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China’s Energy System Revolution by 2030:Connotations and Strategic Objectives
2002-05-13
By Guo Jiaofeng, Gao Shiji, Hong Tao, Wu Xu & Cai Shenghua, Institute of Resources and Environmental Policy Research of DRC
Viewing from the general trend of world energy development and the requirement for comprehensively deepening reforms in China, current energy system couldn’t meet the demand of energy revolution, and neither could it satisfy the need for developing China’s socialist marketing economy. Current contradictions and in-depth problems to be addressed focus on the following five aspects. 1.The construction of energy market system is moving too slow.2.The energy pricing mechanism is incomplete.3.The government administration exceeds its power in some fields and misplaces its position in some others.4.The government supervision on energy development is not in place.5.The legal system on energy is imperfect. With regard to the goal of energy structure adjustmentto be fulfilled by 2030, new situations and changes both at home and abroad have made energy system reform more urgent.
The core of energy system reform is to properly handle the relations between government and market, clarify the boundary between government’s and market’s role in energy industry, cut down government’s random intervention on the market and enhance government’s law-based supervision. While relying on the market to determine the allocation of resources,we should bring the role of the government into full play so as to offer some powerful institutional guarantee for energy restructuring and the establishment of a modern energy system that is clean, low carbon, safe and highly efficient. Energy reform must take into consideration factors like independent management of enterprises, fair competition, consumers’ freechoice, autonomous consumption decisions, free flow of commodities and elements and equal exchange. Our goal is to build a modern energy marketing system that is highly effective and competitive through subversive innovation.
The 18th National Congress, and the 3rd, 4th and 5th Plenary Sessions of the 18th CPC Central Committee and a series of important speeches made by President Xi Jinping have proposed the guidinglines for China’s energy reform. The fundamental principles are: adhere to market orientation, adhere to market admittance standard, adhere to energy security and adhere to benefiting the people. The strategic objectives are: improve market system, perfect pricing mechanism, standardize government administration,beef up effective market supervision and improve legalsystem. The major tasks by 2030 are: establish a modern energy marketing system. rebuild a price-based energy market mechanism, create an efficient energy management system, create an effective energy supervision system and create a modern energy legal system.
