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Speakers:

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

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

Li Fulong, director of the Development and Planning Department and spokesperson of the NEA

Huang Xuenong, director of the Electric Power Department of the NEA

Chairperson:

Xing Huina, deputy head of the Press Bureau of the State Council Information Office (SCIO) and SCIO spokesperson

Date:

March 30, 2021

Xing Huina:

Friends from the media, good morning. Welcome to this briefing held by the State Council Information Office. Today, we have invited Mr. Zhang Jianhua, administrator of the National Energy Administration (NEA) to brief you about China's renewable energy development and take your questions. We also have with us Mr. Li Chuangjun, director of the New Energy and Renewable Energy Sources Department of the NEA; Mr. Li Fulong, director of the Development and Planning Department and spokesperson of the NEA; and Mr. Huang Xuenong, director of the Electric Power Department of the NEA.

Next, I will give the floor to Mr. Zhang.

Zhang Jianhua:

Ladies and gentlemen, friends from the media, good morning.

It is my pleasure to meet you here and brief you on China's renewable energy development. First of all, on behalf of the NEA, I would like to express my sincere gratitude to our friends from the media who have shown understanding and support for China's energy industry.

Renewable energy is a green, low-carbon energy source and constitutes an essential part of our diversified energy supply system. It plays an important role in improving the energy structure, protecting the environment, addressing climate change, and promoting sustainable development.

China's renewable energy industry has gone through an extraordinary development process since the founding of the People's Republic of China (PRC) in 1949, by starting from scratch and becoming stronger and stronger. This is thanks to the attention shown by the Central Committee of the Communist Party of China (CPC) and the State Council, as well as the function of Renewable Energy Law. In recent years, especially since the 18th CPC National Congress, under the strong leadership of the CPC Central Committee, the energy industry has thoroughly implemented Xi Jinping thought on eco-civilization and a new energy security strategy featuring "Four Reforms and One Cooperation" (one reform to improve the energy consumption structure by containing unnecessary consumption; one reform to build a more diversified energy supply structure; one reform to improve energy technologies to upgrade the industry; one reform to optimize the energy system for faster growth of the energy sector; comprehensive cooperation with other countries to realize energy security in an open environment). It has acted with unity, tackled difficulties, and taken vigorous measures to achieve the leapfrog development of renewable energy, thus scoring remarkable accomplishments.

First, China has topped the world in renewable energy production and utilization, providing robust support for the transition to green and low-carbon energy. The installed capacity of power generation has grown rapidly. By the end of 2020, the total national installed capacity of renewable energy generation reached 930 million kW, accounting for 42.4% of the total installed capacity, an increase of 14.6 percentage points compared with that of 2012. Of this, the installed capacity of hydropower reached 370 million kW, wind power reached 280 million kW, solar photovoltaic (PV) power reached 250 million kW, and biomass power reached 29.52 million kW, ranking first in the world for 16, 11, six and three consecutive years respectively.

The utilization level has continued to improve. In 2020, China's renewable energy generation hit 2.2 trillion kWh, accounting for 29.5% of the total electricity consumption of the whole society, up by 9.5 percentage points from 2012. On this basis, non-fossil energy accounted for 15.9% of the total primary energy consumption, and China honored its commitment for non-fossil energy to account for 15% of its total primary energy consumption by 2020. Currently, renewable energy accounts for around 40% of the total installed capacity, and 30% of power generation. China boasts the world's highest installed capacity of renewable energy.

Second, technology and equipment has been significantly upgraded, injecting powerful impetus into the development of renewable energy. We have established a relatively complete industry system of renewable energy technology. 

China is now able to independently design and manufacture the world's largest one-million-kW hydroelectric turbine, and the country leads the world in the design and construction of ultra-high dams and large underground caverns. Our low-speed wind power technology is among the world's most advanced; more than 90% of China's installed wind power generating capacity relies on domestically manufactured wind turbines; and the country has started trial operations of an offshore wind turbine with a capacity of 10 MW. 

Our PV power technology has developed rapidly, and China continues to establish new world bests in the conversion efficiency of solar PV cells. China dominates the global PV power industry. Seven of the world's top 10 PV module manufacturers are Chinese companies. Integrated manufacturing across the whole industrial chain has driven a continuous decline in the costs of electricity from wind and solar PV. In the past decade, the average cost of electricity per kWh generated in onshore wind power and solar PV power projects reduced by 30% and 75% respectively. 

The renewable energy technology sector has become more competitive, creating a strong momentum in the development of new models and new forms of business related to renewable energy.

Third, remarkable achievements have been made in reducing pollution and carbon emission, consolidating the foundation for the development of an eco-civilization. In 2020, the scale of renewable energy development and utilization in China reached 680 million tonnes of standard coal, equivalent to replacing nearly 1 billion tonnes of coal, reducing carbon dioxide, sulfur dioxide and nitrogen oxide emissions by about 1.79 billion tonnes, 864,000 tonnes and 798,000 tonnes respectively. This has provided a solid guarantee for winning the fight against air pollution. Meanwhile, China has actively promoted the clean use of biomass energy such as organic waste in urban and rural areas to improve the living environment. Also, China has actively explored efforts to integrate the control of desertification, the photovoltaic power generation and the agricultural development. By integrating photovoltaic power generation and ecological restoration, China has successfully coordinated the development and utilization of renewable energy with eco-civilization development. 

Fourth, renewable energy development has delivered great benefits to the people, contributing to poverty reduction. While extending power grids to areas without electricity, China has also actively launched independent renewable energy supply projects, bringing green electricity to over one million people previously without access to electricity. Since 2012, 31 large hydropower stations with a combined capacity of 64.78 million kilowatt have broken ground to support local economic development and facilitate poverty reduction for relocated residents. China has also launched an innovative scheme to develop photovoltage projects for poverty alleviation. Under the scheme, photovoltaic power stations with an installed capacity of 26.36 million kilowatt have been completed, benefiting nearly 60,000 poor villages and 4.15 million poor households. Economic benefits from these projects amounted to 18 billion yuan each year. This has resulted in the creation of 1.25 million welfare jobs. The scheme has now become a quality example of poverty alleviation through business development and one of China's ten finest projects for targeted poverty alleviation. 

Fifth, international cooperation continues to expand, making China's contribution to join hands to address climate change. As the world's largest renewable energy market and equipment manufacturer, China has continued to deepen international cooperation in the field of renewable energy. Our domestic hydropower business has spread to many countries and regions around the world, and the photovoltaic industry has supplied more than 70 percent of the components for the global market. The wide use of renewable energy in the Chinese market has brought down the cost of renewable energy at a faster speed and thus further driven renewable energy development and utilization in other countries. In this way, the world's transition to green energy has accelerated. Besides, in recent years, China has continuously increased renewable energy investment in countries and regions along the Belt and Road to help less developed countries and regions adopt advanced green energy technologies and contribute China's wisdom and strength to the high-quality joint building of a green "Belt and Road."

Ladies and gentlemen, journalists from the media, 

In his important speeches recently, General Secretary Xi Jinping has made it clear that China will strive to peak carbon dioxide emissions by 2030, achieve carbon neutrality by 2060, increase the share of non-fossil fuels in primary energy consumption to around 25 percent, and bring its total installed capacity of wind and solar power to over 1.2 billion kilowatts by 2030. This has further clarified the strategic direction for China's energy transformation and reform and set a new aim for China's renewable energy development. Next, the NEA will step up the implementation of carbon peaking actions in the energy field and set more proactive goals for new energy development. We will vigorously advance renewable energy development in the new era, expanding its scale, increasing its share, improving its quality and making it more market-based. We will accelerate efforts to replace fossil fuels with renewable energy and improve the capacity to absorb and store new energy. We will actively build a new type of electricity system dominated with new energy and make mechanisms and policies more favorable for the whole society to jointly develop and utilize renewable energy. We will vigorously develop renewable energy to turn it from a fresh force in the transition to green and low carbon energy to the main force in achieving peak carbon emissions and neutrality, providing a solid guarantee for building a clean, low-carbon, safe and efficient energy system.

Next, my colleagues and I will answer your questions.

Xing Huina:

Now you can raise your hands and ask questions. 

National Business Daily:

The goal of carbon neutrality will promote the large-scale development and utilization of renewable energy. The growing scale of renewable energy installations and electricity generating capacity has highlighted concern over how to avoid wastage of wind and solar power capacities. How will the NEA ensure the safeguard mechanism for electricity consumption? Thank you.

Zhang Jianhua:

Mr. Huang Xuenong will take the question.

Huang Xuenong:

This is a very good question. We are promoting renewable energy under the carbon peak and neutrality strategy. However, the huge waste from wind and solar power generation capacities cannot be ignored. For this reason, people from all sectors of society are very concerned about the consumption of renewable energy. In recent years, the mismatch between the development of new energy and the consumption capacity of the power system gave rise to prominent waste problems from wind and solar power. Starting in 2018, the NEA formulated a three-year action plan for clean energy consumption. From 2018 to 2020, the waste from wind and solar power has declined year by year, and the utilization rate of wind and photovoltaic power has increased significantly. By 2020, the wind power utilization rate had reached 97%, and solar power stood at 98%. When compared with other countries around the world, these are globally leading rates. 

Next, we will promote new energy as the main source of electricity supply to realize the objectives of the carbon peak and neutrality strategy. We will develop new electricity systems and take various measures to ensure high-levels of renewable energy consumption. The NEA will take the following three measures:

First, we will coordinate and improve the layout of new energy development. While meeting the demands for carbon peak and neutrality, taking into account local conditions of new energy resources in different regions, including land construction conditions, and especially making full use of the relatively large consumption capacity for new energy in central and eastern regions, we will step up efforts to boost local development and the utilization of new energy. In western and northern regions, where new energy resources are concentrated, we should scientifically plan and establish a group of power supply bases and power transmission channels that are dominated by new energy so as to realize the optimal overall configuration of new energy power.

Second, we should enhance the flexible adjustment capacity of the electric power system, which connects power generation and electricity users. In the past, our power generation facilities would adjust to meet customer demand, with power generation, electricity transmission and utilization all done simultaneously. The situation changed after large-scale new energy was connected to the grid. New energy generation is dependent on the weather, while users need reliable electricity supply. Integrating and connecting these two sides requires construction of a new type of power system to provide the ability for flexible adjustment to allow better consumption of new energy. In terms of power generation, we will increase efforts to enhance the flexibility of thermal power generation, including the construction of pumped storage power stations and peak-regulating natural gas power stations. Regarding power grids, we will step up infrastructure construction and enhance our ability to optimize resource allocation, and in particular give full play to the complementarity between large power grid s. In terms of users, we will promote terminal power replacement, especially green power replacement, to improve the response capacity on the demand side. In addition, we will accelerate the large-scale development of energy storage, promote overall digitalization of the power system and formulate an efficient and intelligent scheduling and operation system. For example, electric vehicles need to be charged via the electric power system, which seems to be a power supply task, but they can help improve system capacity through technological developments, including taking economic measures. When the demand for electricity is low, the power system will charge electric vehicles; when demand is high, the vehicles will discharge electricity into the power system. An electric car could become a power storage device in the power system. If there are thousands of electric vehicles, it will be beneficial for the power system. Therefore, we should accelerate the construction of charging infrastructure. On one hand, this will promote the development of new-energy vehicles, and on the other, it will also facilitate the construction of a new-type power system. This is a very good thing.

Third, we will formulate a long-term mechanism for new energy consumption. I'll outline the considerations from three aspects: First, while ensuring the consumption of the power grid, various market players including power supply, power grid, users and energy storage share the responsibility of clean energy consumption through the integration and multi-energy complementation of energy resources, power grid, electricity load and storage. Second, we should coordinate the resources of electricity load, power supply and power grid, and improve the new energy scheduling mechanism and adjusting ability of the power system from multiple dimensions so as to ensure matching of the adjusting ability with the developing and utilizing scale of new energy. Third, we should set a scientific target for the rational utilization rate of new energy. A dynamic adjustment mechanism must be formed to facilitate the development of new energy and overall improvement of the new-type power system. Wind and solar power resources, grid loads and grid structures all vary in different places. We should set regional targets in line with local conditions, make full use of the system's consumption capacity, and boost the development potentials of new energy. That's all from me. Thank you.

Phoenix TV:

The Outline of the 14th Five-Year Plan and the Long-Range Objectives through the Year 2035 have formulated that the development of renewable energy resources will be accelerated. Under the guidance of the outline, what new features do you think China's renewable energy landscape will present in the future? Thank you. 

Zhang Jianhua:

Mr. Li Chuangjun, head of the new energy department, will answer this question.

Li Chuangjun:

Thank you for your question. General Secretary Xi Jinping recently said that China's carbon dioxide emissions will peak before 2030 and achieve carbon neutrality by 2060. He also set forth the requirements for the development of renewable energy. Moreover, the Outline of the 14th Five-Year Plan and the Long-Range Objectives through the Year 2035, which was recently released at the "two sessions," have set clear tasks for renewable energy development. Overall, the development of renewable energy will face new situation and new tasks during the 14th Five-Year Plan period. There will be a series of significant changes in its development in terms of boundary conditions, logic and mechanisms. All in all, the development of renewable energy during the 14th Five-Year Plan period will enter a new stage with features as follows: 

First, renewable energy will be developed on a large scale. Given the achievements during the 13th Five-Year Plan period, the average annual installed capacity for renewables will witness a substantial increase during the 14th Five-Year Plan period, and the total installed capacity will be further increased. The installed capacity using new energy will make up over 50% of the country's total by the end of the 14th Five-Year Plan period.

Second, renewable energy will grow to a significant proportion. The ratio of renewable energy to energy consumption will continue to increase. By the end of the 14th Five-Year Plan period, renewable energy is expected to account for around two-thirds of the increase in electricity consumption throughout society, and will account for more than half of the country's primary energy consumption. Renewable energy will become a principal part of, rather than a supplement to, the increase in energy and electricity consumption.

Third, the development will be marketized. The market will further play a decisive role in allocating renewable energy resources. This year, wind power and solar PV power will start to deliver electricity at a price comparable to that of conventional electricity generation methods. There will be no subsidies, and their development will be market- and competition-oriented. 

Fourth, the development will be of high quality. During the 14th Five-Year Plan period, we will step up efforts to establish a new-type power system that makes clean energy a central focus, thus to improve our consumption and storage capacities for renewable energy. We will achieve large-scale development in renewable energy, and realize high-level consumption and utilization of these energy resources, so as to ensure reliable and stable power supply, and to achieve a high-quality leapfrog development.

Going forward, we will strive for the targets of peak carbon dioxide emissions and carbon neutrality, and fully utilize our advantages in renewable energy and relevant technologies, so as to leverage our strengths and shore up our weaknesses. We will consolidate and strengthen the overall core competitiveness and competitive advantages of renewable energy. We will give continued priority to the development of renewable energy. We will pursue high-quality leapfrog development, and improve quality and efficiency through reforms and innovation. We will promote renewable energy development by optimizing regional planning, building major bases, supporting pilot projects and carrying out action plans. We will accelerate the implementation of renewable energy substitution projects, and promote a high-proportion, high-quality, low-cost and market-oriented development of renewable energy. By doing so, we will make a greater contribution to the efforts of ensuring energy supply, promoting low-carbon green development, and achieving the targets of peak carbon dioxide emissions and carbon neutrality. Thank you.  

CCTV:

The 14th Five-Year Plan period (2021-2025) is a crucial and best time for China to peak its carbon dioxide emissions. What measures will the NEA take to realize the goal of peaking emissions? 

Zhang Jianhua:

On March 15, at the ninth meeting of the Central Committee for Financial and Economic Affairs, General Secretary Xi Jinping underscored that for carbon emissions to peak and to achieve carbon neutrality requires an extensive and profound systemic reform of the economy and society, and should be incorporated into the overall task of promoting ecological progress. He called for a spirit of perseverance in achieving the goals of peaking carbon emissions by 2030 and achieving carbon neutrality by 2060. There are 10 years between now and 2030. The first five years, which is also the 14th Five-Year Plan period (2021-2025), is a crucial stage for low-carbon energy transformation. We will take measures in three aspects to ensure solid progress in peaking carbon emissions. 

First, we will fully develop non-fossil fuel energy. The share of non-fossil fuels in primary energy consumption will reach around 25% and China's total installed capacity of wind and solar power will exceed 1.2 billion kilowatts by 2030. General Secretary Xi Jinping made commitments to these two goals, which outline what we must achieve. We will make more active new energy development goals and accelerate the development of wind and solar power. Meanwhile, we will exploit hydropower according to local conditions and develop nuclear power in an active and orderly way under the premise of ensuring safety. We will also quicken the construction of adjustable energy supplies such as pumped power storage and new-type power storage, to increase the flexibility of electricity systems and improve new energy consumption levels. Mr. Huang also just now mentioned the consumption of new energy, which is a pressing task. 

Second, we will greatly advance the green energy use model. In order to peak carbon emissions and achieve carbon neutrality, we should take the lead in the green transformation of social and economic development across the board and promote a green energy use model in key sectors and even across the whole society. We will adopt stricter energy consumption standards and support the replacement of fossil fuel energy and reform the ways energy is consumed in key sectors such as industry, architecture, and transportation. We will push forward the development of photovoltaic integration and the green energy use model via new energy vehicles and accelerate the replacement of electric energy in heating and cooking to improve the level of electrification across the whole of society. By 2025, the energy consumption per unit of GDP and its carbon dioxide emissions will decrease by 13.5% and 18%, respectively, compared to 2020. These two goals have already been included in the 14th Five-Year Plan. 

Third, we will make and implement more effective policies and measures. According to the general arrangements of the CPC central committee and the State Council, and sincerely carrying out the guiding principles of the ninth meeting of the Central Committee for Financial and Economic Affairs, the NEA is studying various paths, targets, and measures to realize the peak in carbon emissions and carbon neutrality. We will make supporting policies and measures for key targets to bolster low-carbon energy-smart transformation, the high-quality development of new energy, the building of new types of electrical systems, and the development of new types of energy storage. At the same time, we will well connect energy planning at national and provincial levels during the 14th Five-Year Plan period and integrate those targets into the plan such as responsibilities relating to power consumption, energy-saving, and emissions reduction to peak carbon emissions. We will give full play to the guiding role of planning, define clear responsibilities for all regions and localities to reduce carbon emissions, and support regions where the conditions permit to take the lead in realizing a peak in carbon emissions. We are about to buckle down to the job now. Thank you. 

The Paper:

With the arrival of the grid-parity era, sectors involved in renewable energy no longer need subsidies but many ongoing renewable energy projects face delayed subsidy payment, resulting in operation difficulties among some companies. How will you deal with the subsidy payment backlog? Meanwhile, how can Renewable Energy Certificates (RECs) play a greater role? Thank you.

Zhang Jianhua:

Thank you for your question. It is indeed a crucial and tricky issue. We will invite Mr. Li to answer the question.

Li Chuangjun:

Thank you for your question. China has made remarkable achievements in renewable energy development over the years but there are indeed problems in the development process. These include insufficient subsidy funds and the delayed payment of renewable energy subsidies like you mentioned. China has attached great importance to solving these problems. Working with relevant departments, the NEA has actively explored various means to solve the problem of overdue subsidies. Recently, the NDRC, MOF, PBOC, CBIRC, and NEA jointly issued a notice on guidance of increasing financial support to promote the healthy and orderly development of wind power and photovoltaic power industries. The notice provides solutions for liquidity risks experienced by relevant companies that are resulted either from overdue subsidies of renewable energy or delayed payment of the subsidies. The main measures are as follows:

First, financial institutions are encouraged to negotiate with renewable energy enterprises to extend or renew loans per commercial principles. At present, some renewable energy enterprises face a relatively tight cash flow due to delays in subsidy payments, yet these subsidies do exist and are guaranteed via government credit. Therefore, we require financial institutions to extend or renew loans or adjust repayment schedules or terms according to the project's progress and cash flow based on negotiation between the banks and companies. This is to ensure liquidity to in the companies.

Second, financial institutions are encouraged to issue loans for confirmed projects that are included on the subsidy list. Earlier, the MOF and several other departments vetted the qualifications of companies on the subsidy list. For those qualified but have yet to receive a subsidy from the government, the financial institutions can determine the loan size based on subsidy certification and other credit limit increase measures, as determined by the principles of marketization and rule of law.

Third, companies are encouraged to ease interest payment burdens via the trading of RECs. Together with other relevant departments, we are studying the possibility of issuing RECs to companies based on loan contracts and other documents filed by companies. This will allow them to trade RECs to reduce the pressure of paying interest, which is also an effective means for companies to reduce their burden.

Fourth, we will work to ensure the collection of all receivables related to renewable energy surcharges. The current levy rate on renewable energy surcharges has not reached 100%. We hope to levy all receivable surcharges in the front end to expand the source and scale of subsidy incomes.

Fifth, we will optimize the management of subsidy funds. Priority will be given to granting subsidies to projects and companies that voluntarily switch to achieve grid price parity, and will simultaneously increase credit support for said projects and companies.

The above are several methods to deal with the overdue subsidies. For the next step, we will work with relevant departments to further implement various policies to gradually alleviate and finally solve the problem of new energy subsidy arrears. Thank you. 

China Electric Power News:

The construction of a new type of power system with new energy as the mainstay was initially proposed at the ninth meeting of the Central Committee for Financial and Economic Affairs. What problems will the new system mainly target? The large-scale integration of new energy into the power grid has demonstrated randomness, discontinuity and fluctuation, making it not easy to keep the real-time balance of the system. So how will you ensure the stable supply of electricity and the safety of energy? Thank you. 

Zhang Jianhua:

Thank you for your questions. Huang Xuenong, director of the Department of Electricity, will answer your questions. 

Huang Xuenong:

To achieve the goals of peak carbon emissions and carbon neutrality, we regard energy as the main battle field and electricity as the main force. The construction of a new power system proposed at the ninth meeting of the Central Committee for Financial and Economic Affairs was an inevitable decision we made to achieve peak carbon emissions by 2030 and carbon neutrality by 2060. As is the core feature of the new system, new energy will become the main source of power supply. We have to face up to the fluctuation and discontinuity of new energy which you just mentioned. In a bid to make the power system clean and low-carbon, safe and reliable, smart and flexible, and cost-effective and efficient, we will innovate in equipment technology as well as systems and mechanisms, make sure various forms of energy are interconnected and complement each other, and promote the deep integration of power generation, the grid, load and storage. Next, I will introduce the measures in five aspects. 

First, we are striving to build a power generation, supply, storage and sales system in line with the large-scale development of new energy to ensure the safety and reliability of electricity. As for how to ensure the safe supply, that is a good question. The safe supply of electricity is the bottom line for building the new power system as well as a significant task for us. Here are some measures: First, we will give play to the power grid as a platform for allocating resources. Second, we will promote the construction of the power grid at a regional level. Third, we will rationally promote the construction of supporting and fundamental power sources. Fourth, we will build a multi-layered, properly scaled, safe and reliable power system, strengthen electricity security and its capacity for resisting disasters, and steadily enhance the intrinsic safety of the electricity industry.

Second, we are concentrating efforts to improve the flexible adjustment ability of the power system. Mr. Zhang made a detailed introduction just now. When addressing the issue of idle capacity in wind and solar power, I mentioned that we will improve the flexible adjustment ability of the power system from various aspects including power supply, the grid, demand and energy storage to meet the requirements for the large-scale integration of new energy into the power grid. After the integration, wind and solar power should not lie idle in large amounts, nor the shortage of power should be allowed. We will ensure the safety of power supply. In spite of the fluctuation and discontinuity of new energy, the new system, based on its flexible adjustments, can be turned into one that is user-friendly and ensures the supply. 

Third, we are putting forth efforts to promote the interconnection and integration of power generation, the grid, load and storage, and improve the system efficiency to meet the diversified needs of various types of users. We will guide new patterns and forms of business in the electricity sector toward sustainable and sound development. Regarding the supply side, we will make various energy sources complement each other and keep them optimized. Regarding the consumption side, we will promote the deep integration of electric heating and air conditioning. We will continue to improve the service of electricity, and realize the full utilization of a high proportion of new energy and the harmonious coexistence of multiple kinds of energy sources. We will promote the interconnection between the power system and advanced information and communications technologies, develop new business patterns and improve comprehensive energy services. 

Fourth, we are striving to make technological breakthroughs in key technologies of the new power system, carry out experiments and demonstrations, and promote their application. We will promote the deep integration of electrical technology with advanced information and communications technologies including artificial intelligence, big data, and the Internet of Things to form a key technology system with our own independent intellectual property rights. We will concentrate on tackling bottlenecks in key technologies, accelerate their research, development and application, and launch innovative demonstration projects featuring the new power system. 

Another key factor is to push ahead with the establishment of the electricity market, promote innovations in systems and mechanisms, and build a market system for the new power system. We will let the market play the decisive role in allocating resources and let the government play its role better. We will accelerate the establishment of the electricity market system featuring unification, openness and orderly competition through the constant improvements of the electricity market mechanism, operating mechanism and price mechanism. That's all. Thank you. 

Beijing Daily:

The replacement of fossil energy by non-fossil energy is an important measure in promoting the low-carbon energy transition. How will the NEA accelerate the development of non-fossil energy during the 14th Five-Year Plan period? Thank you.

Zhang Jianhua:

I'll let Mr. Li Fulong answer this question.

Li Fulong:

This question is very important. Vigorously developing non-fossil energy is an important measure in promoting the transition to low-carbon energy. Just now, Mr. Zhang Jianhua gave a very clear and detailed explanation of major measures, actions and policies related to achieving peak carbon dioxide emissions and carbon neutrality in the energy sector. During the 13th Five-Year Plan period, the proportion of non-fossil energy consumption in China increased from 12.1% to 15.9%, representing an average annual increase of 0.76 percentage points.

By 2030, the share of non-fossil fuels in primary energy consumption will reach around 25%. Over the next 10 years, this should increase by 0.9 percentage points per year on average, which is equal to an average annual increase of non-fossil energy of around 70 million metric tons of standard coal. The task is indeed very arduous. The NEA is currently conducting in-depth studies and formulating relevant policies and measures to strengthen its efforts in four aspects to promote the accelerated and high-quality development of non-fossil energy.

First, we will make plans, provide guidance, and carry out regulation. We are studying and drawing up modern energy system plans and sector-specific energy plans for the 14th Five-Year Plan period, which emphasize the development of non-fossil energy and the promotion of low-carbon energy transition. Our preliminary estimates show that clean energy will account for 80% of the increase in energy consumption during the 14th Five-Year Plan period, which is 20 percentage points higher than the 13th Five-Year Plan period. Non-fossil energy will make up the majority of the increase in energy consumption. This will lay a solid foundation for achieving the target of obtaining 25% of energy consumption from non-fossil energy. At the same time, we will ensure the national and provincial energy plans are linked together to accomplish the goals and tasks of promoting low-carbon transition.

Second, we will develop non-fossil energy in diversified ways. Under the condition of ensuring safety, we will take active and orderly measures to promote the construction of coastal nuclear power stations; continue to prioritize ecological conservation; develop and construct hydropower stations mainly on key river basins such as those in southwest China and the upper reaches of the Yellow River, with the firm goal of generating over 1.2 billion kW in 2030; and vigorously develop wind and solar power generation. At the same time, it is necessary to promote the development and utilization of other renewable energy sources such as biomass and geothermal energy according to local conditions.

Third, we will optimize the layout of new energy development. On one hand, we will continue to strengthen accommodation of power generated from new energy and cross-regional transmission capacity, promote the centralized development of wind and PV power generation in an orderly fashion, and actively promote the construction of clean energy bases featuring complementary use of diverse energy sources. On the other hand, it is necessary to increase the on-site development and utilization of new energy, and actively develop distributed energy resources, in particular promote the development of distributed PV power generation and decentralized wind power in China's central and eastern regions.

Fourth, we will strengthen the flexibility and adjustment capacity of the power system. We will continue to implement the flexible transformation of thermal power. Under the condition that gas sources are guaranteed, we will develop peak-shaving natural gas power stations according to local conditions, and accelerate the construction of pumped-storage power stations as well as R&D and application of new energy storage. We must adapt to the large-scale and high-proportion development of new energy, and accelerate the construction of a new, safe and efficient power system with new energy as the mainstay. As Mr. Huang Xuenong explained, this is key to ensuring the stable operation of the power system and promoting the high-quality development of new energy. Thank you.

Kyodo News Service:

Just now Mr. Zhang talked about international cooperation, so could you make an introduction to international cooperation on nuclear power, including Hualong One? Besides, with regards to Myanmar, the China-Myanmar oil and gas pipelines are a crucial channel for China's energy imports, and some analysts believe that Myanmar's domestic economy will affect energy cooperation between the two countries, so how do you view Myanmar's situation?

Zhang Jianhua:

The technology for China's Hualong One reactor is very mature. We are cooperating with many countries, and are also vigorously promoting the technology and design in China. We want to share China's good technology and equipment with our friends around the world, and contribute to the environmental protection of the planet. China's Hualong One technology has "gone global" in a very smooth manner.

Regarding cooperation between China and Myanmar, we have paid high attention to the situation in Myanmar -- China's friendly neighbor. As for the energy industry, China and Myanmar have carried out good cooperation in this regard -- China has two pipelines in Myanmar, one natural gas line and one crude oil line. Both lines are currently in safe and stable condition. Here I'd also thank our media friends for your attention.

Hong Kong Economic Herald:

We noted that the report on renewables published by International Energy Agency in 2020 showed China was one of the main forces driving the capacity growth of the global renewable energy last year. How do you view China's contribution to world renewable energy development? Thank you.

Zhang Jianhua:

Thank you for your question. I have just mentioned that China, as the world's largest renewable energy market and equipment manufacturer, has always been committed to strengthening cooperation with other countries in the field of renewable energy, providing Chinese products, contributing Chinese wisdom and strength to the global energy transformation and green development.

We have actively taken part in global cooperation, promoting our renewable energy products, equipment and services to "go global." China has provided hydropower services for a large number of countries and regions. For example, 70% of the world's construction of hydropower stations are conducted by Chinese enterprises. We would say that Chinese workers can be seen almost at every construction site of hydropower station around the world. China's photovoltaic industry has supplied 58% of polysilicon, 93% of silicon chips, 75% of battery chips and 73% of the components for the global market. Meanwhile, China is also the world's largest manufacturer of wind turbines, as its output accounts for half of the world's total. All the above data demonstrates that China is a key player in new energy market, and, without exaggeration, it ranks first in the world.

New forms and models of business are emerging in China as the renewable energy sector scales up. We blazed a new path of poverty alleviation efforts by developing photovoltage (PV) projects in poor areas, thus providing successful experience for global poverty reduction. We have explored new patterns for controlling desertification with photovoltaic technology, and succeeded in the coordinated development of renewable energy and ecological protection. We have also promoted new business models which combines PV power generation and agriculture, fishery as well as animal husbandry. Now, we are accelerating the integrated development of renewable energy with traditional industrial sectors such as construction, transportation and industry, striving to contribute China's wisdom to innovative global renewable energy development.

Especially in recent years, China has vigorously promoted the rapid and large-scale development of renewable energy by providing legal guarantees, planning and guidance, and financial support, etc., making outstanding contributions to the global transition toward renewable energy. By the end of 2020, China's cumulative installed capacity for renewable energy had reached 934 million kilowatts, accounting for one-third of the world's total. In particular, China's newly installed capacities for wind power and solar photovoltaic (PV) power stood at about 120 million kilowatts by the end of last year, accounting for more than half of the world's newly installed capacities for both. This positions the country as a strong force for the development of global renewable energy. The large-scale development of China's renewable energy sector has also strongly promoted the rapid progress of renewable energy technologies, especially those new energy sectors represented by wind power and PV power. With costs falling fast, economic efficiency rising rapidly, and competitiveness increasing swiftly, accelerating the growth of renewable energy—especially wind power and PV power—into the world's new main energy sources is becoming reality. It is fair to say that the rapid booming of global renewable energy would not have been possible without the large-scale development of the renewable energy sector in China, and that China has made contributions to the global transition to renewable energy and climate change response. Thank you.

South China Morning Post:

Data shows a 40% year-on-year drop in China's coal imports throughout January and February earlier this year, and it is said that China has imposed a ban on imports of Australian coal. Under such circumstances, will there be uncertainties about China's coal supply this year? Thank you.

Zhang Jianhua:

Mr. Li will answer this question.

Li Fulong:

This is a very important question. First, China has been part of the economic globalization system for many years, and its economy and energy sector have been increasingly integrated into the world trade system. China follows international practices and rules regarding the import and export of important products, including coal, oil, and natural gas. Second, in terms of market demand, energy supplies must meet the needs of China's economic development and people's livelihoods. We have always adhered to open, mutually beneficial, and win-win principles of international cooperation, including the field of international coal trade you just mentioned. These guidelines and benchmarks have always been upheld and unchanging for a long time. Third, market fluctuations and changes in demand are normal phenomena. As countries around the world gradually resume production, it is normal to see changes in energy supply and demand following the effects of the COVID-19 epidemic—not only in China but also around the world. That's my brief answer.

Zhang Jianhua:

Thank you, Mr. Li, and thank you for your attention, friend from the South China Morning Post. The NEA has a very important task, which is to ensure the security of the country's energy supply. Therefore, no matter the circumstances, with the support of local governments at all levels and close cooperation with enterprises, we can effectively guarantee the safety of energy supplies. This year, there are no obvious shortfalls and we have great confidence that national energy demands in all aspects will be satisfied.

Xing Huina:

Thank you, all the speakers and friends from the media. Today's press conference is hereby concluded. Goodbye!

Translated and edited by Yuan Fang, Zhou Jing, Duan Yaying, Liu Qiang, Gong Yingchun, Chen Xia, Wang Yiming, Li Huiru, Zhang Rui, Zhang Liying, Zhang Tingting, Huang Shan, He Shan, Liu Jianing, Wang Qian, Wang Wei, Qin Qi, Yang Xi, Xu Xiaoxuan, David Ball, Jay Birbeck, and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.