Xinhua News Agency:

China's new energy sector, such as the generation of wind power and solar photovoltaic power, has seen rapid development in recent years. However, there are still challenges when it comes to the consumption of new energy power. Are there any new measures to address the issue of large-scale new energy consumption? Thank you.

Zhang Jianhua:

I would like to invite Mr. Zhu to answer this question.

Zhu Ming:

Thank you for your question. It regards a very important topic. The biggest problem facing the development of new energy during the 13th Five-Year Plan period is the issue of consumption. Moreover, challenges posed by both consumption and grid access will emerge during the 14th Five-Year Plan period. Therefore, we must solve the problem of consumption. We must initially accelerate efforts to build a new power system that is suitable for the increased production of renewable energy, that is, a new generation of power systems, before undertaking the following steps.

First, we will make great efforts to establish intelligent power dispatch trading and operation mechanisms, promote the application of high-voltage direct current transmission, local smart grid, and micro-grid technologies, accelerate the construction of cross-provincial and cross-regional power channels, and give play to the overall function of the national power grid.

Second, we will step up efforts to implement the flexible transformation of traditional coal-fired power generating units. We will also accelerate the construction of flexible power sources such as pumped-storage power stations, natural gas peak-shaving power stations, and various large-scale power storage pilot projects so as to really improve the overall flexibility of the system.

Third, we will tap our potential for meeting energy demands and promote a smarter, more flexible, and higher-energy utilization of power by users so as to facilitate two-way smart interaction between source and load. 

We will also improve and implement guarantee mechanisms for renewable energy power consumption.

We will do this by first enhancing the responsibility shared by power suppliers and users in consuming renewable energy and step up efforts to incorporate such guarantee mechanisms into relevant laws and create legal liability.

Second, we will appraise the consumption of renewable energy across various sectors and incorporate our findings into an evaluation system of economic and social development for local governments.

Third, we will build up adjustment capabilities to coordinate energy use, improve market mechanisms, make great efforts to create new consumption models, and strengthen consumption supervision so as to establish mechanisms for accommodating power generated from clean energy sources in the long run.

Fourth, we will enhance the trading of green power certificates and the construction of the carbon market so as to further reflect the importance of renewable energy in terms of ecological and environmental protection, as well as explore new models for green energy consumption. Thank you.

Zhang Jianhua:

Let me add one more thing. In previous years, the cost of developing new energy, including wind and solar energy, was relatively high. Therefore, in order to encourage its development, governments had to provide subsidies. Thanks to the joint efforts of various parties in recent years, new energy technologies developed rapidly while the cost to do so has continuously fallen. In the future, the development of new energy will be determined mainly by the market and no longer requires government subsidies. Now then, the biggest problem is how to consume new energy power. Just as Mr. Zhu said, there is lots of work to be done and we are under great pressure. By 2030, the total installed generating capacity of wind and solar energy systems will reach 1.2 billion kilowatts and is expected to reach 460 million kilowatts by the end of 2020. The following years therefore will witness a significant number of large increments. Thank you.