China.org.cn | October 20, 2022
Lianhe Zaobao:
The droughts in August this year caused a severe power shortage in Sichuan, a major hydropower-producing province of China. The public is concerned about the stability and sustainability of clean energy in China. As extreme weather events become more frequent, how will China strike a balance between promoting the energy transition and ensuring the stability of the energy supply? How will it prevent a such case of power shortage from happening again?
Ren Jingdong:
Let me answer this question. This summer's extreme heat as well as extreme droughts gave rise to a power crunch in Sichuan province, a major province for hydroelectric generation. We have been concerned about it. In the face of the disaster, we have stayed committed to the people-centered development philosophy, resolutely implemented the decisions and plans to ensure supply and stabilize price, coordinated resources and forces to ensure steady and full production of effective generating units, and fully tapped the capacity of large power grids to provide inter-provincial support to each other for a secure and stable supply, delivering good results.
Under the new circumstances, we will closely focus on the new tasks and requirements of energy development, implement all decisions and plans, and step up efforts to develop renewable energy while ensuring the supply of conventional energy. We will actively promote green and low-carbon transformation and strive to provide a strong energy guarantee for high-quality economic and social development. Here, I'd like to share with you our work in five areas.
First, we will monitor the energy situation and manage its operation. We will analyze the power supply and demand in peak summer and winter in advance and adopt detailed measures to ensure supply. We will implement a mechanism for coordinating coal production on a daily basis and a mechanism for monitoring prices and inventories across the country and strengthen direct output coordination by key coal enterprises. We will urge all types of power units to operate at full capacity so as to fully tap the capacity of large power grids to provide inter-provincial support to each other. Market means will be used to guide users to avoid peak time.
Second, we will coordinate and ensure fuel supplies for power generation. We will sign the Agreement for Ensuring Coal Security and Supply and ensure its implementation, and provide policy incentives or constraints for the output and transfer of relevant provinces and autonomous regions while strengthening supervision over the implementation of mid- and long-term contracts for thermal coal. At present, coal storage in the country's unified management power plants has remained above 170 million tonnes, roughly double that of the same period last year and the highest level in history.
Third, we will increase coal power capacity. In the first eight months of this year, China produced 2.93 billion tonnes of coal, up 11% year on year. Since the beginning of the 14th Five-Year Plan period (2021-2025), China’s newly-commissioned installed capacity of power has exceeded 270 million kilowatts, supplying over 20 million kilowatts of additional power to central and eastern China.
Fourth, we will promote the high-quality development of the oil and gas industry. We will coordinate the development of production, supply, storage, and sales systems, enhance oil and gas exploration and development, and improve the guarantee system for oil and gas imports. At present, domestic crude oil production has increased for three consecutive years, and natural gas production has increased by more than 10 billion cubic meters for five consecutive years. The reserve capacity of oil and gas has been steadily improved, which has further assured a stable supply in the market.
Fifth, we will step up efforts to develop clean energy. We will steadily boost the construction of large wind power and photovoltaic bases and offshore wind power bases, primarily in sandy areas, rocky areas, and deserts. We will speed up the construction of large hydropower stations in southwestern China, for example, to complete and put into operation the giant hydropower stations including Wudongde and Baihetan. We will develop nuclear power plants along the coast in a safe and orderly manner. We will develop pumped storage power stations, build new-type energy storage power stations, and continue to improve the systemic adjusting capacity.
At present, northern China is entering the winter heating season. We are working with relevant departments to make all preparations and adopt a package of measures to enhance energy supplies. Our goal is to ensure that the people can enjoy a warm winter. We will implement the guiding principles of the 20th CPC National Congress through actions. Thank you.