(1992-4-23)

THE WORKING OUTLINE OF EXPERT WORKINGGROUP ON"ENEGY STRATEGY AND TECHNOLOGY"

I.BACKGROUND

China Council for International Cooperation on Environment and Development is a consultative organization formed by Chinese and foreign experts in the field of environmental protection. It Puts forward to the Chinese government for its reference some constructive opinions and suggestions in policy-making, concerning the coordinated development of environment and economy, as well as promotes the international community's financial and monetary assistance to China's environmental protection.

Above all, China Council for International Cooperation on Environment and Development will set up expert working groups in the following five fields as required: energy strategy and technology; monitor, information collection and pollution control; scientific research, technological development and training; biodiversity preservation; resources ac-counting and price policy.

II. THE OBJECTIVES OF THE EXPERT WORKING

GROUP ON "ENERGY STRATEGY AND TECHNOLOGY?

Expert Working Group on Energy Strategy and Technology is one of the first five expert working groups set up by China Council for inter-national Cooperation on Environment and Development. It will carry out the investigation and research work, with the help of the relevant out the investigation and research work, with t he help of the relevant governmental departments and non-governmental scientific and technological organizations ,on the exploitation development strategy, and science and technology of China's various forms of energy ,such as (1)coal ,(2)waterpower energy,(3)petroleum and natural gas ,(4)nuclear energy,(5)rural energy,(6)solar energy, wind energy, geothermal energy and tidal energy. After sorting out, analyzing and summing up the data material from investigation and research, the group will advance some strategic and technological proposals which can not only facilitate China's energy exploitation, but also protect China's environment.

III.SERVICESCOPE OF EXPERT WORKING GROUP

ON ENERGY STRATEGY AND TECHNOLOGY

Duty of the Working Group

(1)Duty of the members of the working group is to bring into full play the aforementioned functions, and assume the investigation and research work of the subject assigned to them by the chief of the group.

(2)Duty of the chief of the working group is to organize all the members of the group to undertake the investigation and research work of the projects assigned to them by the China Council for International Cooperation on Environment and Development; report the development of its work to the Council; submit sum-min g -up work reports and proposal reports to the Council for discussion; raise proposals to the Council with respect to the new investigation and research projects of China's energy strategy and technology

(3)Duty of the members of the working group is to accomplish the investigation and research work of the projects assigned to them by the chief of the group fully in terms of quality and quantity within the time limit.

(4)Duty of the chief of the working group is to accomplish the investigation an d research work assigned to him by the Committee in Environment and Development I internal Cooperation, and the proposal reports for its discussion fully in terms of quality and quantity within the assigned period of time.

The working group plans to do investigation and research work on the following s even projects for the first phase:

a) The exploitation development strategy and technology of China's coal resources:

China's total energy production and the third in the world. Coal holds an import ant place by taking up72%during the primary energy production. This reflects that China's energy structure is different from that of the developed countries that take petroleum as the Principal energy sources. Moreover, coal will still hold the key place in the primary energy, energy production and energy consumption for quite a long time to come. As most of coal is burned directly in the form of solid material, it exerts a great pressure on transportation and environment,

In the respect of coal 's effect, as the technical equipments and economic management still need to be modernized, China's comprehensive utilization efficiency of coal only takes up 25%, which is far behind the economically developed countries. Therefore, adopting new technology on energy conservation and reform on management system wit a view to improving the efficiency of coal utilization is a pressing matter of the moment.

Among the 850 billion tons of roved reserves of cal, 900 million tons of coal are recovered annually. Among the built thermal power stations whose installed capacity is700MW, 85%is transferred from coal. The reserves of coal in China is rich in the North and the West, but poor in the South and the East. Therefore, the transportation of coal from the West to the East, Therefore, the transportation of coal Fri the conveyance system of transportation can't keep up the pace with the needs. A railway leading to the seaport is under construction, but even it exerts its utmost to transport coal upon its completion, it falls short of transporting all the coal produced in Shanxi Province, let alone that produced in Inner Mongolia Autonomous Region and Shannxi Province. Meanwhile, the gap between demand and supply of coal in Northeast China, North China, East China. South China is widening. Coal is the major factor which causes carbon dioxide, acid rain, an d degradation of ecological environment. Therefore, top priority should be given to t he exploitation development and conservation utilization of coal in terms of strategy and technology.

(2)The exploitation development strategy and technology of China's hydro-power resources:

The reserves of China's hydro-power theoretical resources reached860GM. The installed capacity which can be exploited is370GW, ranking the first in the world. But till now, we have only built some waterpower stations whose installed capacity is 30 GM. Therefore, the hydro-electric resources which have been exploited only take up4.4% of the total reserves, which is not only left far behind world's average utilization rate of 20%,but also lower than the 8% of that of the developing countries. Now on one had, China's fossil energy which is not renewable--such as coal and petroleum can't meet the need of demand, on the other hand, the great amount of hydro-power resources is wasted. This kind of situation must not be allowed to continue any longer from the point of view of environmental protection.

It is estimated that the situation of the shortage of electric power will continue for couple of decades, In order to reverse this incompatible situation in economic construction, and keep in mind of the protection of the environment, the state has attached strategic importance to the exploitation of various hydropower projects with scales from small to large ,including the Yangtze River Three Gorges Project. In the West part of China, more than 150hydropower stations with 200GW, total installed capacity are available to be exploited. This should constitute a primary place for the long term development of energy. The renewable hydropower is the cleanest resource of energy in view of environmental protection. Moreover. the exploitation of energy. The renewable hydropower is the cleanest resource of energy in view of environmental protection. Moreover, the exploitation of hydropower resources must be combined with the conservation of water and soil in their drainage areas. The latter is also one of the important asks in the field of environmental protection

(3)The exploitation development strategy and technology of China's petroleum and natural gas:

The production of China's petroleum and natural gas takes up no more than one fourth of the primary energy production. But its position in China's energy resources is only next to coal.

The reserves of petroleum in China is very great, maintaining one of the leading positions in the world. The output now is quit big, and it will grow more considerably in the future, Thus, it plays an important role in present and future economic development in China and the world at large. Although the production scale of natural gas is not large enough, China's potential reserves is great. Chinese geologists have strengthened the exploration work in this regard over the past few years, and discovered several natural gas fields with great reserves. Besides, progress has been made in the exploitation, processing and utilization of natural gas .It is expected that it will keep abreast of one another with petroleum in future.

The continental shelf of the East China sea. Orders Basin and Takla Makan Desert in Xinjiang Autonomous Region are the areas which have broadest prospects in the reserves of petroleum and natural gas .From a longer-term perspective.50 years later, while petroleum and natural gas are exhausting in the world. China's product ion of petroleum and gas may enter a period of greatest prosperity. But ,like coal. petroleum is also fossil energy. The per capita consumption of petroleum in China is 1% that of USA, Because of the excessive consuming of petroleum by USA, the carbon dioxide and nitrides have produced adverse effects on the world's environment, China must strive to reduce petroleum consumption in the use of transportation on fuel, Meanwhile. it should endeavor to seek other kind of clean transportation energy. In urban cities of China, people ride bicycles as the important traffic means which uses manpower as the energy. this should be carried through over a long period of time.

(4)The exploitation development strategy and technology of China's nuclear energy resources:

China is one of the countries in the world which has nuclear capability, But it h as only built one 300MW nuclear power station, Qinshan Nuclear Power Station. China's installed capacity of nuclear power generating capacity is less than 0.2% of the world's total, far behind the developed countries. Although China now is making big strides to catch up, its steps still need to be hastened. China's nuclear power industry is just at the initial stage. In view of the present situate on and long-term development of energy, developing nuclear power is not only a long-range strategy which can relieve the intense energy shortage in China, especially in Northeast, East and South China, but also an effective measure which ca n adjust regional energy supply and demand, ease the tense situation in traffic and transportation, and speed up the further development of national economy.

In the countries and regions that have done adequate exploration work, the nuclear power reserves of the countries with larger areas are generally proportional to the size of their territory. So we can make a rough estimate that China's resources of uranium deposits can take the leading position in the world together with the United States and the Common wealth of Independent States. This is convincing. Moreover, the technical forces of nuclear industry in China is substantial. So with these two factors, it can be predicted that China's nuclear power scale will catch up with the advanced countries in the next century.

(5) The exploitation development strategy and technology of China's rural biomes energy:

Among the 900 million farmers of 180 million households in China, about more than 500 million farmers in 100 million households are short of firewood for a few north's every year. As the household contract responsibility system with remuneration has been alleviated. But the problem of energy needed for rural livelihood and production still remains unsolved. Along with the increase of the population in the rural areas, the gravity of this problem is aggravated, instead of being reduced. About 400 million tons of biomes energy that can be used as fuels and fertilizers are burned at low thermal efficiency rate annually, which is equivalent to 70 million tons of coal and 5 million tons of nitrogenous fertilizer.

The organic fuel of biomes on the earth's surface is exhausting due to the want of rural energy, this leads to the adverse consequence of the destruction of ecological environmental balance, which is characterized by degradation of soil fertility in plains or dikes where crops are mainly planted; soil erosion in hilly and mountainous regions mainly for forestry; and desertification in grass land and pastoral areas mainly for animal husbandry.

The settlement of the supply of rural fuels, fertilizers and fodders will give impetus to the overall development of agriculture, forestry, animal husbandry and fishery. In rural areas where the three issues were already solved, all the farm eras have rid themselves from backwardness and poverty, and lead a well-off life. Among these three issues, priority should be given to the settlement of fuels which constitute the energy used for daily life, and the other two would be east y to settle once this is settled. There are lots of actually successful cases available in China to prove this.

Governments at all levels in China have attached importance to the development and utilization of rural energy since 1978, and made active efforts to expand firewood-saving stove, boogies tank and solar cooker and have made marked achievements. Among them, biogas tank which is optimum for the protection of soil quality of arable land and improvement of conditions for sanitation in rural areas, can bother serve for rural livelihood utilization energy, as well as for the development of Eco-agriculture. It is estimated that 120 Gm3 biogas research will be exploited annually and will be used effectively by next century.

A large number of farmer technical experts have emerged from the rural areas in China, they have engaged themselves in many economically effective inventions and creations in the course of developing and expanding rural energy resources.

(6) The exploitation development strategy and technology for solar energy, wind energy, geothermal energy and tidal energy in China:

Two third of China's total territory surface, roughly 6 Mkm2, receives more that 130 kcal/cm2 gross solar radiation annually which unfolds a broad prospect for its development. The wide expansion of family-used solar cookers among farmers living in arid areas Northwest part of China, saves a lot of firewood and indirectly protects vegetation environment.

The average wind energy concentration throughout China stands at 100W/m, with a gross amount of 1,600 GW, among which 10% can be developed and utilized. The small-sized wind power generating apparatus for illumination and watching television n have been rapidly expanded among herdsmen in Inner Mongolian Autonomous Region, while largescale wind power generating facilities have been successfully tested in Xinjiang Uygur Autonomous Region.

China covers a vast sea area with more than 6,500 islands and al long coastal line of 18,00km. Therefore, there is a huge reserve of sea energy, among which 110 GW tidal energy can be tapped for use. The tidal power generation experiments are underway in coastal regions of Zhejiang and Fujian Provinces.

We are exploring China's geothermal energy resources, and have discovered several high-temperature locations in the terrestrial-heat-rich areas in the Tibetan Plateau and Handgun Mountain Range in Southwest China. A small scale geothermal power station has already been set up in Tibet.

(7) The distribution, arrangement, scale and joint strategy for exploiting and d developing China's energy:

Energy in China is diverse in types and rich in reserve, but the average amount per capita ranks low in the world due to its huge population of more than 1.1 billion. The geography distribution of energy is uneven. As far as the distribution theory of secondary energy power is concerned, the best strategy for power plant construction in various economic regions is to use locally available resources. In the North regions where there is abundant coal output, it is natural to develop mainly the thermal power, in Southwest regions where waterpower resources rank high in the world, we should follow the examples of Canada to develop mainly the hydropower, and in the East and South regions as well as in Jiangxi and Hunan provinces where both are lacking, but rich in nuclear resources, we may well follow the examples of France to develop mainly nuclear power. Therefore, it is the major investigation and examination project for this working group to study the macro-distribution economy of energy exploitation and development in China jointly with the macro exploitation and development strategy of arrangement, scale and joint economy. The working group will contact with each organization concerned. The organizations which belong to government departments are the following: The State Science and Technology Commission of China; Ministry of Energy and its subordinate units such as China National Coal Corp, China National Oil and Natural Gas and China National Nuclear Industry Corp; Ministry of Water Conservancy; Ministry of Agriculture and its subordinate department Energy Environment Department; Bureau of Statistics; Urban Sampling Survey Group and Rural Sampling Survey Group from each provinces, municipalities and autonomous regions. Non-governmental organizations include: China Energy Research Society, China Geography Society, China Coal Society, China Petroleum Society, China Water Conservancy Society, China Nuclear Engineering Society, China Agriculture Engineering Society, etc.

The group will pay for statistic data from the above organizations and specialized departments. The Chinese Government will make effective arrangement on working level in order to encourage all the relevant ministries, commissions and other organizations to take part in and support the Council's work fully and actively.

The working group is under the direct leadership of China Council for International Cooperation on Environment and Development, and is responsible to the Council. National Environmental Protection Agency is in charge of helping the working group to coordinate the work between each department so as to support the working group's activities. The working group will keep in close touch with the Secretariat, which is set up by the National Environmental Protection Agency for supporting the Council and seeing that the work of the working group go smoothly. The working group will give effective support to its members' activities according to the arrangements made simultaneously by the Council and the Secretariat inside and out (including Vancouver Supporting Office). It will also organize some follow up actions to strengthen its members' activities.

IV. THE ORIGIN OF THE PEPORT EXPERT WORKING

GROUP ON ENERGY STRATEGY AND TECHNOL OGY

The time limit of the work for the first phase is set for three years, from April, 1992 to April, 1995. An annual report will be submitted in April for each yea r. The last annual report is the summary report. The contents of the report will include the following: preamble, the process of the investigation, statistical data through investigation, the results of analysis and research, all kinds of countermeasures and strategic suggestions for the discussion of the Council, conclusion, etc. The reports will be prated and distributed in Chinese and English. Any reports written by the working group will only be submitted to the China Council for International Cooperation on Environment and Development, but they are not allowed to be distributed freely. The distribution of the reports will be decided by the Council.

V. FINANCIAL BY-LAWS OF EXPERT WORKING

GROUP ON ENERGY STRATEGY AND TECHNOLOGY

The working group will not appoint financial administrative personnel specially. Each investigation and research project will apply for its special outlay to the Council. The project groups can apply for reimbursement according to the expenses of the projects whose outlay has been actually approved. The special outlay of one project can also be allocated to the financial department of the unit concerned, who will be enforced strictly in accordance with the relevant stipulations the state. For example, the consulting remuneration and accommodation expense s of a foreign expert will be US $ 150 per day. The consulting remuneration and accommodation expenses for a Chinese expert will be PMB 150 yuan per day. Travel ling expenses, material expenses, computer expenses and day. Travelling expenses, material expert will be RMB 150 yuan per day. Travelling expenses, material expenses, computer expenses and conference fees, etc. will be paid separately. The seven above-stated project groups will need US $ 350,000 altogether.