials, oil processing and chemicals – account for nearly 70% of energy use. In the construction materials sector, China produced about 44% of the world's cement in 2006. Cement production produces more carbon emissions than any other industrial process, accounting for around 4% of global carbon emissions.

1

National Action Plan on Climate Change:

Although China has been taking action on climate change for some years, with the publication on June 4, 2007 of China's first National Action Plan on Climate Change, China became the first developing country to publish a national strategy addressing global warming. The plan did not include targets for carbon dioxide emission reductions, but it has been estimated that, if fully implemented, China's annual emissions of greenhouse gases would be reduced by 1.5 billion tons of carbon dioxide equivalent by 2010. Other commentators, however, put the figure at 0.950 billion metric tons.

The publication of the strategy was officially announced during a meeting of the State Council, which called on governments and all sectors of the economy to implement the plan, and for the launch of a public environmental protection awareness campaign. The National Action Plan includes increasing the proportion of electricity generation from renewable energy sources and from nuclear power, increasing the efficiency of stations, the use of cogeneration, and the development of coal-bed and coal-mine methane.

12th Five-year Plan 2011-2015:

In January 2012, as part of its 12th Five-year Plan, China published a report 12th Five-year Plan on Greenhouse Emission Control (guofa [2011] No. 41), which establishes goals of reducing carbon intensity by 17% by 2015, compared with 2010 levels and raising energy consumption intensity by 16%, relative to GDP. More demanding targets were set for the most developed regions and those with most heavy industry, including Guangdong, Shanghai, Jiangsu, Zhejiang and Tianjin. China also plans to meet 11.4% of its primary energy requirements from non-fossil sources by 2015.

The plan will also pilot the construction of a number of low-carbon Development Zones and low-carbon residential communities, which it hopes will result in a cluster effect among businesses and consumers.

Main Sources of Energy in China:

1. Coal in China:

The People's Republic of China is the largest consumer of coal in the world, and is about to become the largest user of coal-derived electricity, generating 1.95 trillion kilowatt-hours per year, or 68.7% of its electricity from coal as of 2006 (compared to 1.99 trillion kilowatt-hours per year, or 49% for the US). Hydroelectric power supplied another 20.7% of China's electricity needs in 2006.

With approximately 13 percent of the world's proven reserves, there is debate as to how many years these reserves will last at current levels of consumption. Coal production rose 8.1% in 2006 over the previous year, reaching 2.38 billion tons, and the nation's largest coal enterprises saw their profits exceed 67 billion yuan, or $8.75 billion.

2

Coal reserves:

As of the end of 2006, China had 62 billion tons of anthracite and 52 billion tons of lignite quality coal. This ranks China third in the world in terms of total coal reserves behind the United States and Russia. Most reserves are located in the north and north-west of the country, which poses a large logistical problem for supplying electricity to the more heavily populated coastal areas. At current levels of production, China has 48 years worth of reserves. However, others suggest that China has enough coal to sustain its economic growth for a century or more even though demand is currently outpacing production.

Coal production:

China is the largest coal producer in the world. Northern China, especially Shanxi Province, contains most of China's easily accessible coal. Coal from southern mines tends to be higher in sulfur and ash, and therefore unsuitable for many applications. Coal is the major source of energy in China. In 2011 the Chinese coal production was equivalent to 3,576 Mt*0.522 toe/Mt*11.630 TWh/toe = 21,709 TWh. Assuming the same caloric value for the imported coal the net coal energy available would be evaluated as 22,784 TWh. Assuming imported coal equal to domestic one, available coal (IEA) was about 17,000 TWh in 2008 and 22,800 TWh in 2011, with increase of 5,800 TWh in three years. Total renewable energy in China was 3,027 TWh in 2008 and 2,761 TWh in 2005, with increase of 266 TWh in three years.

Coal consumption:

China's coal consumption in 2010 was 3.2 billion metric tonnes per annum. The National Development and Reform Commission, which determines the energy policy of China, aims to keep China's coal consumption below 3.8 billion metric tonnes per annum.With investment in the coal industry rising at an annual rate of 50 percent in recent years, China will retain its current position as the leading global consumer of coal, even as it endeavors to diversify. During the first three quarters of 2009 China's coal consumption increased 9% from 2008 to 2.01 billion metric tons.

2. Oil in China:

China's oil supply was 4,855 TWh in 2009 that was 10% of the world's supply. Although China is still a major crude oil producer, it became an oil importer in the 1990s. In 2002, annual crude petroleum production was 1,298,000,000 barrels, and annual crude petroleum consumption was 1,670,000,000 barrels. In 2006, it imported 145 million tons of crude oil, accounting for 47% of its total oil consumption. Three state-owned oil companies – Sinopec, CNPC, and CNOOC – dominate its domestic market.

China announced on June 20, 2008 plans to raise petrol, diesel and aviation kerosene prices. This decision appeared to reflect a need to reduce the unsustainably high level of subsidies these fuels attract, given the global trend in the price of oil.

3

Top oil producers were in 2010: Russia 502 Mt (13%), Saudi Arabia 471 Mt (12%), US 336 Mt (8%), Iran 227 Mt (6%), China 200 Mt (5%), Canada 159 Mt (4%), Mexico 144 Mt (4%), UAE 129 Mt (3%). The world oil production increased from 2005 to 2010 1.3% and from 2009 to 2010 3.4%

(a).The petroleum industry in China:

The petroleum industry in China after 1949 is strongly affected by the country's growing population and political ideology, as well as its lack of local oil reserves. It highlights the current set up of the government, their relationship with surrounding states, and steps they are taking to play a positive role in the worldwide community.

China has a growing population of over 1.3 billion people; therefore they rely heavily on other states for resources, such as oil. The Chinese government is taking diplomatic action to improve their relationship with ASEAN states. The Chinese government has to take extra strides to secure good relationships with its neighbors. Malaysia is a neighbor state that is often seen as in contention with China because of political differences. Yet, the relationship with Malaysia is symbiotic because of their large supply of oil and their need for security assurances from China. Malaysia is the number one producer of petroleum in the South China Sea, and they account for over one half of the production in the region

(b). Shale gas in China:

Although production rates were small as of 2013, the volume of technically recoverable shale gas in China has been estimated to be 1,115 trillion cubic feet, the largest of any country in the world. As of 2013, China is one of only three countries (with the US and Canada) to produce shale gas in commercial quantities.

China is turning to natural gas as a way to decrease air pollution created by burning coal. [

In 2011, 70 percent of China’s energy consumption came from coal, 18 percent from oil and only 4.5% came from natural gas. Although conventional natural gas production in China has increased rapidly since 2000, it has not kept up with demand, and China has increasing imports of gas. In 2011, China consumed 147 bcm of natural gas, but produced only 107 bcm; the remainder, 27 percent of national consumption, was imported. Shale gas is seen as a way to reduce or eliminate dependence on imported gas.

Resource estimates:

In 2013, the US Energy Information Administration updated it estimation of China's shale gas reserves. It was said that China had 1115 trillion cubic feet (31 trillion cubic meters) of recoverable shale gas.(EIA) has estimated that China’s shale gas recoverable reservoirs is around 31 trillion cubic meters,The majority of Chinese shale reserves are in 3 basins – Sichuan, Tarim and Yangtze Platform, accounting for 89% of the estimated national reserves.

4

Development:

China has set its companies a target of producing 30 billion cubic meters a year from shale, equivalent to almost half the country's gas consumption in 2008.Potential gas-bearing shales are said to be widespread in China, although as yet undeveloped. In November 2009, US President Barack Obama agreed to share US gas-shale technology with China, and to promote US investment in Chinese shale-gas development. Given widespread interest among international oil companies to invest in shale gas extraction in China, it is possible that shale gas could account for as much as 5% of the nation's gas production by 2020.

Although China faces several challenges to develop efficient shale gas extraction, such as the geology and terrain are much more complex than that of USA, lack of water resources, immature expertise’s, etc., and large scale commercial production of shale gas has yet to begin, the government is optimistic about China’s future shale gas production. The Ministry of Land Resources has set aggressive targets of 6.5 bcm/yr by 2015 and at least 60 bcm /yr by 2020.To support the industry, China has held two auctions with more than 20 shale gas blocks being leased to 18 companies. After slow progress by the initial leaseholders, a third auction is expected to take place in late 2013, or early 2014. Together with the auctions, the government also issued several related regulations and policies, including production and infrastructure construction goals and subsidies to boost the development of shale gas.

3. Electricity sector in China:

The People's Republic of China's electric power industry has changed dramatically since the early 1990s to become the world's second-largest electricity consumer, after the United States. In April 1996, an Electric Power Law was implemented, a major event in China's electric power industry. The law set out to promote the development of the electric power industry, to protect legal rights of investors, managers and consumers, and

5

to regulate generation, distribution and consumption. China has abundant energy. The country has the world's third-largest coal reserves and massive hydroelectric resources.

Recent history:

China's power industry has become increasingly competitive over the past three years as a result of government-initiated structural reforms and China's entry into the World Trade Organization (WTO). Power companies, faced with the pressure of competition, are looking to transform their communications infrastructure to boost efficiency and productivity.

China's electric power industry has continuously maintained a high growth rate. By the end of 2000, the total installed power was 315 GW, an increase of 16.5 GW or 5.5% compared to 1999. Hydropower amounted to 77 GW, accounting for 15%; thermal power amounted to 235 GW, accounting for 83%.and nuclear power amounted to 2GW, accounting for 1% of installed capacity. Electricity generation reached 1400 TWh, 13.5% more than in the previous year. In 1999, the construction investment of the electric power industry reached 14 billion US dollars, of which 49.3% were dedicated to thermal power, 12.5% to hydropower 6.4% to nuclear 26.1%, to transmission lines and transformers and 5.7%.to other investments

Government:

To end the State Power Corporation's (SPC) monopoly of the power industry, China's State Council dismantled the corporation in December 2002 and set up 11 smaller companies. SPC had owned 46% of the country's electrical generation assets and 90% of the electrical supply assets. The smaller companies include two electric power grid operators, five electric power generation companies and four relevant business companies. Each of the five electric power generation companies owns less than 20% (32 GW of electricity generation capacity) of China's market share for electric power generation. Ongoing reforms aim to separate power plants from power-supply networks, privatize a significant amount of state-owned property, encourage competition, and revamp pricing mechanisms.

It is expected that the municipal electric power companies will be divided into electric power generating and electric power supply companies. A policy of competition between the different generators will be implemented in the next years. The government plans as many as eight long-distance UHV lines by 2015 and 15 by 2020.

1. HVDC Gezhouba -2. HVDC Three Gorges-Guangdong

Following research and testing, SGCC has announced construction of the first long-distance UHV line from Sichuan, which is rich in hydro-electric potential, to the eastern load center of Shanghai. Shanghai already receives hydro-electric power from the massive Three Gorges Dam on the Changjiang (Yangtze) at Sandouping in Hubei

6

province. But the new DC 800kV UHV line would enable it to receive power from twice as far west from the Xiangjiaba dam on the Jinsha River.

Problems:

In spring, 2011, it was reported by The New York Times that due to increased demand and price controls shortages of electricity existed and power outages should be anticipated. The government-regulated price electricity could be sold for had not matched rising prices for coal.

Price caps encourage wasteful use of cheap electricity and therefore producers are struggling to generate enough power overall

China is unable to mine enough coal or transport it in sufficient quantities to meet demand

The enormous volume of coal burning generates massive pollution Regional power shortages occur frequently when generation drops in one

province or region and the lack of long-distance power transmission capacity means that power cannot be routed in from other regions where there is surplus capacity

It seems likely the cost of power will need to rise substantially over the medium term (2–5 years) to curb wasteful energy consumption and slow the rate of growth in electricity demand. In theory, the government could raise power costs by a similar amount across the whole of China in the interests of inter-regional equity.

China's power transmission system remains under-developed. There is no national grid. Instead there are six regional grids—five managed by the giant State Grid Corporation (north, north-east, east, central and north-west) and an independent grid (south) managed by the South China State Grid Corp (covering the light manufacturing hub around Guangzhou-Shenzhen and the inland areas of Guangdong, Guangxi and Guizhou).

o Northern areas experience shortages in winter due to increased heating demand and problems with coal deliveries.

o Eastern and southern areas are prone to shortages in late spring/early summer as temperatures and air conditioning demand rise, while reservoir levels and hydro output fall until the arrival of the summer rains in July and August. Guangdong and other southern provinces import substantial quantities of expensive fuel oil and diesel to run additional generation capacity to cope with the resulting power gap.

The lack of a unified national grid system hampers the efficiency of power generation nationwide and heightens the risk of localized shortages.

Even within these grids transmission capacity is limited. Many towns and enterprises rely on local off-grid generating plants. More importantly, inter-

7

connections between the grids are weak and long distance transmission capacity is small.

The country's limited internal transport capacity risks being overwhelmed by the need to move record quantities of coal from the coal fields of the north and north-east to power generators in the central, eastern and southern areas.

The rail system has struggled to deliver adequate quantities of coal to the generators. Ice storms, flooding or droughts which disrupt rail and river deliveries quickly lead to shortages and power outages.

There are concerns about the quality and reliability of Chinese boilers, turbines and generators exported to India compared with Indian or Western equipment.

Energy Infrastructure:

The central government has made creation of a unified national grid system a top economic priority to improve the efficiency of the whole power system and reduce the risk of localized energy shortages. It will also enable the country to tap the enormous hydro potential from western China to meet booming demand from the eastern coastal provinces. China is planning for smart grid and related Advanced Metering Infrastructure.

Ultra-high-voltage transmission:

China has very aggressively invested in electricity supply in order to fulfill the demand from industries and hence secure economic growth. Installed generation capacity has run from 443 GW at end of 2004 to 793 GW at the end of 2008.The increment in these four years is equivalent to approximately one-third of the total capacity of the USA, or 1.4 times the total capacity of Japan. During the same period of time, power consumption has also risen from 2,197 TWh to 3,426 TWh.China's electricity consumption is expected to reach 6,000–6,600 TWh by 2015 from 4,690 TWh in 2011, with installed capacity reaching 1,463 GW from 1,056 GW in 2011, of which 342 GW is hydropower, 928 GW coal-fired, 100 GW wind, 43 nuclear, and 40 natural gas. China is the world's largest consuming nation of electricity in 2011.

Reasons for UHV transmission in China:

China’s decision to go for UHV transmission is based on the fact that energy resources are far away from the load centers. The majority of the hydropower resources are in the

8

west, and coal is in the northwest, but huge loadings are in the east and south. [4][6] To reduce transmission losses to a manageable level, UHV transmission is a logical choice. As the State Grid Corporation of China announced at the 2009 International Conference on UHV Power Transmission in Beijing, China will invest RMB 600 Billion (approx. USD 88 Billion) into UHV development between now and 2020.

4. Hydropower:Hydropower in China has been touted as a renewable and clean energy source, but this masks the fact that large dams, such as the Three Gorges Dam or the Xiluodu dam on the lower Jinsha River, have had environmental impacts on the areas surrounding dam reservoirs. Erosion, flooding of valuable farmland and destruction of fish breeding habitats has been typical problems. Moreover, about 15 million people have been relocated due to dam construction since 1949 and often these uprooted local people, in particular in Sichuan and Yunnan, tend to be poor and uneducated farmers, who are strongly attached to their ancestral land and have found it difficult to adapt to the more urban areas they have been resettled to. Growing media and NGO attention on the ecological and social impacts of hydropower and efforts in the central government in recent years to improve the regulatory framework of hydropower development and protect the interests of minority stakeholders, such as displaced locals, indicate that hydropower may eventually become more environmentally and socially sustainable.

Major hydropower corporations:

China Yangtze Power Sinohydro Corporation an engineering company.

Energy storage:

In general, hydroelectricity complements wind power very well. When the wind is blowing strongly, nearby hydroelectric plants can temporarily hold back their water, and when the wind drops they can rapidly increase production again giving a very even power supply.

Pumped-storage hydroelectricity or other forms of grid energy storage can store energy developed by high-wind periods and release it when needed.The type of storage needed depends on the wind penetration level – low penetration requires daily storage, and high penetration requires both short and long term storage – as long as a month or more. Stored energy increases the economic value of wind energy since it can be shifted to displace higher cost generation during peak demand periods. The potential revenue from this arbitrage can offset the cost and losses of storage; the cost of storage may add 25% to the cost of any wind energy stored but it is not envisaged that this would apply to a large proportion of wind energy generated. For example, in the UK, the 1.7 GW Dinorwig pumped storage plant evens out electrical demand peaks, and allows base-load suppliers to run their plants more efficiently. Although pumped storage power systems are only about 75% efficient, and have high installation costs, their low running costs and ability

9

to reduce the required electrical base-load can save both fuel and total electrical generation costs.

In particular geographic regions, peak wind speeds may not coincide with peak demand for electrical power. In the US states of California and Texas, for example, hot days in summer may have low wind speed and high electrical demand due to the use of air conditioning. Some utilities subsidize the purchase of geothermal heat pumps by their customers, to reduce electricity demand during the summer months by making air conditioning up to 70% more efficient; widespread adoption of this technology would better match electricity demand to wind availability in areas with hot summers and low summer winds. Another option is to interconnect widely dispersed geographic areas with an HVDC "Super grid". In the U.S. it is estimated that to upgrade the transmission system to take in planned or potential renewable would cost at least $60 billion.

Germany has an installed capacity of wind and solar that exceeds daily demand, and has been exporting peak power to neighboring countries. A more practical solution is the installation of thirty days storage capacity able to supply 80% of demand, which will become necessary when most of Europe's energy is obtained from wind power and solar power. Just as the EU requires member countries to maintain 90 days strategic reserves of oil it can be expected that countries will provide electricity storage, instead of expecting to use their neighbors for net metering

Environmental effects:

Compared to the environmental impact of traditional energy sources, the environmental impact of wind power is relatively minor in terms of pollution. Wind power consumes no fuel, and emits no air pollution, unlike fossil fuel power sources. The energy consumed to manufacture and transport the materials used to build a wind power plant is equal to the new energy produced by the plant within a few months. While a wind farm may cover a large area of land, many land uses such as agriculture are compatible, with only small areas of turbine foundations and infrastructure made unavailable for use.

There are reports of bird and bat mortality at wind turbines as there are around other artificial structures. The scale of the ecological impact may or may not be significant, depending on specific circumstances. Although many artificial structures can kill birds, wind power has a disproportionate effect on certain endangered bird species. An especially vulnerable group is raptors, which are slow to reproduce and favor the high wind speed corridors that wind turbine companies build turbines in, to maximize energy production. Although they have a negligible effect on most birds, in some locations there is a disproportionate effect on some birds of conservation concern, such as the golden eagle and raptor species.

However, a large meta-analysis of 616 individual studies on electricity production and its effects on avian mortality concluded that the most visible impacts of wind technology are not necessarily the most flagrant ones, as:

10

“Wind turbines seem to present a significant threat as all their negative externalities are concentrated in one place, while those from conventional and nuclear fuel cycles are spread out across space and time. Avian mortality and wind energy has consequently received far more attention and research than the avian deaths associated with coal, oil, natural gas and nuclear power generators [although] study suggests that wind energy may be the least harmful to birds.

Central government:

Fossil fuels are subsidized by many governments, and wind power and other forms of renewable energy are also often subsidized. For example a 2009 study by the Environmental Law Institute assessed the size and structure of U.S. energy subsidies over the 2002–2008 period. The study estimated that subsidies to fossil-fuel based sources amounted to approximately $72 billion over this period and subsidies to renewable fuel sources totalled $29 billion. In the United States, the federal government has paid US$74 billion for energy subsidies to support R&D for nuclear power ($50 billion) and fossil fuels ($24 billion) from 1973 to 2003. During this same time frame, renewable energy technologies and energy efficiency received a total of US$26 billion. It has been suggested that a subsidy shift would help to level the playing field and support growing energy sectors, namely solar power, wind power, and biofuels. History shows that no energy sector was developed without subsidies.

According to the International Energy Agency (IEA) (2011) energy subsidies artificially lower the price of energy paid by consumers, raise the price received by producers or lower the cost of production. "Fossil fuels subsidies costs generally outweigh the benefits. Subsidies to renewable and low-carbon energy technologies can bring long-term economic and environmental benefits". In November 2011, an IEA report entitled Deploying Renewable 2011 said "subsidies in green energy technologies that were not yet competitive are justified in order to give an incentive to investing into technologies with clear environmental and energy security benefits". The IEA's report disagreed with claims that renewable energy technologies are only viable through costly subsidies and not able to produce energy reliably to meet demand.

5. Renewable energy in China:

(a).Nuclear power in China:

As of 2013, the People's Republic of China has 17 nuclear power reactors spread out over 6 separate sites and 32 under construction. China's National Development and Reform Commission have indicated the intention to raise the percentage of China's electricity produced by nuclear power from the current 2% to 6% by 2020 (compared to 20% in the USA and 74% in France). This will require the current installed capacity of 13.8 GW to be increased to 80,6 GW (more than France at 63 GW).[4] However, rapid nuclear

11

expansion may lead to a shortfall of fuel, equipment, qualified plant workers, and safety inspectors.

China wants to maximize self-reliance on nuclear reactor technology manufacturing and design although international cooperation and technology transfer are also encouraged. Advanced pressurized water reactors such as the ACPR-1000 and the AP1000 are the mainstream technology in the near future. Later very high temperature reactors, such as pebble bed reactors, are a priority. By mid-century fast neutron reactors are seen as the main technology. More long-term plans for future capacity are 200 GW by 2030 and 400 GW by 2050. Fast neutron reactors are planned to contribute 1400 GW by 2100. China is positioned to become a reactor exporter, through development of the CPR-1000.

Future projects:

Currently, this is one of the most ambitious programs in the world with plans to have over 80 GWe (6%) of installed capacity by 2020, and a further increase to more than 200 GW (16%) by 2030, as agreed in the 22 March 2006 government "Long-term development plan for nuclear power industry from 2005 to 2020". The State Council Research Office (SCRO) has recommended that China aim for no more than 100 GW before 2020 (built and building), in order to avoid a shortfall of fuel, equipment and qualified plant workers.

The role of the IPPs:

The first major successful profitable commercial project was the Daya Bay Nuclear Plant, which is 25% owned by CLP Group of Hong Kong and exports 70% of its electricity to Hong Kong. Such imports supply 20% of Hong Kong's electricity.

In order to access the capital needed to meet the 2020 target of 80GW, China has begun to grant equity in nuclear projects to China's Big Five power corporations:

Huaneng Group, Huadian Group – Fujian Fuqing nuclear power project II and III Datang Group, China Power Investment Group – Jiangxi Pengze Nuclear Guodian Group

Safety and regulation:

China has requested and hosted 12 Operational Safety Review Team (OSART) missions from IAEA teams to October 2011, and each plant generally has one external safety review each year, either OSART, WANO peer review, or CNEA peer review (with the Research Institute for Nuclear Power Operations).

The challenge (in the proposed rapid build-out of nuclear power) for the government and nuclear companies is to "keep an eye on a growing army of contractors and

12

subcontractors who may be tempted to cut corners". China is advised to maintain nuclear safeguards in a business culture where quality and safety are sometimes sacrificed in favor of cost-cutting, profits, and corruption. China has asked for international assistance in training more nuclear power plant inspectors.

Public opposition:

China is experiencing civic protest over its ambitious plans to build more nuclear power plants following the Fukushima nuclear disaster. There has been "inter-provincial squabble" over a nuclear power plant being built near the southern bank of the Yangtze River. The plant in the centre of the controversy is located in Pengze County in Jiangxi and across the river the government of Wangjiang County in Anhui wants the project shelved.

More than 1,000 people protested in Jiangmen City Hall in July 2013 to demand authorities abandon a planned uranium-processing facility that was designed as a major supplier to nuclear power stations. The Heshan Nuclear Power Industry Park was to be equipped with facilities for uranium conversion and enrichment as well as the manufacturing of fuel pellets, rods and finished assemblies. Protesters feared the plant would adversely affect their health, and the health of future generations. As the weekend protest continued, Chinese officials announced the state-run project's cancellation.

(b). Wind power in China:

With its large land mass and long coastline, China has exceptional wind resources: it is estimated China has about 2,380 gigawatts (GW) of exploitable capacity on land and 200 GW on the sea. At the end of 2012, there were 76GW of electricity generating capacity installed in China, more than the total nameplate capacity of China's nuclear power stations, and over the year 115,000 gigawatt-hours of wind electricity had been provided to the grid. In 2011, China's plan was “to have 100 gigawatts (GW) of on-grid wind power generating capacity by the end of 2015 and to generate 190 billion kilowatt hours (kWh) of wind power annually.

In 2010, China became the largest wind energy provider worldwide, with the installed wind power capacity reaching 41.8 GW at the end of 2010, but about a quarter of this was not connected to the grid; by the end of 2012, 76GW were installed of which 15GW were not connected to the grid.

Future wind farms:

The Gansu Wind Farm Project under construction in western Gansu province is one of six national wind power mega projects approved by the Chinese government. It is expected to grow to 20,000 MW by 2020, at an estimated cost of 120 billion Chinese yuan ($17.5 billion). In 2008, construction began on a 750 kV AC power line to carry electricity from the wind farm. When complete, the complex of wind farms at Gansu may become the world's largest collective wind farm.

13

Wind power capacity and production:

World wind generation capacity more than quadrupled between 2000 and 2006, doubling about every three years. The United States pioneered wind farms and led the world in installed capacity in the 1980s and into the 1990s. In 1997 German installed capacity surpassed the U.S. and led until once again overtaken by the U.S. in 2008. China has been rapidly expanding its wind installations in the late 2000s and passed the U.S. in 2010 to become the world leader.

At the end of 2012, worldwide nameplate capacity of wind-powered generators was 282 gigawatts (GW), growing by 44 GW over the preceding year. According to the World Wind Energy Association, an industry organization, in 2010 wind power generated 430 TWh or about 2.5% of worldwide electricity usage, up from 1.5% in 2008 and 0.1% in 1997. Between 2005 and 2010 the average annual growth in new installations was 27.6%.Wind power market penetration is expected to reach 3.35% by 2013 and 8% by 2018.

Distribution of wind speed:

The strength of wind varies, and an average value for a given location does not alone indicate the amount of energy a wind turbine could produce there. To assess the frequency of wind speeds at a particular location, a probability distribution function is often fit to the observed data. Different locations will have different wind speed distributions. The Weibull model closely mirrors the actual distribution of hourly/ten-minute wind speeds at many locations. The Weibull factor is often close to 2 and therefore a Rayleigh distribution can be used as a less accurate, but simpler model.

(c). Solar power in China:

Solar power in the People's Republic of China is a growing industry. China has over 400 photovoltaic (PV) companies. In 2012 China installed 5.0 GW of solar panel capacity. As of 2012, about 8.3 GW of photovoltaic contribute towards power generation in China.[1] Solar water heating is extensively implemented as well.

Domestic installed capacity:

According to plans unveiled by the National Development and Reform Commission in 2007, the country's installed solar capacity was to grow to 1,800 MW by 2020. In 2009, Wang Zhongying, a Commission official, mentioned at a solar energy conference in Shanghai that the plan might be exceeded several-fold, with the installed capacity possibly reaching as much as 10 GW by 2020. In May 2011, the National People's Congress (NPC) set 5 GW as an official minimum PV target for 2015, with a longer-term target of 20–30 GW by 2020. China added 5.0 GW of panels in 2012, bringing installed capacity to 8,300 MW, and may add 6.8 GW in 2013. According to the European Photovoltaic Industry Association, the total installed capacity could grow to from 47 GW to 66 GW by 2017.

14

In 2011, the at the time world's largest solar farm was completed, the 200 MW Huanghe Hydropower Golmud Solar Park. There are many other solar farms in Golmud, totaling 570 MW at the end of 2011, with another 500 MW expected in 2012. The Qinghai province, which contains Golmud, leads China in solar installations.

Concentrated solar power:

The 12th five year plan, for 2011 to 2015, calls for installing 1,000 MW by 2015, and 3,000 MW of concentrated solar power plants by 2020. Plants either being planned or under construction:1 MW Badaling Pilot Project — collaboration between the Institute of Electrical Engineering (IEE) and the Chinese Academy of Sciences (CAS)12 MW (short term) / 300-MW (long term) project — collaboration between Xinjiang Qingsong Building Materials and Chemicals (Group) Co. and Guodian Xinjiang Company:-

50 MW project in Tibet by Huaneng Tibet Company 100 MW project in Sichuan Abazhou by Tianwei New Energy (Aba) 50 MW (TBD) by China Huadian Corporation 100 MW project in Golmud by GD ENERGY 100 MW project in Ningxia by Beijing Control Technology Co. Ltd 100 MW project (TBD) by Avic Xi’an Aero-Engine (Group) Ltd 100 MW project (TBD) by Guangdong Kangda 100 MW in Gansu by SETC Tianjin 1,000 MW in Qinghai by Lion International Investment Ltd. 2,000 MW in Shaanxi by Shandong Penglai Dianli and eSolar

(d). Biofuel:

A biofuel is a fuel that contains energy from geologically recent carbon fixation. These fuels are produced from living organisms. Examples of this carbon fixation occur in plants and microalgae. These fuels are made by a biomass conversion (biomass refers to recently living organisms, most often referring to plants or plant-derived materials). This biomass can be converted to convenient energy containing substances in three different ways: thermal conversion, chemical conversion, and biochemical conversion. This biomass conversion can result in fuel in solid, liquid, or gas form. This new biomass can be used for biofuels. Biofuels have increased in popularity because of rising oil prices and the need for energy security. However, according to the European Environment Agency, biofuels do not necessarily mitigate global warming.

Bioethanol is an alcohol made by fermentation, mostly from carbohydrates produced in sugar or starch crops such as corn or sugarcane. Cellulosic biomass, derived from non-food sources, such as trees and grasses, is also being developed as a feedstock for ethanol production. Ethanol can be used as a fuel for vehicles in its pure form, but it is usually used as a gasoline additive to increase octane and improve vehicle emissions. Bioethanol is widely used in the USA and in Brazil. Current plant design does not provide for converting the lignin portion of plant raw materials to fuel components by fermentation.

15

Third generation photovoltaic cell:

Third generation photovoltaic cells are solar cells that are potentially able to overcome the Shockley–Queisser limit of 31-41% power efficiency for single band gap solar cells. This includes a range of alternatives to the so-called "first generation solar cells" (which are solar cells made of semi conducting p-n junctions) and "second generation solar cells" (based on reducing the cost of first generation cells by employing thin film technologies). Common third-generation systems include multi-layer ("tandem") cells made of amorphous silicon or gallium arsenide, while more theoretical developments include frequency conversion, hot-carrier effects and other multiple-carrier ejection.

Technologies:

The third generation is somewhat ambiguous in the technologies that it encompasses, though generally it tends to include, among others, non-semiconductor technologies (including polymer cells and biomimetics), quantum dot, tandem/multi-junction cells, intermediate band solar cell,[6] hot-carrier cells, photon up conversion and downconversion technologies, and solar thermal technologies, such as thermo photonics, which is one technology identified by Green as being third generation. It also includes:

Silicon nanostructures Modifying incident spectrum (concentration), to reach 300-500 suns and

efficiencies of 32% (already attained in Sol3g cells) to +50%. Use of excess thermal generation (caused by UV light) to enhance voltages or

carrier collection. Use of infrared spectrum to produce electricity at night.

Future possibilities:

The new material that solar energy can be harnessed with is one of the most exciting elements of the new technology. A Flexible and lightweight physical characteristics of the different types of third generation solar cells makes many new applications possible.

There is the possibility that solar cells could be integrated into clothing which would allow us to have personal wireless power without batteries. Another plausible application could be a type of automobile paint that is blended with polymer solar cells. This could help maintain the lightweight form of a solar car while still providing ample energy to power it.

Energy conservation:

(a).The General Work Plan for Energy Conservation:

The General Work Plan for Energy Conservation and Pollutant Discharge Reduction aims to cut energy consumption per unit of gross domestic product (energy intensity) by

16

20% over the course of the Eleventh Five-Year Plan which ended in 2010, as well as cutting the discharge of major pollutants by 10%. Implementation involved a variety of measures, including increased use of renewable energy, revised pricing for primary energy sources and electricity, export restrictions on energy intensive and highly polluting products, and tax incentives for pollution-reduction projects. Central and local government will switch to low-energy lighting, and will be compelled to purchase only the most energy efficient and environmentally friendly electrical products

Officials were warned that violating energy conservation and environmental protection laws would lead to criminal proceedings, while failure to achieve targets would be taken into account in the performance assessment of officials and business leaders.After achieving less than half the 4% reduction in energy intensity targeted for 2006, all companies and local and national government were asked to submit detailed plans for compliance before June 30, 2007.

During the first four years of the plan, energy intensity improved by 14.4%, but dropped sharply in the first quarter of 2010. In August 2010, China announced the closing of 2,087 steel mills, cement works and other energy-intensive factories by September 30, 2010. The factory closings were made more palatable by a labor shortage in much of China making it easier for workers to find other jobs.

(b). Space heating and air conditioning:

A State Council circular issued on June 3, 2007, restricts the temperature of air conditioning in public buildings to no lower than 26 °C in summer (78.8 °F), and of heating to no higher than 20 °C (68 °F) in winter. The sale of inefficient air conditioning units has also been outlawed.

17