China ‘developing very fast in the new energy field’
China remains dependent on fossil fuels, but its efforts aimed at transition to lower-carbon sources of energy are progressing fast, the World Economic Forum annual meeting in Davos heard yesterday.
Zhigang Zhang, president of State Grid Corporation of China, outlined the initiatives and programmes under way in the world’s most populous country to install an annual 100 gigawatts of new energy capacity.
There is an “energy revolution” in China, Mr Zhang said.
Hydrogen and wind energy will be prioritised to replace coal and fuel in the world’s second largest economy.
China is expected to have the largest cumulative installed offshore wind capacity globally and surpass the EU and UK combined by the end of this year, according to the International Energy Agency.
We are “very confident of reaching our goal”, said Mr Zhang.
Desert areas, including in the Gobi, are being used to develop clean energy. There is also a consumption revolution, he said.
“We need to save energy … we have a dual control policy focused on intensity and savings,” said Mr Zhang.
“Innovation is the key component. Without technological innovation it will be difficult to achieve energy transition.”
About 30 billion renminbi ($4.49bn) is being invested, Mr Zhang said, and there is a push towards regulating the market.
The digital transformation of the grid, including automation, is well under way and his company has built a clean energy-powered cloud platform.
About 1.5 million chargers for electric vehicles have also been installed, he said. China is the world’s largest market for electric vehicles, accounting for more than half of the market share last year. “China is developing very fast in the new energy field,” said Jun Ni, chief manufacturing officer of the EV battery maker CATL.
Elizabeth Gaines, chief executive of Fortescue Metals Group, which counts China as a major customer, said there was a real opportunity in the country right now to accelerate the path to net-zero emissions.
“We see the steel industry in China decarbonising by 2040,” even though the overall target date for the country to reach net zero is 2060, she said.
Green hydrogen will have a significant role in the decarbonisation of the heavy transport sectors, she said.
Pulitzer Prize-winning author Daniel Yergin said the energy crisis began in Asia and Europe well before the war in Ukraine.
“Since last October, [the crisis] has brought a greater complexity to thinking about energy transition,” said the vice chairman of S&P Global.