Adjusting Power Generation Mix: A Major Source of China’s Energy Conservation

At 11 a.m. on April 21, the forum themed How Can Asia Cooperate to Ensure Energy Security? was held at the Boao International Conference Center. Below are the key highlights from the keynote speech delivered by Chen Deming, Deputy Director of the National Development and Reform Commission of China:

First, as a developing country, China has explored pathways for energy conservation amid investment and development. Optimizing the power generation structure constitutes one of our major sources of energy savings. In the coming years, we plan to phase out power generating units with small capacities (below tens of thousands to millions of kilowatts) in areas covered by the power grid. Traditional power generation facilities will be replaced with advanced technologies such as ICC and CFBA, cutting coal consumption per kilowatt-hour of power generation by dozens of percentage points. This represents a vital experience we have accumulated.

Second, China is promoting the utilization of alternative energy sources, where pricing serves as a crucial leverage. The Chinese government has set benchmark feed-in tariffs for wind power. We conduct numerous domestic and international bidding sessions for wind energy projects each year. For wind power producers, subsidies will be granted to their grid electricity prices for a certain number of years to ensure reasonable returns on investment. Similar supportive policies apply to solar energy development. Solar power can be converted into electricity and transmitted to the power grid via specialized equipment. Users can draw electricity from the grid for lighting, heating and other daily needs, incentivizing the broader adoption of solar energy.

Furthermore, we are vigorously developing hydropower resources. In the past, power dispatching was determined primarily by pricing. Currently, we prioritize power generation technologies with low coal consumption. Only when power supply falls short of demand will facilities with higher coal consumption be activated. In the overall power dispatching sequence, priority is given to wind power, solar power and nuclear power, while coal-fired and natural gas power generation are arranged last. This approach aims to minimize carbon emissions, and China is exchanging relevant experience with numerous countries worldwide.

In addition, China has developed innovative technologies for clean coal utilization. We have also made independent progress in nuclear energy research and development, with fourth-generation nuclear power equipment entering the industrial demonstration stage. China is willing to share these advanced technologies with all countries across the globe.