The summary of the content is as follows:
China is making great progress on climate and energy initiatives and has adopted several new regulations and targets to promote the use of renewable energy and reduce carbon emissions. (Section. 1)(Section. 2)(Section. 3)(Section. 4)(Section. 5)One of the most important developments is the publication of an action plan for reforming the electricity system over the next three years by the National Development and Reform Commission (NDRC), the National Energy Administration (NEA) and the National Data Administration. (Section. 7)The aim of this plan is to increase the stability of the electricity system, improve the long-distance transmission of renewable energy and ensure high-quality development of the electricity distribution network. (Section. 7)The action plan is crucial to achieving China’s climate goals and ensuring long-term energy security. (Section. 9).
In another major move, the central government has increased renewable energy consumption targets for provinces this year and in 2025. The move reflects Beijing’s desire for provinces to proactively use more green energy and aims to have sectors such as aluminum manufacturing use a certain proportion of green power. (Section. 12)(Section. 13)The increased targets reflect the central government’s desire for regional governments to prepare for the next five-year planning cycle, which begins in 2026. (Section. 14).
In addition, the State Council has announced a work plan to limit carbon emissions starting from 2026. This new system will replace the current energy consumption control mechanism and focus on carbon intensity and total carbon emissions as parameters. (Section. 19)This system will help China align its domestic actions with its international commitments under the Paris Agreement. Future targets are expected to cover the period up to 2035. (Section. 20)(Section. 22).
Meanwhile, Shanghai recorded new electricity demand records amid extreme heat, reflecting the city’s high electricity consumption due to air conditioning. (Section. 23)On August 2, the city’s power grid reached a historic high of 40.3 gigawatts (GW) amid a heat wave. (Section. 24)Rising temperatures have significantly impacted electricity consumption. According to nationwide records, the maximum electricity load exceeded 1,450 GW on July 24. (Section. 25).
In the market, China has issued a record number of green energy certificates (GECs) this year, helped by increasing encouragement for companies to use electricity from non-fossil sources. (Section. 26)Each GEC represents 1,000 kilowatt hours of renewable energy and is traded on the Chinese green energy trading market. (Section. 28)In the first half of 2024, the NEA issued 486 million GECs, a 13-fold increase year-on-year. At the same time, 39,000 companies and individuals participated in GEC trading, a six-fold increase from the same period last year. (Section. 32)The expansion of the GEC program last August to include all types of renewable energy projects, not just onshore wind turbines and large solar power plants, represents an important milestone in China’s energy transition. (Section. 36).
These steps demonstrate the government’s strong commitment to ensuring energy security, promoting the use of renewable energy and controlling carbon emissions in line with the country’s climate goals and international commitments. (Section. 7)(Section. 12)(Section. 19).
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