Page 6 - AsiaElec Week 24 2022
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AsiaElec                                           COAL                                              AsiaElec





       China sending mixed





       signals on coal use














        CHINA            JUST months after Chinese authorities imposed  decade China will start to limit coal output by
                         steep penalties on illegal coal mines in the north-  adding; “Before the gate closes, the industry
                         ern province of Shanxi, the first few weeks of  is pushing through as many coal projects as
                         2022 saw Beijing give the green light to 7.3 GW  possible.”
                         of new coal-fired power plants (CPPs) across the   In the short term, Yu says “(W)hen people dig
                         country.                             up coal from the ground, it’s like they are dig-
                           Coming at a cost of $1.5bn, construction of  ging up money. This is very appealing to people.”
                         the new CPPs, however, runs somewhat counter   The appeal of coal and quick-fix moves to
                         to a number of pledges made by Chinese Presi-  boost an economy temporarily running in sec-
                         dent Xi Jinping to the United Nations; one being  ond gear following a resurgence of COVID is
                         that Beijing would stop funding overseas coal  not expected to last, though.
                         projects.                             Beneath the surface contradictions, and
                           Yet with China starting to emerge from one  apparent return to carbon-based energy solu-
                         of its most extreme COVID-related lockdowns  tions, China’s environmental planners remain
                         since the pandemic began, the demand for coal  upbeat – and with influence.
                         has never been higher.                Following an initial boost when Xi spoke in
                           As such, so perplexing are the messages  front of the world at the UN in 2020, high-rank-
                         emerging from China on coal use, that the gov-  ing officials behind the scenes have in the last
                         ernment is now heavily reliant on the same firm  year gone head to head with with the National
                         it punished in late 2021, Jinneng Holding Shanxi  Energy Administration (NEA).
                         Coal, to run fuel to new CPPs in the north of   At the local level, at least in the area surround-
                         the country.                         ing the nation’s capital, a “deteriorated political
                           So powerful is Jinneng Holding now in China  ecology” supported by the NEA led the local
                         that it is now understood to be the nation’s sec-  government to reduce coal sourced output
                         ond-largest producer of coal.        around the city in a move that shocked many
                           One senior researcher at Global Energy Mon-  in spring 2021.
                         itor in Switzerland, Yu Aiqun, called this an   Nature intervened when a series of heat waves
                         indication that “government departments have  over the summer and bitterly cold temperatures
                         different and sometimes conflicting agendas.”  over the winter saw a spike in electricity demand
                           Given that just two years ago, President Xi  and officials again turning to coal-fired output.
                         announced to the world that China would be   Undeterred, the government’s Ministry of
                         carbon neutral by 2060, and promised imme-  Ecology and Environment kept up the pres-
                         diate steps to this end, the statement by Ms. Yu  sure on carbon-based electricity generators. In
                         is regarded as something of an understatement.  March four companies were openly slammed
                           And with major cities including the finan-  for faking data on carbon emissions; a crucial
                         cial hub Shanghai now beginning to open up  move many observers see as indicative of a gov-
                         post-lockdown, economic growth is in many  ernment unafraid to go back to the old ways, but
                         areas trumping climate action.       wanting to appear to be doing the right thing in
                           “The coal industry was waiting for an oppor-  the eyes of the wider world.
                         tunity to ramp up coal production and mining,”   And as Yu Aiqun concluded, “the only pres-
                         Ms. Yu continued, alluding to a promise by the  sure that will work (in China) is from the top
                         Chinese president that from the middle of the  down.”™











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