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Exclusive
10th NPC & CPPCC, 2007> Exclusive
UPDATED: March 8, 2007 exclusive
Tough Questions on Energy
Reporters wanted to know if China remains determined to realize energy saving goals set out in the Eleventh Five-Year Plan of Economic and Social Development, and whether the country's soaring fuel demand could threaten world energy security
By LI LI
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At his regular press conference during the National People's Congress (NPC) this year Ma Kai, Chairman of the National Development and Reform Commission (NDRC), faced a barrage of questions from journalists about energy conservation and security.

Reporters wanted to know if China remains determined to realize energy saving goals set out in the Eleventh Five-Year Plan of Economic and Social Development, and whether the country's soaring fuel demand could threaten world energy security.

Ma stressed that China's goal of reducing energy consumption per unit of GDP by 20 percent compared to 2005 by the end of 2010 remains unchanged. "The government is charged with reporting to the NPC session the efforts in this regard every year and making a conclusion at the end of the fifth year," he said.

He also revealed to the conference that the State Council has set up an energy leadership team headed by Premier Wen Jiabao to better coordinate energy supply and demand.

Last year China reduced energy consumption per unit of GDP by 1.2 percent, some way behind its goal of a 4 percent reduction set at the beginning of 2006. Despite this, Ma said he remained confident of achieving the government's reduction aims through the modernization of China's industrial sector as well as energy efficiency measures that will begin to show an affect in years to come.

His work report to the NPC set out plans to improve energy conservation by improving efficiency. Under the scheme China will eliminate inefficient production facilities currently set to turn out 100 million tons of iron and 55 million tons of steel over the next five years. This year alone the policy will cover 30 million tons of iron and 35 million tons of steel.

Luo Zezhong, CEO of Panzhihua Iron and Steel Group in the southwestern province of Sichuan, the fifth largest steel company in China, said he welcomed the policy since it would benefit the development of China's iron and steel industry, although he admitted that his company could face pressure to close some inefficient production facilities.

In answer to questions about China's rapid development posing a threat to world energy security, Ma explained that the country has an energy efficiency rate of 90 percent and the capacity to almost satisfy its own energy demands, with an enormous potential of recycling.

China has the potential to develop hydropower energy up to 400 million kilowatts, he said, which so far has only has been developed by a quarter of its capacity. The country is capable of producing 400 million kilowatts of power through wind power, a resource that has been tapped by less than 1 percent, he added. China also has a huge potential to develop solar power, he said, with around two-thirds of the country receiving more than 200 hours of sunshine every year on average.

In conclusion Ma said China's level of energy efficiency lagged far behind that of industrial nations, but the "gap means potential".



 
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