SCIO briefing on promoting high-quality development: National Energy Administration

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Speakers:

Mr. Zhang Jianhua, administrator of the National Energy Administration (NEA)

Mr. Li Fulong, director general of the Department of Development and Planning of the NEA

Mr. Du Zhongming, director general of the Department of Electricity of the NEA

Mr. Li Chuangjun, director general of the Department of New Energy and Renewable Energy Sources of the NEA

Chairperson:

Ms. Shou Xiaoli, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

June 20, 2024

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Zhang Jianhua, administrator of the National Energy Administration (NEA), to brief you on relevant developments and answer your questions. Also present today are Mr. Li Fulong, director general of the Department of Development and Planning of the NEA; Mr. Du Zhongming, director general of the Department of Electricity of the NEA; and Mr. Li Chuangjun, director general of the Department of New Energy and Renewable Energy Sources of the NEA. Now, I'll give the floor to Mr. Zhang for his introduction.

Zhang Jianhua:

Ladies and gentlemen, good afternoon. I am pleased to meet with friends from the media to brief you on implementing the new energy security strategy and promoting high-quality energy development.

Energy is a crucial material foundation and driving force for economic and social development, directly impacting the people's livelihoods and national security. Since the 18th National Congress of the Communist Party of China (CPC), General Secretary Xi Jinping has placed significant emphasis on energy work. In June 2014, he proposed the new energy security strategy, featuring reforms in four main aspects and comprehensive international cooperation, which provides a fundamental guideline for China's high-quality energy development in the new era. Over the past decade, we have vigorously promoted revolutions in energy consumption, supply, technology and institutional frameworks, and strengthened international cooperation in all aspects, achieving historic milestones in energy development. These efforts have strongly supported the building of a moderately prosperous society in an all-round way and the new journey of building a modern socialist country in all respects.

We have actively embraced the concept of green development, fully leveraging the driving role of the transformation on the consumption side. Our energy consumption structure has continuously improved, and green and low-carbon energy development has reached new heights. From 2013 to 2023, the proportion of coal consumption decreased from 67.4% to 55.3%, a cumulative decline of 12.1 percentage points. Non-fossil energy sources, such as wind power, solar power, hydropower, nuclear power and biomass, increased their share from 10.2% to 17.9%, a cumulative increase of 7.7 percentage points. Profound changes have taken place in energy use across industries, transportation, construction and daily life. The quality of petroleum products has been upgraded from "China III" to "China VI" emission standards, significantly contributing to improved air quality. Additionally, we established the world's largest charging infrastructure system, significantly enhancing the environmentally friendly aspects of economic development.

We have adhered to a holistic approach to national security, focusing on enhancing domestic resource production capabilities to ensure our energy independence. The stability and security of our energy supply have reached new heights. From 2013 to 2023, total primary energy production increased by 35%. Raw coal production capacity continued to strengthen, crude oil production remained at 200 million metric tons, and installed power generation capacity and natural gas production doubled. Wind power installed capacity grew from over 76 million kilowatts to more than 440 million kilowatts, increasing nearly fivefold. Photovoltaic power installed capacity expanded from over 19 million kilowatts to over 600 million kilowatts, growing more than thirtyfold. In 2023, the newly installed renewable power generation capacity exceeded half of the global total, with the cumulative installed capacity accounting for nearly 40% of the global share. The capacity for west-to-east electricity transmission exceeds 300 million kilowatts, supporting about one-fifth of the electricity demand in central and eastern China. The total length of long-distance oil and gas pipelines increased from over 100,000 kilometers to 190,000 kilometers, an approximately 80% growth. Per capita household electricity consumption nationwide increased from 500 kilowatt-hours (kWh) to nearly 1,000 kWh, doubling over the period, effectively meeting the energy needs of 1.4 billion people.

We are committed to innovation-driven development, accelerating self-reliance and strength in energy science and technology. Traditional energy industries have been transformed and upgraded, while we fostered competitive advantages in new energy sectors. Our energy technology has reached internationally advanced levels. We developed independent intellectual property rights for third-generation domestically developed pressurized water nuclear technology, including the Hualong One. The commercial demonstration project of the world's first high-temperature gas-cooled reactor in Shidaowan, Shandong province, was completed and put into operation. Breakthroughs were made in unconventional oil and gas exploration and heavy-duty gas turbine development. We maintained a world leading position in technologies like ultra-high voltage power transmission and high-parameter coal-fired power generation. The wind power industry established a comprehensive industrial chain from equipment manufacturing, development and construction to operation and maintenance. The conversion efficiency of photovoltaic cells has set multiple world records, and the costs of wind and solar power generation decreased by 60% and 80%, respectively. Our hydropower industry leads globally, exemplified by the Baihetan hydropower station, which has the world's largest single-unit capacity. The industrialization of cutting-edge technologies like new energy storage and hydrogen energy accelerated.

We continue to deepen reforms, promoting better interplay between efficient markets and well-functioning government. We have improved the legal framework for energy, accelerated the development of the energy market, and enhanced the effectiveness of energy governance. Reforms in key energy areas and critical sectors remain ongoing. Laws and regulations on energy have been strengthened, with a draft energy law undergoing review by the Standing Committee of the National People's Congress, and the revision of the laws on electricity, coal and renewable energy progressing in an orderly manner. A unified national electricity market system is rapidly developing, with over 60% of electricity consumption now subject to market-based transactions. The oil and gas market system is taking shape, and mechanisms for medium- and long-term coal contracts and market pricing are continually improving. The dividends of energy reforms continue to drive vitality among various business entities, providing powerful momentum for high-quality energy development.

We are committed to the vision of building a global community of shared future, expanding high-standard openness in the energy sector, boosting pragmatic international cooperation, and increasing involvement in global energy governance. Energy cooperation with the global community has expanded in all dimensions. Overseas oil and gas cooperation zones and import channels have been further strengthened. Several landmark projects have been completed and started operation, such as the Belo Monte ultra-high voltage (UHV) direct current (DC) transmission project in Brazil and the first overseas Hualong One nuclear reactor in Pakistan. We have achieved electricity interconnection with seven neighboring countries. We established two important diplomatic mechanisms, the Belt and Road Energy Partnership, and the Global Clean Energy Cooperation Partnership. A total of six regional energy cooperation platforms have proven beneficial, including those with ASEAN and the League of Arab States. China has become an increasingly important force in the global energy governance system.

Chinese-style modernization raises new and higher requirements for energy development. We will continue to implement the new strategy for energy security and accelerate the planning and development of a new type of energy system, fully promoting the high-quality development of the energy sector. Thank you.

Shou Xiaoli:

Thank you, Mr. Zhang. The floor is now open to questions. Please identify the news agency you represent before raising questions.