China has now become the second largest energy producer in the world

On the afternoon of August 18, the National Energy Administration held its first press conference since its establishment at the Beijing International Press Center. Zhang Guobao, deputy director of the National Development and Reform Commission and head of the National Energy Administration, highlighted that China’s energy structure has undergone significant positive changes and its global influence in energy matters is growing steadily. Over the past decade, China's energy supply capacity has seen remarkable growth. Since 2000, annual energy production has increased by an average of 7.1%, making China the second-largest energy producer globally. By 2007, China’s total energy output had more than doubled compared to 2000, reaching 1.8 times the level of that year. Meanwhile, China became the world's second-largest energy consumer, with total consumption reaching 2.65 billion tons of standard coal. However, per capita consumption remains at just 62% of the global average due to the country's large population. The power industry has experienced rapid development, with structural adjustments and technological upgrades accelerating. In 2007, China’s total installed power generation capacity reached 713.29 million kilowatts, ranking second globally after the United States. Power generation for the same year totaled 3,255.9 billion kilowatt-hours, showing a seven-year average growth of over 13.2%. Hydropower accounted for more than 20% of the mix, while nuclear and wind power saw increasing contributions. China has also made progress in environmental protection and energy efficiency. From 2000 to 2007, the desulfurization rate of thermal power units rose from 40% to 45%, and coal consumption per unit of power supply and grid transmission losses have both declined. Natural gas production surged by 2.5 times between 2000 and 2007, reaching 69.3 billion cubic meters. Oil and gas output continued to grow, with oil production increasing by 14.7% over the same period. Major infrastructure projects were also progressing smoothly. In the coal sector, large-scale coal bases have been developed successfully, leading to higher industrial concentration. There are now 35 coal enterprises producing over 10 million tons annually, accounting for 44% of national output. Among them, 13 major coal bases contributed 83% of total production. Renewable energy has also seen substantial growth. By 2007, China’s renewable energy utilization reached 220 million tons of standard coal, or 8.5% of total primary energy consumption. Wind power installed capacity ranked fifth globally, with new installations reaching 3.05 million kilowatts in a single year. Large-scale wind farms are being developed in Gansu and Inner Mongolia, and solar energy initiatives have helped electrify remote areas, including 900,000 people in Tibet. Solar water heater usage has reached 120 million square meters, the highest in the world. China is also the largest producer of photovoltaic cells, with annual production capacity of 1 million kilowatts. Biogas use has expanded significantly, with over 27 million household digesters and thousands of large facilities providing clean energy to rural communities. To support renewable energy, China has implemented the Renewable Energy Law and a comprehensive development plan, along with tax incentives such as reduced VAT on wind power. The administration plans to expand these efforts further. Internationally, China has actively engaged in energy cooperation, participating in 14 multilateral mechanisms and 34 bilateral partnerships. It is a full member of several key energy groups and maintains close ties with international organizations. Cooperation with neighboring countries has also advanced, including the Sino-Kazakhstan oil pipeline and the China-Central Asia gas pipeline. Joint projects with Russia, such as the Tianwan Nuclear Power Station, demonstrate strong international collaboration. Zhang emphasized that China’s energy strategy combines domestic development with open policies, aiming to create global opportunities and contribute positively to international energy stability.

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