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Full Text: China's Energy Conditions and Policies (5) |
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13:54, December 26, 2007 |
-- The environment of energy market is gradually improved. The environment of China''s energy market is gradually improved, and the reform in the energy industry is proceeding steadily. Breakthroughs have been made in restructuring energy enterprises, and a modern enterprise system has by and large taken shape. The investors are diversified, energy investment is growing rapidly, and the market is expanding. Market competition has been introduced into the production and distribution of coal. In the power industry, government administrative functions and enterprises'' management have been separated, so has power production from power transmission, and supervisory organizations have also been established. In the oil and gas industry, the upstream and downstream sectors have been integrated, so have the domestic and international trades. Energy pricing reform has been constantly deepened, and the pricing mechanism has been improved continuously.
Along with China''s rapid economic development and the acceleration of industrialization and urbanization, the demand for energy keeps increasing, and the construction of a stable, economical, clean and safe energy supply system faces the following challenges:
-- Prominent resources restraint and low energy efficiency. China''s relative dearth of high-quality energy resources hinders its supply capability; its imbalanced distribution makes it difficult to secure a continued and steady supply; and the extensive pattern of economic growth, irrational energy structure, unsatisfactory energy technology and relatively poor management have resulted in higher energy consumption per-unit GDP and for the major energy-consuming products than the average level of major energy-consuming countries, thus further intensifying the energy supply-demand contradiction. Consequently, an increase solely in supply is hard to meet the rising demand for energy.
-- Increasing environmental pressure caused by the consumption of energy, mostly coal. Coal is the main energy consumed in China, and the energy structure with coal playing the main role will remain unchanged for a long time to come. The relatively backward methods of coal production and consumption have intensified the pressure on environmental protection. Coal consumption has been the main cause of smoke pollution in China, as well as the main source of greenhouse gas. As the number of motor vehicles climbs, the air pollution in some cities is becoming a mixture of coal smoke and exhaust gas. If this situation continues, the ecological environment will face even greater pressure.
-- Incomplete market system and emergency response capability yet to be enhanced. China''s energy market system is yet to be completed, as the energy pricing mechanism fails to fully reflect the scarcity of resources, its supply and demand, and the environmental cost. Order in energy exploration and development must be further standardized, and the energy supervisory system improved. Coal production safety is far from satisfactory, the structure of power grids is not rational, the oil reserves are not sufficient, and an effective emergency pre-warning system is yet to be improved and consolidated to deal with energy supply breakdowns and other major unexpected emergencies.
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