In what appears to be a first, and perhaps an insider view into the discussions surrounding the Draft Energy Law, the State Council Information Office published a White Paper on Energy on their website. Broken into 8 parts, the white paper provided some interesting insights into the current situation of china’s Energy industry in terms of how it is provided, how it is distributed, and how it is consumed. The writers (and researchers) were obviously very conscious of the fact that China’s energy policy and practices in their current form are not ideal:

– The distribution of energy resources is imbalanced. China’s energy resources are scattered widely across the country, but the distribution is uneven. Coal is found mainly in the north and the northwest, hydropower in the southwest, and oil and natural gas in the eastern, central and western regions and along the coast. But, the consumers of energy resources are mainly in the southeast coastal areas, where the economy is the most developed.

– The development of energy resources is fairly difficult. Compared with other parts of the world, China faces severe geological difficulties in tapping its coal resources, and has to get most of its coal by underground mining, as only a small amount can be mined by opencast methods. – Progress has been made in environmental protection. The Chinese government sets great store by environmental protection, and has made it a fundamental state policy to strengthen environmental protection. Public awareness of environmental protection has been raised.

– Incomplete market system and emergency response capability yet to be enhanced. Coal production safety is far from satisfactory, the structure of power grids is not rational, the oil reserves are not sufficient, and an effective emergency pre-warning system is yet to be improved and consolidated to deal with energy supply breakdowns and other major unexpected emergencies.

As you can see from the above, there was a fairly honest tone to the article, and while we were surely not given all the details of the hurdles China faces, the picutre was clear. China has a lot f reources that vary in location and quality, that the current methods of collecting, distributing, and consuming those resources have problems, the environmental conditions have been deteriorating as a result, and that something needs to be done. The next section that focuses on the goals is a bit weak as it takes more of a party tone vs. a pragmatic tone:

China’s energy development is based on the principle of relying on domestic resources and the basic state policy of opening to the outside world. The country is striving to ensure a stable supply of energy with a steady increase in domestic energy production and promote the common development of energy around the world. China’s energy development will bring more opportunities for other countries and expand the global market, and make positive contributions to the world’s energy security and stability.

Where I am encouraged though is that rather than mention the need to find untapped resources, or pay more than the next person for them, the focus is on reduction of resources used through education, optomization, and development of new technologies.

• Giving priority to thrift.
• Relying on domestic resources.
• Encouraging diverse patterns of development.
• Relying on science and technology
• Protecting the environment.
• Cooperation for mutual benefit.

To bring about a reduction in energy consumption, the following means were offered:

• Pushing forward structural adjustment.
• Improving energy conservation in industry.
• Launching energy-saving projects
• Strengthening the administration of energy conservation.
• Advocating energy conservation in society.

Of these, the most interesting is the fourth as that counld indicate that SEPA may get some real teeth.. Following all this were sections on the development of technologies and system reforms which were also quite interesting, and very relevant. Having just received a copy of the Draft Energy Law, I will be making my way through the 60 pages of that to see how it compares to the above. My guess is that by reading this white paper fully, and reading the draft energy law fully, real insights will be gained and as such, real plans can be made.