Introduction
The Chinese energy system currently heavily relies on using coal. Two-thirds of China’s electricity supply depends on coal, causing more greenhouse gas emissions than any other country (Zhang and Chen, 2022). At the same time, China is moving towards renewable energy at the same pace as the rest of the world. In 2020 China invested three times more in wind and solar capacity than the United States (Abhyankar et al., 2022). By 2035, China can achieve an 80% carbon-free electricity grid through renewable energy sources (Abhyankar et al., 2022). Thus, China has enough resources to transition to clean energy and stop the development of electricity grids on fossil fuels.
Current Strategic Approach to Clean Energy
14th Five-Year Policy
The Chinese authorities publish the country’s development plan every five years to give the world an idea of the country’s development. The 14th Five-Year Plan covers 2021 to 2025 (Hepburn et al., 2021). The main attention of the world community was riveted on the reflection of the promise to make the country carbon neutral by the middle of the 21st century (Hepburn et al., 2021).
The plan is in line with the transition to clean energy, but the pace of this transition remains unsatisfactory. The non-fossil energy consumption target is only increased by 5% (Hepburn et al., 2021). Targets to reduce carbon intensity remain unchanged at an insufficient level of 18% (Hepburn et al., 2021). Nevertheless, China continues to support the initiative to reduce carbon emissions despite the methods being not radical.
Wind Energy
One of the ways China is moving towards sustainable energy development is through the use of wind power. According to Grafström (2019), wind power in China has experienced rapid growth, but the industry still faces particular challenges. One of the primary obstacles is the issue of curtailment, which occurs when wind-generated electricity cannot be fully utilized due to grid constraints or insufficient demand.
This results in the underutilization of installed wind power capacity. To address these challenges, the Chinese government has implemented various measures, such as enhancing the flexibility of the power system, promoting interregional power trading, and encouraging the development of energy storage technologies (Grafström, 2019). As a result of these efforts, the wind power sector in China is expected to become more efficient and cost-effective, contributing to the country’s transition to a cleaner energy mix.
Solar Energy
China has become a global leader in solar energy, investing heavily in renewable energy sources. The country has been promoting the use of solar energy in its cities and rural areas, and its efforts have been fruitful. According to the International Energy Agency’s report on the role of critical minerals in clean energy transitions, China accounts for over 60% of the world’s solar cell production and is the largest consumer of solar cells (IEA, 2021). The report further highlights that China’s production of rare earth minerals, which are critical for producing solar panels and wind turbines, has significantly increased in recent years. China produces more than 90% of the world’s rare earth minerals, which gives it a strategic advantage in the global clean energy market (IEA, 2021). With the Chinese government’s continued support for solar energy development, the country is expected to remain a leader in the industry in the coming years.
Hydrogen Energy
Hydrogen energy is one of the most promising areas for developing cost-effective clean energy production. Currently, China is already the world’s largest supplier of hydrogen, producing about a quarter of the world’s total (Pingkuo and Xue, 2022). At the same time, the demand for hydrogen continues to grow, and by 2030, according to forecasts, it will amount to at least five percent of the country’s entire energy sector (Pingkuo and Xue, 2022). Current policies are aimed at significant investment and development in this area. However, significant difficulties arise in the use of alternative hydrogen energy because the potential benefits can only be predicted theoretically. Hydrogen is difficult not only to produce but also to store and transport.
Coal Mine Production
China’s continued reliance on coal mining despite significant investments in green energy could undermine the country’s plans for sustainable development. In 2021, China produced a record amount of coal, and its power plants are working to meet the growing electricity demand, which may require even more renewable fuels to restore the economy (Xie, 2021).
Moreover, as the world’s largest producer and exporter of coal, this approach does not align with the country’s goals for a renewable energy-based electricity system. Furthermore, the economic difficulties caused by the pandemic in 2020 led to factories cutting production and power outages in residential areas, which may continue if rising prices provoke future crises (Xie, 2021). While stabilizing economic growth may require the growth of coal energy, this runs counter to China’s goals for sustainable development.
Shutting Down Inefficient Coal-fired Power Plants
One of the sustainable development goals for green energy is to shut down inefficient coal-fired power plants and replace them with renewable energy sources. However, the closure of coal plants has become difficult due to the energy crisis caused by the pandemic. At the same time, the closure of inefficient coal factories is significantly cost-effective since wind and solar energy are now much cheaper (Lu et al., 2020). China can achieve its climate goals by phasing out low-performing mines.
Increasing Coal-fired Capacity
One of the current steps that runs counter to China’s clean energy sustainability plan is the increase in coal capacity. In 2022, local authorities allowed the use of 106 gigawatts of coal capacity, about four times more than the previous year (Cui et al., 2021). The construction of large substations raises concerns about compliance with actions and statements for the transition to renewable energy sources. China is expected to add 70 gigawatts of coal-fired electricity in 2023 (Cui et al., 2021). These steps aim to develop a stable energy sector that can more easily survive potential crises. However, this policy on clean energy is not up to date and is only a temporary and short-sighted solution.
Development of Renewable Energy and The Policy
China has been making significant strides in developing renewable energy, backed by various policies and incentives to promote the transition to clean energy. The 14th Five-Year Plan includes targets to increase non-fossil energy consumption to 20% by 2025 and reduce carbon intensity by 18%, while the government provides subsidies for renewable energy production, such as wind and solar power (Feng et al., 2022). Additionally, the government is investing in new technologies for renewable energy production. Despite these efforts, more must be done to speed up the transition to clean energy and address challenges in the renewable energy sector, such as energy storage and transmission.
Conclusion
The Chinese energy industry is experiencing an arduous recovery from the crisis provoked by the pandemic. The need to keep the electricity grid running smoothly forces the government to continue investing in the coal industry. On the other hand, the country must follow its statements about neutralizing carbon status by the middle of the 21st century. By simultaneously investing in green initiatives and supporting traditional resources, China cannot meet the challenges. Cheaper, greener, and more efficient clean energy should be preferred.
Reference List
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