Ikelic - Alliance Digital Repository
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Ikelic - Alliance Digital Repository
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COAL<br />
Electricity Demand<br />
It Is a well established characteristic of rapidly<br />
developing economies that much of the growth<br />
in energy requirements takes the form of<br />
electricity. Power consumption in China in<br />
creased more than 3-fold between 1978 and<br />
1993, reaching 815 terawatt-hours (tWh) in the lat<br />
ter year.<br />
Rapid growth in electricity demand is expected to<br />
continue. Projected electricity demand of just<br />
over 1,400 tWh in 2000 is lower than some recent<br />
Chinese estimates. For instance the Ministry of<br />
Electric Power has projected potential demand in<br />
2000 at 1,540-1,580 tWh, although actual genera<br />
tion in that year is projected at only<br />
1,400-1,440 tWh.<br />
China's ability to satisfy the projected growth in<br />
electricity demand will depend on the evolving<br />
structure of electricity supply and the rate of<br />
power station construction. Responsibility for the<br />
sector at national level lies with the Min<br />
electricity<br />
istry of Electric Power, which was established in<br />
April 1993.<br />
It is officially envisaged that a quarter of the capi<br />
tal will come from overseas sources, compared<br />
with a tenth in recent years.<br />
A large part of the capacity will have to be based<br />
on imported technology. Part of the capacity will<br />
consist of advanced generating technology such<br />
as commercial-scale integrated gasification com<br />
bined cycle plants.<br />
Environmental Implications<br />
On a relatively conservative estimate Chinese<br />
C02 emissions in 2010 will rise to almost 5 giga<br />
tonnes per year. The country will then be respon<br />
sible for around 16 percent of global emis C02<br />
sions. The increase in annual Chinese C02 emis<br />
sions over the period will be little lower than that<br />
from all of the OECD countries combined.<br />
There are substantial environmental problems<br />
associated with coal being used at relatively low<br />
4-23<br />
in over 400,000 industrial boilers,<br />
efficiency<br />
140,000 industrial kilns and innumerable domes<br />
tic stoves.<br />
China unveiled a plan to harmonize economic<br />
growth with environmental protection (see Sinor<br />
Synthetic Fuels Report. October 1994, page 56).<br />
The plan, known as Agenda 21, encompasses a<br />
first group of 63 projects within 9 priority areas,<br />
including many<br />
related to coal production and<br />
use. Implementation will cost around<br />
US$3.8 billion, of which it is hoped that two-fifths<br />
will come from abroad. While coal prices<br />
remained artifically<br />
low and subsidies were in<br />
place, the incentive to utilize energy<br />
more effi<br />
ciently and cleanly was low. As these conditions<br />
change, and as the country's environmental<br />
regulations are tightened, the scope for clean<br />
coal technologies being<br />
greater.<br />
adopted will be much<br />
This will remain the case even if the projected<br />
rate of increase in coal and energy supply, and<br />
thus overall economic growth, have to be scaled<br />
down because of capital investment constraints.<br />
Those constraints would, however, suggest that<br />
a substantial part of the cost of environmental<br />
measures may have to be met by outside bodies,<br />
given the competition for capital resources within<br />
China.<br />
####<br />
IEA SURVEY REVEALS INDUSTRY CAUTION<br />
ON CLEAN COAL TECHNOLOGIES<br />
The International Energy Agency (IEA) published<br />
in November, a survey conducted by its Coal In<br />
dustry Advisory Board (CIAB)<br />
on the status of<br />
combined cycle Clean Coal Technologies (CCT),<br />
the first in a series of three on emerging clean<br />
coal technologies. The Board solicited views on<br />
their applicability and future prospects from<br />
power utilities, manufacturers and others in the<br />
coal business.<br />
The survey, entitled "Industry Attitudes to Com<br />
bined Cycle Clean Coal Technologies,"<br />
indicates<br />
THE SYNTHETIC FUELS REPORT, JANUARY 1995