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Speakers:

Mr. Zhang Jianhua, administrator of the National Energy Administration (NEA)

Mr. Liang Changxin, director general of the Comprehensive Affairs Department of the NEA and spokesperson of the NEA

Mr. Liu Deshun, director general of the Department of Energy Conservation and Scientific and Technological Equipment of the NEA

Mr. Li Chuangjun, director general of the Department of New Energy and Renewable Energy Sources of the NEA

Chairperson:

Ms. Xing Huina, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

April 12, 2023

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Xing Huina:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). This is the 13th press conference in the series "Embarking on the New Journey — A Government Perspective." Today, we have invited Mr. Zhang Jianhua, administrator of the National Energy Administration (NEA), to brief you on fully implementing the guiding principles of the 20th CPC National Congress and advancing the high-quality development of China's energy sector, and to take your questions. Also present today are Mr. Liang Changxin, director general of the Comprehensive Affairs Department of the NEA and spokesperson of the NEA; Mr. Liu Deshun, director general of the Department of Energy Conservation and Scientific and Technological Equipment of the NEA; and Mr. Li Chuangjun, director general of the Department of New Energy and Renewable Energy Sources of the NEA.

Now, let's give the floor to Mr. Zhang for his introduction.

Zhang Jianhua:

Thank you, Ms. Xing. Ladies and gentlemen, good afternoon. I am very glad to meet with friends from the media and to brief you on the energy sector.

The CPC Central Committee with Comrade Xi Jinping at its core has attached great importance to energy-related work. The 20th CPC National Congress developed a strategic plan for comprehensively promoting national rejuvenation through a Chinese path to modernization and set clear requirements for high-quality energy development. The energy sector has adhered to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly studied and implemented the guiding principles of the 20th CPC National Congress, and stepped up efforts to introduce new policies and measures. The energy sector has taken the approach of "sprinting and fighting a decisive battle from the very beginning," aiming to bolster and empower socio-economic development and provide strong energy guarantees for high-quality development and Chinese modernization. 

This year marks the start of fully implementing the guiding principles of the 20th CPC National Congress. Since this year, work and life in China have recovered at a faster pace, the growth rate of industrial energy consumption has increased significantly, energy consumption has grown slightly, and national energy supply and demand have been stable on the whole. The energy sector will focus on the five aspects of energy security guarantees, clean and low-carbon transition, self-reliance and strength in science and technology, institutional innovation, and enhancing international cooperation to fully promote high-quality energy development. 

First, we will commit ourselves to consolidating energy security guarantees. We will always take ensuring national energy security as the most important mission and task, and base our work on the country's resource endowment in accordance with the principle of building the new before discarding the old. On one hand, we will make fossil fuels better meet the basic energy needs, let coal play a bigger role as an anchor of the sector, and make greater efforts to explore and develop petroleum and natural gas, discover more untapped reserves, and increase production. In this way, we aim to ensure that the country's annual crude oil output can long remain at the level of 200 million metric tons and that the self-sufficiency rate of natural gas shall not be less than 50%. We will also strengthen the underpinning and adjusting role of coal power. On the other hand, we will make non-fossil fuels a safer and more reliable alternative, and form a diversified clean energy supply system integrating wind, solar, biomass, nuclear and hydrogen energy and hydropower. We will advance the flexible transformation of coal power, and accelerate the construction of pumped power storage, peak regulation of natural gas and electricity usage, and new-type power storage facilities. We will boost the transformation and upgrading of the power distribution grid, support a high proportion of new energy's access to the power grid, and spare no efforts to peak carbon emissions and achieve carbon neutrality. At the same time, we will improve the energy security supervision and warning system, establish an energy security accountability mechanism, strengthen security risk management for large power grids, increase the ability of security risk prevention and emergency management, and go all out to ensure people's livelihoods in terms of having energy supply meet peak demand during summer and winter, adopting clean energy sources for winter heating in northern China, rural energy consumption, and charging infrastructure construction.

Second, we will accelerate the reform of energy consumption models. Our focus is on achieving "three transformations." The first is transforming the energy structure. We will strive to increase the share of non-fossil energy consumption by 1 percentage point annually over the next five years, ensure that 80% of newly added electricity will come from non-fossil fuels by 2035, and make non-fossil fuels the main source of energy by the middle of this century. The second is transforming energy systems and forms. We will accelerate the planning and development of a new-energy system, build a new type of power system, and promote the use of electricity in key areas. We will guide big data centers and industrial interruptible loads, among others, to participate in regulating the power system, and develop non-electric applications of renewable energy according to local conditions. The third is transforming the energy layout. In principle, the proportion of newly built power transmission channels for renewable energy should not be lower than 50%. We will speed up the development of distributed energy resources, coastal nuclear power and offshore wind power, so as to achieve coordinated development of energy "from afar" and "from nearby."

Third, we will accelerate our efforts to promote self-reliance and self-improvement in energy science and technology, adhering to innovation-driven development. Through implementing mechanisms such as a ranking system and a competitive selection process for choosing the best candidates to lead key research projects, we will actively cultivate core industrial chains and key links, continuously enhance our independent innovation capabilities, increase the self-reliance of major technical equipment, and better control risks. This will make industrial energy chains and supply chains more resilient and secure. We will foster the in-depth integration of energy innovation, industrial, financial, talent and data chains, advancing digital and smart energy development, with the aim of building high-end and modernized energy industrial value chains.

Fourth, we will improve and unleash the vitality of energy systems and mechanisms. Building on the foundation of the rule of law, we will accelerate the formulation of energy legislation and the revision of the Electric Power Law, the Coal Industry Law and the Law on Renewal Energy. Driven by reforms, we will establish a unified electric power market system adapted to new types of electric power systems, fully leveraging the decisive role of the market in resource allocation and eliminating barriers to system access, market transactions, and other aspects of emerging business forms and models. By leveraging supervision, we will forge a market of fair competition and further protect and stimulate the vitality of energy market entities. We will also implement policies as a safeguard to connect the green certificate market, carbon market, and electric power market in an orderly fashion, promoting coordination and collaboration between upstream and downstream energy industrial chains.

Fifth, we will work actively to open new prospects in international energy cooperation. This year marks the 10th anniversary of the Belt and Road Initiative (BRI), in which energy cooperation is an important area. We will steadfastly pursue an open strategy of mutually beneficial and win-win cooperation, advancing in-depth cooperation with key energy resource countries and reinforcing green and low-carbon energy cooperation with developing nations. We will consolidate and expand energy trade and cooperation channels, optimize overseas collaboration arrangements, and enhance coordination of investment development, project construction, equipment manufacturing, consultation, design, and financial services, among other aspects. By doing so, we will deeply engage in global energy governance and provide new opportunities to the world through China's new development. Thank you.

Xing Huina:

Thank you for your introduction, Mr. Zhang. Now, we welcome everyone to ask questions. Please identify the media outlet you represent before raising your questions.