What should be the responses from enterprises

1
?????????????????What should be the responses
from enterprises?

• ?? Yu Cong
• ????????????
• Energy Research Institute
• National Development and Reform Commission
• April 11, 2007

2
???? Outlines

• ???????????????????
• What a role of Improving energy efficiency in
  industry is in realizing the EC target?
• ??????????????????
• What EE measures have been taken in industry?
• ?????????????????
• The policy guidance for enhancing EE in industry

3
Industry accounts for 70 of end-use energy
consumption in China ???????????????70
Source China Energy Statistics Yearbook 2005
4
The disparities of energy consumption structure
with other countries?????????????
Data of 2004,Handbook of Energy and Economic
Statistics in Japan. The Institute of Energy
Economics, Japan
5
Rapid growth of industrial energy
consumption????????
Source China Energy Statistics Yearbook 2005
6
Growth of Key Product Outputs Was
Unimaginable???????????????
Source 2005 China Statistics Yearbook, 2005
China Statistics Report Note Comparable Price of
GDP value.
7
Dramatic Growth for Recent Years?????????

• ??? Output of Steel
• 1990-2000????6000????
• 66 Mton by 1990,increased to 129 Mton by 2000,60
  Mton for 10 years.
• 2001-2006????2.7??
• Increase 270 Mton from 2001 to 2006
• ???? Output of Cement
• 1980-1990????1.3??
• 80 Mton by 1980, 210 Mton by 1990. It took 10
  years increasing 130 Mton.
• Increased 540 Mton from 2001 to 2006
• 2001-2006????5.4??

8
??????????????????????Gap of EE Compared with
Advanced Case
9
??????????????End-Use Equipment Operation
Efficiency in China and Gaps Compared with
International Level
10
????????????20???Chinas ambitious 20
reduction goal by 2010

• 2005?10????????2010???GDP????20???
• October 2005 Premier Wen Jiabao declares that
  energy intensity of GDP must decline by 20
  between 2005 and 2010.
• ????????????
• China will do the best to realize the goal
  although It is really hard.
• ????????????????????????
• The challenge is to find out what policies and
  measures to match the goal.

11
?????20??????24-26,????Energy intensity of
industrial sector has to reduce by 24-26,
compared to the overall reduction of GDP by 20.

• ????????
• Testified by several scenario analyses
• ???????????
• The energy intensity of industries sectors has
  to decline by
• 24, ??GDP??7.5
• if the annual GDP growth is 7.5
• 26, ??GDP??9???
• if the annual GDP growth is 9
• ????????????80??
• Contributing 80 of 2010 target

12
???????The difficulties of EE in industry

• ???????
• It is hard to regulate the industrial structure
• ???????,?????,????????????????????????????
• Faster urbanization
• ??????
• Upgraded residential consumption
• ????GDP??????
• High pressure of GDP growth in regions

13
??????????????Still keep rapid GDP growth in
provinces

• ????2006???????????????14????,2006?GDP????12???
• The GDP increase was over 12 in 14 provinces by
  2006
• 31??????????2006????????????,??????????????13?,??
  ????16??,??????????40???
• The fixed assets investment increased 16 in
  most provinces.

14
???????Difficulties

• GDP?????????????,?????????????????????
• EC has not been paid more attention to in
  regions as the indicator of GDP is the key
  performance assessment.
• ??????????
• Anamorphic market signals
• ?????????
• Too low prices of resources
• ??????????????????
• Lack of incentives
• ??????
• Lack of EC information
• ???????????? Metering and indicators
• ?????????? Technologies, facilities and products
• ??? Reliability

15
????????? EE measures have been taken in industry

• ???????????????????
• Put forward a series of structure adjustment
  policies of industrial sectors.
• ????????????????
• Reduce or cancel tax rebates on exports of high
  energy intensity products.
• ??????????
• Initiated Top-1000 Enterprises Energy
  Efficiency Action.
• ??????(?ESCos)?????????
• Promote the dissemination and application of
  mature energy efficiency technologies through
  various of mechanisms such as ESCos.
• ?????????
• Eliminate inefficient capacities, facilities and
  equipment.

16
??????????The Orientating Policy of Structure
Regulation is Clear

• 2006???????????????????????????????????????????
  ??????
• The State Council issued documents to be focus
  on adjusting overheated sectors.
• ???????????????????????????????????????????????
  ???????????????????????????????
• NDRC issued several documents to limit
  investment of energy intensive sectors.
• ??????????????????????????????????????????????????
  ????????????????????
• NDRC is working on to develop guidance and
  permission policies to conduct the increase of
  iron steel, petroleum refinery, ethene, cement,
  aluminum, coal mine, coke, power, etc..

17
?????????????Major activities of TT

• ?????998????????????
• Local governments signed commitments with TT
  enterprises.
• ????????9153?????
• The energy saving of 91.53 Mtce was committed.
• ??????????
• Implemented trainings for the TT enterprises
• ????????????????????????????????
• ??????????
• 1997??????

18
??????????????????Effect assessment of the Action
is needed

• ????????????????????
• Develop an integrated energy consumption index
  system for enterprises.
• ??????????????
• On the basis of current energy consumption
  indicators
• ?????????????
• Perfect current index system
• ???????????????
• Developed and will disseminate a information
  software for enterprise energy management

19
?????????????The plan of restructuring cement
industryfor next 5 years

• ???????????40???70
• Increase the share of new dry process cement
  kiln production from 40 to 70
• ??2.5??????????
• Closure of 250 Mt of inefficient production
  capacity
• ?10???????????3500??
• Annual production capacity of the top 10 cement
  enterprises should be at or above 35 Mt
• ???????130 kgce/t ???110 kgce/t
• Energy consumption reduced from 130 kgce/t
  clinker to 110 kgce/t clinker
• ????????25,??????50
• Integrated energy consumption should decrease by
  25 and emissions of air pollution should
  decrease by 50.

20
?????????????Structure and energy intensity
Output structure
Energy consumption per ton (kgce/t)
Vertical shaft kilns New dry process cement kilns
(lt4000t/d) Advanced new dry process cement kilns
(gt4000t/d)
21
??????????????????More EE measures will be taken
soon in industry

• ?????????????????????
• An assessment of EE actions and effects will be
  brought into the performance assessment system.
• ???????????????
• Implement energy efficiency evaluation
  assessment of newly-built capacities.
• ??????????
• Initiate on international energy efficiency
  benchmarking.
• ?????????????
• Set up a mechanism to promote enterprise to meet
  the minimum energy efficiency standards and
  encourage to match advanced standards .

22
???????????????Assessment system for enterprises
will be established soon

• ??????
• An indicator system to assess the energy
  conservation progress enterprises
• ?????? Integrated energy consumption indicators
• ?????? Energy management indicators
• ???????? System construction indicators of energy
  efficiency
• ???????? Technical and economical indicators of
  energy efficiency
• ????????????????
• An index system to evaluate the effects of
  enterprises energy efficiency action

23
Integrated energy consumption indicators
24
Energy management indicators
25
System construction, technical and economic
evaluation indicators
26
????????????????Initiate a pilot project of
international bench-marking in state-owned
enterprises

• ????????????????????????
• NDRC organized the pilot project.
• ?????????????????
• Selecting four sectors steel, cement, power and
  ethene.
• ??????????????????????????
• Analyze and identify the gaps and elements
  compared with international level.
• ??????????
• Recommendations for solution

27
???????????Establish a mechanism to enforce the
implementation of EE standards in enterprises

• ????????????,????????
• A mechanism will be set up to implement EE
  standards better
• ???????????
• Demonstrations will be carried out in several
  sectors.
• ????????????
• Support the development or upgrading of EE
  standards.
• ????????
• Process design codes
• ????????????????????
• Minimum, evaluated and advanced standards for
  products

28
??????????????Technologies is not enough for
energy saving

• ?????????????30-40
• 30-40 energy saving from technologies
• ??????????
• Structure regulation has more potential
• ??????????????????
• Adjusting the industry structure will rely on
  the demand
• ?????????
• Demand is from end-users
• ???? Domestic
• ???? Export

29
??!Thank you !