The Energy Research Institute of the National Development and Reform Commission in China is collaborating with DNV to improve energy efficiency in Chinese industry.
The Energy Research Institute of the National Development and Reform Commission (NDRC) is a national research organisation conducting comprehensive studies on China’s energy issues. Mr Dai Yande is Deputy Director-General of the Energy Research Institute (ERI). According to him, China’s energy demand has changed dramatically over the past five years.
“The growth in China’s energy consumption in the last five years is more than the energy consumption growth during the 20 years prior to this. In 2006, the consumption reached 2,460 million tonnes of coal equivalent, 14 years before the predicted date, which was 2020. China’s energy consumption is growing faster than anyone expected,” Mr Dai explains.
Manufacturing base of the world
One aspect is that urbanisation and expansion of infrastructure is speeding up. Another is that China is becoming the ’manufacturing base of the world’, exporting large quantities of goods worldwide.
“A large proportion of the goods manufactured are sold overseas. While these products may not be categorised as high energy-consuming products, their carried energy is considerable,” says Mr Dai.
The rapid growth in energy consumption is a huge challenge, and the key question is: how do you to balance energy needs with a sustainable development?
“The problem can be solved from two angles,” says Mr Dai. “Firstly, from the supply-side we should develop high efficiency, clean, low-carbon or non-carbon renewable energy sources, so that the economy is less dependent on fossil energy. Secondly, from the consumer-side we should increase energy efficiency.”
China is moving to contribute now
In 2006, the Chinese government set restrictive indicators along with growth targets: in the five years leading up to 2010, energy consumption per unit GDP (Gross Domestic Product) is to be reduced by 20% compared to 2005, and pollutants are to be reduced by 10%.
“This is a sign that the Chinese government’s understanding of development has changed. Reducing energy consumption by 20% in five years is not only crucial to China’s sustainable economic growth, but also important for environmental protection reasons,” says Mr Dai.
According to the Tokyo Protocol, China as a developing country is not required to reduce its greenhouse gas emissions until 2012. However, the decision by the Chinese government to reduce energy consumption will contribute greatly to reducing global emissions.
As a response, the Chinese National Development and Reform Commission, a governmental institution, kicked off its ‘Initiative of Energy conservation by Thousand Business Enterprises’. It covers nine high-energy consumption industry sectors; steel, non-ferrous metal, coal, electricity, petroleum & petrochemical, chemical, construction, textile, and pulp&paper.
“Energy conversion and energy efficiency are two of the key energy management areas,” says Mr Dai.
Currently, Chinese business lacks adequate management skills to achieve energy efficiency. Specifically, there is a lack of advanced energy accounting methods and energy management professionals.
“As a result, our cooperation with DNV on energy management system and auditing standards will have a great impact,” claims Mr Dai.
In December 2006, the Energy Research Institute signed a framework agreement with DNV on development of an international energy management system standard and the application of audit methods in China. According to the agreement, the two parties will draw on best-practice energy auditing methods and energy management systems. Together, they will develop measurement and verification systems that are applicable to China’s energy consumption status. DNV will also develop a management system as well as a training standard and a certification scheme for qualified personnel. International energy management certification will be promoted through pilot projects.
Three angled solution
“The goal of reducing business energy consumption by 20% should be approached from three angles,” says Mr Dai. “Firstly, management professionals should be developed; secondly, energy management system and accounting methods should be improved; and thirdly, standards must be set and a mechanism must be built in the long run to encourage voluntary energy conservation efforts among business enterprises.”
He is optimistic about the agreement with DNV.
“This is a collaboration between two strong partners, and it will have a great impact on China’s efforts to achieve energy efficiency, build international energy auditing methods, and improve energy management skills,” concludes Mr Dai.