"Twelfth Five-Year Plan" China Will Promote Energy Saving and Emission Reduction Through Price Adjustment

According to the report of China Voice, the report issued by the Electricity Regulatory Commission shows that in the next five years, China will adopt a force-reduction mechanism to promote energy conservation and emission reduction.

Wu Xinxiong, chairman of the State Electricity Regulatory Commission, pointed out that China’s thermal power generation accounted for a larger proportion of power generation than in developed countries. As of the “Eleventh Five-Year Plan” period, China’s thermal power share is still as high as 73.5%. Even if the energy industry consumes large amounts of electricity, the power industry is also a large emitter.

In 2010, the power industry consumed 55.1% of the country's coal resources. The amount of sulfur dioxide emitted during the energy conversion process accounted for 42.5% of the country's total, and the amount of carbon dioxide emitted accounted for about 50% of the national total.

Wu Xinxiong stated that during the “12th Five-Year Plan” period, it is necessary to vigorously promote power generation rights trading, and to make power generation and emission reduction effective by focusing on the adjustment of surplus and deficiency and allowing large generating units to generate more power. It is necessary to strengthen the disclosure of energy trading information and issue real-time information on surplus and shortage of electric energy. Encourage regions such as China, North China, and China to actively explore ways to conduct cross-provincial power trading in a way that the supply and demand sides directly meet. We will vigorously promote northeast to North China, East China, and Northwest China to East China and East China. We will maximize the energy demand during the winter and peak summer seasons.

The “Energy Saving and Emission Reduction Notification of Electric Power” suggests that the state should formulate and improve differential electricity prices, peak-to-peak electricity prices, and punitive electricity price policies that are conducive to energy-saving and emission reduction, as well as the introduction of electricity price policies that encourage the use of clean energy, and implement a peak period for the provinces that lack electricity. The price of electricity will increase electricity prices for high-energy-consuming industries, and form a force-reducing mechanism for industrial adjustment through electricity prices to promote energy conservation and emission reduction.

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