Thread Content
On January 24, at the **regular press conference held by the Energy Bureau**, a responsible official from the Power Department of the Energy Bureau answered questions from reporters from China Electric Media regarding the \"Plan for Clean Heating in Northern Regions during Winter (2017–2021)\」 (hereinafter referred to as the \"Plan\"). The official provided a comprehensive analysis of the current situation and challenges related to clean heating in northern regions during winter, as well as the directions and goals for advancing this initiative, the strategies for implementation, and the support policies available. This explanation addressed various issues that had long puzzled the public. Question: What is the current situation regarding heating in the northern regions of our country? Answer: **** At the 14th meeting of the Central Financial and Economic Leadership Group, it was stated that promoting clean heating in the northern regions during winter is crucial for ensuring that the local population can spend the winter in warmth; it also affects the reduction of hazy weather conditions. This is an important part of the revolution in energy production and consumption as well as in rural lifestyles. Due to our country’s resource profile dominated by coal, heating in the northern regions has relied on coal burning during winter for a long time. By the end of 2016, the total area of buildings in urban and rural areas in northern China used for heating was approximately 20.6 billion square meters. Of this, about 83% were heated using coal; the annual consumption of coal for heating amounted to around 400 million tons of standard coal. Of this amount, about 200 million tons were used for direct combustion (including coal used in inefficient small boilers), and this usage was primarily concentrated in rural areas. For the same 1 ton of coal, the emissions of air pollutants from coal used for direct combustion are more than 10 times higher than those from coal-fired power plants; heating with coal for direct combustion has become one of the main causes of fog and haze in northern China during winter. Completely replacing coal burning for heating with various clean heating methods plays an important role in alleviating winter air pollution in northern China, particularly in the Beijing-Tianjin-Hebei region. Question: What is the concept and scope of clean heating? Answer: Throughout the years, there has been a lack of clarity regarding what clean heating entails, with many differing opinions on this matter. In some areas, it is equated with switching from coal to gas or from coal to electricity, which has resulted in poor overall implementation outcomes. In this regard, the Plan defines the concept and scope of clean heating for the first time. Clean heating refers to a heating method that makes use of clean energy sources such as natural gas, electricity, geothermal energy, biomass, solar energy, industrial waste heat, cleaner coal combustion (ultra-low emissions), and nuclear energy, in order to achieve low emissions and low energy consumption through efficient energy utilization systems. It encompasses the entire process of heating with the goal of reducing pollutant emissions and energy consumption, and involves elements such as clean heat sources, efficient distribution networks (heat networks), and energy-efficient buildings (heat users). Under the current national conditions in our country, clean heating does not involve a simple, one-size-fits-all elimination of coal use. Instead, it entails a comprehensive planning approach that takes into account various energy sources such as coal, natural gas, electricity, and renewable energy. The scope also extends beyond mere improvements to the heat generation side; it involves a thorough and efficient upgrading of the entire heating system. Regarding issues of widespread public concern such as the clean use of coal, natural gas, and biomass, the Plan specifies that only combustion of coal for heating that is carried out on a centralized basis, results in ultra-low emissions, and approaches the cleanliness level of natural gas can be considered clean coal heating, and online monitoring equipment must be installed. For natural gas boilers and wall-mounted heaters, efforts should be focused on reducing nitrogen oxide emissions. Biomass co-generation systems must achieve ultra-low emissions, and biomass boilers in urban areas must meet the emission standards of natural gas boilers. Question: What specific goals does the Plan set for advancing clean heating in the northern regions? Answer: The Plan states that by 2019, the rate of clean heating in the northern regions should reach 50%, with 74 million tons of coal being replaced as a result (including coal used in inefficient small boilers). By 2021, the rate of clean heating in the northern regions was to reach 70%, replacing 150 million tons of coal used for direct combustion (including coal used in inefficient small boilers). The average comprehensive energy consumption of heating systems, the water loss rate in heat distribution networks, and overall heat losses have all decreased significantly. High-efficiency terminal cooling devices are widely used, and energy-efficient residential buildings account for 80% of the existing buildings in urban areas in the north. Strive to basically achieve the cleanification of coal-based heating in urban areas heavily affected by smog within about 5 years, and establish a clean heating market that is fair and open, characterized by diversified operation and high service standards. Furthermore, given that air pollution in winter is most severe in the Beijing-Tianjin-Hebei region and its surrounding areas, the “2+26” key cities, as cities along the pathways through which air pollution spreads from Beijing-Tianjin-Hebei, and considering the relatively strong economic strength of the provinces where they are located, have the necessity and capability to implement clean heating solutions first. The Plan sets higher requirements for these cities as well: by 2021, all urban areas are to have clean heating; in county towns and urban-rural fringe areas, the rate of clean heating is to exceed 80%, while in rural areas it is to be over 60%. It should be noted that transitioning to cleaner heating is a gradual, long-term process that cannot be achieved overnight; by 2021, a certain proportion of areas will still use traditional heating methods or relatively cleaner transitional methods. Question: What are the principles for promoting clean heating in the northern regions? Answer: First, adhere to clean substitution and safe development. Aiming for cleaner energy use, the focus is on replacing coal used for heating, thereby reducing emissions of air pollutants; at the same time, it is necessary to balance heat supply and demand to ensure safe heating for people’s livelihoods. Both people's livelihood and environmental protection need to be addressed; it is not possible to focus on one at the expense of the other. Second, it is necessary to adapt measures to local conditions so that they are affordable for residents. Clean heating should not be implemented in a one-size-fits-all manner. It is necessary to take into account local resources, economic capabilities, infrastructure, as well as requirements for air pollution control. By considering regional characteristics and residents’ purchasing power, it is possible to ensure that resources are used effectively, financial support is available, the necessary facilities are in place, and the costs are affordable for residents, thereby achieving the greatest possible reduction in overall pollutants at a reasonable economic cost. Third, adhere to comprehensive advancement while giving priority to key areas first. Heating is a basic livelihood need in the northern regions, and foggy weather represents widespread regional pollution; the approaches of focusing on major issues while ignoring minor ones, or using key areas as models for broader implementation, are not suitable for addressing the problem of coal burning for heating. Therefore, efforts to promote clean heating must take into account factors such as the urgency of air pollution control, economic affordability, and the difficulties involved in implementing such measures. It is necessary to advance clean heating initiatives comprehensively in three types of areas: urban centers, county towns, and rural areas at the urban-rural fringe. A \"tailored approach\" should be adopted, rather than selecting only the easiest tasks to handle. “The 2+26 key cities are located along the air pollution transmission corridor in the Beijing-Tianjin-Hebei region; they have large populations and high energy demands for heating, making clean heating a priority issue that needs to be addressed in these areas. Fourth, adhere to a company-led approach and **promote it. Practical experience shows that clean heating based solely on ** faces significant subsidy pressures, making it difficult to be widely adopted in northern regions. It is necessary to fully motivate enterprises and users, encouraging them to leverage their strengths, identify market opportunities, optimize resource allocation, and reduce overall costs. At the same time, authorities at all levels should also promote reforms in institutional mechanisms and establish a scientific and efficient responsibility framework to create favorable conditions for the development of a clean heating market system. Fifth, adhere to the integration of military and civilian efforts and advance them in coordination. Local authorities and the stationed troops should enhance communication with each other, establish a sound coordination mechanism for clean heating efforts between the military and local communities, ensure seamless integration between the two sides, and advance these efforts in a coordinated manner. Military clean heating is also included in the **Plan**, and enjoys relevant support policies. Question: What strategies should be adopted to promote clean heating in the northern regions? Answer: There are various methods of clean heating, each suitable for different conditions and regions; these methods involve multiple elements such as heat sources, heating networks, and end-users. It is necessary to conduct a scientific analysis, carefully compare different options, optimize the entire process, and advance efforts in an orderly manner. The Plan systematically summarizes the strategies for promoting clean heating from three aspects: selecting heating sources appropriate to local conditions, comprehensively improving the efficiency of the heat network system, and effectively reducing the energy consumption for heating by users. Regarding heat sources, a comprehensive review was conducted of various clean heating methods such as natural gas, electricity, geothermal energy, biomass, solar energy, industrial waste heat, and clean coal combustion (ultra-low emissions). The characteristics, suitable conditions, development pathways, and key issues associated with each method were discussed in detail. Regarding the heating network, it is specified that clean centralized heating should be given priority in towns and areas where the conditions permit, with greater efforts being made to optimize and upgrade heating systems. On the user side, there is a focus on improving the energy efficiency of buildings, upgrading efficient heating terminal systems, and promoting heat-metering-based pricing. In addition, the Plan also sets corresponding development goals for the key tasks related to heat sources, heat distribution networks, and end-users. Overall, the strategy for promoting clean heating must emphasize the principle of appropriateness: use gas when it is suitable, electricity when that is appropriate, coal when necessary, renewables when feasible, waste heat when available, improve pipeline efficiency for centralized heating, and carry out insulation upgrades for energy savings in buildings. Even in rural and remote mountainous areas where it is not yet possible to replace coal burning for heating with clean heating methods, efforts should be focused on using alternatives such as \"clean briquettes + environmentally friendly stoves\" and \"biomass briquettes + specialized stoves\" to replace coal burning. Under the current national conditions, it is essential to fully recognize the primary role and critical function of clean coal utilization; the control of scattered coal use should not be equated with a complete elimination of coal use. Cleaning up coal-based central heating is an effective way to strike a balance between environmental protection and cost pressures; in the foreseeable future, it should be used as a basic heat source in the urban areas, county towns, and urban-rural fringe areas of most northern cities. For heating fuels such as natural gas and electricity, which have limited resources and require substantial subsidies, they should be used in areas where clean, centralized coal combustion is not suitable or where environmental standards are the strictest – in other words, putting the best resources where they are most needed. Question: What arrangements does the Plan make for advancing clean heating initiatives in the northern regions in the next phase? Answer: Clean heating involves various aspects such as energy supply, pricing mechanisms, financial support, environmental supervision, and public utilities, and these fall under the jurisdiction of different regulatory authorities. Meanwhile, the responsibilities for managing heating in rural areas have always been unclear. Therefore, the **Plan** clarifies the division of tasks at the **local and enterprise levels**. **The departments are responsible for carrying out overall planning, providing guidance and support, as well as ensuring the coordinated implementation of relevant policies; local authorities at all levels designate competent departments to organize and implement these measures carefully; enterprises bear the main responsibility for heating services and must provide high-quality services. The Plan proposes the establishment of a dedicated inter-ministerial coordination office for clean heating initiatives to oversee the implementation of the Plan. Local authorities should also designate specific agencies to carry out work related to clean heating, establish regular coordination mechanisms, and enhance cooperation among various departments as well as between the government and private sectors. Furthermore, with regard to clean heating in rural areas, the Plan also requires local authorities at all levels to **identify the responsible departments and establish management mechanisms, in order to put an end to the situation of unplanned, unmanaged, and unsupported heating in rural regions. It is precisely because clean heating involves a wide range of aspects and various approaches, making it impossible to apply a single model across the whole country; therefore, it is particularly important for local areas to develop scientific, reasonable, economically viable, and environmentally sustainable implementation plans for clean heating based on their own actual conditions. Next, each province (region, municipality) shall, in accordance with the unified requirements of the Plan, organize the formulation of provincial-level implementation plans for clean heating, clarify the goals and tasks, specify the sources of funding and methods of utilization, and ensure compliance with the requirements of the Plan. Each city (county) should also formulate city (county)-level plans for clean heating, further refine the relevant requirements of the **plans and provincial implementation plans, and ensure their proper implementation. Question: What support policies will be put in place next to advance clean heating initiatives in the northern regions? Answer: In terms of funding, the central government will make full use of existing funding channels for renewable energy development and air pollution control to support clean heating. Local authorities are encouraged to innovate in terms of institutional mechanisms, and enterprises and society are urged to increase their financial investment. No subsidies will be provided for projects that do not meet the planned standards regarding technology and emissions. In terms of price mechanisms, a range of supportive measures are taken, including improving the peak-and-valley pricing system, optimizing the tiered pricing policy for residential users, and expanding market-based transactions, in order to reduce the costs of gas and electricity used for heating, while determining reasonable prices for clean heating solutions. In terms of reforming the centralized heating system, efforts are focused on optimizing regional centralized heating, increasing the marketization level of heat supply, and further improving energy-saving management in heat supply. At present, the promotion of clean heating in various regions relies mostly on **subsidies and administrative price cuts, resulting in significant financial pressure. Taking Beijing’s program of replacing coal with electricity as an example, each household is entitled to a subsidy of 10,000 kWh per year, at a rate of 0.2 yuan per kWh. If this level of subsidy were applied across all areas in the north, annual subsidies alone would amount to 200–300 billion yuan, not to mention the huge initial investment required. The prices of electricity and gas for residents in our country include cross-subsidies; administrative price cuts and financial subsidies serve similar purposes. Therefore, it is impractical to fully cover the costs of clean heating through financial subsidies or administrative price cuts; it is necessary to identify opportunities for savings by optimizing the allocation of resources. Taking the renovation of 20 steam-ton coal-fired small boilers as an example, the costs increase by about twice after switching from coal to gas. However, if the heating areas served by these small boilers are integrated into a large-scale heating network, with existing ultra-low emission cogeneration units handling the main heating load and some boilers remaining for auxiliary peak-shaving after the switch to gas, and if a specialized heating company is established by linking upstream and downstream elements while reducing intermediate steps, then the costs essentially remain unchanged, while pollution control levels and heating quality improve significantly. Furthermore, the \"clean heating\" trend should come with a \"fair price\" – only when prices reflect the actual costs can users develop energy-saving habits and eliminate wasteful practices such as keeping windows open while heating. Conversely, behavioral energy conservation can also promote the adoption of clean heating solutions. Taking the transition from coal to electricity heating as an example, for the same level of heat output, the cost of electricity (at residential electricity rates, without considering any additional subsidies) is generally 3 to 5 times higher than the cost of using coal. However, in places like schools where heating is used intermittently, there are over 40 days during the coldest months of the year when no heating is needed during winter break; at other times, heating can be provided during the day while insulation keeps the space warm at night. By making full use of the advantage of electric heating, which can be turned on whenever needed and operates flexibly, the heat output and electricity consumption will be less than half of those in conventional systems, thereby significantly reducing cost pressures. Essentially, the driving force behind promoting clean heating is the supply-side structural reform in the heating sector, guided by policies. **By using fiscal and price policies as catalysts, a favorable market environment can be created to meet basic livelihood needs and address key environmental protection tasks. Enterprises should leverage their respective expertise to take advantage of the benefits that come from optimal resource allocation in the market, thereby improving the quality of clean heating services. Consumers, on their part, should adopt modern, efficient, and environmentally friendly energy usage habits, thus truly achieving a situation where \"the government plays a driving role, enterprises take the lead, and costs remain affordable for residents.\" Relying solely on financial subsidies and a policy of waiting, relying on others, and making demands will not suffice to achieve clean heating; local authorities must explore their potential thoroughly, be brave in innovation and reform, and develop a clean heating model suitable for their own conditions in order to reduce environmental pollution.