Since there are irrational sectoral and product structures, backward equipment and technology in many sectors, and bad management, the gap in energy efficiency will probably enlarge if no improvements and changes are made. GDP per unit energy consumption in China is about one half to one third of developed countries. Obviously, there is great potential in energy conservation in China. Investment in technical upgrades for existing equipment is cost effective, easily reachable and profitable. To implement the policy mentioned above, government officials and enterprise managers should deepen their understanding, strengthen leaderships and give policy guidance and incentives to energy conservation activities.
Energy conservation has great potential in various industrial sectors.
Thermal power generation is the largest coal consumer. A set of measures for reducing coal consumption in the power sector is aimed at increasing a portion of large scale and highly efficient turbines and equipment, eliminating and prohibiting the small and medium scale and low efficiency turbine sets which are in operation or under construction, and encouraging cogen development. Promotion of energy efficiency in the iron and steel sector is practical. Comprehensive energy consumption per ton of steel for both China and advanced countries in the world are 976 kgce and 650 kgce, respectively. The main measures in energy savings in the iron and steel sector include adoption of advanced technology, replacement of open-hearth furnaces with rotating furnaces, increasing the proportion of continuous rolling and casting.