Verification of Energy Conservation of Major Energy-Consuming Entities in China

DUAN MaoshengTsinghua University, Beijing, China

March 9-10, Seoul

Outline

China’s GDP Energy Intensity Target and Supporting Measures

Statistical and Measurement Requirements for Major Energy-consuming Entities

Reporting Requirement

Verification of Energy Conservation

Evaluation of Energy Conservation Achievements

Pilot Energy Efficiency Trading Market

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China’s GDP Energy Intensity Target and Supporting Measures

20% GDP energy intensity reduction target between 2005-2010

Breaking-down of the national target into provincial level intensity targets

Energy Conservation Action Implementation Scheme for 1000 Enterprises issued by NDRC, Office of NELG, National Bureau of Statistics, General Administration of Quality Supervision, Inspection and Quarantine, and State-owned Assets Supervision and Administration Commission in April, 2006

3

China’s GDP Energy Intensity Target and Supporting Measures

Implementation Scheme for the Evaluation System on GDP Energy Intensity issued by the State Council in November 2007, targeting at provincial-level governments and the 1000 enterprises

Guidelines for the Verification of Energy Conservation Amount of Energy-Saving Projects issued by NDRC and MOF on March 14, 2008

Revised Energy Conservation Law came into effect as of April 1, 2008

4

China’s GDP Energy Intensity Target and Supporting Measures

Implementation Scheme for the Reporting Requirement on Energy Utilization of Major Energy-Consuming Entities issued by NDRC in June 2008

Broader participation and detailed requirements

5

Statistical Requirements and Measurement for Major Energy-consuming Entities

Establishment of energy conservation leading group Establishment or designation of specialized energy

management organ Energy auditing or monitoring Establishment of energy statistical post Training of relevant staff

6

Statistical Requirements and Measurement for Major Energy-consuming Entities

Improvement of measurement system Availability of energy metering/measurement

devices and periodical examination and calibration Improvement of internal statistical system Archiving of original records

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Reporting Requirement

Entities with annual energy consumption more than 10,000 tce and those designated by relevant authorities with with annual energy consumption between 5,000-10,000 tce

Standard requirements Electronic reporting to local energy authorities Publication by NDRC on energy utilization of major

energy-consuming entities Responsibility on completeness, authenticity and

preciseness of the reporting8

Reporting Requirement

Forms to be completed:Basic information of the entity

Structure of energy consumption

Energy balance sheet

Product energy intensity

Explanation on the change of the product energy intensity

Energy conservation information

Self-evaluation on energy conservation responsibility9

Reporting Requirement

Forms to be completed:Status of major energy-consuming equipments

Information on compliance with national energy standards

List of energy conservation projects

Changes of energy conservation projects compared with the previous year

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Verification of Energy Conservation

Principles Independence, unbiased, objectiveness, etc.

Document review, site visit, measurement, analysis and calculation, random interview and discussion, etc

Baseline energy consumption, project energy consumption, energy management and measurement system, energy leakage

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Verification of Energy Conservation

Verification of baseline energy consumptionengineering flow sheet

Output records

Energy consumption balance sheet and energy flow chart

Records on the major energy-consuming equipments

Consumption of energy-consuming work medium

Records on energy input, output and consumption, energy statistical sheets, financial statements, and original evidence

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Verification of Energy Conservation Verification of project energy consumption

Status of the project

Similar parameters as under the baseline situation

Verification of energy management and measurement systemStructure, staff and rules of the energy management organ

Energy measurement device

Monitoring and inspection reports of energy input and output, measurement report of efficiency of major energy-consuming equipments

13

Verification of Energy Conservation

Verification of energy leakageBaseline energy consumption of relevant processes

Energy consumption changes after the project

Quality assuranceCross-checking

External evaluation

Output data Disagreement on the conclusions

14

Evaluation of Energy Conservation Achievements

Energy conservation amount Implementation of energy conservation measures

Organization

Target breaking-down and enforcement

Energy conservation technology and technical improvement

Compliance with relevant laws and regulations

Management of energy conservation work

15

Tianjin Energy Efficiency Market

A voluntary market platform initiated by companies with no involvement of the central government

Intensity-based market focusing on the building area Fist sale on February 9, 2010

11,500 tCO2

50 yuan RMB/tCO2

Gazprom Marketing & Trading Ltd and Citigroup Global Markets Ltd vs. three heat supply enterprises

Heating energy consumption per unit area as the calculation index and incentives for heat supply enterprises

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Thanks

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