China to curb coal use, raise domestic energy output

China's top energy planning authority the NEA has set out detailed guidance for coal use this year, while raising its target for non-thermal power generation to help meet emissions goals.

Coal's share of primary energy consumption should fall below 56pc in 2021, the NEA said today, down from 56.8pc last year. The NEA did not provide a numerical cap on energy consumption, as it used to do. China's total energy use was 4.98bn t of coal equivalent (tce) last year, up by 2.2pc from 2019.

The NEA set the total domestic energy output target at 4.2bn tce for 2021, up by 2.9pc from last year. The growth rate is higher than in the past two years, reflecting a government push to raise self-efficiency in response to energy security concerns.

The target for domestic crude output has been set at 196mn t (3.94mn b/d), up by a slight 0.6pc from 194.77mn t or 3.9mn b/d last year. Natural gas output is seen rising by 5.2pc to 202.5bn m³ from 192.5bn m³ in 2020.

The NEA set a preliminary target earlier this week to raise the share of solar and wind-based power generation to 11pc in this year's overall power output, from 9.5pc in 2020. The share will further increase to 16.5pc by 2025, NEA said.

The amount of installed capacity for non-fossil fuel based electricity — hydro, wind, solar, biomass and nuclear — is expected reach 1100GW this year, up by almost 12pc from 984.53GW at the end of 2020. Utilisation rates for on-grid renewable electricity are expected to become binding targets for electricity producers, power grids and local governments.

China is in a critical period to implement an energy transition that will enable it to meet its carbon emission and carbon neutrality pledges, amid a complex international environment and risks to energy security, the NEA said.

Energy consumption per GDP unit should be cut by 3pc this year. The Chinese government last month set a binding target to cut it by 13.5pc for the five-year plan covers 2021-25.