Long-term focus of "14th Five-Year Plan" and 2035: energy and electricity power

SHANGHAI, Jul 7 (SMM) — The Fourth session of the Thirteenth National People's Congress was held in the Great Hall of the People on March 5, 2021. The session reviewed the "Outline of the Fourteenth Five-Year Plan for the National Economic and Social Development of the People's Republic of China and the Long-Term Goals for 2035 (Draft)" (hereinafter referred to as the "Draft Outline"). The following 25 development directions contain hundreds of key projects related to energy and electricity power.

The major directions are:

1. Key indicators

Reduction by 13.5% in energy consumption per unit GDP

Reduction by 18% in CO2 emissions per unit GDP

Comprehensive energy production capacity > 4.6 billion mt of standard coal

2. Clean energy base (hydropower/ wind/ optical/ multi-energy complementary, etc.)

Wind and photovoltaic power

To accelerate the development of non-fossil energy, adhere to both centralisation and distribution, vigorously increase the scale of wind power and photovoltaic power generation, accelerate the development of distributed energy in the eastern and central regions, and orderly develop offshore wind power. To build a batch of multi-energy complementary clean energy bases, and increase the proportion of non-fossil energy to about 20% of total energy consumption.

Hydropower

To speed up the construction of the Hydropower Bases in south-west China

Key projects:

Construction of a hydropower base on the lower reaches of the Yarlung Zangbo River Construction of clean energy bases on the upper and lower reaches of the Jinsha River, the Yalong River basin, the upper reaches of the Yellow River, Jizi bay, Hexi Corridor, Xinjiang, North Hebei, Songliao and other regions.
Construction of offshore wind power bases in Guangdong, Fujian, Zhejiang, Jiangsu, and Shandong.

3. Nuclear power

To promote the development and application of key components of nuclear power plants To safely and steadily promote the construction of coastal nuclear power.

Installed operating capacity of nuclear power to reach 70 million kilowatts.

Key projects:

To complete demonstration projects for Hualong No 1, Guohe No 1 and high-temperature gas-cooled reactors, and to promote the construction of third-generation nuclear power along the coast.

To promote the demonstration projects of advanced reactor types such as modular small reactors, 600,000-kilowatt commercial high-temperature gas-cooled reactors, and offshore floating nuclear power platforms.

To build disposal sites for low- and medium-level radioactive waste from nuclear power plants, and to build spent fuel treatment plants.

To carry out demonstrations on comprehensive utilisation of nuclear energy in Haiyang, Shandong and other regions.

4. Thermal Power & Coal

To promote the concentration of coal production in resource-rich areas, reasonably control the scale and development pace of coal power construction, and advance the replacement of coal with electricity.

To reasonably control the intensity of coal development, promote the integrated development and utilisation of energy resources, and strengthen the ecological restoration of mines.

To promote the clean and efficient utilisation of coal and other fossil energy and the flexible transformation of coal power

5. Power grid

To improve the utilisation rate of UHV transmission channels

To accelerate the intelligent transformation of power grid infrastructure and the construction of smart microgrids, improve power system complementarity and intelligent regulation capabilities, strengthen source grid charge storage connection, improve clean energy consumption and storage capabilities, and enhance transmission and distribution capabilities to remote areas

To promote the construction of rural water supply projects, upgrade and transform rural power grids

Key projects:

Construction of UHV power transmission channels from Baihetan to East China and on the upper reaches of the Jinsha River, and the implementations of the Fujian-Guangdong interconnection and Sichuan-Chongqing UHV AC projects.

Research and demonstration of the UHV transmission channels from Longdong to Shandong, and from Hami to Chongqing.

6. Market-oriented reforms

To promote market-oriented reforms in competitive sectors of energy and other sectors, liberalise access to competitive businesses, further introduce market competition mechanisms, and strengthen the supervision of natural monopoly businesses.

7. Electricity power market

To allow all manufacturing enterprises to participate in electricity market-oriented transactions.

8. Energy storage & hydrogen energy

To speed up the construction of pumped storage power stations and the large-scale application of new energy storage technologies

To implement the future industry incubation and acceleration plans and plan a batch of future industries in the cutting-edge technology and industrial transformation fields such as hydrogen energy and energy storage

To construct a number of national innovation platforms for the integration of industry and education and joint training bases for postgraduates in key areas such as the industrial Internet and energy storage, To build 100 high-level, professional and open training bases for the integration of production and education

Key projects:

The construction of pumped storage power stations in Tongcheng, Pan'an, Tai'an, Hunyuan, Zhuanghe, Anhua, Guiyang, Nanning, etc, for the implementations of electrochemical, compressed air, flywheel and other energy storage demonstration projects

The research on large-scale energy storage projects of the Yellow River cascade power stations.

9. New energy vehicles

To make breakthrough in key technologies such as high-safety power batteries, high-efficiency drive motors, and high-performance power systems for new energy vehicles, and to accelerate the development of intelligent (connected) vehicles basic technology platforms, software and hardware systems, wire-controlled chassis, and smart terminals, and other key components.

10. Charging pile

To speed up the promotion of urban renewal and actively build new parking lots and charging piles.

11. Carbon emissions & carbon peaking

To implement the intended nationally determined contributions target for climate change in 2030, and formulate an action plan for peaking carbon emissions by 2030

To improve the dual control on the intensity and total amount of energy consumption, focusing on fossil energy consumption

To implement a system with carbon intensity control as the mainstay and total carbon emission control as a supplement, and support places where conditions permit to take the lead in reaching the peak of carbon emissions

To promote clean, low-carbon, safe, and efficient use of energy, and deepen the low-carbon transformation of industries, construction, and transportation.

To enhance the control of other greenhouse gases such as methane, HFCs, and PFCs.

To anchor efforts to achieve carbon neutrality by 2060 and adopt more powerful policies and measures.

To promote market-based trading of pollution emission rights, energy use rights, water rights, and carbon emission rights.

12. Carbon capture and storage

To implement major demonstration projects of energy-saving and low-carbon technology industrialisation, and carry out major project demonstrations such as near-zero energy buildings, near-zero carbon emissions, and carbon capture, utilisation and storage (CCUS).

13. Waste incineration

To speed up the construction of waste incineration facilities, realise zero landfill of primary waste in areas where the daily volume of urban domestic waste is more than 300 mt, and carry out pilot projects for the construction of small-scale domestic waste incineration facilities.

14. Bioenergy

To promote the integration and innovation of biotechnology and information technology, accelerate the development of bio-energy and other industries, and expand and strengthen the bio-economy.

15. Geothermal energy

To develop and utilise geothermal energy according to local conditions.

16. Oil and gas

To orderly liberalise market access for oil and gas exploration and development, accelerate the utilisation of deep-sea, deep-seated and unconventional oil and gas resources, and promote the increase in oil and gas reserves and production.

To improve cross-regional transportation channels and collection and distribution systems for coal, accelerate the construction of main natural gas pipelines, and improve the oil and gas interconnection network

Key projects:

To build new oil and gas pipelines of the part of Eastern Route of China and Russia within China and the second line of the Sichuan-East Gas Transmission Line. Construction of major projects for oil reserves.

To strengthen oil and gas exploration and development in key basins such as Sichuan, Ordos, Tarim, and Junggar, stabilise production in the old oil areas of the Bohai Bay and Songliao Basin, and build natural gas production bases in Sichuan and Chongqing.

To promote the exploration and development of coalbed methane in Qinshui Basin in Shanxi and the eastern margin of Ordos, and shale gas in south Sichuan, west Hubei, and Yunnan-Guizhou regions, and promote the exploration and development of shale oil.

To carry out trial production of natural gas hydrate in the South China Sea and other regions.

To steadily promote the construction of coal-based oil and gas strategic bases in Ordos, Yulin in Shaanxi, Jinbei in Shanxi, Zhundong and Hami in Xinjiang, etc., and establish production capacity and technical reserves.

Construction of Shanghai heavy-duty gas turbine test power station.

17. Energy Security

To adhere to the domestic base, make up for shortcomings, diversify guarantees, strengthen reserves, improve production, supply, storage and marketing systems, enhance the ability to sustain stable supply of energy and risk management and control, and achieve safe coal supply, self-insurance for core oil and gas demand, and stable and reliable power supply.

To consolidate the domestic production base, maintain stable and growing production of crude oil and natural gas, and do a good job in the planning, layout and management of coal-based oil and gas strategic bases.

To expand the scale of oil and gas reserves, and improve the oil and gas reserve system that organically combines government reserves and corporate social responsibility reserves and complements each other.

To strengthen the construction of coal reserve capacity. To improve the energy risk emergency management and control system, strengthen the power supply guarantee for key cities and users, and strengthen the safety protection of important energy facilities and energy networks.

Diversified expansion of oil and gas import sources, maintaining the safety of strategic channels and key nodes.

To cultivate a trading centre and pricing mechanism, and actively promote settlement in local currency. To strengthen the management and control of strategic mineral resources planning, improve reserve security capabilities, and implement a new round of breakthrough strategic actions for prospecting.

To deploy a batch of strong local power grids, build local support power sources and emergency security power sources for important users.

To build a power emergency command system, a large-scale hydropower station safety and emergency management platform.

To build a network security simulation verification environment and a network security situation awareness platform in the power industry.

18. Energy revolution

To deeply promote the construction of a comprehensive supporting reform pilot zone for the transformation of the national resource-based economy in Shanxi and a comprehensive reform pilot for the energy revolution.

19. Green economy

To resolutely curb the blind development of high-energy-consuming and high-emission projects, and promote green transformation to achieve positive development.

To strengthen energy conservation and environmental protection, clean production, clean energy, ecological environment and other industries, and promote contract energy management and other service models.

To promote the electrification of urban public transport and logistics distribution vehicles.

20. Energy Supply

To promote the energy revolution, build a clean, low-carbon, safe and efficient energy system, and improve energy supply guarantee capabilities.

To optimise the layout of energy development and transportation, strengthen the construction of comprehensive development and utilisation bases for energy resources, and improve the level of domestic energy supply security.

21. Electricity power equipment

Based on industrial scale advantages, supporting advantages and first-mover advantages in some fields, to consolidate and enhance the competitiveness of the entire industry chain in high-speed rail, power equipment, new energy, shipping and other fields, and create a strategic overall industry from the complete product that meets the direction of future industrial reforms chain.

Key projects:

Construction of high-efficiency and low-carbon gas turbine test equipment, etc.

22. Strategic emerging industries

To focus on the new generation, new energy, new energy vehicles, and other strategic emerging industries, accelerate the innovation and application of key core technologies, enhance the ability to guarantee factors, and cultivate new momentum for industrial development.

23. Industrial internet & digitisation

To accelerate the digital transformation of traditional infrastructure such as transportation, energy, and municipal administration, and strengthen the construction of ubiquitous perception, terminal networking, and intelligent dispatching systems.

To actively and steadily develop the industrial internet and the internet of vehicles.

To establish a number of international-level industrial Internet platforms and digital transformation promotion centres in key industries and regions, deepen the digital application of R&D and design, manufacturing, operation management, and market services, cultivate and develop new models such as personalised customisation and flexible manufacturing, and accelerate the industry digital transformation of the park.

To create an independent and controllable identification analysis system, standard system, and safety management system, strengthen the R&D and application of industrial software, cultivate and form an industrial Internet platform with international influence, and promote the industrial ecological construction of "Industrial Internet + Intelligent Manufacturing".

To construct a number of national innovation platforms for the integration of industry and education and joint training bases for postgraduates in key areas such as the industrial Internet and energy storage.

To build 100 high-level, professional and open training bases for the integration of production and education

24. Big data centre

To adhere to the priority policy of energy conservation, deepen energy conservation in industries, buildings, transportation and other fields and public institutions, promote the improvement of energy efficiency in emerging fields such as 5G and big data centres, strengthen energy conservation management of key energy-consuming units, and implement energy system optimisation and energy-saving technological transformation and other key projects.
To speed up the formulation and revision of mandatory national standards for energy consumption quotas and product and equipment energy efficiency.

To accelerate the construction of a national integrated big data centre system, strengthen the overall intelligent scheduling of computing power, build several national hub nodes and big data centre clusters, and build E-level and 10E-level supercomputing centres.

25. Smart energy & source network charge storage & multi-energy complementation

To build 5G-based application scenarios and industrial ecology, and carry out pilot demonstrations in key areas such as smart transportation, smart logistics, smart energy, and smart medical care.

Key projects:

To promote the intelligent upgrading of coal mines, oil and gas fields, and power plants, carry out extensive collection of energy use information, online energy efficiency analysis, and realise source-network charge storage interaction, multi-energy synergy and complementary, and intelligent regulation of energy demand.

It can be seen in the draft outline that China will

1. Accelerate the development of non-fossil energy;

2. Vigorously improve the wind and optical energy, and orderly develop offshore wind power

3. Safely and steadily promote the construction of coastal nuclear power

4. Increase the utilisation rate of the UHV channel

5. Develop and utilise geothermal energy according to local conditions

In line with the "3060" target and many government documents and state statements this year, the draft outline also reveals the attitude of vigorously generating clean energy such as wind power and photovoltaic power while rationally controlling the scale of coal power. However, the draft outline points out in more detail the need to accelerate the development of distributed energy in the eastern and central regions, orderly develop offshore wind power, speed up the construction of hydropower bases in southwest China, and build a number of complementary clean energy bases. There are more than 10 clean energy bases of hydropower, offshore wind power and other energies included in the draft outline.

The energy storage and hydrogen energy industries, which have been developing strongly in recent years, are also included in the draft outline. It is worth mentioning that the draft outline also proposes to focus on key areas such as energy storage, and lay out the construction of a batch of national innovation platforms for integration of industry and education and joint training bases for graduate students. In the past two years, many universities in China have their new energy storage-related undergraduate majors approved by the Ministry of Education. North China Electric Power University has successfully added the undergraduate major of "Energy Storage Science and Engineering". It will send more elites to build the development of China's energy storage industry in the future.