Comments and Discussions on ｢Challenges of Decarbonization Polices andTechnological Innovation toward Carbon Neutral Society in China｣
Presented by Prof. Jun PANG

Hongbo Ren

Shanghai University of Electric Power
24 September, 2021

Summary of presentation by Prof. Pang
➢ Pathway for China to achieve Carbon Neutrality
Stage One (2021-2030): Reach Carbon Peak; Stage Two (2031-2045):Rapidly Reduce Carbon
Emissions; Stage Three (2046-2050): Deep Decarbonization.
➢ Challenges of Polices toward Carbon Neutrality in China✓Carbon tax V.S. ETS;

✓Renewable energy development policy (Subsidy, tradable green certificate mechanism,renewable portfolio standard;✓Total coal consumption cap strategy.

➢ Challenges of technological innovation toward Carbon Neutrality in China✓

Industrial sector;✓Power generation sector;✓Offshore wind power;✓Transportation sector;✓

Construction sector;✓CCUS

Summary of presentation by Prof. Pang

China's Carbon Emission Structure 2018
Commercial
and public Residential
services
4%2%Transport
10%
Industry
28%
Other energy
industries
3%
Source: PPT of Prof. Pang

Agriculture
1%

Finalconsumption
notelsewhere
specified
1%
Electricityand heatproducers
51%

Energy sector
Industry sector
Transportation sector

Building sector

Key path of carbon neutrality

D

Scientific andtechnologicalinnovation supportED

Policy mechanism
supportKey path of carbon neutrality

Supply-side
Renewableenergy

Demand-side

Zero-carbon

Re-electrification

Zero-carbon
Electricity
Power to X

Zero-carbon fuel𝐂𝐎𝟐

H2
Synthetic
fuelIntelligence

High-efficiency

Supply-side strategy➢ Reduce carbon emissions from the producer side, replace fossil energy fuels by non-fossil energy
sources, use its raw material properties, and increase the share of non-fossil energy consumption.
➢ Increase the capacity and power generation of clean energy, 40 years later, new energy sources will
replace fossil fuel as the main fuel source, its installation capacity will achieve 5.2 billion kW.
➢ The current carbon emissions by industry is up to 1.3 billion tons. To reduce the emissions, lowcarbon raw materials should be used to instead of high-carbon materials, so that the emission will

drop to less than 300 million tons in 2060.
Consumption of fossil energy used as fuel(0.1 billion TCE)
2020

2060

Coil

273Oil818%

25%

Material
Fuel
75%

92%

Capacity of clean energy(100 million kW)

Year70

60
50

4030

20
1002020

Gas4Total
39
Source: Report of Dr. Yinbiao Su

26

Share of fuel and material
consumption in fossil energy

2060

Domestic capacity of clean energy

Supply-side strategy➢ Non-fossil power generation mainly with new energy can meet the new power demand after 2030,

and it will replace the existing fossil-fuel based power generation gradually.
➢ After 2030, the growth rate of traditional non-fossil energy such as hydropower, nuclear power andbiomass will gradually slow down due to the constraints of resources and station sites, and thedevelopment rate of new energy will further increase.
New Others
energy 4%
Nuclear10%
5%

Others6%

Others3%

New energy
22%

Hydropower
13%

Coal
43%

Hydropow
er
17%

Coal
61%

Gas
3%

Share of power capacity
in 2020
Source: China Electricity Council

New energy
57%

Nuclear7%
Hydropower
13%

Coal
9% Gas3%

Nuclear
15%

Gas
9%

Share of power capacity
in 2030

Share of power capacity
in 2060

Supply-side strategy: PV+
 In June 2021, the Chinese government proposed a pilot scheme for the development of roof
distributed PV system in the whole county (city, district), 676 counties and cities are selected as thefirst batch of pilot projects.

Supply-side strategy: Offshore wind power Accelerate the development of offshore wind power. Use the 500 million kW of exploitable volumeof China’s eastern seas, accelerate the layout of offshore deep water, and gradually develop in thedirection of distant seas.

Supply-side strategy: Five power generation groups
Capacity share of clean energy（%）

10025507575060
405075505060
2020

2023

2030

2025

Carbon-peak time

Carbon-peak year

Share in 2025

Share in 2035

Demand-side: Electrification
 Satisfy energy requirements in sectors of industry, construction and transportation with the clean
electricity. It is estimated that to 2060, 95% non-fossil energy would be replaced by electricity, andthe percent of the electricity over all end-use energy consumption would be more than 70%.

Energy efficiency

Application Electric equipment

Traditional
equipment

Industrial
Electric boiler (95%)
Gas-firedand
Heat pump (300%- boiler&coal-firedbuilding500%)
boilers (70-90%)
heatingCooking

Induction cooker(85%)

Gas stove (4050%)

Transportation

Electric vehicles(90%)

Vehicles (4050%)

Electric heat storage boiler

High efficiency heat pump

Shore power at ports

Charging infrastructureDemand-side: Electrification
Industrial sector: annual carbon emissions is 3.3 billion tons and electrification rate is 26%.
Accelerating electrification in industry and developing electric furnace steelmaking, electricboilers, etc., can lead industry to carbon peak and carbon neutrality. It is expected that theindustrial electrification rate will reach 34% and 70% in 2030 and 2060 respectively.

Building sector: annual carbon emissions is 900 million tons, electrification rate approaches
40%. Promoting the electrification of building heating, hot water supply and cooking,accelerating the development of distributed energy on rooftops and walls. It is expected thatthe electrification rate of building will reach 50% and 80% in 2030 and 2060 respectively.
Transportation sector: annual carbon emissions are 900 million tons, and the electrification rateis less than 4%. Focus on technological progress of electric vehicles, electrified railroads,
urban rail transit, port shore power and airport bridge power. It is expected that theelectrification rate of transportation will increase to 10% and 50% in 2030 and 2060.
Source: Report of Dr. Yinbiao Su

“Source-Network-Load-Storage” Integration
 The values of energy system integration is coordinating how energy systems produce and deliver
energy in all forms to reach reliable, economic, and environmental goals at appropriate scales.
 The two power grid companies and the five power generation groups are actively promoting thedevelopment of integrated energy systems.

“Source-Network-Load-Storage” Integration

From energy system to urban planning
CompactSpreadUrban space•Low-rise, low plot ratio•Lack of green•Mixed-use•Three-dimensional
land use（High-rise,high plot ratio•More green space<Independent
energy system>

Energy system•Part-load operation•Low heat utilization ratio<Area energy system based on distributed energy
resources>•Load leveling, improvepart-load performance•Improve heat utilization ratio and total system efficiency•Utilization of renewable energies (PV, biomass)
ElectricityElectricity

Micro grid
ElecHeatsourceNatural gas

Heat
CHP
Natural gas

BiogasDistrict heat
network
WasteheatEnergy Internet「CEMS」○Share of local
energy resources
within the community
・High-efficient use of
local energy
・Optimal energy
management of single
customer and the wholecommunity○Visualization andinstruction of energy
information・Inclusion of users within
the energy management
・Local energy
interchanging○Introduction of
inception for user
inclusion・Dynamic pricing system
・Eco-point

Gas cogeneration

Wind power

Power network

Hydrogen
H2NETWO
RK

Battery bank

Smart building

Heat network

Community
EnergyInternet

Rent cyclestation

H2 station
Smartschool

IT network

Smart apartment
PV module
Data centre

Minimization and cleaning of community
energy utilization

Carbon market + energy market➢ Under the goal of "carbon neutrality", the construction of national carbon trading market isaccelerated, which may form a coupled framework of "Carbon Asset Management + integrated

energy“.
➢ Interaction mechanism and price transmission mechanism between carbon market and multienergy market.
Interaction
mechanism

Electricity market
Heat market
Natural gas marketCarbon trading market

Coupledmarket
Low-carbon
energy market

Carbon market& Integratedenergy

Strategy ofenergy market

Thanks！