To fight smog, slow growth, China seeks clean energy sources

SHANGHAI — China will soon start construction on a series of major energy projects, including nuclear and hydropower plants, said Premier Li Keqiang on Sunday, reinforcing the country’s commitment to look for alternative sources of energy as policymakers grapple with improving the nation’s air and water supplies.

China should, “in a timely manner”, launch important nuclear-powerprojects along the east coast that employ the highest international safety standards, while building new hydropower plants and protecting the environment, said Mr Li at a meeting of the national energy committee, as quoted by the government’s main information website (http://gov.cn).

“We will soon start construction on a number of large projects,” he said, according to comments posted on the website.

It was unclear whether Mr Li was talking about kick-starting projects already in the pipeline, or was announcing new initiatives designed to promote economic activity.

China — the world’s largest carbon emitter — is planning the projects to stabilise growth and adjust its energy structure after Mr Li declared war on smog last month, vowing to shut coal-fired furnaces among other measures.

Beijing is fighting to contain the environmental fallout from 30 years of unchecked growth. Air pollution has become a major concern across China and Mr Li said the country would try to boost the development of electric cars and upgrade coal-burning power plants that failed to meet emission-reduction requirements.

Of 74 Chinese cities monitored by the central government, 71 failed to meet air-quality standards, said the environment ministry last month. Beijing’s air quality failed to meet government standards 52 per cent of the time last year, said the Ministry of Environmental Protection last month.

Mainland China has 20 nuclear reactors in operation, 28 being built and more about to start construction, which will deliver a more than threefold increase in capacity by 2020, said the World Nuclear Association’s website.

New approvals for nuclear plants recommenced in October 2012, after their suspension following the 2011 Fukushima disaster in Japan.

The government would start construction on ultra-high-voltage power lines to transport power from western regions to the power-hungry east coast, while accelerating the development of unconventional energy resources, including shale gas, shale oil and coal-bed methane, said Mr Li in the statement.

China will begin building ultra-high-voltage and regular grids to deliver power from the country’s west to the east, added Mr Li, underscoring a previous plan. The country will also promote clean-energy vehicles.

Electric power system reform will be sped up and trade between power suppliers and users will be promoted, said the statement.

The comments made by Mr Li highlight the government’s infrastructure development that can help bolster China’s slowing economy.

The energy-related projects “will be important measures to stabilise growth and improve energy-security capabilities, and an effective starting point for the adjustment of the energy structure and changing the mode of development”, said Mr Li.

Investors have long steeled themselves for growth to slow as China’s economy matures, especially as the government tries to steer it away from investment- and export-driven growth and towards consumption-led activity.

The authorities have resisted broad stimulus measures but, earlier this month, announced tax breaks for small firms and plans to speed up some infrastructure spending, including the building of rail lines. Agencies