By Shi Guang, Research Team on "The Systems, Mechanisms and Policies of Green Development", Research Department of Industrial Economy of DRC

Research Report No 121, 2015 (Total 4806)

Abstract:

The Strategic Initiatives of Energy Development 2014-2020 puts forward the strategy that energy development should take conservation as the top priority as well as the strategy relating to low-carbon and green development, focusing on the implementation of energy efficiency upgrading project. As a major measure to promote energy efficiency, the co-generation of heat and power has long been encouraged in China. However, in recent years, its proportion in urban central heating is declining and the industry is exposed to some outstanding problems, including improper understanding of the policy between replacing small power units with large ones and the development of co-generation of heat and power, inappropriate administrative review and approval procedures, the lagged development of heat pipelines and power grid compared with power source construction, crippled application of the principle of determining power generation by heat load and insufficient supporting policies. To promote the development of co-generation of heat and power, China should speed up improvement of relevant planning and legislation, define the importance of heat-and-power co-generation, upgrade administrative review and approval system relating to heat-and-power co-generation, increase financial and taxation support, strengthen supervision on the application of the principle of determining power generation by heat load and accelerate the displacement of distributive boilers by co-generation of heat and power.