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CRI:China's Power Industry Strives to Develop Clean Energy

cri-report.com - As the most important basic energy industry of the national economy, the power industry plays a significant role in promoting development of national economy and social progress. 
 
During the period of the "Eleventh Five-Year" Plan, hydropower, nuclear power and wind power generation saw an obvious rise in proportion, and social power consumption enjoyed an annual growth by 11.09% but a sustained decline in 2010 due to the influence of high fuel prices, energy conservation and emission reduction, and high cardinal number in 2009. 
 
However, “power shortage” occurs in most parts of China, aggravating power supply and demand contradiction. To relieve the tension, China accelerates power investment. In 2010, national power project construction completed total investment of CNY 705.10 billion, not only promoting the rapid development of domestic power industry, but also directly stimulating the demand of the power equipment market.
 
Social power consumption is predicted to reach about 4.70 trillion kilowatt-hours in 2011, rising by 12% YOY with a decline over 2010. Power supply capacity will further enhance, power source structure will continue being optimized, and clean energy development will continue speeding up. 
 
China surpassed the U.S.A. to become the world's largest power generation country with power generation of 4,141.30 billion kilowatt-hours in 2010, which will continue increasing in the next 10 to 15 years. However, China consumes 45% of annual coal output in the world, facing unprecedented pressure on energy conservation and emission reduction.
 
During the period of the "Twelfth Five-Year Plan", transforming power development mode and raising development quality will serve as the strategic missions of Chinese power industry to save energy, reduce emissions and tackle climate changes. 
 
Priority will be given to hydropower development in the premise of protecting ecological environment; nuclear power will be vigorously developed on the basis of ensuring security; power generation using renewable energy such as wind power, solar energy and biomass energy will be positively put forward; proportion of non-fossil energy generation will increased. 
 
However, the occurrence of Nuclear Leakage Incident in Japan makes the Chinese government have to slow down nuclear power construction, and the energy strategy is forced to be adjusted. On March 16, 2011, the State Council decided to suspend the approval of nuclear power projects including preliminary work. 
 
Besides negative effects, the crisis also brings about opportunities. First, to realize the goal of emission reduction in China, construction of other clean energy will accelerate, and production scale will also rise at the same time. Second, to ensure stable and environmentally friendly development of economy, utilization rate of traditional energy will upgrade. Meanwhile, accelerating the development of high-efficient, clean and comprehensive coal utilization technology will be an inevitable choice for Chinese energy industry. Third, coal and electricity price linkage will be promoted and power grid construction will be speeded up. In recent years, since the Chinese government strictly carries out the approval of thermal power and hydropower projects, installed capacity experiences an annual decline in growth rate. Besides, slowdown of nuclear power construction will aggravate Chinese power shortage, which will facilitate the implementation of coal and electricity price linkage and accelerate the national power grid construction to a certain extent. 
 
Actually, with obvious competition advantages, nuclear power cannot be replaced in a short term. After nuclear power construction slows down, nuclear power shortage fails to be completely compensated in a short term due to development and utilization rate of clean energy. Thus, nuclear power development is hard to be replaced in a large scale, and the development is expected to be pushed forward after the implementation of nuclear power security policy.