Electric power and energy in China

387 Pages·2013·7.566 MB·English

by  Zhenya Liu

ELECTRIC POWER
AND ENERGY IN CHINA
ELECTRIC POWER
AND ENERGY IN CHINA
Zhenya Liu
StateGridCorporationofChina,China
Thiseditionfirstpublished2013
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LibraryofCongressCataloging-in-PublicationData
Liu,Zhenya,1952-
ElectricpowerandenergyinChina/ZhenyaLiu.
pagescm
Includesbibliographicalreferencesandindex.
ISBN978-1-118-71635-9(cloth)
1.Powerresources—China.2.Energydevelopment—China.3.Energyconsumption—China.
4.Electrification—China.5.Electricpower—China.I.Title.
TJ163.25.C6L582013
333.790951—dc23
2013016714
ISBN:9781118716359
Setin10/12ptTimesbyLaserwordsPrivateLimited,Chennai,India
Contents
About the Author xi
Preface xiii
1 Energy: An Overview 1
1.1 An Overview of the World’s Energy Situation 1
1.1.1 The Global Energy Situation 1
1.1.2 Characteristics of the Global Energy Situation 8
1.2 An Overview of China’s Energy Situation 17
1.2.1 Energy Endowment 17
1.2.2 Energy Production 19
1.2.3 Energy Consumption 23
1.2.4 International Energy Cooperation 26
1.3 Major Energy Problems that China Faces 28
1.3.1 The Problem of Sustained Supply 28
1.3.2 The Problem of Transport and Allocation 35
1.3.3 The Quality Problem of Development 37
1.4 Causes that Affect China’s Energy Development 41
1.4.1 The Economic Development Model 41
1.4.2 The Energy Development Model 42
1.4.3 The Global Competitive Environment 43
2 Strategic Thinking on Energy 45
2.1 Basic Thinking Behind the Energy Solution 45
2.1.1 Complexity of the Energy Problem 45
2.1.2 Grand Energy Vision 47
2.1.3 Solutions to the Energy Problems 47
2.2 The Way to Change the Mode of Energy Development 51
2.2.1 Transformation Phase of China’s Energy Strategy 52
2.2.2 The Way to Change the Mode of Energy Development 55
2.3 The Central Link in the Energy Strategy 58
2.3.1 The Position of Electricity in the Energy Strategy 59
2.3.2 The Significance of an Electricity-centred Energy Strategy 60
vi Contents
2.4 The ‘One Ultra Four Large’ (1U4L) Strategy 65
2.4.1 The Core Mission of Electric Power Development 66
2.4.2 The Need to Implement the 1U4L Strategy 66
2.4.3 The Key to Implementing the 1U4L Strategy 69
3 Energy Exploration and Utilisation 73
3.1 General Thinking Behind Energy Exploration and Utilisation 73
3.1.1 Main Problems in Energy Exploration and Utilisation 73
3.1.2 Principles of Energy Exploration and Utilisation 76
3.1.3 Focus of Energy Exploration and Utilisation 77
3.2 The Exploitation and Utilisation of Coal Resources 79
3.2.1 Coordinated Planning of the Exploitation and Utilisation of Coal
Resources 79
3.2.2 Construction of Large Coal-fired Power Bases in the West
and North 81
3.2.3 The Clean and Integrated Utilisation of Coal 89
3.2.4 Scientifically Developing the Coal Chemical Industry 93
3.3 The Exploitation and Utilisation of Hydropower Resources 94
3.3.1 Construction of Large-scale Hydropower Bases 94
3.3.2 Development of Small Hydropower 99
3.3.3 Planning and Construction of Pumped Storage Power Plants 100
3.3.4 Environmental Protection and Migrant Relocation 102
3.4 The Exploitation and Utilisation of Nuclear Power 104
3.4.1 Construction of Large-scale Nuclear Power Base 104
3.4.2 Advancement of Nuclear Power Technology 105
3.4.3 Building up a Nuclear Energy Safety System 106
3.4.4 Supply of Nuclear Fuel 107
3.5 The Exploitation and Utilisation of New and Renewable Energies 108
3.5.1 Building Large-scale Renewable Energy Power Bases 109
3.5.2 Various Forms of Renewable Energy Development 117
3.5.3 Distributed Energy Development 119
3.5.4 Exploitation and Utilisation of New Energy 122
3.6 The Exploitation and Utilisation of Oil and Gas 125
3.6.1 Exploration and Development of Oil Resources 126
3.6.2 Exploitation and Utilisation of Natural Gas Resources 128
3.7 The Exploitation and Utilisation of Overseas Energy Resources 131
3.7.1 Development and Import of Overseas Oil and Gas Resources 131
3.7.2 Import of Overseas Coal and Electricity 135
4 Energy Transport and Allocation 137
4.1 Modern Comprehensive Energy Transport System 137
4.1.1 TheSignificanceofEstablishingaModernComprehensiveEnergy
Transport System 139
4.1.2 The Guiding Principles for Developing a Modern Comprehensive
Transport System for Energy 141
Contents vii
4.2 Optimisation of the Modes of Coal Transport 143
4.2.1 The Present Situation of Coal Transport 144
4.2.2 The Future Coal Transport Patterns 150
4.2.3 Equal Emphasis on Coal Transport and Power Transmission 151
4.3 Strong and Smart Grid Development 159
4.3.1 Overview of Power Grid Development 159
4.3.2 The Future Landscape of Power Flows 164
4.3.3 The Thinking Behind SSG Development 167
4.3.4 Development of UHV Grids and Grids of All Levels 170
4.3.5 R&D and Application of Grid Technology 183
4.4 Construction of UHV Synchronous Grids in Northern, Eastern
and Central China 186
4.4.1 Development of Large Synchronous Grids in Overseas Countries 187
4.4.2 The Necessity of Building UHV Synchronous Power Grids
in Northern, Eastern and Central China 189
4.4.3 Safety of UHV Synchronous Grids in Northern, Eastern and
Central China 190
4.5 Smart Grid Development 192
4.5.1 The Essence and Features of Smart Grids 193
4.5.2 Strategic Significance of Smart Grids 193
4.5.3 The Priorities and Practices of Smart Grid Development 195
4.5.4 The Development Principles of Smart Grids 204
4.6 Oil and Gas Pipeline Networks 206
4.6.1 Present Situation of Oil and Gas Pipeline Networks 206
4.6.2 The Main Problems of Oil and Gas Pipeline Networks 208
4.6.3 The Basic Thinking Behind the Development of Oil and Gas
Pipeline Networks 210
5 Terminal Energy Consumption 213
5.1 Model of Green Energy Consumption 213
5.1.1 Challenges for Energy Consumption 213
5.1.2 Establishment of a Green Energy Consumption Model 215
5.2 Energy Conservation as a Strategic Priority 217
5.2.1 Thinking behind Energy Conservation as a Strategic Priority 218
5.2.2 Focus Areas of Energy Conservation as Strategic Priority 219
5.2.3 Implementing Measures to Ensure Strategic Priority of Energy
Efficiency 225
5.3 Electrification in Socioeconomic Development 228
5.3.1 Substitution of Electric Energy in Terminal Energy
Consumption 228
5.3.2 Electrification in the Industrial Sector 231
5.3.3 Electrification in the Transport Sector 232
5.3.4 Electrification for Businesses and Urban Population 233
5.3.5 Rural Electrification 235
viii Contents
5.4 Development of Electric Vehicles 236
5.4.1 Important Implications of Electric Vehicle Development 237
5.4.2 Key Areas of Electric Vehicle Development 238
5.4.3 EV Energy Supply Model 241
5.4.4 Policies Supporting the Development of Electric Vehicles 244
6 Energy Market 247
6.1 Overview and Development Ideas in Respect of the Energy Market 247
6.1.1 Overview of Energy Market Development 248
6.1.2 Basic Thinking Behind Energy Marketisation 250
6.2 The Building of Coal Market 251
6.2.1 Management of Coal Market Order 251
6.2.2 Coal Market Trading 254
6.2.3 Regulation of the Coal Market 255
6.3 Establishment of an Electricity Market 257
6.3.1 Reform of International Electricity Market 258
6.3.2 The Principles for China’s Electricity Market Reform 261
6.3.3 Ideas on Building an Electricity Market System in China 263
6.3.4 The Tariff System and Building of Tariff Pricing Mechanism 267
6.4 Development of Pricing Mechanism for Oil and Gas 274
6.4.1 Reform of Pricing Mechanism for Refined Products 274
6.4.2 Natural Gas Pricing Reform 276
6.4.3 The Bargaining Power in International Oil and Gas Pricing 280
6.5 Regulation of Energy Markets 282
6.5.1 Building a Big Energy Regulatory Framework 282
6.5.2 The Thinking Behind Energy Market Regulation 285
6.5.3 Building Support System for Energy Market 287
7 Energy Early Warning and Emergency Response 289
7.1 Importance of Building Capacity for Energy Early Warning and Emergency
Response 289
7.1.1 Risks Posed to Energy Security 289
7.1.2 Significance of Strengthening the Building of Energy Early
Warning and Emergency Response 293
7.2 Energy Early Warning Mechanism 294
7.2.1 Focus of Energy Early Warning 295
7.2.2 Organisational Structure and Management System of Energy
Early Warning 300
7.3 Energy Emergency Response System 302
7.3.1 Organisational and Management Structure of Energy
Emergency Response 302
7.3.2 Emergency Response Programmes for Energy Emergencies 302
7.3.3 Supplies Reserves for Energy Emergency Response 303
7.3.4 Energy Emergency Response Publicity Campaign
and Emergency Drills 305
7.3.5 Scientific Management of Energy Emergency Response 307
Contents ix
7.4 Energy Reserves 310
7.4.1 Present Situation of Energy Reserves in China 310
7.4.2 Experience in International Energy Reserves 312
7.4.3 The Thinking Behind Building Energy Reserves in China 314
8 Innovation in Energy Technology 321
8.1 The Situation of Energy Technology Innovation 321
8.1.1 Technology Innovations in International Energy Sector 321
8.1.2 The Situation of Energy Technology Innovation in China 324
8.2 Principles and Focuses of Energy Technology Innovation 327
8.2.1 The Fundamental Principle of Energy Technology Innovation 328
8.2.2 Focus Areas of Energy Technology Innovation 329
8.2.3 The Goal of Energy Technology Innovation 333
8.3 Development of System for Energy Technology Innovation 334
8.3.1 Integration of Resources of Energy Technology Innovation 334
8.3.2 Development of Mechanism for Energy Technology Innovation 335
8.3.3 Building Talent Team in Energy Technology Innovation 337
8.3.4 Innovation Strategy for Energy Technology 338
9 Ensuring Energy Sustainability 341
9.1 Energy Laws, Regulations and Policies 341
9.1.1 Establishment of a Legal Regime for Energy 341
9.1.2 Policy Guidance and Assurance 345
9.2 Establishment of an Energy Standards System 350
9.2.1 The Significance of Establishing an Energy Standards System 350
9.2.2 Formulation of Energy Standards 352
9.2.3 Bargaining Power over Development of International
Energy Standards 354
9.3 Large Energy Groups 355
9.3.1 Significance of Developing Large Energy Groups 356
9.3.2 Supporting the Development of Large Energy Groups 361
9.3.3 Market Position of Large Energy Groups 366
9.3.4 Social Responsibilities of Large Energy Groups 368
References 371
Postscript 375
Index 379
About the Author
Zhenya Liu is the Chairman of the State Grid
Corporation of China. As a senior engineer, he
is entitled to the special governmental allowances
offeredbytheStateCounciloftheChineseGovern-
mentandisoneofthemostrenownedexpertsinthe
global economy and energy sector.
Theproject‘UHVACTransmissionKeyTechnol-
ogy, Equipment and Engineering Application’ led
by Mr Liu was granted the 2012 National Award
forScienceandTechnologyProgress(SpecialPrize).
Mr Liu also proposed an innovative theoretical and
technical roadmap for UHV transmission tailored
to China’s needs. Under his leadership, a series of
major challenges have been well-addressed, such as the UHV AC voltage control, test
technology, system integration and UHV DC large-capacity converter valve, DC engi-
neering standardisation, etc.
Mr Liu has also led the world’s first UHV AC transmission project and state-of-the-
art UHV DC transmission project to success, through which China has fully mastered
the UHV core technology with independent intellectual property rights as well as the
manufacturing capacity of full-spectrum equipments. In addition, Mr Liu’s publications,
including ElectricPowerandEnergyinChina, and UltraHighVoltagePowerGrid, have
been well-received in China and are bestsellers in their field.
Preface
Energy is an important materialfoundation for economic growth andsocial development.
The use of energy has brought about revolutionary changes to human society, making
production and human life more convenient and comfortable. A historical survey of
human social development reveals that every major leap in the progress of civilisation
was accompanied by the advancement and transformation of energy sources. At the same
time, the development and use of energy have also transformed the natural environment
on which humanity depends upon for its survival. Environmental destruction, climate
changes and depletion of resources have posed huge challenges for human development.
It is humanity’s shared desire to build up an energy supply framework that is safe,
efficient, clean and economical.
The sustainable development of the energy industry is a key strategic issue that affects
China’s overall economic and social development. Since China began its reforms and
opened up its economy, its energy industry has seen rapid growth, providing robust
support for the country’s development. However, what has gradually emerged from this
processisthetensionbetweeneconomicgrowthandenergydevelopmentononesideand
resources and the environment on the other. China is rich in energy resources, but its per
capitaconsumptionoftheseresourcesislowerthantheglobalaverage.InChina’senergy
structure,coalhaslongbeendominant.Highqualityandcleanenergysourceslikeoiland
natural gas, in contrast, are used in smaller proportions, and the level of electrification
is low. In recent years, China’s demand for energy has continued to grow rapidly. The
pollutantsandgreenhousegasesproducedbythemassiveconsumptionoffossilfuelshave
had severe effects on the environment. Given China’s limited resources endowments and
increasing dependence on foreign oil, there is an inherent risk in the country’s energy
security.Unscientificdevelopmenthasledtorepeatedshortagesandinadequaciesincoal,
electricity, oil, gases and transportation. China is expected to continue its economic and
social development, and its demand for energy will keep growing. This, together with
the increasing complexities of the international energy situation and the climate change
issue, will result in greater limitations and conflicts in China’s energy development. The
pressure to safeguard the country’s energy security will also intensify.
To resolve China’s energy problems, we must survey the world with our feet planted
in China, so as to acquire an overall understanding of the situation. This book begins by
analysingthestateofenergyintheworldandinChina,andstudyingtheproblemsfacedby
thecountry’senergydevelopmentandtheirunderlyingcauses.Recognisingthecomplexity
oftheenergyissueandadoptingagrandenergyvision,thisbookproposesafundamental