Recently, The State Council issued the 2024-2025 Energy Conservation and carbon Reduction Action Plan (hereinafter referred to as the Action Plan), which deployed 27 tasks in 10 areas in key areas such as energy, steel industry, petrochemical and chemical industry, non-ferrous metal industry, building materials industry, construction, transportation, public institutions, energy products and equipment. At the same time, it has clarified six measures, including institutional standards, price policies, financial support, scientific and technological guidance, market-oriented mechanism, and national action, to provide support for energy conservation and carbon reduction.
The "action plan" proposes to increase the development of non-fossil energy. Accelerate the construction of large-scale wind power photovoltaic bases focusing on deserts, Gobi and deserts. Develop offshore wind power in a reasonable and orderly manner, promote the large-scale development and utilization of ocean energy, and promote the development and utilization of distributed new energy sources. We will build large hydropower bases in an orderly manner, actively develop nuclear power in a safe and orderly manner, develop biomass energy in accordance with local conditions, and promote hydrogen energy development in a coordinated manner. By the end of 2025, the proportion of non-fossil energy generation in China will reach about 39%. We will vigorously promote non-fossil energy consumption. Scientifically and reasonably determine the scale of new energy development, under the premise of ensuring economy, the utilization rate of new energy in areas with good resource conditions can be reduced to 90%. Strengthen the connection between renewable energy green power certificate trading and energy conservation and carbon reduction policies, and achieve full coverage of green certificate issuance by the end of 2024.
The "action plan" proposes to strengthen the control of steel production capacity. Strictly implement the replacement of steel production capacity, prohibit new steel production capacity in the name of machining, casting, ferroalloy, etc., and strictly prevent the resurgence of "strip steel" production capacity. Thoroughly adjust the structure of steel products. We will vigorously develop high-end steel products such as high-performance special steel, and strictly control the export of low-value-added basic raw materials. Implement the integrated layout of steel, coking and sintering, and greatly reduce the independent coking, sintering and hot rolling enterprises and processes. We will accelerate energy conservation and carbon reduction in the steel industry. Promote the comprehensive utilization of blast furnace top gas, coke oven gas waste heat, and low-grade waste heat, and promote the process connection technology such as one can of hot metal to the bottom, hot charging and hot sending of casting billet. We will strengthen demonstration and application of low-carbon smelting technologies such as hydrogen metallurgy.
The "action Plan" proposes to optimize the layout of non-ferrous metal production capacity. We will strictly implement the replacement of electrolytic aluminum production capacity, strictly control new smelting capacity such as copper and alumina, and rationally allocate new production capacity in silicon, lithium, and magnesium industries. Vigorously develop the recycled metal industry. By the end of 2025, the proportion of recycled metal supply will reach more than 24%, and the proportion of aluminum water direct alloying will increase to more than 90%. Access to non-ferrous metal projects will be strictly increased. The new construction and expansion of electrolytic aluminum projects must meet the energy efficiency benchmark level and environmental performance level A, and the energy efficiency of new construction and expansion of alumina projects must meet the mandatory energy consumption quota standard advanced value. The energy efficiency of the new polycrystalline silicon and lithium battery positive and negative projects must reach the advanced level of the industry.
Jing Chuan, chief economist of East Asia Futures, believes that the "action plan" issued by The State Council aims to increase the proportion of non-fossil energy, so as to achieve the goal of energy conservation and emission reduction. The increase in the proportion of non-fossil energy will bring opportunities for the development of the photovoltaic industry as well as hydropower and wind power industries, and will also promote the optimization of power, transmission and transformation, and the entire grid structure layout.