The Central Economic Work Conference concluded last week as the top Chinese leaders mapped out priorities for the nation’s economic development.
The conference requires “properly understanding carbon emission-peak and net neutrality” (正确认识和把握碳达峰碳中和,) sending a clear intention to correct previous strategies and trends. The conference also said that the phase-out of conventional energy will only be done based on the “safe and reliable replacement” of new energy. (传统能源逐步退出要建立在新能源安全可靠的替代基础上)
Three principles regarding energy sectors have been made in the conference which is highly relevant:
Coal: reinstates that “coal as the main energy source” is the fundamental feature of China’s energy market; the clean utilization of coal is still a priority
Renewable: emphasizes “increasing system capability to use and store renewable energy” (增加新能源消纳能力,) “promoting optimized integration between coal and renewable,” and aggressively carrying out green low-carbon technology R&Ds.
Total Energy Capacity & Consumption Capping: renewable energy will be exempt from energy capping; using energy as industrial raw materials would be exempt from the energy capping requirements as well.
Energy Iceberg’s Note:
In other words: 1) in the coming years, coal is still needed and new capacity–if clean–will be allowed. 2) renewable energy constructions and projects should team with energy storage solutions or local electricity consumption units; coal power plants are encouraged to make technical modifications to serve as auxiliary services units.
3) heavy industries using renewable as their energy sources would be encouraged; using coal, oil&gas as raw materials for industrial production is exempt from the energy capping policy. (such as refineries) That means coal and fossil-fuel-based chemical and petrochemical productions are exempt.