The National Development and Reform Commission responded to the heating season energy supply guarantee: resolutely avoid the occurrence of pressure on residents’ energy use.

Beijing (CNS) — China’s top priority in energy supply is to ensure people’s livelihood, an official with the National Development and Reform Commission (NDRC) said Thursday. A combination of measures will be taken to strengthen supply and demand regulation and ensure stable energy supply this winter and next spring, the official said. Measures mainly from six aspects, one is through various channels to increase energy for resources, 2 it is to play a role of good “YaCangShi” medium and long-term contract, three is to further do a good job in orderly can use four is good play important role in the energy reserves and emergency support capability of the channel with five is reasonable cost, six is effective control unreasonable energy demand. The National Development and Reform Commission will work with relevant departments to strengthen coordination, tilt resources to northeast China, and make every effort to ensure the smooth operation of energy in northeast China.

A senior official of the Economic Operation Regulation Bureau of the National Development and Reform Commission answers questions from the press on energy supply protection work this winter and next spring
Q: Recently, some localities have imposed power cuts, which has raised concerns about energy supply in winter. What measures will the National Development and Reform Commission (NDRC) take to ensure energy supply in winter?

A: The CPC Central Committee and The State Council attach great importance to energy supply protection in the heating season, and have made system deployment and arrangements. In view of the recent tight energy supply and demand, is the National Development and Reform Commission jointly with the relevant parties adhere to the people as the center, adhere to the system concept, adhere to the problem oriented, adhere to the bottom line of thinking, more measures and strengthen the supply and demand, mainly from six aspects to take measures to ensure the stable supply of wintry spring energy to ensure that residents can use safety. First, we will increase energy resources through multiple channels. Release advanced coal production capacity according to law and regulations, increase coal import in an orderly manner, do our best to increase domestic natural gas output, maintain the stability of pipeline gas import from Central Asia, and ensure the full operation of coal, electric and electric generating units. Second, we will make good use of medium – and long-term contracts. We will encourage long-term contracts for coal for power generation and heating to be directly secured and covered, and all contracts for gas supply in the annual and heating seasons will be signed to lock up resources as early as possible. Third, we will do a better job of orderly energy use. We will guide local governments in formulating energy use plans in a scientific and reasonable way, improve dynamic adjustment mechanisms, ensure that users are informed and contracts are agreed, and ensure that plans are enforceable, operable and implemented in a scientific way. We will ensure that people’s energy needs are met, and resolutely avoid limiting people’s energy use. Fourth, we will give full play to the important role of energy reserve and emergency support capabilities. We will urge power plants to raise coal storage above the safe level before the heating season, speed up the capacity building of emergency standby and peak-adjustment power supplies, and strictly implement the gas filling schedule of gas storage facilities to ensure that they are fully filled before winter. Fifth, reasonable channeling energy costs. While ensuring the stability of energy prices in areas related to people’s livelihood, agriculture, and public welfare, we will strictly follow price policies to reasonably reduce the production and operating costs of energy enterprises. Sixth, we will effectively control irrational energy demand. We will resolutely curb the unreasonable demand for energy in projects related to energy consumption, energy consumption, and energy consumption, and encourage major coal-consuming industries to conserve and limit coal.

In recent years, we have implemented the decisions and plans of the CPC Central Committee and The State Council, and promoted the development of an energy production, supply, storage and marketing system, thus steadily increasing our capacity to ensure energy supply. China’s energy supply is guaranteed this winter and next spring. We have the resources, the conditions and the ability to ensure people’s warm winter.
Q: Northeast China is the top priority in ensuring energy supply in winter, attracting high public attention. What targeted measures will be taken to ensure energy supply?

Answer: The weather in Northeast China is cold and the heating season is long. Residents have high requirements for heating and the society pays high attention to it. Therefore, it is a great responsibility and crucial to ensure the energy supply in winter in Northeast China. The National Development and Reform Commission will work with relevant departments to strengthen coordination, tilt resources to northeast China, and make every effort to ensure the smooth operation of energy in northeast China.

First, we will increase the effective output of power generation in northeast China. Organize the central power generation enterprises to make reasonable arrangements for unit maintenance in combination with heating arrangements during heating periods, improve the start-up level of coal power units on the premise of ensuring safety, and effectively enhance the power supply capacity. We will improve the mode of electric power operation, strengthen coordination among provinces in northeast China, and make reasonable adjustments to the distribution of electricity from northeast China.

Second, we will ensure adequate supply of coal for power generation and heating in northeast China. On the basis of the annual coal medium – and long-term contracts already signed, a number of medium – and long-term contracts have been signed by enterprises engaged in production, transportation and demand, so as to realize the full coverage of medium – and long-term coal contracts for power generation and heat supply in the three northeastern provinces, and the coal resources for power generation and heat supply in the heating season have been secured. At the same time, a group of coal mines with good conditions in Shanxi, Shaanxi and Mongolia will be selected as key emergency coal mines in winter to release production capacity in the peak period of coal use, and focus on protecting northeast China. We will guide power generation and heating enterprises to increase the purchase of imported coal, lock resources and prices in advance, and advance as early as possible.

Third, we will improve the orderly management of electricity consumption in northeast China. We will guide Northeast China to further improve the current orderly electricity consumption plan to ensure that electricity consumption in areas related to people’s livelihood, such as agriculture, will not be affected. The joint working mechanism of competent government departments at all levels and power grid enterprises has been established to strictly inform users in advance, encourage and guide users to take the initiative to shift peak power consumption in the orderly implementation of electricity consumption, and firmly adhere to the principle of “power rationing does not pull the switch” and “power rationing does not limit civilian use” to ensure the smooth operation of electricity.
Q: In this year’s peak-peak winter energy supply, how will we meet people’s energy needs and ensure their safety and warmth during the winter?

A: General Secretary Xi Jinping always cares about the well-being of the people. He has made important instructions and instructions on many occasions to meet people’s energy needs and ensure their safety and warmth in winter. Premier Li Keqiang and other leading officials have made important instructions and work plans on ensuring the use of energy for people’s wellbeing. The National Development and Reform Commission, in collaboration with local governments, relevant departments and enterprises, adheres to a people-centered development philosophy and has always given top priority to ensuring the use of energy to ensure people’s wellbeing.

First, the use of energy for people’s wellbeing will be fully guaranteed in terms of resources. People’s energy consumption accounts for only a small proportion of China’s total supply. Household electricity accounts for less than 20 percent of China’s total electricity consumption, and natural gas accounts for less than 50 percent of China’s total natural gas consumption. In order to ensure people’s livelihood energy supply, a very important measure is to implement full contract coverage of people’s livelihood energy. To this end, it has organized coal enterprises and power generation enterprises to sign the power coal long term agreement, realizing the full coverage of power generation and heating coal. At the same time, organize gas supply enterprises to sign gas supply contracts with local governments, covering all the gas contracts for people’s livelihood. All localities are required to include gas-fired buses and taxis in the scope of people’s natural gas consumption.

Second, we will ensure that energy consumption for people’s wellbeing remains stable in strict accordance with the price policy. China has a clear price policy for electricity and gas for people’s livelihood. Government pricing will be implemented for household electricity consumption. The system of base gate price plus reasonable floating price for household gas consumption shall be implemented. In the context of the current surge in international energy prices, relevant parties have well implemented these policy requirements. Prices for electricity and gas will be kept basically stable in strict accordance with price policies.
Third, we will effectively improve the responsibility mechanism and technical conditions for ensuring people’s livelihood with energy. In recent years, with the continuous improvement of people’s living standards, the demand for heating, electricity and gas in winter peak season keeps rising, which increases the difficulty of peak regulation and supply protection. In some periods of time, we must give top priority to people’s wellbeing and strike a balance between ensuring people’s wellbeing and energy use in some industrial and commercial production. To this end, we have organized local governments and coal, electricity and natural gas supply enterprises to establish lists of users who can be interrupted from peak load adjustment, and formulated plans to reduce peak load adjustment. When necessary, we will implement measures to reduce non-peak load adjustment in a scientific and orderly manner, so as to meet the bottom line of people’s energy consumption and minimize its impact on economic and social development.

It is the common responsibility of people’s governments at all levels and relevant enterprises to ensure the energy needs of people’s livelihood. Local governments must fulfill their main responsibility for ensuring people’s livelihood and energy supply enterprises must fulfill their responsibility for ensuring people’s livelihood. As long as relevant parties earnestly fulfill their responsibilities and work together to put all measures in place, they will be able to meet people’s energy needs and ensure their safety and warmth in winter.
Q: What is the power supply and demand situation during peak winter? What next steps will be taken to ensure power supply during peak-peak winter?

A: This winter, under the influence of stable economic growth, rapid increase in heating power consumption and other factors, it is expected that the country’s maximum electricity load will gradually climb, and may exceed the peak of this summer and last winter. The National Development and Reform Commission will work with relevant parties to increase power supply guarantee capacity, strengthen coordination and dispatching of operation, and ensure reliable power supply. The national total installed this winter will reach about 2.4 billion kilowatts, year-on-year increase of about 200 million kilowatts, effective peak load will be increased by more than 60 million kilowatts, peak capacity can be more than 1.2 billion kw, the largest capacity to guarantee the highest electric load demand, we have the confidence to have the ability to do the winter electricity for.

First, ensure coal and gas for power generation. We will strengthen the study and assessment of the supply and demand situation, tighten the responsibility of local governments and enterprises for ensuring supply and demand, work out a plan for ensuring supply and demand of coal and gas for electricity in winter in advance, ensure adequate reserves of coal and natural gas before winter, and ensure adequate supply of coal and gas for power generation.

Second, we will strengthen capacity building for ensuring power supply. We will accelerate the development of major power grid projects, ensure the full capacity of coal and gas power generating units, promote the full development of multiple sources of clean energy, and increase the power supply capacity through multiple channels.

Third, the cost of power generation should be reasonably channelled according to price policies. We will guide local governments to effectively organize electricity market transactions, strictly implement the market-based pricing mechanism of “base price + fluctuation” for coal-fired power generation, and allow more electricity to be traded on the market. We will not improperly intervene in the normal fluctuation of market prices within a reasonable range, and let prices reasonably reflect changes in electricity supply and demand and cost.

Fourth, we will formulate and implement plans for orderly use of electricity. Do “three must adhere to”. We must ensure that non-government sectors protect the people, and strictly ensure people’s wellbeing and electricity consumption for important users. It is necessary to adhere to the principle of “users informed and contract agreed”, ensure that enterprises fully understand the scale of interruptible load and implementation conditions, and organize power supply enterprises, users and competent government departments to sign contracts or agreements. We must adhere to the principle of “power rationing, not power rationing”, scientifically arrange and orderly use of electricity, strictly implement orderly use of electricity, and strictly prohibit power rationing.
Q: What is the supply and demand situation of coal in the heating season this winter and next spring? What measures will be taken to ensure a stable supply of coal?

A: Coal is still the main energy source in China and plays an important role in the country’s energy supply. In recent years, China has continued to promote the construction of a coal production, supply, storage and marketing system, and its coal production, supply and emergency support capacity has been greatly improved. Since the beginning of this year, China’s coal consumption has increased more than expected, resulting in tight supply and demand, due to continued economic recovery and rising prices of major energy and raw materials. Coal consumption will continue to grow this winter and next spring, and coal supply is assured by further increasing production, increasing imports, and tapping reserve resources and social stocks.

According to the decision and deployment of the CPC Central Committee and The State Council, the National Development and Reform Commission has always taken the coal supply of heating season as an important livelihood work, and made every effort to take powerful and effective measures in conjunction with relevant parties to ensure the safe and stable supply of coal. First, make every effort to increase production and supply on the premise of ensuring safety. We will guide major coal producing areas and key enterprises to formulate production plans in a scientific way and release advanced production capacity in a safe and effective manner. Second, we will further increase and put into operation quality production capacity. We will support coal mines with qualified high-quality production capacity to release advanced production capacity. Third, we will moderately increase coal imports. We will support enterprises in making good use of international resources, maintaining an appropriate level of imports, and effectively replenishing domestic supply. Fourth, we will focus on improving coal storage. We will support local governments and enterprises in building up their coal reserve capacity, prepare a certain amount of emergency reserve resources, and focus on increasing coal storage in power plants. Fifth, we will focus on ensuring the demand for coal for power generation and heating. We will give full play to the role of medium – and long-term coal contracts as the “anchor stone” and, on the basis of annual medium – and long-term coal contracts, encourage enterprises producing, transporting and requiring coal to sign supplementary contracts. We will promote full coverage of medium – and long-term coal contracts for power generation and heating, and strengthen oversight over the implementation of such contracts to ensure a stable supply and price of coal used for people’s livelihood, including power generation and heating. Sixth, we will standardize market operation. We will work with relevant departments to strengthen market supervision, severely investigate and punish price gouging and other violations, and stabilize social expectations.

In general, through a series of powerful and effective measures, the demand for coal in the heating season this winter and next spring is guaranteed, and the supply level of coal can ensure people’s warm winter.
Q: International natural gas prices continue to rise recently. What is the impact of this on China’s guarantee of winter natural gas supply? How to better guarantee the demand of heating gas for people’s livelihood?

A: International natural gas prices have continued to rise this year. China is a big importer of natural gas, and the rise in international gas prices will objectively raise the cost of importing natural gas. In the past few years, following the direction specified by General Secretary Xi Jinping, we have steadily promoted the development of a natural gas production, supply, storage and marketing system, vigorously promoted domestic storage and production, strengthened overall coordination of imports, and accelerated the improvement of natural gas storage capacity. On the whole, the impact of rising international gas prices on China is under control. In particular, China has implemented benchmark gate price management for residential gas consumption, and the impact of rising international gas price on residential life and other livelihood gas consumption can be controlled to the minimum. In view of the international and domestic natural gas market situation this winter and next spring, we, together with relevant departments and enterprises, will take early measures to ensure a safe and stable supply of natural gas and ensure the safety and warmth of the people in winter.

First, there is a significant increase in air supply in winter. We organized upstream gas supply enterprises to boost domestic storage and production. In the first eight months, domestic natural gas production reached 136.1 billion cubic meters, up 10.8% year on year. We will continue to maintain safe and high-load production during the heating season. Guide enterprises to arrange the purchase of spot LNG resources as soon as possible to maintain the stability of pipeline gas imports. So far, we have locked up 174.4 billion cubic meters of natural gas supply for this winter. We have the confidence to ensure natural gas supply for this winter.

Second, full coverage of medium – and long-term contracts has been achieved. The upstream gas supply enterprises were organized to sign annual and heating season contracts with all localities, and the contract quantities signed by most provinces, autonomous regions and municipalities increased to a certain extent compared with the actual consumption of the previous year, laying a solid foundation for ensuring the stability of natural gas supply and demand in the peak heating season. During the heating season, we will urge all parties to ensure gas supply and use strictly in accordance with the contract and maintain the order of gas supply and use.

Third, the capacity of peak regulation and supply protection has been significantly enhanced. More than 27 billion cubic meters of gas can be stored before the start of winter this year, a further increase over last year, and more than 200 million cubic meters of gas can be stored every day during the winter peak. At the same time, a certain scale of emergency gas storage has been prepared to ensure the need for emergency peak load adjustment. With a bottom-line mentality, local governments and enterprises have been guided to update and improve the list of 300 million cubic meters of non-resident users per day that can be disrupted, and have formulated graded reduction plans to ensure that gas is readily available to meet People’s Daily needs for daily use and heating. It is necessary to implement the orderly use of gas, but also to firmly do “pressure non protection” “gas limit valve”.

Fourth, we will strengthen key guarantees for the use of natural gas for people’s livelihood. People’s livelihood gas consumption is fully covered by contract guarantees, and the responsibility for ensuring gas supply and use is fulfilled. Coordinate upstream gas supply enterprises to give preferential support to the key areas of clean heating in the north. In the winter peak season, when the supply is too tight in some areas and parts of the time, we will strengthen the dispatching in time to ensure the people’s livelihood and other key gas needs.

Post time: Oct-11-2021