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 role in global energy affairs is growing steadily. China’s energy supply capacity has seen remarkable growth over the years. Since 2000, energy production has increased by an average of 7.1% annually for seven consecutive years. By 2007, China had become the world’s second-largest energy producer, with output reaching 1.8 times that of 2000. In terms of consumption, China became the second-largest energy consumer globally, with total energy use reaching 2.65 billion tons of standard coal. However, per capita consumption remains at only 62% of the global average due to the country’s large population. The power industry has also experienced rapid development, with structural adjustments and technological upgrades accelerating. In 2007, China’s installed power generation capacity reached 71.29 million kilowatts, ranking second worldwide. Power generation totaled 3,255.9 billion kilowatt-hours, growing at an average annual rate of over 13.2%. Hydropower accounted for more than 20%, while nuclear and wind power saw increasing shares. Environmental protection and energy efficiency have been prioritized. From 2000 to 2007, the desulfurization rate of thermal power units rose from 40% to 45%. Coal consumption per unit of power supply and grid transmission losses have both declined. Natural gas production surged, increasing by 2.5 times between 2000 and 2007, reaching 69.3 billion cubic meters. Oil and gas production continued to grow steadily, with oil output rising by 14.7% compared to 2000 levels. Large-scale coal base construction has also made progress, with 35 enterprises producing over 10 million tons annually. These accounted for 44% of national output, with 13 major coal bases contributing 83% of total coal production. Renewable energy has seen substantial development, with China now ranking fifth in wind power capacity. In 2007, renewable energy use equaled 220 million tons of standard coal, or 8.5% of total primary energy consumption. Wind power expansion was particularly notable, with 3.05 million kilowatts added that year. Large-scale wind farms were developed in Gansu and Inner Mongolia, and a solar project aimed at electrifying remote townships in Tibet helped 900,000 people gain access to electricity. Solar water heater installations reached 120 million square meters, the highest in the world, while photovoltaic cell production hit 1 million kilowatts, making China the top producer globally. Biogas projects also expanded, with over 27 million household digesters and thousands of large facilities addressing rural fuel needs. To support renewables, China introduced the Renewable Energy Law and a comprehensive development plan, along with tax incentives such as reduced value-added taxes on wind power. The administration plans to further boost renewable energy through policy and investment. Internationally, China has engaged in 14 multilateral and 34 bilateral energy cooperation mechanisms. It is a full member of several key groups, including the Asia-Pacific Economic Cooperation Energy Working Group and the International Energy Forum. China has also strengthened ties with countries like Russia, the U.S., Japan, and the EU, focusing on areas such as technology, environment, and new energy. Regional cooperation has advanced, including the completion of the second phase of the Sino-Kazakhstan crude oil pipeline and the start of the China-Central Asia natural gas pipeline. The Tianwan Nuclear Power Station, built with Russian assistance, has operated successfully for nearly a year. Zhang emphasized that China’s energy strategy combines domestic policies with openness, aiming to create global opportunities and contribute to international energy stability.

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