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Top leadership calls for renewables to move to ‘centre’ of power generation

 The big environmental stories in the Chinese media (12-18 March)

China should undergo a “far-reaching, systemic socio-economic transformation” to realize the vision of carbon neutrality and build a “new generation power system with renewables at the centre.”

This was the message that emerged from a meeting of the Party’s top policy-making body on economic affairs, headed by President Xi Jinping, when it convened on Monday to discuss China’s carbon peaking and carbon neutrality goals.
 
The Central Financial and Economic Affairs Commission met right after the conclusion of the Two Sessions and the approval of the 14th Five Year Plan. 
 
The language was an upgrade from that in the FYP, which talked of “building a new generation power system compatible with high percentage of renewable energy” but made no mention of its centrality.
 
Chai Qimin, director for strategic planning at the National Centre for Climate Change Strategy and International Cooperation (NCSC), told 21st Century Business Herald that connecting a lot of renewables to the grid poses challenges for the existing power system, and creates new demand for power storage and computerisation. China needs to synchronise its power sector reforms with deploying more renewables to help the power system “evolve into a modern one.”  
 
In a press conference last December, the head of the National Energy Administration (NEA) Zhang Jianhua explained that boosting the use of non-fossil energy to 25% in China’s energy mix by 2030 (which is its new NDC target) would mean that at least 70% of energy demand newly added in the next decade would need to be met by non-fossil sources. 
 
At the meeting, the top Party leadership further emphasised the need to control consumption of fossil fuels, increase energy efficiency and deepen power market reforms. 
 
Experts believe the meeting sent strong signals for “breakthroughs” in China’s power sector reforms during the 14th FYP period. These may include pricing mechanisms for “flexibility providers” in the power system; mechanisms to encourage the “bundling” of power generation, storage, grid and demand-side management; and better integration of distributed solar and wind into the power market.

(Sources: China Dialogue)

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