The focus of energy work this year: to strengthen the supply security capacity, crude oil production back to 200 million tons

2022-05-11 0 By

The National Energy Administration (NEA) of The People’s Republic of China (PBOC) announced the Guidelines on Energy work in 2022 on April 29.The guidelines put “enhancing the capacity for supply and security” at the top of the three main goals, proposing that “the primary task is to ensure the security and stable supply of energy, focus on strengthening the capacity for domestic energy production and security, and effectively secure the energy bowl in our own hands.”The other two main goals are to steadily promote structural transformation and focus on improving quality and efficiency.This is different from the energy work Guidelines 2021, which put “energy mix” at the top of the main goal.Around the three main targets, this year’s guidelines set a series of quantitative targets: China’s total energy production will reach around 4.41 billion tons of standard coal, 200 million tons of crude oil and 214 billion cubic meters of natural gas.Installed power capacity reached about 2.6 billion kilowatts, generating about 9.07 trillion kilowatt hours, adding over 80 million kilowatts of peak power generation capacity, and bringing the power transmission capacity from the west to the east to about 290 million kilowatts.It is worth noting that the guidelines further clarify that “we will resolutely achieve the set goal of restoring crude oil production to 200 million tons by 2022”.According to the National Bureau of Statistics, China’s crude oil production stood at 215 million tons in 2015, fell below 200 million tons in 2016, and then continued to decline until it recovered in 2019 and reached 199 million tons in 2021.As for the targets for structural transformation, the guidance points out that the share of coal consumption will fall steadily, the share of non-fossil energy in total energy consumption will rise to about 17.3 percent, 180 billion kilowatt-hours of replacement electricity will be added, and wind and photovoltaic power generation will account for about 12.2 percent of China’s total electricity consumption.In 2021, the proportion of wind and photovoltaic power generation in China’s total electricity consumption exceeded 10 percent for the first time, reaching 11.7 percent.China’s total wind power and photovoltaic power generation reached 978.5 billion KWH, up 35.0% year on year.Among them, the annual new installed capacity of distributed pv accounted for 55% of the total installed capacity of PV, breaking 50% for the first time in history.The guidelines put forward that the implementation of the development and construction of distributed photovoltaic rooftops in the whole county should be continued, and supervision of implementation should be strengthened.According to local conditions, the organization of “thousands of townships and villages wind control action” and “thousands of households mu light action”.Make full use of land and roof resources in oil and gas mining areas, industrial areas and industrial parks to develop distributed wind power and photovoltaic.We will improve the mechanism for ensuring the consumption of renewable energy electricity, release the weight of responsibility for the consumption of renewable energy by all provinces in 2022, and improve the green electricity certificate system for renewable energy generation.This year’s guidelines do not set quantitative targets for coal consumption.The guidelines emphasize the need to strengthen the ability of coal and coal power supply.We should make scientific plans for the construction of advanced coal power units, arrange support power sources of a certain scale to ensure the safety of power supply and regulatory power sources to promote the absorption of new energy sources, maintain a reasonable installed surplus, and strictly follow the latest technical standards such as coal consumption in new projects.We will promote the implementation of policies supporting electricity prices, taxes and loans for coal and power enterprises, and encourage coal and power enterprises to transform into “power generation plus” integrated energy service enterprises and multi-function complementary enterprises.As for the quality efficiency target, according to the Guidelines, the energy intensity target will be considered in the 14th Five-Year plan period with appropriate flexibility.The average utilization hours of inter-regional power transmission channels are within a reasonable range, and the utilization rates of wind power and photovoltaic power generation remain at a reasonable level.A policy researcher analyzed to CBN reporter that the current domestic and international energy situation has undergone new changes: on the one hand, due to the power supply shortage and other reasons, some regions of China have been restricted power production, affecting the stable economic development;On the other hand, international energy supply and price instability is expected to increase.Therefore, we have given high priority to enhancing the capability of supply assurance and cancelled or adjusted some of the restrictive targets set in previous years, which in fact provides necessary flexibility for ensuring China’s energy security.