Energy and Industry - 2

Sustainable Development Practice

in China

Energy and Industry

• Energy principles: “Useful” energy, thermal dynamic laws; “Entropy” and 2nd law of thermal dynamics

• Energy challenges: climate change, energy crisis, energy security

• Renewable energy: wind, water, solar …

General situation• The energy flow chart;• Energy crisis• Energy security• Energy consumption reduction for climate

change mitigation

Energy in the world

• BP statistical review 2012• IPCC report volume III

Energy Issues in China

World primary energy consumption by fuel in 2005~2010, in million toe

World primary energy consumption since 1965, according to BP-2011

World coal consumption since 1965, according to BP-2011

World oil consumption since 1965, according to BP-2011

World gas consumption since 1965, according to BP-2011

World hydro-power supply since 1999, according to BP-2011

World nuclear power consumption since 1965, according to BP-2011

World solar energy consumption since 1996, according to BP-2011

World wind power consumption since 2003, according to BP-2011

--- Based on BP world energy statistics 2011Energy consumption structure in 2010

Mill

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China burns coal more than 3 times than that by US and more than 6 times than that by India.

Current energy situation of China

Proved reserves:• Fossil fuel

– Coal in 2006, proved reserve 1034.5 billion tonnes, 13% of the world, 3rd place.

– Proved reserves of oil and gas are relatively limited.– Some unconventional fossil energies including oil shale and coal

seam gases

• Renewable energy resources– Hydro power: theoretical reserves were equal to 6,190 billion

kwh, economically exploitable annual power output was 1,760 billion kwh, equivalent to 12% of the global, 1st place

• The per-capita averages of both coal and hydropower resources are 1/2 of the global average;

• The per-capita average of both oil and natural gas resources is only about 1/15 of the global average;

• The per-capita average of arable land is less than 30% of the global average, which has hindered the development of biomass energy.

Low per-capita average of energy resources

A number of “Resource Exhausted” cities

• Criterion:– Accumulated production has reached 70% or

more of the proved reserve originally found, or – to last 5 years or less with the current

technologies;• Two lists were announced in 2008 and 2009,

including coal mines, oil fields, non-ferrous mines, and wood-industry regions;

• 44 out of 114 “Resource Cities” are now on the “exhausted” list.

Sectoral energy consumption of China

China energy consumption structure change:Oil consumption is increasing quickly, however, coal consumption increases no less …

Changes in sectoral energy consumption of China

Energy consumption in industrial sectors, excluding electricity production

(2008)104 tonnes coal equivalent

Textile

Chem. Eng.

Non-metal Prod.

Ferrous metal manufacturing

Non-ferrous metal manufacturingOil refinery

Electricity consumption in industrial sectors (2008)

108 kWh

Textile

Chem. Eng.

Non-metal Prod.

Ferrous metal manufacturing

Non-ferrous metal manufacturing

White Paper: “Situation and Policy of China’s Energy”, Dec 2007

• Current situation– Energy production and consumption

• Energy structure• Energy consumption per unit GDP• Energy consumption per capita

– Comparison with other countries• Energy production and consumption, and economic

development• Efforts of energy saving

• Energy supply capability has been remarkably enhanced. • In 2006, the output of primary energy equaled 2.21 billion tons of standard coal,

ranking second in the world. – Raw coal accounted for 2.37 billion tons, ranking the first place in the world. Built a number of

extra-large coalmines. – Daqing, Shengli, Liaohe, Tarim and the large oilfields have been successively built, and the

output of crude oil has increased steadily, ranking China the world's fifth-largest (?) oil producer in 2006, with 185 million tons in that year.

– The output of natural gas ballooned from 14.3 billion cu m in 1980 to 58.6 billion cu m in 2006.

– The proportion of commercial renewable energy in the structure of primary energy keeps rising.

– The electricity sector also reported speedy growth in 2006. The installed capacity reached 622 million kw, and the amount of power generated was 2,870 billion kwh, both ranking second in the world.

• A comprehensive energy transportation system has been developed quickly, with the transport capacity notably improved.

– Special railways transporting coal from the west to the east and relevant coal ports, and – pipelines transporting oil from the north to the south and conveying natural gas from the

west to the east have all been built.– Now, the power generated in the west can be carried to the east, and the regional power

grids have all been connected up.

Uneven distribution of energy– China's energy resources are scattered widely across the

country, but the distribution is uneven:• Coal is found mainly in the north and the northwest, • hydropower in the southwest, and • oil and natural gas in the eastern, central and western regions and

along the coast. – But, the consumers of energy resources are mainly in the

southeast coastal areas, where the economy is the most developed, such that fundamentally, China's energy flow:

• large-scale transportation over long distances of coal and oil from the north to the south,

• and transmission of natural gas and electricity from the west to the east.

• (Southern water to north), northen coal/oil to south, western gas/electricity to east…

Exploitation difficulties:

• Coal, poor mining conditions, minor portion can apply opencast working

• Oil and gas fields with complicated geological conditions, requiring advanced exploitation techniques

• Hydro resources are located southwest mountainous areas, far from economic centers.

• Low economy of non-conventional energy resources

“Resource Exhausted” cities

• Criterion:– Accumulated production has reached 70% or more of the

proved reserve originally found, or – to last 5 years or less with the current technologies

• Two lists were announced in 2008 and 2009, including coal mines, oil fields, non-ferrous mines, and wood-industry regions

• 44 out of 114 “Resource Cities” are now on the “exhausted” list

• First list in 2008 (12)– Central region (3): Jiaozuo, Pingxiang, Daye(county) ( 焦作 , 萍乡 , 大冶 );– Resource-type Economically Transit (trial) cities (5), Fuxin, Yicun, Liaoyuan, Baishan, Panjing

( 阜新、伊春、辽源、白山、盘锦 ) ； – Western resource exhausted cities (3): Shizuishan, Baiyin, Gejiu(county) ( 石嘴山 , 白银 , 个旧 ) ；– Resource exhausted area (1): DaXingAnLing (大兴安岭 ) 。

• Second list in 2009 (32)– Prefecture level cities (9): ZhaoZhuang (Shandong), HuangShi (Hubei), HuaiBei (Anhui),

TongLin(Anhui), QiTaiHe(Heilongjiang), WanSheng (Chongqing), FuSun, FuXin, and PanJin (Liaoning), 山东省枣庄市、湖北省黄石市、安徽省淮北市、安徽省铜陵市、黑龙江省七台河市、重庆市万盛区（当作地级市对待）、辽宁省抚顺市、陕西省铜川市、江西省景德镇市、内蒙古大兴安岭地区、辽宁省阜新市、黑龙江省伊春市、吉林省辽源市、吉林省白山市、辽宁省盘锦市。

– County level cities (17) ：贵州省铜仁地区万山特区、甘肃省玉门市、湖北省潜江市、河南省灵宝市、广西壮族自治区合山市、湖南省耒阳市、湖南省冷水江市、辽宁省北票市、吉林省舒兰市、四川省华蓥市、吉林省九台市、湖南省资兴市、湖北省钟祥市、山西省孝义市、黑龙江省五大连池市（森工）、内蒙古自治区阿尔山市（森工）。– City districts (6) ：辽宁省葫芦岛市杨家杖子开发区、河北省承德市鹰手营子矿区、辽宁省葫芦岛市南票区、云南省昆明市东川区、辽宁省辽阳市弓长岭区、河北省张家口市下花园区。

Coal mines

Oil and gas fields

Yu Men

Challenges for a stable, economic, clean and safe energy supply system

• Resource limitation, low energy efficiency– Lack of major high quality energy resources, supply limitation, uneven distribution;– Development mode, improper energy structure, backward equipment and

management, so as high energy consumption and consumption strength• Coal as the main energy, environmental pressure

– Coal as the main fuel will last for a long period.– Backward coal production and consumption, with environmental pressures: main

source of air pollution and GHGs– With the rapid increment of vehicle numbers, car emission induced air pollution

will become severe.• Imperfect market system, emergency management capacity

– Energy marketing system, pricing mechanism, should be consistent with resource limitation, supply shortage, and environmental cost.

– Energy exploitation, supervision system– Safety in mining, especially coal mining. Electric grid not reasonable, oil storage,

and emergency response system

Achievements in energy saving

• Achievements– 1980 － 2005, energy consumption increased by 5.4% annual

average, GDP increased 9.8% per year, so as the elasticity coefficient 0.55;

– Energy consumption strength decreased from 3.98 ton (coal) per 104 RMB in 1980 to 1.42 ton (coal) per 104 RMB in 2005, 64.3% less ；

– Annual energy saving rate over 4% ；– Combined efficiency of energy processing, conversion, storage,

and end-use raised from 25% in 1980 o 33% of 2006;– The gap comparing with advanced countries is getting smaller of

energy strength in energy-consuming products;

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GDP单位 能耗

Energy strength per unit GDP has been reduced by 60% in the last 20 years, but still 3.1 times as the world average, 9 times as that of Japan and 4.3 times of OESD

单位 GDP 能耗高出世界平均水平 70 ％， 单位建筑面积采暖能耗比发达国家高出 2 至 3 倍。 二产的比例： 2003 年 46.02% ， 2004 年

46.2% ， 2005 年 47.3% 。 二产当中重工业加速发展，其增加值 2002 年

60.9% ， 2003 年 64.3% ， 2004 年 67.6% ， 2005 年69.0%

国家重要举措• 2006 年 3 月 16 日《“十一五”规划纲要》• 2006 年 8 月 5 日《“十一五”期间全国主要污染物排放总量控制计划》 • 2007 年 5 月 23 日《节能减排综合性工作方案》 • 2007 年 6 月 12 日成立国家应对气候变化及节能减排工作领导小组，下设国家应对气候变化领导小组办公室、国务院节能减排工作领导小组办公室• 2007 年 11 月 17 日发改委、统计局和环保总局等制订

– 三个方案：《单位 GDP 能耗统计指标体系实施方案》、《单位 GDP 能耗监测体系实施方案》、《单位 GDP 能耗考核体系实施方案》和– 三个办法：《主要污染物总量减排统计办法》、《主要污染物总量减排监测办法》、《主要污染物总量减排考核办法》

• 2007 年 11 月 22 日国家环境保护“十一五”规划• 2008 年 4 月 1 日施行《中华人民共和国节约能源法》

Mid and Long Term Plan of Nuclear Electricity of China (2005~2020)

Oct 2007 Development and Reform Commission of China

Energy issues:

• Limited energy resource, especially in per capita;• Fossil energy reservation;• Rapid increase in energy consumption• Daily life energy consumption increases• Low energy use efficiency• Alternative / renewable energy

Nuclear power development in China?

Development of nuclear power system

Current situation

• Nuclear power in world’s electricity– 1st commercial nuclear power station in 1950s;– According to IAEA, in Oct 2005, there were 442 in

operation, pressured water 60%, boiled water 21%, CANDU 9%, others (graphite reactor etc) 10% ；

– Total capacity 369 million kWa, in 31 countries/regions;– Nuclear electricity takes 17% of world total electricity;– There are 16 countries/regions with over 20% nuclear

power generation, including US, France, Germany, and Japan etc.

• Nuclear power development in China– In 1983, PWR was taken as the main type. Capacity

has been built up on the related technology: design, manufacturing, construction and operation management;

– The 1st station was put in use in 1991 (QinShan). Since then there are 6 stations with 11 sets of reactors and 9.068 million kWa put in commercial operation, and 8 reactors with 7.90 million kWa are under construction (LingAo-2, QinShan-2, and HongYanHe-1)

2007 situation of nuclear stations of China (104 kWa)No Reactor Capacity Operation Remark

1 QinShan-I-#1 30 1991.4

2 QinShan-II-#1 65 2002.4

3 QinShan-II-#2 65 2004.3

4 QinShan-III-#1 70 2002.12

5 QinShan-III-#2 70 2003.11

6 DaYaWan-#1 98.4 1994.2

7 DaYaWan-#2 98.4 1994.5

8 LingAo-#1 99 2002.5

9 LingAo-#2 99 2003.1

10 TianWan#1 106 2007.5

11 TianWan#2 106 2007.8

12 LingAo-II-#1 108 Cons Dec 2005 ~ 2010 to complete

13 LingAo-II-#2 108 Cons Dec 2005 ~ 2010 to complete

14 QinShan-II-E-#1 65 Cons Apr 2006 ~ 2011 to complete

15 QinShan-II-E-#2 65 Cons Apr 2006 ~ 2011 to complete

16 HongYanHe-1 4×111 Cons

Total 1696 ． 8

• Capability – Design: 30 and 60 104kWa stations, and some of 100 104kWa

station ；– Equipment manufacturing: able to produce 30 104kWa PWR

station, over 80% made in China. For 30 104kWa PWR station, 70% China made. Aiming to main parts of 100 30 104kWa PWR station made in China;

– For nuclear fuel, current supply can be satisfied;

– For nuclear technology, developments in technologies of FFTF(Fast Flux Test Facility) and high temperature gas cooled reactor

– Nuclear safety: regulations on security management, and emergency systems.

Strategy and targets

• Strategy– Security priority – 100 104kWa PWR strategy, development along hot-photon ~

fast photo ~ controllable fusion– Learn from international experience and technology

• Targets– To 2020, nuclear power capacity to 4000 104 kWa, annual

nuclear electricity production 260-280 billion kWah– Based on current capacity 1696.8 104kWa, to increase new

capacity 2300 104kWa– Considering further development, around the end of 2020, the

capacity under construction should keep 1800 104kWa

Nuclear power development plan (104kWa)

New projects

New operation

Extend to the next 5-year

End of the 5-year

Before 2000 226.8

2001~2005 346 468 558 694.8

2006~2010 1244 558 1244 1252.8

2011~2015 2000 1244 2000 2496.8

2016~2020 1800 2000 1800 4496.8

Coastline nuclear stations (104 kWa)Province Station Scale Remarks

Zhejiang QinShan-II-E 2×65 Approved

SanMen(JianTiao) 6×100 1st phase approved

FangJiaShan 2×100 Reviewed

SanMen(KuoTangShan) 4×100 Reviewed

Jiangsu TianWan-E 4×100 Reviewed

Guangdong LinAo-II 2×10 Approved

YangJiang 6×100 1st phase approved

YaoGu 6×10 Approved

HaiYang 6×100 Approved

Shandong RuShanHongShiDing 6×100 Site needs be changed

Liaoning HongYanHe 6×100 1st phase approved

Fujian NingDe 6×10 Approved

Guangxi FangChengGang/QinZhou 4×100 First review completed

Total 13 sites 5946

• New actions– After 2004, new sites were considered in Guangdong,

Zhejiang, Fujian etc. – From the present to 2020, new stations will mainly considered

in above coastal provinces. – Other than coastal, new sites have also searched in Hubei,

Jiangxi, Hunan, Jilin, Anhui, Henan, Chongqing, Sicuan, and Gansu etc.

• Challenges– Nuclear fuel supply– Radiactive waste disposal– Cost– Decommission

China nuclear station development

In France, there are 59 nuclear power stations, with capacity 63 GWe, providing over 430 billion kWh per year. Electricity, nuclear fuel and service are important exporting goods, the 1st in exporting electricity in the world.

Nuclear stations in the world

Nuclear power stations and the locations with 10% earthquake possibility in 50 years

2 in US

Iran

Pakistan

Japan

Taiwan