CHINESE ENERGY POLICY

Kohlfürst, Puchtler, Wrann

http://www.youtube.com/watch?v=JufzjodoAM4&feature=related

General information on China

Middle Ages: flourishing economy Trade with Europe: Chinese inventions made their

way to Europe The turn came 1911

– Fall of the last dynasty Qing– opium wars, civil war, 1st and 2nd world war

1949: Mao Zedong proclaimed the Peoples Republic of China (PRC)

Energy demand

Exploding demand:

- Net exporter: construction material

- Change of living standards

Energy structure

Coal– 2/3 of energy production– major coal producer worldwide

Oil– Net importer, highly dependant

on Middle East Renewables

– Biofuels: corn– Solar power: photovoltaics– Hydro power: Three Gorges Dam– Wind power: + 95% in 2007 – Nuclear power: low developement

China‘s internal energy conflicts

Energy vs. other resources

Large reliance on cheaply available coal– smog, acid rain, polluted waterways etc.– new coal power plant approx. every 2 weeks

Not only due to fossil fuels– Three Gorges Dam

Power of 18 average nuclear power plants Destruction of wildlife habitat (Yangtze river dolphin) Pollution can no longer be „flushed“ by the river Relocation of up to 1,24 mio. inhabitants

Economic growth vs. sustainability

Economic growth vital for political stability Reliance on fossil fuels like the West not

realistic long-term Huge investments in renewable energy

sources– third-largest provider of electricity from wind– solar market rapidly catching up with Germany

Centralized vs. decentralized generation

Large power plants for big cities (predominantly in the East)

Rural areas very attractive for decentralized generation– Biogas from agricultural „waste“

Local added value Clean disposal of the „waste“ Simple construction High-quality fertilizers as „by-product“

Energy supply vs. energy efficiency

Investments in efficiency can greatly reduce need for new power plants

10 program priorities outlined by government– Expanding co-generation– Expanding centralized heating systems, etc.– Highly-consuming industries (e.g. iron/steel)– etc.

China‘s external energy conflicts

Dependence on imported Oil/Gas/Coal

In the 1970s and 1980s net exporter of oil Dependence on imported oil/gas because of

population growth Fourth largest producer and second largest

consumer of oil More than a half of China´s energy needs are

covered by imported oil Largest producer and consumer of coal

Dependence on imported oil/gas/coal

Power struggels because other countries of the region have the same problems

The Middle East provides 58% of the imported oil

China is investing in „green energiy“ to become more independent

China as an exporter of energy resources

China produces over 95% of the world´s rare earth supply

China is constraining the export of the rare earth oxides

Voting behaviour in the UN Security council

China´s energy dependence is apparent especially in its relation with Iran and Iraq

China seeks to secure the import routes for oil

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