China energy report

• The 14^th FYP foresees China achieving peak CO₂ emissions before 2030 and reaching carbon neutrality by 2060. It also intends to supply 20% of its total energy consumption from non-fossil fuels in 2025.
• The electricity and hydrocarbon sectors are dominated by large state-owned organisations.
• The share of coal in the power mix decreased by 15 points from 2011 to 63% in 2021.
• In 2020, a market-based system was introduced for industrial electricity users.
• Gas prices in industry are similar to Japan and Korea, but much lower for households.
• After a slowdown due to the Covid-19 outbreak in 2020, energy consumption recovered in 2021 (+5%), with growth over 10% for electricity and gas.
• Coal dominates the energy mix (60% in 2021), but its share is decreasing rapidly (-11 points since 2010).
• Although subsidy cuts have been announced, renewables are still attracting investors with large-scale projects.
• Despite a cap on coal mine production, new projects continue to increase the coal capacity.

• Institutions & Energy Policy

  NEA, National Energy Administration, coordinates the national energy policy, manages energy conservation, and provides guidance about the integrated use of resources. It is a department of NDRC, the National Development and Reform Commission of the China State Council. NDRC formulates and implements medium and long-term strategies on social and economic development.

• Energy Companies

  Oil:

  The oil sector is dominated by three state-owned companies: CNPC (China National Petroleum Corp), Sinopec (China Petroleum and Chemical Corporation), and CNOOC (China National Offshore Oil Corporation). CNPC and Sinopec are vertically integrated.

• Energy Supply

  Gas:

  Production has been growing by 7%/year on average since 2010, which has made China the world's 4^th largest producer, with 208 bcm produced in 2021 (+8%). Gas production and resources are concentrated in four Provinces: Tarim, Shaanxi-Gansu-Ningxia, Sichuan, and Qinghai.

• Energy Prices

  Gas:

  Residential gas prices are fixed by local authorities and capped, whereas industry prices are made of a benchmark price component and a fluctuation component (+20% deviation from benchmark price, downwards deviation not limited).

• Energy Consumption

  Total energy consumption per capita is increasing regularly, reaching 2.6 toe/cap in 2021 (nearly 4 times that for India). Electricity consumption per capita increased by over 9% to 5 450 kWh in 2021, twice 2010 levels.

  Graph: CONSUMPTION TRENDS BY ENERGY SOURCE (Mtoe)

  

• Issues & Prospects

  The main priorities are to increase production, diversify the supply sources (for security reasons), and tackle rising emissions. The country also continues to reform the electricity sector.

• GENERAL OVERVIEW
• INSTITUTIONS AND ENERGY POLICY
• ENERGY COMPANIES
• ENERGY SUPPLY
• ENERGY PRICES
• ENERGY CONSUMPTION
• ISSUES AND PROSPECTS
• DATA TABLES
• ABBREVIATIONS
• GLOSSARY

Download the Table of Contents

Below is a list of the China energy market report graphs:

• GRAPH 1: CO₂-energy emissions (MtCO₂)
• GRAPH 2: Installed Electric capacity by source (2021, %)
• GRAPH 3: Gross power production by source (TWh)
• GRAPH 4: Power generation by source (2021, %)
• GRAPH 5: Gasoline & diesel prices (US$/l)
• GRAPH 6: Electricity prices (US$c/kWh)
• GRAPH 7: Gas prices for industry and households (US$c/kWh GCV)
• GRAPH 8: Consumption trends by energy source (Mtoe)
• GRAPH 9: Total Consumption market share by energy (2021, %)
• GRAPH 10: Final consumption market share by sector (2021, %)
• GRAPH 11: Oil consumption (Mt)
• GRAPH 12: Oil consumption breakdown by sector (2021, %)
• GRAPH 13: Electricity consumption (TWh)
• GRAPH 14: Electricity consumption breakdown by sector (2021,%)
• GRAPH 15: Natural gas consumption (bcm)
• GRAPH 16: Gas consumption breakdown by sector (2021, %)
• GRAPH 17: Coal consumption (Mt)
• GRAPH 18: Coal consumption breakdown by sector (2021, %)

In the China energy market report you will find the following tables:

• Economic Indicators: Annual historical data including population, GDP growth, imports and exports, inflation rate, energy security and efficiency indicators, CO₂ emissions.
• Supply Indicators: Historical data including oil and gas reserves, electric and refining capacity, energy production, power production and external trade. All are detailed by energy source.
• Demand Indicators: Historical data including consumption per inhabitant, consumption trends, total consumption by energy source, final consumption by energy source and sector, and electricity consumption by sector.
• Energy Balances: Single table displaying the overall energy industry balance per annum, also graphically displayed by energy sub-segment.
• Infrastructure Projects: Covers power plant projects by energy, technology, status and operator, gas plant projects by status and operator and LNG contracts.

The China country dashboards are complemented with country forecasts from EnerFuture (excel file) with scenario comparison.

Data included in the excelsheet:

• Demand: Primary energy consumption, final energy consumption, by fuel, by sector.
• Power: Electricity generation & capacities, by technology.
• CO₂: Total CO₂ emissions.
• Macro-economy: Main macro-economic assumptions.
• Key indicators: Energy intensity, share of renewables, CO₂ emissions per capita and per unit of GDP.