Cooperation in the Energy Futures of China and the United States (2000) / Chapter Skim
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2 Perspectives and Commentary
2 Perspectives and Commentary
Pages 44-64
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From page 44... ...
In addition, China faces the multiple technical and economic challenges of becoming a mature energy economy, which, from the experience of other countries, requires access to commercial, high-quality energy resources, low energy intensity, increased electrification, and greater attention to environmental control. The United States, on the other hand, is a mature economy confronting the special challenge of mitigating the spillover effects of its energy demand and technological choices on the global commons notably in the demand for liquid fuels and the production of greenhouse gases and on the choices of other countries.
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From page 45... ...
By 2020 the Persian Gulf region will produce about half the world's oil, but imports from all regions are subject to concerns in varying degrees over transport and geopolitical implications.20 China likely will import about 40 percent of its oil and about a quarter of its natural gas by 2020. Although concerns over increasing imports are a key driver of China's energy policy, energy security also means increased variety of fuel sources, especially diversification from China's heavy dependence on coal (see sections on "Coal" in Chapter 1 and the following section in this chapter)
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From page 46... ...
under which emissions credits would be received for projects undertaken in non-Annex I countries.22 A great deal of work has been done in the United States to quantify the external costs associated with energy production and use,23 though there has been little success in incorporating these costs in the price of energy (see "Barriers to Deployment of Advanced Technologies and Practices" later in this chapter)
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From page 47... ...
decreasing coal use relative to total energy supply and increasing diversity and quality of primary energy supply, (2) increasing efficiency of energy production and use, and (3)
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From page 48... ...
The recent passage of the Energy Conservation Law provides the opportunity for China to promote the introduction of energyefficient technologies in China in numerous ways. Natural gas has replaced coal in some of the most polluting applicationsespecially direct coal burning in the residential sector for cooking27 and is well positioned to make a strategic contribution to China's energy sector in the 2020 time frame.
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From page 49... ...
, operational safety, the safe disposal of nuclear waste, and the prevention of the proliferation of nuclear weapons. The nuclear programs in China and the United States face specific challenges and opportunities in the years just ahead, but the contrasts between them are considerable.
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From page 50... ...
The latter factor remains a challenge that has led China to seek investment as well as to assess options beyond its own PWR design.30 In addition to French PWRs, China has entered arrangements with Canada for two 700-MW CANDU reactors and with Russia for two 1,000-MW PWR units. China intends to continue development of its own PWR design now targeted for 1,000 MW as its highest-priority effort in nuclear power.
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From page 51... ...
Barriers specific to China are presented in Box 2-1. In the time frame of this study renewable energy technologies are important in a strategic role, often in conjunction with fossil fuels, conventional hydropower, and nuclear energy, or in remote applications if cost and energy storage problems can be successfully addressed.
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From page 53... ...
Significant benefits of co-firing include reduced plant emissions and disposal of a waste product. Biomass gasification plants in the United States currently being developed and demonstrated might offer the greatest benefits: higher thermal efficiency, scalable applications from 5 to 100 MW and increased fuel flexibility (EPRI/ DOE, 1997~.
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From page 54... ...
Over the past decade, considerable experience has been gained with these technologies, and costs have decreased significantly. Solar thermal in combination with natural gas may be an attractive option in distributed applications where there is a rapidly growing need for electric power.
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From page 55... ...
E ENERGY INFRASTRUCTURE The energy infrastructure that links energy resources to customer energy services involves extraction, processing, conversion, waste disposal, and transportation through pipelines, railways, waterways, roads, ports, and electrical grids.
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From page 56... ...
Similarly, renewable resources such as solar, wind, biomass, and small-scale hydra often can be sited at or near loads so as to bypass the high-voltage grid, though it is advantageous to provide larger energy production sources with grid access to ensure full utilization of power production during optimum conditions. Solar photovoltaic and biomass both offer localized energy sources and can be combined with either storage (which needs more development)
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From page 57... ...
China's natural gas pipeline transportation industry is still in its early stages: The geographic distribution is uneven, and a national system is incomplete. Low utilization of pipelines is due in part to the following situations: traditionally oil exploration has taken precedence over gas exploration, with corresponding development of infrastructure; historically, the trend has been to connect a single gas source to a single user, rather than connecting to a network; and there has been a lack of gas storage facilities to adjust peak demand.
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From page 58... ...
Demand side energy efficiency may not be a priority to a power marketer if the result is to limit sales of its products and services. A further concern is that private research and development (R&D)
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From page 59... ...
The next step is the separation of generation from T&D and the creation of competitive markets. Three test areas the independent Sandong power grid whose installed capacity in 1998 was over 17 GW, Zhejiang power grind and the Shanghai power grid within the East China Power Network whose installed capacity in 1998 was over 46 GW, and the North-East China Power Network with a capacity of over 37 GW in 1998 have been selected to demonstrate an independent power market; power rates in these areas are expected to decrease and service quality improve.
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From page 60... ...
Air pollution controls have been tightened, and in 1997 China passed a comprehensive Energy Conservation Law. Continuously adjusting and updating energy policy approaches within changing overall economic systems is important to maintaining the momentum of energy improvements in China's transitional economy.
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From page 61... ...
PERSPECTIVES AND COMMENTARY 6 culty of gaining acceptance of such actions very serious. Even when such externalities are clearly manifest, e.g., urban air quality in the Los Angeles region a decade ago, they are difficult to address.
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From page 62... ...
Further, it is critical to avoid well-intentioned but destructive policies that subsidize energy use to achieve other goals such as improved personal income distribution, industrial development, or export promotion. Beyond that, the goal should be policy choices that are robustly directionally correct, within the context of a free market, even though they cannot be fine-tuned to cover all of the "unpaid costs" of energy production, conversion, and consumption.
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From page 63... ...
Private investment is increasing rapidly in energy supply, much from international ventures. Given the size of China's unserved population, a continuing government presence will be necessary to ensure that commercial energy services reach outlying areas, and China's policy is to increase the availability and quality of energy services to all of its population as rapidly as possible.
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From page 64... ...
The refining and marketing sector is consolidating as it enters more competitive markets with tighter profit margins and more stringent environmental regulations. These changes could have an impact not only for the United States, but for China as well.
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