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Promoteenergyefficiencybuildingsandstrengtheninternationalcooperation

ShenLonghaiSeniorAdvisor,NDRCEnergyResearchInstituteDirector,EMCADecember2007Promoteenergyefficiencybuil1Overview--ImportanceandurgencyofenergyconservationinChina--AdoptEPCconceptandspeedupenergyefficiencyupgradeinexistingbuildings--EnhanceinternationalcooperationinenergyconservationOverview--Importanceandurge2ImportanceandurgencyofenergyconservationinChina1.Chinafacesrisingconstraintsimposedbytheshortageofenergyresourcessupply,growingsupply-demandcontradictions,andseriousenvironmentalpollution.Importanceandurgencyofener3ImportanceandurgencyofenergyconservationinChinaTasks:

Savingenergy,Reducingpollution,Tacklingglobalclimatechange,Buildingawell-off,conservation-oriented,environment-friendlysocietywithsustainedeconomicgrowth.Importanceandurgencyofener4ImportanceandurgencyofenergyconservationinChina2.Chinesegovernmentattachesgreatimportancetoenergyconservation.Energyconservation:oneofChina’sbasicnationalpolicies.WorkingtoreduceenergyuseperunitofGDPoutputvaluebysome20%withinfiveyears(2006-2010).Workedout1stmedium-andlong-termenergyconservationplan.Plannedvariousprogramsandtookvariousmeasurestoimproveenergyefficiencyinthe11thfive-yearperiod.Importanceandurgencyofener5ImportanceandurgencyofenergyconservationinChina3.Chinaisimplementingeconomicpolicesaimedatsavingenergyandreducingpollutants.AppropriatedRMB21.3billiontofund10keyenergyconservationprojectsin2007.Offeringincentivestoencouragetechnologyinnovationsforenergyconservation.Expandedscopeofimplementingpolicyanddiscriminatoryelectricitypricepolicyfavorabletouseofrenewableenergy.Importanceandurgencyofener6ImportanceandurgencyofenergyconservationinChina4.Chinaisimplementing10keyenergyconservationprojectsnationwideinthe11thfive-yearperiod.EnergySavings:240milliontce.

Importanceandurgencyofener7ImportanceandurgencyofenergyconservationinChinaChinaisimplementingtheenergyconservationactivityof1,000corporationsthatarethelargestenergyconsumersinthecountry.Theenergyconsumptionof1,000corporationsreached797milliontcein2006,accountedforonethirdoftotalenergyconsumptioninChina.EnergySavings:100milliontceinthe11thFive-Yearperiod.Importanceandurgencyofener8ImportanceandurgencyofenergyconservationinChina5.China’sEnergyConservationLawtakeseffectnextyear.Revisedthe1997lawinOctobertoaddonechaptercomprisingsevenarticlesonenergyconservationinbuildings.Thesearticlesstipulatethatenergyconservationstandardsshouldbefollowedinthedesignandconstructionofbuildings,energyuseshouldbecontrolledinpublicandlargebuildings,andsolarenergyorotherrenewableenergysystemsshouldbeinstalledinnewandexistingbuildings.Importanceandurgencyofener9AdoptEPCconceptandspeedupenergyefficiencyupgradeinexistingbuildingsEPCisamulti-win,newenergyconservationmechanism.FacilityownerandESCOenterintoagreementonimplementingenergyefficiencyproject.FacilityownerpaysESCOthroughenergysavings.TherearethreeEPCmodelscurrentlyadoptedinChina:EnergysavingshareEnergysavingguaranteeOutsourcingAdoptEPCconceptandspeedup10AdoptEPCconceptandspeedupenergyefficiencyupgradeinexistingbuildingsChina’sthreepilotESCOscreatedinpartnershipwithWorldBankandGEFfocusonenergysavingprojectsinindustrialsectors.EMCAmembershavecompletedmoreprojectsonbuildingenergyefficiencyupgradethanthoseonindustrialenergyefficiencyupgrade.AdoptEPCconceptandspeedup11AdoptEPCconceptandspeedupenergyefficiencyupgradeinexistingbuildingsAsChinagrows,buildingenergyconsumptioncontinuestorise.In2004,theenergyconsumptioninbuildingsaccountedfor22.3%ofthetotalenergyconsumptioninChina.AdoptEPCconceptandspeedup12AdoptEPCconceptandspeedupenergyefficiencyupgradeinexistingbuildingsLowEEinbuildings:----Theannualenergyconsumptionforheatingincities/townsinNorthChinais130milliontce.14-25kgce/m2,2-3timesofthedevelopedcountries.----Thelargepublicbuildingswithlessthan4%ofthetotalareaaccountfor22%ofthetotalelectricityconsumptionincitiesandtownsinChina.Theelectricityconsumptionis70-300kwh/yrunitarea,1.5-2timesofthedevelopedcountries.AdoptEPCconceptandspeedup13AdoptEPCconceptandspeedupenergyefficiencyupgradeinexistingbuildings2.0billionsquaremetersofnewbuildingsarebuiltinChinaeachyearandmorethan90%ofthemareheavyenergyconsumers.Difficultyinmakingupgradesforimprovedenergyefficiency:outoftheexisting43billionsquaremetersofbuildings,only4%havetakenenergyconservationmeasures.AdoptEPCconceptandspeedup14AdoptEPCconceptandspeedupenergyefficiencyupgradeinexistingbuildingsTheannualenergysavingpotentialsforbuildingsis380milliontceby2020,ofwhich:fromheatingsupplyis280milliontce;fromresidentialbuildingsis90billionkwh/yr(32milliontce);frompublicbuildingsis210billionkwh/yr(68milliontce).AdoptEPCconceptandspeedup15AdoptEPCconceptandspeedupenergyefficiencyupgradeinexistingbuildingsEnergysavingtargetsforbuildingsduringthe11thFiveYearPlanPeriod:thetotalenergysavedfrombuildingswillbe120milliontce.ofwhich:----Energysavingfromnewlyconstructedbuildings:58.4%.AdoptEPCconceptandspeedup16AdoptEPCconceptandspeedupenergyefficiencyupgradeinexistingbuildings----SupervisionofenergysavingfromlargePublicbuildings:9.2%;----ReformonheatingsupplysystemandretrofittingofexistingresidentialbuildingsforenergysavinginNorthChina:15.8%;----Applicationinlargescalesofrenewableenergiesinbuildings:8.3%----GreenLighting:8.3%AdoptEPCconceptandspeedup17AdoptEPCconceptandspeedupenergyefficiencyupgradeinexistingbuildings

The10keyenergysavingprojectsareinlargepartrelatedtobuildingenergyconservation.

Chinaisdeterminedtoachievethegoalofsaving100milliontceofenergyonbuildingsinthe11thfive-yearperiod.AdoptEPCconceptandspeedup18Enhanceinternationalcooperationinenergyconservation1.StrengtheninformationexchangeandpersonneltrainingonbuildingenergyconservationInformationexchangewithdevelopedcountries,training,andcapacitybuildingbyESCOs.Energyconservationpromotionandtraininginunder-developedregionsandruralareas.Enhanceinternationalcooperat19Enhanceinternationalcooperationinenergyconservation2.ExploreandpromotenewmodelsofimplementingcomprehensivebuildingenergyconservationprojectsMostenergysavingprojectsinChinainvolvesingletechnologyorsingleproduct(i.e.lighting,centralaircondition,solarenergy,etc).Needtostrengtheninternationalcooperationtopromotecomprehensive,diversifiedfunding(i.e.EPCcombinedwithCDMorDSM)forsuchprojectstomaximizebenefits.Enhanceinternationalcooperat20Enhanceinternationalcooperationinenergyconservation3.Strengtheninternationalcooperationandresearchinrenewableenergyintegratedintobuildingsandexpanduseofrenewableenergy.Therevisedenergyconservationlawencouragesuseofsolarenergyorotherrenewableenergyinnewandexistingbuildings.Increaseinternationalcooperationinstandardsettingonrenewableenergyintegratedintonewbuildingsanduseofrenewableenergyinenergyequipmentupgradesinexistingbuildings.Enhanceinternationalcooperat21Enhanceinternationalcooperationinenergyconservation4.REEEPshouldreinforceitssupportforenergyconservation,energyefficiencybuildinginparticular.

REEEPshouldfurthersupportChina’seffortstoconserveenergyinbuildings,developmedium-andsmall-sizedESCOs,andpromoteEPCconceptinmid-westernregionsandruralareas.Enhanceinternationalcooperat22Enhanceinternationalcooperationinenergyconservation

BusinessandFinancethemeofREEEP:----CapacitybuildingtothefinancialinstitutetoimplementtheREandEEprojects.----Buildupno-governmentfundstoincentivethedevelopmentofREandEE.----SetupaRETsinvestmentfacility,suchasChinaIREDA.----CDMforRETandEEinChina,includingESCOinChina.----StudyonFinancingMechanismofdistributionofBIPVandLS-PVInChina.Enhanceinternationalcooperat23Enhanceinternationalcooperationinenergyconservation

PolicyandRegulationthemeofREEEEP:----IntegrationoftheREandEEtechnologyintobuilding.----AssisttotheplanningatprovinciallevelbothforRElawandEElaw.----Coop

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