New energy presents historic opportunities for China, Fenwei president Environmental Protection,  Hydropower,  Wind,  Solar,  Coal Gas 2017-11-20 08:18:00

New energy is poised to rise significantly in China, presenting great historic opportunities for the world's top energy consumer, said Chang Yijun, president of Fenwei Energy Information Services Co., Ltd. at an industry summit held late last week.

By 2020, share of non-fossil energy in China's total energy consumption mix will reach 22.2%, up from 13.3% in 2016, predicted Chang at the sidelines of the 5th Global Thermal Coal Resource & Market Summit in Beijing on November 17.

That will be a much faster growth than the target mapped out in the country's 13th Five-Year Plan for energy development, according to which the share of non-fossil energy in China's total energy consumption mix will rise from 2015's 12% to 15% by 2020.

Based on database developed by, a coal industry portal owned by Fenwei, Chang projected the share of coal in China's energy consumption mix to reduce from 2016's 62.4% to 56.4% by 2020, instead of 58% specified in the 13th Five-Year Plan period.

Coal consumption in China may retreat to 3.71 billion tonnes by 2020 from 2016's 3.91 billion tonnes, he anticipated, rather than increasing from 2015's 3.96 billion tonnes to 4.1 billion tonnes by 2020 as the five-year plan has estimated.

According to Chang, China's coal consumption has peaked and will step onto a downward track over 2016-20, thanks to reduction of energy consumption per unit of GDP, rapid growth of solar and wind power under government subsidy, significant breakthrough in non-conventional natural gas extraction and faster-than-expected development of biomass energy.

Yet, the decrease of coal consumption will rely on the subsidy on solar and wind power, leap of low-cost import LNG, underestimated impact of biomass energy on future energy mix.

Chang pointed out that the story of energy shortage and fossil fuel shortage has come to an end. "More new fossil fuel reserves are discovered each year than the volume mined; new reserves of conventional and non-conventional natural gas outstrip consumption each year," he noted.

"It could be seen human consumption of fossil fuel has been declining year by year; its historic mission will end ahead of its economic life," Chang said.

It will be an irresistible trend for China to see rising renewables and new energy to gradually replace fossil fuel, according to Chang.

Earth energy is expected to obtain "subsidy" from solar absorbing during photosynthesis facilitated by carbon dioxide, and the economic scale will well exceed current government "subsidy" for new energy, he said.

Chang believed China will embrace a great historic opportunity in the biomass-based energy revolution.

"The so-called energy revolution should not be subsidy-driven, like in solar and wind industries; it needs its own 'engine' to generate persistent and rapid development," he explained.

China will be a headstream for energy industrial revolution, as it boasts the largest agricultural population and in-situ industrialization demand, said Chang.

"In future, land resource will evolve into the most vital asset and water conservancy and irrigation projects will replace real estate to serve as the biggest basic industry. Internet and distributed energy system will provide basis and conditions for biomass energy development."

"Modern agriculture represented by energy agriculture is set to return to the first big industry," forecast Chang.

Growth of new energy's share in China's energy consumption mix in recent five years reflected change of politics, economy and environment and also tendency of natural evolution.

Coal's share in the national energy consumption mix dropped 6.5 percentage points over 2012-16.  The rate of decrease has accelerated over the years, with a 1.7 percentage points drop in 2016.

China's total energy consumption touched 4.36 billion tonnes of standard coal last year, up 1.4% from a year ago. The share of new energy in energy consumption mix hit 13.3% in 2016, 1.2 percentage points higher than the previous year.

Non-conventional natural gas featuring coalbed methane and shale gas is developing rapidly and its industrial extraction has gained economic viability and competitiveness in the energy field since the success of US shale gas revolution.

Over 2012-16, China's solar power output registered an average growth of 170% annually. Solar power has yet gained viability for large-scale production in foreign countries, and it remains hard to evaluate advantages and disadvantages of large-scale solar power development, noted Chang at the summit.

During the same period, wind power output across China posted average yearly growth 26%, thanks to fast development of technology and equipment. Better than solar power, wind power has gained economic viability in some foreign countries. Yet, wind power industry still faces obstacles including natural conditions constraint and wind idling, Chang pointed out.

China's hydropower output grew 13% annually from 2012 to 2016, yet the industry still suffers bottlenecks in growth potential as constrained by poor natural conditions, Chang added.

Chang also elaborated on China's biomass energy, which is on the initial stage. Despite improving technology and equipment and falling production cost, the industry still needs government subsidy in China.

(Writing by Jessie Jia   Editing by Harry Huo)
For any questions, please contact us by or +86-351-7219322.

Editors Recommendations

1 China's steel prices expected to rebound amid output curbs stretch 2018-03-20

China's steel prices are expected to bounce back in the short run, as some regions have extended output curbs and demand for the material may rebound. Major steel cities including Handan

2 China's raw coal output up in 2017, first pickup since 2014 2018-03-20

China's raw coal output picked up to 3.52 billion tonnes in 2017, a 3.3% increase from a year ago, rising for the first time since 2014, thanks to robust demand and high-quality capacity building an

3 Weekly China met. coke market analysis and forecast 2018-03-20

Coke prices went down by 50 yuan/t in most parts of eastern China's Shandong, some areas in Hebei and other regions last week. For most market players, the price drop seemed out of expectation but w

4 China's steel price drop show signs of slowdown but still under pressure 2018-03-19

China's spot steel products market posted a slowdown in price drops last week, but was still under pressure as steel stocks remained high in the consuming side. As the previ

5 China's longest on-building coal special railway starts rail laying 2018-03-19

Starting from coal-rich Inner Mongolia in the north and ending in southern consuming area Jiangxi, China's longest on-building coal-dedicated railway started rail laying on March 17, marking the part

6 Weekly China coal market news summary (Mar12 - Mar 16) 2018-03-19

China overcapacity campaign faces its toughest challenge this year China's effort to cut overcapacity in steel and coal is expected to face its most difficult challenge this year, although th

7 Weekly global coal market news summary (Mar12 - Mar 16) 2018-03-19

India to raise coal supply to power plants by railways As power plants face coal shortages, Coal Minister Piyush Goyal has asked Railways to increase coal loading to up to 500 rakes per day

8 China Shenhua Feb commercial coal output down 10.4% YoY 2018-03-19

China Shenhua Energy Co., Ltd, the listed arm of newly-merged China Energy Investment Corporation, produced 22.4 million tonnes of commercial coal in February, dropping 10.4% year on year and 8.9% fro

9 Kazakhstan Jan coal output down 4.9% on yr 2018-03-16

Kazakhstan saw its coal production total 9.73 million tonnes in January, down 4.9% on the year and 7.7% on the month, showed data from the country's Committee of Statistics under the Ministry of Nat

10 The US Jan coal output down 7.7% on yr 2018-03-16

The US produced 63.11 million short tons (57.25 million tonnes) of coal in January, down 7.7% or 5.27 million short tons from a year ago yet up 0.95% from a month ago, showed data from Energy Inform

Most Read Articles

1 China overcapacity campaign faces its toughest challenge this year 2018-03-12

China's effort to cut overcapacity in steel and coal is expected to face its most difficult challenge this year, although the target may look small compared with the previous two years, analysts said.

2 China's coal capital to add 5.55 Mtpa coal capacity in 2018 2018-03-12

Six coal mines with combined production capacity of 5.55 Mtpa will go into operation in Taiyuan, capital city of coal-rich Shanxi province, this year, said the municipal government. This

3 Indian state ports' Feb coal imports down 18.45pct MoM 2018-03-12

India's 12 major government-owned ports imported 12.39 million tonnes of coal in February, down 18.45% from January but up 5.18% year on year, according to latest data released by the India Ports As

4 Indonesia to lose $630 mln in revenue from coal price cap 2018-03-15

Indonesia's decision to impose a price cap on domestic coal prices will lower state revenue by up to 9 trillion rupiah ($630 million) this year, a senior finance ministry official said on March 13.

5 India's coal-fired power generation growth declines in Apr-Feb 2018-03-16

Coal-fired power generation has registered a 4.37% growth during the April-February fiscal 2017-18, compared with 5.47% in the previous corresponding period. Analysts, however, are predicting an incre

6 What does Trump's 25% tariff mean to China's steel exports? 2018-03-14

On March 24, the US will impose 25% tariff on steel imports and 10% on aluminum, following President Donald Trump singed the order on March 9 (GMT +8). The tariff policy has put the globa

7 China steel exports may fall further in 2018: top executive 2018-03-12

Chinese exports of steel products may continue to fall this year due to strong domestic demand and reductions in capacity due to environmental commitments, the chairman of state-owned mill Fujian Sang

8 Yancoal to produce 70 Mt of raw coal in 2018 2018-03-14

China's Yancoal Australia Ltd, the largest pure-coal producer in Australia, is expected to produce at least 70 million tonnes of raw coal in 2018, according to Xinhua. The annual raw prod

9 Indonesian steps up for Rio Tinto coal, bids ready 2018-03-14

Indonesian coal giant Adaro Energy is a latecomer to the auction for Rio Tinto's $2.5 billion-plus Queensland coal portfolio. It is understood that Adaro will bid for the whole portfolio

10 Teck Resources cuts sales volume forecast for steelmaking coal 2018-03-12

Canadian miner Teck Resources Ltd on March 9 cut its current-quarter forecast for steelmaking coal sales volumes. Teck said it now expects sales volumes of steelmaking coal to be about 6