Isra-Mart srl:Report: China to cap energy use in five year plan

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Isra-Mart srl news:

China will take the drastic step of capping its total energy consumption as part of its next five year plan, according to local media reports.

The state-controlled Xinhua news agency today reported comments from Zhang Guobao, former head of the country's National Energy Administration, revealing the country will cap total energy consumption at four billion tonnes of coal equivalent by 2015.

Zhang, who is a member of the Standing Committee of the 11th National Committee of the Chinese People's Political Consultative Conference, told the news agency the cap featured in a draft of the 12th five year plan, which has already been approved by the Communist Party leadership and will be presented tomorrow at the annual meeting of the National People's Congress in Beijing.

The cap of four billion tonnes of coal equivalent in 2015 would still represent an average annual increase in energy use of 4.24 per cent over the five year period. However, with China's economy expected to expand at seven per cent a year over the same period the government will have to deliver a significant improvement in energy efficiency to ensure the target is met.

Zhang said the target would be supported by a raft of trial energy efficiency programmes covering the clean coal, oil refinery, thermal power, nuclear energy and renewables sectors.

As part of the last five year plan, the government ordered a number of industrial facilities to temporarily close in order to ensure energy efficiency targets were met.

Zhang also confirmed the plan will feature a target requiring the country to reduce the amount of energy and carbon emissions required for every unit of gross domestic product by 16 to 17 per cent by 2015.

He Zhang linked the new plan to rising oil prices following the turmoil in the Middle East, arguing that "preparations for alternative energies should be made as soon as possible" in order to bolster China's energy security.

His comments came as the price of a barrel of Brent crude climbed a further one per cent this morning to $116.20 on reports that fighting in Libya between the opposition and pro-Gadaffi groups is intensifying.

The new five year plan if also expected to include commitments to invest up to $1.5tr in a variety of advanced industries, including green cars, high speed rail and alternative energy.