On May 29, the State Council issued the "2024-2025 Energy Conservation and Carbon Reduction Action Plan," emphasizing the acceleration of non-fossil energy development. The document mandates focusing on constructing large wind and photovoltaic bases in deserts, Gobi, and barren lands. It calls for the orderly development of offshore wind power, large-scale development and utilization of marine energy, and the promotion of distributed renewable energy. Additionally, the plan includes the orderly construction of large hydropower bases, the active and safe development of nuclear power, the development of biomass energy according to local conditions, and the coordinated promotion of hydrogen energy. By the end of 2025, non-fossil energy should account for approximately 39% of total power generation.
To enhance renewable energy absorption capacity, the plan aims to accelerate the construction of transmission channels for large wind and photovoltaic bases, thereby improving cross-province and cross-region transmission capacity. Upgrading the distribution network to increase the capacity for distributed renewable energy is also a priority. The plan encourages the active development of pumped storage and new types of energy storage.
The development of new technologies and models such as microgrids, virtual power plants, and vehicle-to-grid interaction is strongly advocated. By the end of 2025, the installed capacities for pumped storage and new energy storage should exceed 62 million kW and 40 million kW, respectively. Regional demand response capabilities should generally reach 3-5% of maximum power load, with regions having a peak-to-valley load difference rate exceeding 40% reaching over 5%.
To promote non-fossil energy consumption, the plan mandates the scientific and rational determination of renewable energy development scales. In regions with favorable resource conditions, the utilization rate may be reduced to 90%. Regions lagging in energy conservation and carbon reduction targets during the first three years of the 14th Five-Year Plan must ensure new projects commit to non-fossil energy consumption. For the last two years of the 14th Five-Year Plan, the proportion of non-fossil energy consumption for new high-energy-consuming projects must not be less than 20%, with local governments encouraged to increase this proportion.
The plan also strengthens the linkage between green electricity certificates and energy conservation and carbon reduction policies, aiming for full coverage of green certificate issuance by the end of 2024.
In terms of building integrated photovoltaic construction, by the end of 2025, all new urban buildings must comply with green building standards. The plan aims for a 50% rooftop photovoltaic coverage rate for new public institution buildings and new factory buildings, an 8% renewable energy substitution rate for urban buildings, and an increase of over 20 million square meters in the area of new ultra-low energy and near-zero energy buildings compared to 2023.
To support and assure these initiatives, the plan calls for improvements in the pricing policy, the implementation of coal power capacity tariffs, the deepening of market-oriented reform of new energy feed-in tariffs, and the study and improvement of the energy storage pricing mechanism. It strictly prohibits electricity price concessions for high-energy-consumption industries and strengthens the coordination of pricing policy with industrial and environmental policies. The plan also aims to improve the tiered electricity pricing system for high-energy-consumption industries and deepen the reform of heat metering charges, promoting a two-part heat pricing system in an orderly manner.
Source：21st Century Business Herald，the original content has been abridged.
