World Energy Outlook 2007

Box 8.2: Energy Goals in China’s 11 th Five-Year Plan
Saving energy and expanding domestic supplies are given priority in the 11 th
Five-Year Plan for Energy, covering the period 2006-2010. The central goal
is to reduce energy intensity – energy consumed per unit of GDP produced
– by 20% in 2010 compared to 2005. That national target has been broken
down into provincial targets imposed as part of performance targets for
provincial leaders. Preliminary data for 2006 show a slight fall in energy
intensity, reversing the upward trend of the recent past, but not fast enough
to meet the 2010 target. Other objectives are diversifying energy resources,
protecting the environment, enhancing international co-operation and
ensuring a stable supply of affordable and clean energy in support of
sustainable economic and social development. The plan also maps out the
institutional and legislative changes needed to realise these goals, including
pricing reforms.
For all energy sectors, the plan establishes specific goals. These include target
shares for each major fuel in the primary energy mix in 2010: 66.1% for
coal, 20.5% for oil, 5.3% for natural gas, 0.9% for nuclear power, 6.8% for
hydropower and 0.4% for other renewables. Keys to expanding energy
supply are identified, including which coal-mining areas and transport
infrastructure to prioritise, which river systems to develop and how many
small wind turbines to install in villages. The plan also sets efficiency targets
for power generation and industrial processes (see below). The number of
small coal mines is to be cut from 22 000 to around 10 000, and early
indications are that implementation may be more robust than in previous
closure campaigns. Priorities for technology development are set, ranging
from those technologies already beginning to enter markets, such as better
methods of coal washing and new nuclear reactors, to more speculative
options, including hydrogen systems and exploitation of gas hydrates.
Target shares outlined above are not directly comparable with projected
WEO fuel shares, because of methodological differences (see Box 8.1).
8
Energy Policy 1 Challenges and Uncertainties
The energy-related issues that China faces are familiar the world over, although
the magnitude and the speed of change the country is experiencing are
unprecedented. As in any country, China’s energy-policy challenges are largely
framed by national socio-economic policy goals. Paramount among them is the
need to sustain rapid economic development and growth in output, but in a
1. The policies mentioned in this section are not meant to be exhaustive. More detailed sectoral
policies can be found in Chapter 11 as well as in the World Energy Outlook Policy Database at
www.worldenergyoutlook.org.
Chapter 8 – Overview of the Energy Sector 271