CSEP BackgroundCSEP Background

• TransportationTransportation

• Buildings and Appliances Buildings and Appliances

• Industry Industry

• Electric UtilitiesElectric Utilities

• Renewable EnergyRenewable Energy

• Low-Carbon Development Paths Low-Carbon Development Paths

Sector Technology Policy

Beijing OfficeBeijing Office

State Council

Approach: Top-DownApproach: Top-Down

NDRC

MOCMOST SEPA SERC MOF SBT Other Ministries

State Council

Senior Policy Advisory Council

"CSEP spends small money, does big things.”“ 花小钱办大

事”

CHEN Qingtai Vice President, Development Research Center of the State CouncilCHEN YuanGovernor, China Construction BankFU Zhihuan Chairman, Finance and Economics Committee, National People’s CongressHUANG Yicheng Former Minister of EnergyMAO Rubai Chairman, Environmental Protection & Resources Conservation Committee,

National People's CongressLOU Shiwei Vice Minister, Ministry of FinancePAN Yue Vice Administrator, State Environmental Protection AdministrationQIU Baoxing Vice Minister, Ministry of ConstructionQU Geping Former Chairman, Environmental Protection & Resources Conservation

Committee, National People's CongressSONG Mi Vice Chairwoman, State Electricity Regulatory CommissionXU KuangdiVice Chairman, Chinese People’s Political Consultative Conference; Former

Mayor, ShanghaiYANG Jike Former Vice Chair, Chinese Peoples’ Political Consultative Conference ZHANG Guobao Vice Chairman, National Development and Reform Commission

C H I N E S E M E M B E R SC H I N E S E M E M B E R S

Senior Policy Advisory CouncilSenior Policy Advisory Council

• Colburn WilburColburn Wilbur

• Peter BradfordPeter Bradford

• Thomas JohanssonThomas Johansson

• William ReillyWilliam Reilly

• Susan TierneySusan Tierney

International MembersInternational MembersTrustee and former President, David and Trustee and former President, David and Lucile Packard FoundationLucile Packard Foundation

Former Chair, NY State Public Service Former Chair, NY State Public Service CommissionCommission

FormerFormer DirectorDirector, EnergyEnergy andand AtmosphereAtmosphere ProgramProgram, UnitedUnited NationsNations DevelopmentDevelopment ProgramProgram

Former Administrator, U.S. EPA; Former Administrator, U.S. EPA; President/CEO, Aqua International President/CEO, Aqua International PartnersPartners

Former Assistant Secretary for Policy, U.S. Former Assistant Secretary for Policy, U.S. Department of Energy Department of Energy

Senior Policy Advisory CouncilSenior Policy Advisory Council

Fujian Province•Renewable Energy Mandatory Market Share

Shanxi ProvinceGeneration Performance Standards

Chongqing MunicipalityCommercial Building CodesGas Appliance Standards

Xi’an CityBus Rapid Transit

Zhejiang Province•Power Sector Regulatory Reform •Generation Performance Standards

Beijing Municipality•Bus Rapid Transit•Advanced Technology Vehicles •Green Pricing•Demand-Side Management•Cogeneration•Carbon Reduction Planning

Kunming City•Bus Rapid Transit

Sichuan Province•Renewable Energy Mandatory Market Share

Hebei Province•Public Benefits Fund

Shandong Province•Iron & Steel Sector Voluntary Energy Efficiency Agreements•Generation Performance Standards

Jiangsu Province•Demand-Side Management•Public Benefits Fund•Generation Performance Standards•Wind Concession

Approach: Bottom-UpApproach: Bottom-Up

Shanghai Municipality•Residential and Commercial Building Codes •Green Pricing•Cogeneration•Demand-Side Management•Advanced Technology Vehicles•Bus Rapid Transit•Carbon Reduction Planning

Guangdong Province•Wind Concession•Power Sector Regulatory Reform•Energy-Efficient Windows

Xian CityXian City•BusBus rapid transit rapid transit

Chongqing Municipality•Building codes•Bus rapid transit

Buildings & AppliancesBuildings & Appliances• Appliance Standards & Labeling Appliance Standards & Labeling Lighting Lighting RefrigeratorsRefrigerators Air ConditionersAir Conditioners WashersWashers TVsTVs Water HeatersWater Heaters Power SuppliesPower Supplies

• Building Energy CodesBuilding Energy Codes

Cold

Cold

Cold

Severe Cold

Severe

Cold

Severe Cold

Hot SummerCold WinterModer

ate Hot Summer

Warm Winter

Nanjing Shang

haiWuha

nChongqing

Beijing

Chengdu

Results: Appliance StandardsResults: Appliance StandardsNew lighting, clothes washer, and TV New lighting, clothes washer, and TV standards will displacestandards will displace

34 large coal plants

by 2020.Four new standards and labels will save

• 9% of all residential electricity in 2010

• cut 19 million tons of carbon in 10 years.

Source: LBNL

Cold

Cold

Cold

Severe Cold

Severe

Cold

Severe Cold

Hot SummerCold WinterModer

ate Hot Summer

Warm Winter

NanjingShangh

aiWuha

nChongqing

Beijing

Chengdu

Results: Building CodesResults: Building Codes• Residential and commercial building codes Residential and commercial building codes

• Fourteen Central and South China provincesFourteen Central and South China provinces

• Cut energy use of new buildings by 50%Cut energy use of new buildings by 50%

• Five pilot cities developing Five pilot cities developing

implementationimplementation

-16 provinces -High population

zone

Source: Lawrence Berkeley National Lab

IndustryIndustry

• Equipment StandardsEquipment StandardsMotors, pumps, fans, etc.Motors, pumps, fans, etc.

• Energy Efficiency Energy Efficiency Agreements Agreements Carbon-intensive sectors Carbon-intensive sectors

(steel, cement, pulp & (steel, cement, pulp & paper, petrochemicals)paper, petrochemicals)

1,000 Largest Enterprises 1,000 Largest Enterprises ProgramProgram

Electric PowerElectric Power

• Utility Regulatory ReformUtility Regulatory Reform• Pricing policies; wires Pricing policies; wires

charges charges

• Demand-Side ManagementDemand-Side Management

• Integrated Resource Integrated Resource PlanningPlanning

1.1. National Regulatory PolicyNational Regulatory Policy• State Electricity Regulatory CommissionState Electricity Regulatory Commission• Mission: Environment, energy efficiency Mission: Environment, energy efficiency

and renewable energyand renewable energy

2.2. Energy Efficiency Power PlantsEnergy Efficiency Power Plants• Pilots in Jiangsu, Shanghai, BeijingPilots in Jiangsu, Shanghai, Beijing

Results: ElectricityResults: Electricity

QuickTime™ and aPhoto - JPEG decompressor

are needed to see this picture.

Syngas

End-productsFeeds Gas Refining

Oxygen Electricity

CO2 Sequestration Option

Solids

Gasification

SULFURRECOVERY

SULFUR /CO2

REMOVAL

H S2

HRSG Steam

Combustion Turbine

Syngas Chemicals

Hydrogen

Ammonia

MethanolCoal

Syngas

Sulfur

REMOVAL

MERCURY

Mercury

IGCC Schematic

Renewable EnergyRenewable EnergyGoal: Encourage bulk purchases, to drive down costs and speed Goal: Encourage bulk purchases, to drive down costs and speed

commercialization.commercialization.• Mandatory Market ShareMandatory Market Share 2010: 5% of primary energy to be RE, 2010: 5% of primary energy to be RE,

including 60 GW RE electricityincluding 60 GW RE electricity 2020: 10% primary energy to be RE, 2020: 10% primary energy to be RE,

including 120 GW RE electricity including 120 GW RE electricity

• Public Benefits Funds Public Benefits Funds • Wind ConcessionsWind Concessions• Distributed GenerationDistributed Generation

China Renewable Energy LawChina Renewable Energy Law

• 10% by 2020• 120,000 MW:

– small hydro– wind– biomass– solar

• ~$20 billionwind market

0

0.01

0.02

0.03

0.04

0.05

0.06

0.07

0.08

0.09

0.1

2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

0

5000

10000

15000

20000

25000

Installed MW

Cost (cents/kWh)

500 MWGuangdong

400 MWFujian

350 MWJiangsu

200 MWShanghai

200 MWShandong

400 MW400 MWInner Inner MongoliaMongolia

400 MWHebei

200 200 MWMWGansuGansu

400 MWJilin

100 MWLiaoning

100 100 MWMWNingxiNingxiaa

120 MW120 MWXinjiangXinjiang

100 MWJiangxi

100 MWGuangxiTotal Increase: 3570 MW

Results: Wind Concessions2006 - 2010