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China faces uphill battle to achieve energy-saving target

(Xinhua)
Updated: 2010-08-18 14:34

The dilemma is not unique to Zhejiang. Saving energy is a huge task testing most parts of the country. As statistics from the Ministry of Industry and Information Technology show, energy consumption has risen per unit of GDP in 12 provinces and autonomous regions.

In the less developed Guangxi Zhuang autonomous region, energy consumption per unit of GDP in the first quarter of the year rose by 6 percent, far in excess of the year's 3 percent deduction target.

Analysts have attributed the rise to the strong rebound of the Chinese economy. Because of stimulus measures and confidence in the economy, capital has poured into the economy -- creating and expanding businesses.

"Many of those (business) projects are the high-energy consuming ones, which are the chief culprit for the increased energy consumption," said Cheng Huifang, professor with Zhejiang University of Technology.

In the coal-dependent Xinjiang Uygur autonomous region, the local government has failed to meet energy consumption targets for four consecutive years.

"No matter how well other economic indicators perform, if we fail to meet the energy consumption target, our economic achievements during the 11th five-year-period will be reduced to nothing," said Lu Zushan, governor of Zhejiang province. He urged all relevant governmental departments to introduced measures to ensure the annual energy saving target is met.

Related readings:  China races to fulfill emission cut target  China moves to boost energy saving to meet 5-year goal  China orders 2,000 firms to shut overcapacity by end-Sept  China scraps power sops for heavy users

As a part of efforts to save energy, China shut down small coal-fuelled power plants with a total generating capacity of 54.07 million kilowatts from 2006 to the end of June this year, according to the National Energy Administration.

Earlier this month, the National Development and Reform Commission, China's top economic planner, scrapped all preferential electricity rates granted by 22 provincial governments to high energy-consuming enterprises.

Cheng Huifang warned that there was no way back for officials and entrepreneurs at any level. They must push for energy conservation as there are less than five months left.

"It is quite a long-term obligation for China to restructure its economy. The country must replace energy-intensive industries with low-energy-consuming and high-value-added ones," said Professor Cheng.