The Paper:

The international energy supply and demand situation has been challenging since last year, which has exerted huge pressure to China's energy provisions. How do you view the current and future energy security situation in China? What are the NDRC's plans to ensure a stable and sufficient supply of energy ? Thanks.

Li Chunlin:

Like food safety, energy security is also a crucial part in China's national security. It is typically a "matter of national significance." In recent years, despite the complex global energy supply situation and rising prices, we have made solid progress in developing the energy production, supply, storage, and marketing systems. We have continuously enhanced our energy supply capacity, diversified our energy imports, improved reserve capacities, gradually optimized market systems, and achieved remarkable results in green and low-carbon transformation. In recent years, China's energy self-sufficiency rate has remained above 80%. In 2022, domestic crude oil production rebounded to over 200 million tons, reaching 205 million tons; natural gas output reached 220.1 billion cubic meters, increasing by more than 10 billion cubic meters for six consecutive years; by the end of 2022, the national installed power capacity registered 2.56 billion kW, among which the installed capacity of renewable energy exceeded 1.2 billion kW; and the newly installed capacity of wind power and photovoltaic exceeded 100 million kW for three consecutive years. In general, China's energy security is guaranteed.

In 2023, the international energy supply and demand situation remains complicated, with many uncertain factors, and domestic economic recovery and development drive steady growth in energy demand, while problems still exist regarding energy supply and demand between regions and periods. In order to keep the energy supply and prices stable, we will continue to reinforce systems for energy production, supply, storage, and marketing on the basis of our previous efforts and take comprehensive measures to ensure safe and stable energy supply. We will mainly focus on the following four aspects:

First, we will increase energy production and supply. We will continue to improve power supply capacity by vigorously promoting the construction of large-scale wind and photovoltaic power stations mainly in desert and barren areas, particularly in the Gobi desert. We will also develop necessary peak-shaving power sources and coordinate to increase effective power generation. We will increase investment in domestic oil and gas exploration and development to boost oil and gas reserves and production. We will stabilize coal production and supply while strengthening its clean and efficient utilization. We will also ensure the diversified and stable energy imports.

Second, we will constantly consolidate energy reserves. We will establish and improve a sound energy reserve system, bolster coal reserve capacities, and create a stable and efficient oil and gas reserve system so as to continuously enhance our capacity for backup power supplies for national emergencies and peak-shaving power sources.

Third, we will maintain stable energy prices. We will pay close attention to changes in supply and demand and the prices of the energy market and take coal as an "anchor" to ensure the supply and price stability of energy. We will take a combination of measures to regulate and supervise coal price and stabilize electricity prices by keeping coal prices stable. In this way, we will be able to maintain stable energy prices across the country.

Fourth, we will safeguard the bottom line of people's energy use. We will expand the coverage of medium and long-term contracts involving coal supply for power generation, heating, and household gas supplies. We will improve the complementarity of energy sources, including coal, natural gas, electricity, and refined oil, and enhance our capabilities to ensure peak-hour energy supplies. We will also make more efforts to strengthen the monitoring and early warning of power supply and demand. Furthermore, we will refine demand-side combined load management plans and firmly uphold the bottom line of energy use for people's livelihoods. Thanks.

Shou Xiaoli:

Thank you to the three speakers from the NDRC, and thank you to all my friends in the media. Today's press conference concludes here. Goodbye.

Translated and edited by Wang Yiming, Wang Qian, Zhou Jing, He Shan, Guo Yiming, Zhang Rui, Dong Qingpei, Yang Xi, Yan Xiaoqing, Wang Wei, Xu Kailin, Zhou Jing, Liu Jianing, Yan Bin, Zhang Tingting, Li Huiru, David Ball, Tom Arnsten, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.