utilization with all factors taken into consideration.%using crop stalks, grain-processing residues and bagasse as fuels in major producing areas of grain and cotton; and carefully develop woody biomass power generation in forest-covered areas. Attention will be given to the promotion of electricity generation by means of waste incineration and landfill gas in urban areas. The country will also speed up the construction of biomass gas, including methane, supply systems in eligible regions, and build production bases of biomass molding fuel in accordance with local conditions. Efforts will also be made to develop biodiesel and industrial cellulosic ethanol. China will spread the technology of efficiently using geothermal energy on the condition that underground water is protected. It will reinforce the tracking and R&D of electricity generation technologies by using tidal energy, wave energy and hot dry rocks.
-- Promoting distributed utilization of clean energy. China will energetically develop distributed energy resources on the principle of \priority to local supply, feeding the surplus into the grid, development based on local conditions, and advancing in an orderly way.\systems (DES) for natural gas at energy load centers. It will energetically spread the technology of distributed renewable energy, especially in high energy-consumption centers, including cities and industrial parks. It will carry out distributed renewable energy construction in rural areas, forest regions and islands in accordance with local conditions. Efforts will be made to set standards for distributed energy, and improve the formation mechanism and polices for on-grid price. Hard work will be done to realize direct supply, and non-discriminatory and barrier-free connection to the grid of power generated in the distributed manner. During the 12th Five-Year Plan period, China will construct about 1,000 projects of natural gas DES, and ten distributed energy demonstration areas with various typical characteristics. V. Promoting Clean Development of Fossil Energy
Worldwide, fossil energy, including coal and oil, will continue to play a dominant role in energy supply for a long time to come. China is no exception. Therefore, China will continue to plan fossil exploitation and utilization, with environmental protection taken into account. It will speed up the construction of advanced production capacity, eliminate outdated capacity, push forward the clean development of fossil energy, protect the ecological environment and cope with climate change, so as to attain the goal of energy conservation and emission reduction.
-- Developing the coal industry in a safe and highly efficient way. China sticks to the guideline of \efficient utilization and environmental protection\in the development of the coal industry. Following the principle of \control in the eastern regions,
maintaining stability in the central regions, and promoting development in the western regions,\the Shaanbei, Huanglong and Shendong coalfields. By means of integration of coal resources, and merger and reorganization of coal mining enterprises, the country will bring into being large coal mining conglomerates. Priority will be given to the development of large open-pit and super-large coal mines. It aims to enhance overall mechanization and safe production in coal mining through upgrading and reconstruction, and elimination of outdated production capacity. Vigorous efforts will be made to develop a circular economy in the mining areas, increase the washing and dressing rate of raw coal, and rationally develop associated resources. Following the approach of energy, technology and capital-intensive development with extensive industrial chain and high added value, the country will develop demonstration projects of upgraded downstream products in an orderly way. It will encourage the construction of projects for clean production, utilization, processing and conversion of low-calorific-value coal. It will strengthen environmental protection and ecological construction in the mining areas by way of comprehensive ecological management and land reclamation in mining-subsidence and other areas affected by coal-mining operations.
-- Spurring clean and highly efficient development of thermal power. Upholding the principle of low-carbon, clean and efficient development, China actively promotes green thermal power generation. It encourages coal-electricity integration, and steadily pushes forward the construction of large coal-fired power bases. It vigorously applies advanced technologies, including supercritical and ultra-supercritical power generation, in the construction of clean, highly efficient and environment-friendly coal-fired power generating sets and energy-saving power plants. It speeds up the elimination of small thermal power units marked by high energy consumption and heavy pollution. In order to strictly control pollutant emissions from coal-fired power plants, newly built coal-fired power generating sets must install dust-removing, desulfurization and denitration facilities, and the existing plants are asked to speed up their dust removal, desulfurization and denitration upgrading. It encourages the construction of thermoelectricity co-generation units in large- and medium-sized cities and industrial parks where thermal loads are relatively concentrated. It constructs combined-cycle gas-steam peak-load units and promotes heat-electricity-cooling co-generation with natural gas as fuel in accordance with local conditions. It has imposed strict restrictions on the construction of new coal-fired power generating sets in the Bohai Rim, Yangtze River Delta and Pearl River Delta areas, except those built for the purpose of \large units and restricting small ones\and co-generation. Intensified efforts have been made to spread water-saving technology in thermal power plants. It develops the integrated gasification combined cycle power generation, and demonstration projects of carbon capture, utilization and storage.
-- Intensified efforts in prospecting and exploitation of conventional oil and gas resources. China will continue to implement the policy of \of oil and gas,\the target of stabilization in the east, acceleration in the west, development in the south and exploitation in the offshore areas. The country will steadily increase crude oil output and reserves by means of stepping up efforts in prospecting for and exploiting oil in major oil-production areas, including those in the Tarim and Ordos basins, and improving renovation for stable yields and increasing the recovery ratio in old oilfields. In its efforts to speed up the development of natural gas, the country will enhance the productivity and increase the output of natural gas in major gas fields in the central and western regions, push forward the development of offshore oil-gas fields, and gradually increase the proportion of natural gas in the primary energy structure. It will optimize the distribution of the refining industry, construct some large refining and chemical bases, and establish three major refining cluster areas in the Bohai Rim, Yangtze River Delta and Pearl River Delta, so as to realize upstream and downstream integration, refining and chemicals integration, and refining-reserve integrated management.
-- Actively promoting the development and utilization of non-conventional oil and gas resources. China's efforts to expedite the development of non-conventional oil and gas resources are an important way to enhance its security of energy supply. It will speed up the exploration and exploitation of coal-bed gas, increase the proven geological reserves, and push forward the construction of industrial bases in the Qinshui Basin and eastern edge of the Ordos Basin. In order to accelerate the development of shale gas, the country will select a group of prospective areas and favorable exploration target areas, intensify efforts to solve difficulties in core technology, set up a new development mechanism, implement incentive polices for the shale gas industry, and improve supporting facilities. China aims to increase its annual output of shale gas to 6.5 billion cu m by 2015, and lay a solid foundation for the future rapid development of shale gas. In addition, it will strengthen the development of shale oil, oil sand and other non-conventional oil and gas resources.
-- Enhancing the construction of energy storage and transportation facilities. When making a plan for the construction of energy output channels, China takes many factors into consideration, including target market, industrial restructuring, construction of plants that rely on coal, wind, nuclear energy, natural gas and pumped storage for electricity generation, imported energy resources, and bearing capacity of local water resources and the ecological environment. It will increase the cross-regional coal transport capacity through technological renovation of existing railway lines, construction of new coal-transport channels, and building of supporting piers. It will expand the scope of power transmission from western to eastern China and from northern to southern China, strengthen the building of regional power grids, improve the technology of ultra-high voltage transmission, and enhance the grids'
ability to optimize resource allocation. The country will expedite the construction of networks of crude oil, product oil and natural gas pipelines, increase the proportion of oil and gas transported by pipelines, improve regional networks of oil and gas pipelines, and build large coastal loading and unloading stations. It will strictly enforce laws and regulations concerning the protection of oil and gas pipelines to ensure their safe operation. China will balance its resource reserves, both state reserves and commercial reserves, enhance its ability to extend emergency support, and improve the reserve system of crude oil, product oil, natural gas and coal. Efforts will also be made to enhance the peak-shaving ability of natural gas, and build and improve coal peak-shaving reserves. VI. Improving Universal Energy Service
The fundamental objective of China's energy development is to guarantee and improve the livelihood of its people. China makes great efforts to equalize access to basic energy service for its entire population. It balances the energy development in both urban and rural areas, enhances energy infrastructure and improves the energy conditions in the vast rural and border areas and areas inhabited by ethnic minorities in compact communities, so that energy development can benefit all Chinese people. -- Providing universal access to electric power. In order to provide the people who have no access to electricity yet in the Tibet, Xinjiang Uygur and Inner Mongolia autonomous regions, as well as Qinghai, Yunnan and Sichuan provinces with electric power, the Chinese government increases investment to expand the coverage of the power grids and develop distributed renewable energy sources. In areas without grid connection, China establishes and completes the universal electric service system. By 2015, most of the people who at present don't have electricity in China will gain access to it.
-- Boosting energy development in rural areas. Energy development in rural areas is of great significance for the betterment of farmers' living standards and modern agricultural progress. Adhering to the principle of comprehensive and effective utilization of diverse energy sources according to local conditions, China increases financial input in energy infrastructure in rural areas and ameliorates rural energy management and services. It upgrades rural power grids to improve electric power conditions for rural life and production, and hence establish new-type rural power grids, which, backed by advanced technology and management, are safe, reliable, efficient and eco-friendly. The Chinese government will put great efforts into developing renewable energy sources in rural areas, and launch various green energy demonstration projects in accordance with local conditions. By 2015, a total of 200 green-energy counties and 1,000 villages using solar energy will be set up as examples. China rebuilds old hydropower stations in rural areas to increase their
capacity and efficiency. It accelerates the electrification of hydropower-based rural areas, and builds more small-sized hydropower stations, so as to get rid of the use of wood as fuel in some rural areas. In addition, the Chinese government promotes the use of solar water heaters around the country.
-- Enhancing energy development in border regions. Since 1978, when China launched its reform and opening-up drive, great progress has been witnessed in both the society and economy of the country's border regions. However, the energy conditions in these areas, despite great improvement that has been made, still lag far behind the eastern and central regions. The Chinese government will appropriate financial funds to improve energy infrastructure and build energy projects that have a direct bearing on the people's livelihood in the border regions, especially in Tibet and Xinjiang, to support leapfrogging development there. It will accelerate the electrical grid construction in Tibet and Xinjiang as well as the Tibetan-inhabited areas in Qinghai, Sichuan, Yunnan and Gansu provinces, enlarge the coverage of the distribution grid, and strengthen the reliability of power supply. The government will draw up and implement the \funding to Tibet for its electric power development - the direct investment during the 12th Five-Year Plan period to exceed 900 million yuan. The energy projects to improve the people' s livelihood, such as the \of Southern Xinjiang\and \Northern Xinjiang,\will be sped up. The state will press on with the project to connect Xinjiang power grid to the northwest China grid so as to form an energy channel as soon as possible to get Xinjiang' s redundant electric power transmitted to other parts of China to generate more funds for the development of Xinjiang. The government will build a group of solar power and solar-wind hybrid power plants in the farming and herding areas far from towns to improve the quality of life of the farmers and herdsmen there.
-- Improving energy conditions in urban areas. The Chinese government will upgrade the urban grids to raise the quality and reliability of power supply in urban areas. It guarantees urban power supply, especially household electricity consumption. The state accelerates natural gas development. Natural gas supply networks will be built or improved in cities so that more urban residents will gain access to natural gas. In northern cities, where the district heating system is applied, the government will develop co-generation units based on local conditions to improve the heating quality. VII. Accelerating Progress of Energy Technology
China's energy technology has developed rapidly since the country launched the reform and opening-up program in late 1978, and has played an increasingly significant role in energy conservation, emission reduction, energy structure optimization and energy security. However, China still lags behind the developed