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2 Energy mix readjustment programme
2 Energy mix readjustment programme  

In this plan, the base year is 2000 and the target planned period is 2001-2008.

2.1 Reducing coal use and switch to clean energy
In Beijing the coal consumption was 27.03 million tons in 2000, while the coal demand in 2008 is projected as 31.60 million tons under the business-as-usual(BAU) scenario. While under the coal reduction and switch programme, the coal consumption in 2008 will be reduced to 14.75 million tons, which can be broken down as follows.

·Coal used for power generation
In 2000, 7.09 million tons of coal was consumed for power generation in Beijing, and additional 0.5 million tons of coal will be used in Gaobeidian Co-generation Plant and Beijing First Co-generation Plant after the technical renovation and expansion is completed. On the other hand, Gaojing Power Plant is planning to reduce 1.60 million tons of coal use by fuel switching. Thus the total coal use for power generation will be reduced to about 6.10 million tons in 2008.

· Coal used for urban heating
In Beijing the coal used for urban heating was 1.71 million tons in 2000, which will turn out to be 2.40 million tons through 2008, considering that heating demand still have to be met by full scale operation of installed capacity of the urban coal-fired co-generation plants. So no cut is planned for this use.

· Coal used for coking and gasification The amount of coal consumed for these purpose was 5.50 million tons in 2000 in Beijing, and will be reduced to 1.30 million ton in 2008, since the Beijing Coking and Chemistry Plant will stop coke production or shift to other of production before 2008, and No.2, No.4 and No.5 coke ovens in the Capital Steel Mill also will stop production. Therefore reduction of coal use will reach 4.2 million tons.

· Coal used for final energy consumption The final coal consumption amounted at 12.78 million tons in 2000, and is predicted to come up to 15.15 million tons by 2008 on a business-as-usual (BAU) basis. The following measures are to be taken to cut the amount by 11.15 million tons, and only 4.00 million tons will be remained in the outer suburbs.
* Switch to natural gas: a sum of 6.10 million tons of coal will be substituted by natural gas, of which 0.50 million tons for cooking, the other 5.6 million tons for space heating and industrial use.
* Switch to electricity: electric space heating will be developed to 20 million square meters, including 12 million square meters of one-storey buildings in aged urban area, resulting in 1.32 million tons of coal switch to 4000 GWh of electricity.
* Switch to geothermal energy and water source heat pumps for space heating: an area of 10 million square meters will be heated in these ways reducing coal use by 0.34 million ton.
* Switch to heating power from urban heating network: the centralized heating supply will be expanded by 55 million square meters cutting coal use by 0.47 million tons.
* Switch to LPG and light diesel: 2.92 million tons of coal will be switch to 1.15 million tons of LPG and light diesel in final energy consumption.

Coal consumption of 2008 in Beijing:BAU and coal substitution
year 2000 2008 2008
  Actual consumption Demand under BAU Demand after coal substiution
Total consumption 2703 3160 1475
1、Fuel coal in urban area 1745 1915 850
Power generating 709 760 610
Heating 171 240 240
Final consumption,in which 865 915 0
Cooking (including one-story of buildings) 50 50 0
Industrial use 240 255 0
Centralized boilders 145 160 0
Distributed space heating(including small stoves for space heating) 410 450 0
2、Coal used as raw material,in which 549 645 225
Coking and gasification   550 130
Anthracite coal for blast furnace injection   95 95
3、Coal use outside the urban area 429 600 400
Note:Coal substituted by following clean and efficient energy: unit   coal substitution
1、Natural gas   26.4 610
2、Electricity GWh 40 132
3、Urban heating power     47
4、Geothermal energy     34
5、LPG and light diesel   115 292
Note:Coal reduction by following measures:      
Shut down in Beijing Coking and Chemistry Plant and coke ovens of Capital Steel Mill     420
Switch from coal to natural gas in Gaojing Power Plant     150
Note:Anthracite coal for blast furnace injection was listed in industrial end use in 1998, while being included in coal use as raw material for 2005 and 2010.

2.2 Expected energy mix in 2008 in Beijing
By 2008, the share of clean and efficient energy in Beijing's energy mix will amount for 86% in the final energy consumption, as described in details as follows:
Natural gas supply will be 5 billion cubic meters, equivalent to 6.07 million tce, of which 3.8 billion cubic meters will be consumed in final sectors, equivalent to, 3.74 million tce, taking 7.7% in the final energy consumption;
Electricity consumption will be 62000 GWh, equivalent to 18.60 million tce, including 4000 GWh used for space heating, taking 44.8% of the final energy consumption;
Urban centralized space heating area will increase 55 million square meters, and total will reach 0.1 billion square meters;
energy supply for space heating is 2.70 million tce, taking 6.5% of the final energy consumption;
LPG and light diesel will be 1.15 million tons, equal to 1.64 million tce, taking 4.0% of the final energy consumption, and;
No coal as fuel directly for final energy consumption will exist in urban area, while it will be reduced by 1/3 in outer suburbs (4 million tons remained).

Mix of the final energy mix in 2008 in Beijing
    2000 2008
项目 unit Physical amount tce Share(%) Physical amount tce Share(%)
Total final energy demand forecasted     3708 100%   4201 100%
1、Electricity (including electric space heating) 100GWh 364 1201 32.4% 620 1860 44.3%
In which: generation by 6.15×106t of coal 100GWh       147    
Generation by 0.30×106t of oil 100GWh       15    
Generation by 2.1×108 m3 of natural gas 100GWh       115    
Imports 100GWh       343    
2、Heating power     185 5.0%   270 6.4%
3、Liquid energy (excluding light diesel as substitute of coal)     735 19.8%   850 20.2%
4、Natural gas   10.5 95 2.6% 50 607  
Used for power generation         21    
Used for heating         4.2    
Used by vehicles         1.4 17 0.4%
Used to replace artificial coal gas         3 36 0.9%
End use to replace coal and heavy oil   10.5 95 2.6% 26.4 321 7.6%
5、LPG (excluding that to replace coal)   30.2 48 1.3% 30 50 1.2%
6、Artificial coal gas   17.8 87 2.4%   25 0.6%
7、Refinery gas   18.1 26 0.7%   26 0.6%
8、LPG and light diesel to replace coal         115 164 3.9%
9、Coke and anthracite coal for blast furnace injection     497 13.4% 305 268 6.4%
10、Final coal consumption     834 22.5% 400 314 7.4%
Note:The total supply of natural gas is 5 billion cubic meters, excluding that delivered to Yanshan Petrochemistry Co. But final consumption of natural gas should reflect the substitution of heavy oil in end use by natural gas. Final consumption of natural gas (2.64 billion cubic meters about) excludes that consumed by power generators, heating supply, vehicles, etc. Natural gas used by vehicles is the replacement of oil, while the other use of natural gas is inputs in energy conversion.

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