The Chinese government is capable of supplying the country with sufficient energy despite serious challenges as it will step up domestic energy production capacity and boost reserves to keep prices under control, state planning officials said on Monday.
Energy and global commodities prices have soared to decade-high levels amid fears of supply disruption in the wake of Russia’s invasion to Ukraine.
“Geopolitical conflicts and the changes of global energy supply and demand have challenged our safe energy supply,” Lian Weiliang, a vice director of the National Development and Reform Commission, said on the sidelines of the country’s parliament meeting.
“But we are confident we can secure the supply of energy in China,” Lian said.
The state planning body plans to boost output and reserves of oil, gas as well as coal, which powers more than 60% of China’s electricity generation plants.
Lian said China will be able to maintain a reasonable level of coal output. It will also build 200 million tonnes of government-deployable coal storage, add more than 5 billion cubic metres of gas storage and lift the amount of the country’s emergency back-up electricity to more than 30 gigawatts, he said.
Some 450 gigawatts (GW) of solar and wind power generation capacity are also planned in China’s Gobi and other desert regions area.
The NDRC also pledged not to limit power and gas use unless extreme situations arise – in line with Premier Li Keqiang’s vow of ensuring electricity supply to residential and industrial users this year.
It also said it would step up efforts to stabilise the output and prices of domestic grain, corn and soybeans.
“We will make rational use of international resources, strengthen reserve adjustments and maintain a balance between supply and demand,” Hu Zucai, an NDRC vice director, said.
- Reuters with additional editing by Sean OMeara
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