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Agency addresses energy concerns

By Fu Jing (China Daily)
Updated: 2008-08-20 09:27

On the day that the world watched the opening of the Beijing Olympics, Zhang Guobao, head of the National Energy Administration, was at his organization's debut ceremony outlining his mission to ensure China's energy security.

"I have mounting tasks on my shoulders," he said. "They are like snowflakes bombarding me these days."

The administration must address and find solutions to the country's electricity coal shortages, develop substitute energy sources such as nuclear and wind power and improve international cooperation in oil, gas and atomic energy while improving production capabilities and energy equipment.

Zhang is aware that it is no mean task.

"There is a heavy workload waiting for the administration to coordinate and tackle," he said.

His agency is under the National Development and Reform Commission. Zhang is also vice-minister of the commission.

"To ensure enough coal and electricity supply in the peak season is my priority," he said.

Surging coal prices, insufficient coal supply and State-capped electricity tariffs have led to lower operation hours of thermal plants, Zhang said.

In the first half of the year, coal-fired plants' average operating time dropped by about 50 hours compared with a year ago, following a 133-hour cut last year compared with 2006.

According to the State Electricity Regulatory Commission, coal reserves in the country's big power plants amounted to 43.81 million tons, merely enough to support 11 days of normal operations

Zhang's administration not only targeted this summer's supply shortage but it also aimed to ensure a more stable supply by promoting more mergers and acquisitions in the country's coal industry in an effort to keep energy supply in line with the government's goal of macroeconomic development.

According to official figures, the country's coal reserves are equal to more than 1 trillion tons. An estimated 320 billion tons of this can be extracted immediately.

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