draft Energy Law accords priority to renewable energy

context: The Energy Law is the nation's first governing the energy sector. It has been 13 years since the first draft. The absence of such a fundamental law has long impeded reforms;  the roll-out of many overarching and strategic decisions has depended heavily on inter-departmental coordination.


National Energy Administration issued draft Energy Law on 10 Apr 2020. It stipulates

  • energy exploration and development should be consistent with ecological civilisation
  • reforming energy consumption, supply, technology and institutions; strengthening international cooperation
  • setting up a low-carbon, safe and efficient energy system
  • optimsing energy industry and consumption structures
    • increasing the share of non-fossil sources: prioritising renewable energy; developing nuclear in a safe and efficient manner
      • monitoring the share of non-fossil fuel energy annually
      • dividing the national renewable target into provincial ones, the implementation of which will be assessed annually
      • setting up renewable energy generation and consumption guarantee mechanisms
      • releasing fiscal, financial and price support measures
      • ensuring priority grid access for renewable energy
    • promoting reasonable development of fossil fuel energy
      • promoting clean and efficient coal development and use
      • speeding up offshore oil and gas development; encouraging unconventional oil and gas
    • developing distributed energy based on local conditions
    • replacing fossil with non-fossil fuel energy, high-carbon with low-carbon
  • strengthening energy security via
    • improving energy reserves and peak-shaving facilities
    • enhancing supply and emergency response capacity
    • boosting cyber and information security
  • ensuring fair access to grids and oil and gas pipelines
  • implementing demand-side management
  • priortising renewable energy and conservation products in government procurement
  • building market structures and institutions conducive to competition; forming market-based pricing institutions in competitive areas
  • promoting energy conservation and efficient development and use
  • strengthening climate mitigation and response capacity building in energy industry
  • energy planning consists of overarching sectoral and regional plans
    • overarching plans should be drafted by NEA and reviewed by NDRC
  • revamping energy taxes to encourage conservation, reasonable development and the growth of non-fossil sources
  • promoting technological innovation
    • in key areas including
      • resource exploration and development, processing, transportation, clean and integrated use
      • conservation and pollution reduction
    • supporting innovation platforms
  • encouraging international collaboration
    • importing clean and high-quality energy, advanced technology
    • strengthening supervision of import and export of fossil fuels and energy-intensive products
  • obligations