12.2 The management of energy supply

As energy companies have had to search further afield for new sources of oil, new energy pathways have had to be constructed. Some major oil and gas pipelines cross some of the world’s most inhospitable terrain. The Trans-Alaska Pipeline crosses three mountain ranges and several large rivers. Much of the pipeline is above ground to avoid the permafrost. Engineers fly over the pipeline every day by helicopter to check for leaks and other problems. Incidents such as subsidence have closed the pipeline for short periods.

Energy pathways are supply routes between energy producers and consumers, which may be pipelines, shipping routes or electricity cables.

1 Define ‘energy mix’. 2 List three technologies that can extend the life of fossil fuels. 3 What are the main environmental concerns about the development of hydroelectricity? 4 How important is fuelwood in LEDCs?

Tested

China overtook the USA in total energy usage in 2009. The demand for energy in China continues to increase significantly as the country expands its industrial base. In 2008, China’s energy consumption breakdown by traditional energy sources was: l coal – 70.2% l oil – 18.7% l hydroelectricity – 6.6% l natural gas – 3.6% l nuclear energy – 0.75%

This is a case study about the way in which the Chinese government has managed energy supply. Make sure you highlight the main decisions that the government has taken to ensure China’s energy security.

China’s energy policy has evolved over time. As the economy expanded rapidly in the 1980s and 1990s much emphasis was placed on China’s main energy resource, coal (Figure 12.4). China was also an exporter of oil until the early 1990s; it is now a very significant importer. Chinese investment in energy resources abroad has risen rapidly. Long-term energy security is viewed as essential if the country is to maintain the pace of its industrial revolution.

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In recent years China has tried to take a more balanced approach to energy supply and at the same time reduce its environmental impact through: l energy conservation l placing a strong emphasis on domestic resources l diversified energy development l environmental protection l mutually beneficial international cooperation

The development of clean coal technology is an important aspect of China’s energy policy. China has begun constructing clean coal plants at a rate of one a month and gradually retiring older, more polluting power plants. China has recently built a small experimental facility near Beijing to remove carbon dioxide from power station emissions and use it to provide carbonation for beverages. The further development of nuclear and hydropower is another important strand of Chinese policy. The country also aims to stabilise and increase the production of oil while augmenting that of natural gas and improving the national oil and gas network.

Priority was also given to building up the national oil reserve. In 2007 China announced an expansion of its crude reserves into a two-part system. Chinese reserves would consist of a government-controlled strategic reserve complemented by mandated commercial reserves. The government-controlled reserves are being completed in three phases. This will protect China to a certain extent from fluctuations in the global oil price, which can arise for a variety of reasons.

Total renewable energy capacity in China reached 226GW in 2009. This included: l 197GW of hydroelectricity l 25.8GW of wind energy l 3.2GW of biomass l 0.4GW of grid-connected solar PV

Renewable energy contributed more than one quarter of China’s total installed energy capacity, with hydroelectricity by far the largest contributor. China’s wind power capacity grew 30-fold between 2005 and 2009 to become the second largest in the world behind the USA. China’s wind turbine manufacturing industry is now the largest in the world. It is now also the largest manufacturer of solar PV. China’s current draft energy plan for 2020 sets targets of: l 300GW of hydroelectricity l 150GW of wind energy l 30GW of biomass l 20GW of solar PV

This would amount to almost one-third of China’s planned power capacity of 1600GW by 2020.

The Three Gorges Dam across the Yangtze River includes the world’s largest electricity generating plant of any kind. This is a major part of China’s policy in reducing its reliance on coal. The dam is over 2km long and 100m high. The lake impounded behind it is over 600km long. All of the originally planned components were completed in late 2008. Currently there are 32 main generators with a capacity of 700MW each. Six additional generators in the underground power plant are being installed and should become fully operational in 2011. When totally complete the generating capacity of the dam will be a massive 22,500MW. The Dam supplies Shanghai and Chongqing in particular with electricity. This is a multipurpose scheme that also increases the