Saturday, 3 October 2015

Assignment: Report of China`s Energy Mix

Report of China`s Energy Mix

Introduction
As a fast developing country, China requires vast amount of cheaper energy to remain a high development speed (Boqiang Lin, 2010). Actually, in China, coal is the cheapest solution to satisfy the large energy demand of the economy development. Although transferring coal into electricity or other form of energy creates the most carbon dioxide, it seems the only choice at the moment for the Chinese government.
In the graph of China energy consumption 2014 (Euan Mearns, 2015), the proportion of coal was the largest with 66%. Oil consumption was 18%. Hydro power was 8% but more than gas consumption which was 5%. Renewable energy took 2% of the total consumption. Nuclear was only 1%. That explains the reason why it is difficult to reduce the coal energy when it is actually supporting the economy. Hence, it is almost impossible for the government to reduce the coal consumption in a very short period.
By seeing the graph of China’s Energy Consumption by Source, there was an extreme increase at the year 2001. That moment was also the moment when China joined the World Trade Organization (Gail Tverberg, 2012). To fill in the shortage of the increasing demand of energy, the rise of coal and oil consumption could be seen as natural. That is because, in my opinion, it takes less response time to increase the volume of production and import of coal and oil rather than other form of energy which requires a long time for foundation construction.


Chinese government is going to reduce the proportion of coal consumption step by step. The most important part is to reduce the proportion of coal consumption. With the energy shortage of reducing the coal, there is going to be an increase of proportion of gas consumption significantly. (Chen Aizhu, 2014). Oil consumption will certainly rise at a specific proportion. The reason is that China has become the second largest customer of oil in 2014 (Enter Data, 2014). At the same time, the proportion of nuclear, wind and solar will increase to a certain extent, respectively. Hydropower will also increase.
Generally, renewable energy contains the solar, wind, hydro, ocean wave, etc. But with the technologic limitation, ocean wave power is too difficult to use. At the meantime, hydropower and the wind power also have their limitation respectively.
Critically, the entire capacity China is able to exploit of hydropower is 402 million kW (Boqiang Lin, 2010). The wind power, according the Application of Danish Energy Conservation and Emission Reduction Technology in China published by McKinsey & Company, in China, is not suggested more than 10% of the total electricity capacity. The nuclear power considering the fogyism caused by technology progress is suggested a less than 90 million kW installed capacity by 2020.

Conclusion
China’s energy structure is complex. The development is based on sufficient energy. The reduction of carbon dioxide, without decreasing the economy rate, requires controlling the proportion of coal consumption and replenishment of other form energy. Renewable energy is one of the solutions. But to the consideration of Chinese government, a more efficient and controllable energy structure strategy adjustment, which will reduce greenhouse gases and ensure the speed of China’s economy development at the same time, is operating.
Recommendation
In my opinion, nuclear energy is the best choice for China. Because China has the latest technology to use nuclear power. It will be beneficial to reduce the amount of the nuclear warheads which is the material to make the nuclear power reaction fuel rod.
Reference
Gail Tverberg. "The close tie between energy consumption, employment, and recession." (2012).
Chen Aizhu. "ANALYSIS - China in "great Leap Forward" for Gas." THOMSON REUTERS. (2010).
"China’s Nuclear Aspirations." Enter Data. 2014.
Ma Damien. "Roles and Prospect of Nuclear Power in China's Energy Supply Strategy." Paulson Institute. Jan. 2015.
Boqiang Lin, Yao Xin, and Liu Xiying. "China's energy strategy adjustment under energy conservation and carbon emission constraints." Social Sciences in China 31.2 (2010): 91-110.

Euan Mearns. "China’s Energy Demand May Not Increase Until 2017." OILPRICE.COM. June 2015. Web.