Page 17 - AsiaElec Annual Review 2021
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planner, announced on June 11 that solar and of the country’s gas storage and transportation
wind power would enjoy price parity with coal- capacity. This has led to shortfalls in supply, with
based grid supplies. The commission pointed industrial consumption sacrificed in colder
to industrial breakthroughs and plummeting weather to ensure homes do not freeze.
development costs as having allowed solar and While gas demand is expected to continue
wind power installations to achieve fundamen- growing until 2035, the country’s longer-term
tal conditions of grid price parity. energy outlook will more heavily depend on
The National Energy Administration (NEA) renewable energy solutions. Moreover, it is pos-
has set a target for solar and wind power output sible that as this transition gains steam – and
to account for 11% of total power consumption the energy security advantages of greater green
this year, up from 9.5% in 2020. energy consumption become readily apparent
to both government and industry – that Beijing
What next may set even more ambitions targets in its quest
The central government has pushed coal-to-gas to reduce its fossil fuel consumption.
conversion for years, first by striving to improve The risk of such a political shift will likely
urban air quality and then as part of Beijing’s come to weigh on investment decisions in new
wider carbon emission goals. regional liquefied natural gas (LNG) capacity,
That push has seen the conversion millions given expansion plans in the Middle East, North
of coal boilers often outpace the development America and Africa.
Annual Review•2021 www. NEWSBASE .com P17
