Highlights are as follows -
- Unlike India, which still has electrification rates under 80%, China declared full electrification in 2012.
- Environmental performance is high on government priorities. Energy and carbon intensity levels have fallen. Small and inefficient plants have been closed. Efficiency levels have risen as pollution levels have fallen. The renewable sector – especially wind and solar – have experienced spectacular growth to become the largest in the world. By the end of 2020, non-fossil fuel sources of electricity are to account for 39% of capacity and 31% of generation. Coal consumption and polluting emissions are both to be brought down.
- However, that still leaves coal with a 60% share of capacity.
- Massive imbalances of supply and demand persist, owing to huge distances between resource location and resource use.
- End-user tariffs are regulated for the residential and agricultural sectors. Different provinces maintain different tariff structures. And administrative tools remain more favored than price signals
- A plethora of national and provincial administrative structures blurs responsibilities, such as the National Development and Reform Commission, the National Energy Administration, the Ministry of Environment Protection, the Ministry of Land and Resources, the State-owned Assets Supervision and Administration Commission, etc., to name but a few.
- To fully realise the potential benefits of low-carbon energy sources, deregulation reform promoting price signals as outlined in Document Number 9 would be pivotal.
Download China's Electicity Sector - Lantau Group Report April 2018
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