China’s power industry is currently experiencing a window of opportunity for transition, and new power infrastructure development with an annual 7.4 percent growth rate of installed non-fossil energy capacity during the next five years will deliver a more preferable transition to a carbon-neutral power system, according to a report by North China Electric Power University released on Wednesday.
China has made clear it will increase its Nationally Determined Contribution (NDC) and adopt more ambitious policies and measures to peak CO2 emissions before 2030 and strive to achieve carbon neutrality by 2060.
Three development paths are simulated in the report using planning models: Traditional Power Infrastructure Planning Scenario (TPS), New Power Infrastructure Planning Scenario (NPS), and Power Climate Planning Scenario (CPS), and it concluded that the NPS with an annual 7.4 percent growth rate of installed non- fossil energy capacity during the 14th Five-Year Plan period can achieve the transition to a carbon-neutral power system more economically.
NPS aligns with the requirements of energy transition, green development and a cleaner, low-carbon, efficient, and intelligent energy system, which fills the gaps and remedies the shortcomings in underdeveloped regions, and upgrades and optimizes traditional utilities, the report said.
Under the scenario, private enterprises with a higher market share can fully drive and guide private investment into the power industry, creating corresponding employment opportunities. Meanwhile, green jobs created by the rapid development of the new energy industry have huge growth potential, it said.
The report is part of a research on China’s coal control by nonprofit environmental protection organization the Natural Resources Defense Council.