Chinese urbanisation “complete”

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Via Xinhua:

With the process of urbanization and industrialization of the basic end of China’s energy demand peak has come. It is expected that by 2020, 2030 and 2050, China’s total energy demand will be reduced to 4 billion tons, 3.74 billion tons and 3 billion tons of standard coal.

This is the 26th held in Beijing, “the sixth global energy security think tank forum”, the Chinese Academy of Social Sciences Institute of economic and technical economics “energy security and new energy technology and economic research” innovative engineering research project group for the forum to provide the theme Report “China’s energy revolution – supply side reform and structural optimization, 2017-2050” given the conclusion.

The report pointed out that the current population of about 70% of the country has actually entered the town and its surrounding areas, China’s urbanization process has been basically completed.

“Correspondingly, China’s large-scale urban construction and infrastructure construction will be completed, which will greatly reduce the high energy consumption of steel, nonferrous metals, building materials and other industries demand, the relevant traffic energy demand will peak. Li Ping, director of the Institute of Economic and Technological Economics.

Among them, the impact of energy demand is more significant is the demand for real estate construction cooling. According to the report, from 2006 to 2015, China is equivalent to each city population built about 50 square meters of buildings. The current real estate market is mainly rely on a small number of people to live, improve housing conditions and young people into the city after the purchase demand support, from the total, said the total supply of housing has exceeded the total demand.

The report shows that 70% of China’s energy and electricity demand from the industry, and steel, nonferrous metals, building materials, the three major sectors of the energy demand for industrial demand of 1/3, the three major industry demand decline, but also cause coal, electricity Related industry demand for their own decline, on the whole, is expected to drive about 1/3 of the decline in energy demand.

The report believes that the future of China’s energy demand growth is high-end manufacturing and living expenses. But the high-end manufacturing industry’s energy demand is much lower than the steel, nonferrous metals, non-metallic (cement, glass, etc.) industry. As energy demand falls, energy will no longer be a bottleneck in our economy, but rather a balance between supply and demand. Under normal circumstances, the energy supply capacity should be slightly larger than the demand, in order to achieve effective protection.

“Energy supply bottlenecks disappear, although in the short term may lead to energy production in some areas distorted configuration, such as part of the region abandoned wind, abandoned light, abandoned water phenomenon increased, but in the long run, will help to form the competition between energy suppliers Mechanism, “said Li Ping,” which will promote energy suppliers to innovate business models, technology models, to provide end users with more personalized and high quality services, but also help to promote China ‘s energy system and power system reform.

That’s not the only thing that disappears.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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