China’s Energy and Environmental Challenges.pptVIP

China’s Energy and Environmental Challenges Committee on International Relations Frederick Weston NARUC Winter Meetings 17 February 2008 Who We Are RAP is a non-profit organization, formed in 1992 by experienced utility regulators, that provides research, analysis, and educational assistance to public officials on electric utility regulation. Our aim is to assist governments to develop and implement economically and environmentally sustain energy policies We’ve been working in China since 1999, funded by the Energy Foundation, the World Bank, and the Asian Development Bank We advise central and provincial governmental officials on the economic and environmental regulation of the electric sector, market structure and reform, energy efficiency, clean energy resources, pricing, etc. Background To begin with the obvious: Conditions in China are very different than conditions here China is a developing country, but it’s very different than most developing countries Energy growth and the related environmental problems are staggering Economic growth of ~10%/year Growth in electricity demand ~ 15%/year Increases in energy intensity since 2002, after two decades of improvements China’s Energy Growth Health Impacts New Generation Capacity In 2005 and 2006, China added approximately 100 GW per year of new electric generation capacity, well over 90% of which was coal-fired That’s almost two Californias per year or more than three New Englands Note: In the US, 98% of coal use goes to producing electricity Whereas, in China, only 50% is for electricity The other half is for industry and residential heating and cooking Development Targets By 2020: Quadruple 2000 GDP (4 x $1.08 trillion) Double energy consumption (which, without care, could easily be tripled) Increase per capita GDP from $850 in 2000 to $3000 (real $2000) in 2020 Attain “Three Transcendences”: 1. Sustainable development 2. Peaceful rise as a great power 3. Be governed by the rule of law; create a harmonious sociali