BEIJING, July 12 — China will double down on power system reforms and shift its focus to reducing carbon emissions, a Communist Party policymaking body said late yesterday, without giving further details.
The party’s commission for deepening reform, an agency responsible for accelerating priority reforms for the leadership, outlined broad proposals for opening up the economy, including the latest effort to improve the country’s power networks and oil and natural gas markets, state broadcaster CCTV reported.
China has previously launched several rounds of power sector reforms to improve efficiency, lower electricity prices, and rationalize coal power investment, with the aim of reducing costs for end users that weigh on economic activity.
It will now make further changes in hopes of accelerating the construction of a power system that is “economically efficient, flexible and intelligent in supply and demand coordination”, the commission said following a meeting.
However, challenges remain, including provincial government protectionism and a lack of inter-provincial coordination, as well as other regulatory hurdles. Fixed, long-term power trading agreements also limit flexibility in the system.
During a drought in August 2022, fixed, unidirectional power trading agreements forced hydro-dependent southwestern Sichuan province to export power out of the province to fulfil these contracts, even as consumers in the province endured power cuts.
China must also gradually shift its focus from controlling energy consumption to controlling its carbon emissions, the commission said.
No further details were provided on how the shift would be implemented.
China has set targets to cut carbon dioxide intensity by 18 per cent between 2021 and 2025, and energy intensity by 13.5 per cent in the same period. However, it has not set any targets on carbon dioxide emissions.
In the oil and gas markets, China will focus on “improving national oil and gas security capabilities ... and ensure stable and reliable supply”, the commission also said.
The proposals come amid an intensified focus on domestic energy security in the country, which is the world’s largest crude oil importer. — Reuters
