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China to cut annual energy consumption growth to 2.5% over 2016-20

Singapore (Platts)--9 Jan 2017 246 am EST/746 GMT


China has set its energy consumption annual growth target at averaged 2.5% during over 2016-2020, 1.1 percentage points slower than the 3.6% in 2011-15, according to the country's newly released 13th Five Year Plan.

The lower growth was set according to the new energy consumption trend because of China's "new normal" economic growth, deputy head of the National Energy Administration Li Yangzhe said Thursday at a press conference, according to an NEA press release.

Beijing has been happy with relatively lower GDP growth, with an expectation that the economy grew at 6.7% in 2016 and 6.5% in this year.

As a result, the total energy consumption will be contained within 5 billion mt of standard coal equivalent by 2020.

Meanwhile, the country also aims to reduce energy intensity -- energy consumption per unit of GDP -- in 2020 by more than 15% from 2015, according to the jointly released by the NEA and the National Development and Reform Commission on Thursday.

The aim is to raise the share of non-fossil fuels of total energy consumption to more than 15% and the share of natural gas to 10% from 8%, while pushing down coal consumption to below 58% from 62%.

Nur Bekri, the head of NEA, said on December 27 set a target to lift the proportion of gas in the consumption mix to 6.8% in 2017, and reduce coal's share to around 60%.

He said that in 2016, total energy consumption was estimated to have risen 1.4% to around 4.36 billion mt of standard coal equivalent, with non-fossil energy accounting for 13.3%.

In addition, Beijing is encouraging the replacement of oil-based vehicle fuels with electric and gas while increasing energy efficiency.

China also planed to invest Yuan 2.5 trillion ($360 billion) in clean and renewable energy by 2020 to reduce pollution.

The annual target for clean and renewable energy consumption was set in the plan at 580 million mt of standard coal equivalent.

--Oceana Zhou, oceana.zhou@spglobal.com




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