(China Economic Net, Jul 31, 2006)When asked how to improve enterprise performance, many people at the large industrial enterprises that I came into touch with recently replied that the most immediate and the primary way was to expand reproduction. Raising energy efficiency is a secondary approach to them at all.
According to relevant experts, in a way this phenomenon shows that, on the whole, economic growth method still has not completely broken away from the model of high growth, high resource consumption, and extensive expansion in China.

At present, on the average, energy consumption of unit product in China's high energy consuming industries is 40 percent above the world's advanced level. If our energy efficiency reaches the world's advanced level, for energy consumption of unit product and energy consumption of terminal energy-consuming equipment, the energy-saving potential is up to 300 million tons of coal equivalent. This fully proves that energy efficiency is a huge quality resource. 

In fact, since the reform and opening-up program was launched, remarkable result has been achieved in the improvement of energy efficiency. In terms of energy consumption of unit output value, at 1990 constant price, the energy consumption of per 10,000-yuan GDP dropped from 5.3 tons coal equivalent in 1990 to 2.7 tons in 2005, with a decrease of nearly 50 percent. In terms of energy consumption of unit product, from 1990 to 2005, coal consumption of thermal power per kilowatt-hour decreased from 427 grams of coal equivalent to 374 grams, energy consumption of steel per comparable ton fell from 997 kg of coal equivalent to 760 kg, comprehensive energy consumption of one ton of cement dropped from 201 kg of coal equivalent to 153 kg. During the 1990-2005 period, energy consumption that grows 5.5 percent on average annually supports a nation economy that grows 9.7 percent on average annually. This is no easy task for a country with fast economic growth.

Notwithstanding, China still faces difficulty in two aspects in improving energy efficiency: Firstly, in the industrial structure, the secondary industry, which involves high energy consumption, takes up a large percentage, while the tertiary industry, which involves low energy consumption, accounts for a low percentage. Secondly, it is difficult to fundamentally change the energy consumption structure dominated by coal any time soon.

Thus, revamping industrial structure and energy consumption structure is a long-term goal of improving energy efficiency in China. It still takes time to truly fulfill this goal. So, at present, what should we do to improve energy efficiency?

Recently, competent authorities with the Office of the National Energy Leading Group noted explicitly that energy efficiency is a huge, cheap and clean resource of good quality, and priority for energy efficiency should become a long-term national policy, so as to address the pressure in energy supply. China will enhance the policy orientation toward energy conservation and efficient utilization, take more effective policy measures, and make more proactive efforts in management and technology.

It should be seen that on the legal front, China is expediting the formulation and promulgation of the energy law. In doing so, it will bring energy management into the legal framework for permanent enforcement. In addition, a proposal is presented for amending the Law of the People's Republic of China on Conserving Energy. With the law on energy conservation at the core, a harmonious legal framework for energy conservation is established and improved at an accelerated pace.

In China, industrial energy consumption takes up 70.4 percent in the total energy consumption. Therefore, the key to raising energy utilization efficiency and decreasing energy consumption is to reduce industrial energy consumption. It is imperative to work out Catalogue of Energy-saving Equipment (Products), mainly terminal energy-consuming equipment, pursue incentive policy toward the production or use of energy-saving products, and include energy-saving products in government procurement catalogues. The nation provides investments, subsidies, or discount loans for some major energy conservation projects and demonstration projects for energy conservation technology development.

In addition, energy consumption standard and identification system for terminal energy-consuming equipment should be developed. In light of economic and technological development levels in this country, national compulsory energy efficiency standards for major energy-consuming products should be set and implemented, including energy efficiency standards for energy consuming equipment, home appliances, lighting fixtures, and automobiles. Unified compulsory energy efficiency identification system should be adopted for widely used energy-consuming products with great potential for energy conservation, thereby providing necessary information for users and consumers' buying decisions and guiding them to select efficient energy-saving products.

At present, improving the development, demonstration, and promotion of energy efficiency technology at an expedited pace is also one of the remarkable approaches for raising energy efficiency. Most important of all, it is necessary to set up scientific research bases for general energy-conservation technology and general-purpose equipment, encourage and rely on scientific research units, enterprises, and individuals to develop advanced energy conservation technology and efficient equipment, and introduce competition mechanism. The government should offer financial support for projects that involve heavy investments and high risks.

Although energy consumption may be reduced to some extent through administration and technological transformation moves taken by the government, from the perspective of the implementers ¨C energy-consuming enterprises, many energy conservation measures and technologies are just a matter of theoretic discussion. No essential changes in notions have been realized yet. If people do not have the right notion, measures cannot produce desired effect; only if people have the right notion, and measures are taken, approaches for fulfilling the goals become more definite. Therefore, it is high time that energy consuming enterprises played the card of "energy efficiency" well.
Source:China Economic Net
tag:China energy