New energy presents historic opportunities for China, Fenwei president

2017-11-20 08:18:00 Environmental Protection,  Hydropower,  Wind,  Solar,  Coal Gas

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 thermal coal prices still in the uptrend; Jan market may wane 2017-12-18

Thermal coal prices continued to edge up at northern China ports, sustaining an uptrend that has lasted for more than three weeks, though the market may weaken in January with authorities expected to

2 A snowfall cools down emerging price rise at N. China coal production bases 2017-12-18

A widespread snowfall recently not only blanked northern China in white, but also cooled down coal miners' enthusiasm for raising prices of slack coals. Market sources reported some miner

3 Inner Mongolia power output up 11.44% YoY in Jan-Nov 2017-12-18

Utilities with capacity of 60 GW and above generated a total 401.99 TWh of electricity in northern China's Inner Mongolia autonomous region from January to November, up 11.44% from a year ago, data sh

4 Fujian Jiangyin port coal imports up 17% on yr in Jan-Oct 2017-12-18

Jiangyin port, one emerging key part of Fuzhou port in Southeastern China's Fujian province, imported 1.89 million tonnes of coal in the first ten months, up 17% from a year ago, said Fujian Inspectio

5 Sichuan Coal sheds 3.36 Mtpa coal capacity 2017-12-18

Sichuan Coal Industry Group, one major coal firm in southwest China, has eliminated 3.36 Mtpa backward coal capacity so far this year through closure of four mines and capacity reduction of one mine,

6 China anthracite coal price edges up in early Dec, NBS 2017-12-18

Market price of washed mid-lump anthracite in China rose 0.4% from the previous ten-day period to 1,130.3 yuan/t in early December, showed date from the National Bureau of Statistics. Mea

7 Jincheng Anthracite to buy industrial gases from Air Products 2017-12-18

Shanxi Jinmei Huayu Coal Chemical Co., Ltd, one subsidiary of Jincheng Anthracite Mining Group, has signed an agreement with world-leading industrial gases company Air Products, in a bid to get supply

8 China unveils 2017-21 plan for clean winter heating 2017-12-18

China will shift northern Chinese cities to clean heating during the winter by 2021, according to a statement jointly issued by ten government authorities. The government has made "concre

9 Weekly global coal market news summary (Dec 11-Dec 15) 2017-12-15

India government favors petcoke import ban, U.S. would be biggest loser India's government is in favor of banning imports of petroleum coke on environmental grounds, according to a government

10 Seaborne thermal coal prices rally to five-week high 2017-12-15

Prices of seaborne thermal coal selling into China have risen to the highest in about five weeks, boosted by a flurry of enquiries from Chinese buyers. Offer prices for Indonesian 3,800 K

Most Read Articles

1 China's anti-pollution efforts get a reality check 2017-12-11

China's efforts to tackle air pollution are getting a reality check, with some regions told to revert to burning coal after shortages of natural gas left people without heating amid freezing winter te

2 Chinese coal giants lift monthly contract price for Dec 2017-12-12

Chinese major coal firms adjusted up monthly contract prices for December by 11.4%, sending upside signals to the market, sources said. It came as these conglomerates were upbeat ab

3 AIIB loans Beijing $250 mln on "coal-to-gas" 2017-12-11

Asian Infrastructure Investment Bank (AIIB) approved a loan of $250 million to Beijing in constructing natural gas transmission pipeline network with coverage of nearly 510 villages with 0.22 million

4 China urges coal firms to release advanced capacity to offset gas shortages 2017-12-15

China's National Energy Administration pressed coal firms to properly release some advanced coal capacity to ensure winter heating for millions of households in northern areas, said the authority in a

5 Indonesian coal prices run up on increased trades 2017-12-11

Increased buying interest pushed Indonesian thermal coal prices higher in the seaborne market; Indian buyers showed great appetite and southern Chinese utilities maintained purchase for the fuel.

6 India government favors petcoke import ban, U.S. would be biggest loser 2017-12-12

India's government is in favor of banning imports of petroleum coke on environmental grounds, according to a government affidavit filed with the country's top court, which could be a big blow to U.S.

7 China Nov raw coal output down 2.7% YoY, NBS 2017-12-14

China's above-sized enterprises (whose annual major business revenue reaches over 20 million yuan) mined 299.98 million tonnes of raw coal in November, a decrease of 2.7% year on year, showed data

8 South Korea may only switch one planned coal power plant to gas 2017-12-11

Only one of South Korea's planned coal power plants is likely to be converted to gas, the country's energy minister said on November 8, despite government efforts to switch four out of nine coal plant

9 Inner Mongolia Nov coal prices dip MoM 2017-12-11

Mine-mouth prices of thermal coal dipped in China's coal-rich Inner Mongolia in November, as supply increased with release of more advanced capacity. The average mine-mouth se

10 Clean energy to exceed coal in China's power generation 2017-12-11

Clean energy, including nuclear power and renewable energy, is expected to exceed coal in China's electricity generating capacity in about ten years, a senior official has said. China's i