Efficiency in the Energy Industry of China

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Efficiency in the Energy Industry of China

• By Shereen McCurter

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Proposed Position

• The position will be argued for the coal industry
  to be decreased in China, and sources should be
  replaced with the most efficient combination of
  other renewable and non-renewable sources of
  energy. The types of energy most efficient for
  the Chinese energy industry may not be the same
  for any other country in the world. This is all
  while keeping in mind the Chinese governments
  ultimate goal of being self-sufficient.

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The Types of Energy Discussed

• Nuclear
• Hydroelectric
• Solar and Photovoltaic
• Wind
• Natural gas
• Coal

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Background

• Rural vs. Urban Sector in China
• Third world country stance
• Resources to allocate
• Energy-intensive products
• Going from a strong exporter to a dependent
  importer.

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Coal

• 76 of Chinas energy industry
• 2nd largest consumer of coal behind the U.S.

the United States is continually criticized for
the fact that its demand for oil accounts for
almost one-quarter of world oil consumption, the
burning of coal in China by industry, households,
and other uses makes up a reported 27 percent of
world wide consumption. (Ebel 2005).
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Disadvantages of Coal

• Pollution
• -16 of the 20 most polluted cities
• -Unwashed, high-sulfur coal that spews tons of
  sulfur dioxide into the atmosphere.
• -China is years behind adopting cleaner ways
  of burning coal that are available.
• -Production of greenhouse gases.
• -Emissions produce smog and acid rain.

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Disadvantages of Coal

• High death rate among miners.
• Low chance of being self-sufficient.
• Lack of competitiveness in the market.
• Quantity takes precedence over quality.
• Operators of the coal industry do not bare the
  full costs of inefficiencies.

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Advantages of Coal

• It is inexpensive for China, because they use the
  lowest quality coal available.
• There current supply system simply works for
  them.
• The cost allows China to continue their fast
  paced growth.
• On the contrary they contribute to some of the
  toughest pollution standards.

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Nuclear Power

• There is an unclear path with regards to nuclear
  power in China.
• They currently own many different types of
  reactors from an assortment of countries.
• Sustainability vs. uncertainty for the future.

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Disadvantages of Nuclear Power

• Little chance of being independent.
• Nuclear reactors use either uranium-235 or
  plutonium-239 as their fuel, both of which must
  be mined like many other ores.
• Plant construction is expensive.
• The radioactive waste.

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Advantages of Nuclear Power

• Once the plant is constructed, the electricity
  generated is inexpensive.
• It emits zero greenhouse gasesafter facility is
  manufactured.
• Nuclear power generates the most electricity when
  considering power in, power out.

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Disadvantages of Natural Gas

• China is not well endowed with this type of
  fossil fuel. This is a large problem to China,
  because this source of energy is the most
  efficient and cleanest way to provide residential
  and commercial energy.
• Transportation costs are high.
• The type of natural gas that China is supplied
  with is coal-bed methane and this type of natural
  gas is usually more costly and less opportune to
  recover than the resources in hydrocarbon fields.
  

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Advantages of Natural Gas

• Lowest emissions, of all the fossil fuels,
  natural gas is one of the cleanest-burning fuels.
  
• High efficiency
• Low energy-intensive product

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Alternative Sources of Energy

• Solar, Wind and Hydroelectric
• China is expected to be one of the largest
  consumers of renewable energy in the future.
• Low cost to the environment.
• Low negative externalities imposed upon the
  country.

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Alternative Sources of Energy

• Omitting half of the fossil fuel usage and
  replacing that demand with renewable energy could
  continue Chinas strong growth.
• The current infrastructure is the problem.

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Disadvantages of Wind

• Is better to use as a secondary source of energy.
• Dependency of the wind as the output factor.
• Currently the most advanced wind power technology
  can only store electricity for a maximum of 108
  days on average.

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Advantages of Wind

• Wind power is one of the most advanced types of
  renewable energy behind hydroelectric.
• Sustainability, low amount of fuel required and
  very low maintenance.
• Low environmental impact.

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Disadvantages of Solar Power and Photovoltaic

• Expensive, inefficient, fragile.
• High build cost.
• High manufacturing emissions.
• Low output, better to use for small tasks.
• Demand is highest when supply is lowest.

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Advantages of Solar Power and Photovoltaic

• Potential to provide global energy in maybe as
  little as 10 years.
• Complete Self-sufficiency.
• Zero operational emissions.

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Disadvantages of Hydroelectric Power

• Should be a secondary source of energy.
• Must be restricted to areas containing high
  volumes of water.
• Can lead to the depletion of the surrounding
  soil, if too many dams are put in a small area.

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Advantages of Hydroelectric Power

• Constant generation of energy.
• Low emissions.
• Reliable source of energy.
• Low maintenance.
• A dam will provide energy for a very large time
  period.

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The Perfect Allocation for China

• Where energy conservation is maximized and
  self-sustainability is achieved.
• In the case of comparing the environment with a
  marginal cost-benefit analysis it must be stated
  that the costs to the environment are always
  going to outweigh the benefits. Perhaps a more
  appropriate demonstration of this type would
  minimize the costs relative to the externalities
  being induced by the energy industry.

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The Perfect Allocation for China

• The obstacle that China and the world most jump
  over is that this dependence upon renewable
  resources in underdeveloped and seen as a future
  plan rather than a current one.

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The Perfect Allocation for China

• Coal 10
• Hydroelectric
• Solar
• Wind
• Nuclear Power
• Natural Gas

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Why this Allocation of Resources would not be
Beneficial to China?

• The transition from fossil fuels to renewable
  energy is difficult to achieve given the current
  infrastructure.
• The current energy allocation is present, because
  of the supply available to China.

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Why this Allocation of Resources would not be
Beneficial to China?

• Most Renewable energy is far away from being able
  to provide energy as a primary source.
• Renewable energy is a large problem due to
  storage and transmission being low.

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Conclusion

• Research and development is where the money
  should be spent in Chinas energy industry.
• The research done on each source suggests that
  the strongest types of energy that China can
  maintain and improve are hydroelectric, solar,
  wind, and nuclear generated power.