The Measures Analysis of Sichuan Optimized Energy Consumption Structure by the Electrical Energy Substitution

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1 2017 2nd International Conference on Environmental Science and Energy Engineering (ICESEE 2017) ISBN: The Measures Analysis of Sichuan Optimized Energy Consumption Structure by the Electrical Energy Substitution Zu-quan LIANG, De-sheng HE and Jian-feng YE State Grid Sichuan Energy Conservation Service Co., Ltd. No.21 of Dongfeng Road, Jinjiang District, Chengdu City, Sichuan Province, China. Keywords: Energy consumption, Electrical energy substitution, Optimization, Clean energy. Abstract. In current energy consumption structure of Sichuan province, the use of coal is huge and occupies a large percentage. On the other hand, as a big province of Hydroelectric power, Sichuan has to abandon a large number of abandoned water every year which causing huge waste of clean energy. The electrical energy substitution is one of the important ways to solve the problem. At the same time, it can reduce the percentage coal- consumption ratio and it is a feasible method to optimize the energy consumption structure of Sichuan province. In this paper, the characteristics of Sichuan energy consumption are analyzed first. Then the promote energy alternative measures are proposed and the scale of the electrical energy substitution is calculated. It can provide the novel direction and the implementation method to finish goal of Sichuan to construct the National Clean Energy Demonstration Province. Introduction Sichuan is a national comprehensive innovation reform test area. It has been committed to innovation driving industrial transformation upgrading, promoting energy conservation, and emissions reduction and environmental protection. But in the process of national industry moving westward, 21 cities and states except the Chengdu in Sichuan province had the energy-intensive enterprises which were dependence on fossil resources heavier. At the same time, the problem of pollution is also very serious in Sichuan. Especially the haze problem is very prominent in winter. Sichuan is the province which has large hydroelectric power and also is a pioneer of energy transformation in our country. Measures are necessary to provide clean energy proportion and reduce the consumption of fossil energy after the approval of Sichuan to create national clean energy demonstration province. The Energy Consumption of Sichuan Province In recent years, the energy development is rapid in Sichuan province; the clean energy production capacity is increased and the energy structure is optimized further. Yet as Sichuan still belonging to the less developed provinces in west, at the end of 2015, the coal, oil, natural gas in the total energy consumption is 39.04%, 17.83%, 11.13% separately; non-fossil energy consumption which is mainly Hydroelectric power accounted for 32%. Electric Power The hydropower resources are rich in Sichuan and it is the hydropower base which delivered to the outside, mainly include the east of Shanghai, Jiangsu province and Zhejiang province. At the end of 2015, the hydropower installed is million kw which are account for 80.01% of all. Currently, day delivered capacity is 519 million kwh. The clean water and electricity sent out are equivalent to reduce coal consumption of about tons a day and reduce carbon dioxide emissions about tons. Yet, as affected by the economic and restricted by outside transmit channel, the "abandoned water" issues of Sichuan hydropower are serious. The "abandoned water" means the water was wasted which could be used to generate electric power in hydropower station. 147

2 Although some water must be wasted when the turbine is working, the "abandoned water" of Sichuan is 10.2 billion kwh in 2015 and will be 28 billion kwh in It is expected to be 35 billion kwh in 2020 years if no measures are utilized. Natural Gas It is full of natural gas in Sichuan province which is one of the four natural gas producing region. Its reserves are proven of 3.09 trillion m3. At the end of 2015 year, the gas annual output is 26.6 billion m 3, annual consumption is 17.6 billion m 3 and spare 9 billion m 3 need to transmit outside in Sichuan province. Coal and Oil The coal reserves of Sichuan are limited whose per capita is less than 10% of the national average. Similarly, almost all the oil need for outside, and biomass energy, geothermal energy and so on, but the relatively small. Compared with the developed areas, the consumption proportion of clean energy in Sichuan is poor and its energy consumption structure should be further optimized. It has been planed by the provincial bureau of energy that consumption ratio of coal will drop to 29.56% in 2020 year and the consumption proportions of oil, natural gas and non-fossil energy will increase to 19.73%, 19.73% and 16.31% respectively. So in the future, the natural gas and electric power which both belong to the clean energy are the key points of the energy consumption development in Sichuan. Considering the amount of "waste water" is great and it belongs to a waste of resources, it should be consumed first through series measures in which the electrical energy substitution mentioned by the state grid corporation in 2013 is the most useful one. The Electrical Energy Substitution Definition The electrical energy substitution means replace the primary energy to the electrical energy in terminal consumption, including: coal substitution by electrical energy, oil substitution by electrical energy and electrical energy is coming from afar. Basic Conditions At the end of 2015, the technologies of electrical energy substitution have been expanded to four areas which are the building, the industry and mining, transportation and agriculture. It is separate into 20 categories and 50 small classes, mainly include electric boiler, electric storage of ice, electric furnace, heat pump, electric cars, rail transportation, airport bridge load of the APU, self-provided power plant substitution, domestic scattered electric heating, domestic electrification and kitchen equipment for cooking, tea alternative technologies by electric power, agricultural irrigation and drainage and so on. It has accumulated about 290 energy alternative projects and billion kwh alternative powers from 2011 to Basic Conditions Due to the shortcomings that the efficiency of traditional fossil consumption equipment fuel is too low, the energy waste has existed. Compared with the energy such as coal, oil and natural gas, the advantages of electric power are more convenient, safely and cleaner. The efficiency of electric power equipment is almost higher than that of coal, fuel oil. Using the electric power directly, it can not only improve equipment efficiency, but also saving the energy. As the technologies of electrical energy substitution are using the electric power which can improve the efficiency of equipment. The energy saving effect is very significant. At the same time, it can know from the energy condition there are another important advantage of Sichuan province to 148

3 develop the electrical energy substitution: it is just because the "abandoned water" which is belonging to clean energy can both provide the favorable conditions and improve the competitiveness of electrical energy substitution. In addition, the electrical energy substitution can greatly promote the policy of national energy conservation and emissions reduction which are very favorable to improve the environment and governance the smog and haze. Therefore, promoting electrical energy substitution and improving the level of electrification are important for energy security, energy conservation and emissions reduction, protect the ecological environment, improving people's quality of life. The Required Conditions to Promote the Electrical Energy Substitution In order to optimize the energy consumption structure in Sichuan, the industrial structure should be improved first; On the other hand, the waste of hydropower resource should be reduced and the utilization of clean energy should be improved. Industrial structure adjustment which is emphasizing the rationalization of industrial structure is dominated by the government. The characteristic of the electrical energy substitution which can promote the clean energy utilization and solve the environmental problems made it can be used as a means of industrial structure adjustment. In reality, it should not only consider the substitution of existing implementations of coal, fuel equipment to raise the proportion of electricity consumption but also consider whether there are enough supply of clean energy. Although Sichuan have gain a certain achievements of the electrical energy substitution, there are some problems such as less technical methods, less use of abandon water resources etc. need to be settled. The Sichuan province which is located in the west of China is weak of economic and the input from the government and enterprises is limited. So the promotion of electrical energy substitution is difficult. 1) The alternative economy is poor According to the current prices of energy, the equivalent prices to electric power of coal, crude oil and natural gas are 0.16 yuan, 0.27 yuan and 0.27 yuan respectively by calculating the combustible energy to occur the same energy with the electric power. Every one of them is lower than electric power. It means that alternative economy is poor. 2) Improve policy support As the economy of the electrical energy substitution is poor, the policy is necessary to support its development. At present, the policy of the electrical energy substitution is very few in Sichuan province. There are only the price policies of self-provided power plant [1, 2] and the Subsidy policy of Electric Vehicle [3,4] in Chengdu city. Sichuan is located in the western and belongs to underdeveloped region. Now the efforts of environmental policy are small [5, 6]. As it has not banned the use of coal in industry, the promotion of electric boiler is difficult. Compared with other provinces, the fiscal budget of government is short and the fiscal subsidy standard is low. As the fiscal subsidy of Sichuan is yuan/ton of coal boiler while it is yuan/ton in Shanghai, the enthusiasm of boiler users is not high. 3) Strive for special price preferential policies The most distinctive policy [7, 8] in Sichuan should be the ultra utilize surplus hydroelectric which is few and failed to realize. Although the electric power company is striving for some the ultra utilize surplus hydroelectric policy such as the ice storage which is using the night electric power and has the peak shift effect, the results are good. It made the lack of strong support policy to promote the electrical energy substitution. 4) Develop alternative implementation The promoting degrees of the electrical energy substitution in different technologies are very unbalanced in Sichuan province from 2011 to 2015 year. The substitution values of some technologies are less than 10% except the self-provided coal power plant of substitution, especially 149

4 the electric boiler, electric storage, the family of electrification, etc. which have social promotion advantages and could implement widely. The total number and alternative project remains all need to be further strengthened. Measures to Optimize Energy Consumption Structure If we can overcome the four kinds of resistance mentioned above, the Spring of the electrical energy substitution will appear in Sichuan. Yet some are difficult and some can't happen overnight. What s more, thinking about the process of policy making and falling to the ground has its feasibility and periodicity; we should considering how to realize the promoting measures of the electrical energy substitution first on the existing basis. Utilization of the Market Measures First, direct trading is promoted to the electrical energy substitution projects. Made full use of the surplus hydropower resources of Sichuan and reducing the cost of the electrical energy substitution based on using direct trading platform. Second, the electric power company is agent for the customers who are not having bargain ability on price trade and made the trade power directional used on electrical energy substitution projects only. Third, striving for and promoting policies on electricity prices actively; promoting and attracting the social money to invest the electrical energy substitution projects. The Function of the Electric Power Company It should ensure that the power grid construction or renovation project of the electrical energy substitution had been implemented, make clear the investment interface of power grid extend to red line of power customer and encourage the electric power company invest to the distribution network construction. All of them are purposed on providing the security of power supply. To electric power company should prepare some as follow: 1) First it should encourage the electric power company to invest on the electrical energy substitution project, utilize the professional functions fully of electric power company and the function of Energy Service Company, and implement the projects through Energy Management Contract. 2) It should make the trading center of the electric power company provide the necessary business platform of electric power. 3) The electric power company should be ready to set the showrooms of electrical energy substitution and take the lead to propaganda work, etc. 4) The electric power company should construct the team of electrical energy substitution no matter itself or assist external company, should establish the expert team, the work team and R&D team which are f it on market competition. 5) The electric power company should use the different measures such as the WeChat, APP of mobile phone and internet plus, etc. to improve the social attention and awareness. The Analysis of Electrical Energy Substitution in Sichuan The effect of optimize energy consumption structure through implement the electrical energy substitution should calculate detailed which include two aspects: first is the electric power value which has replaced the coal, crude oil and natural gas. The other is the power value used by the alternative power equipments. But there must be a premise: there is enough clean energy to supply the electrical energy substitution equipments. 150

5 Total Analysis of Electrical Energy Substitution According to document [10], the electricity substitution potential value in Sichuan province is about 100 billion kwh form or annual average 20 billion kwh. Considering the abandon hydropower capacity is expected to be 28 billion in 2016, the clean energy which is to supply the electrical energy substitution is about 20 billion and is satisfied the power required in the planning in Sichuan. The difference of 8 billion is considered the saved the electric energy such as water used to peak shaving and eliminating the old equipments in energy conservation and emissions reduction. The Analysis of Consumption Account for Electrical Energy Substitution The corresponding value of coal, crude oil and natural gas which is conversed into electric consumption is about billion kwh, billion kwh and billion kwh respectively while the hydropower generating capacity is about billion kwh. the electricity proportion can be calculated as follows: ( )/( )*100%=34.48% Therefore, the proportion of hydroelectric power will increase 2.48% and be 34.48% which means the clean energy consumption increased obviously. Conclusion The abundant hydroelectric power not only provides the good implementation of electrical energy substitution, but also improves its economic benefit in Sichuan. It has proved in this paper that the electrical energy substitution can improve the consumption of clean energy which is far significant to finish the goal of building the national clean energy demonstration province and achieve sustainable development. Promoting the electrical energy substitution can optimize energy consumption structure based on adjustment of industrial structure in Sichuan. At the same time, the electrical energy substitution should be developed to wider range and more technologies. It should be lead by the government and cooperate with all parties in society. Acknowledgement This work was financially supported by the Project of State Grid, SiChuan Energy Conservation Service Co.Ltd. Summary References [1] The notification on alternative trading work between stop generating in enterprise self-provided power plant to use the abundant hydropower. (No. 145 Government Documents of Sichuan Economic and Information Commission [2014]). [2] The notification on continue transmitting outside and stop generating in enterprise self-provided power plant to use the abundant hydropower. (No. 986 Government Documents of Sichuan Economic and Information Commission [2014]). [3] The municipal subsidies implementation details of new energy vehicles in Chengdu (provisional) (No. 80 Government Documents s of Chengdu Economic and Information Commission [2015]). [4] The municipal subsidies implementation details of new energy automobile charging facilities in Chengdu city (provisional) (No. 81 Government Documents of Chengdu Economic and Information Commission [2015] ) [5] The notification on further speed up progress of small coal-fired boilers (No. 223 Documents of Sichuan Government [2014]) 151

6 [6] The 2015 year detailed implementation plan of air pollution prevention and control in Sichuan province (No. 59 Documents of Sichuan Government Office [2015]) [7] The notification on promoting the surplus power policy in 2015 (No. 28 Government Documents of Sichuan Economic and Information Commission [2015]) [8] The notification on printing and advance distributing the use of surplus hydropower in Sichuan province (No. 102 documents of Sichuan Government Office [2015]) [9] The Electric cars Quick Charge Network Construction Plan of State Grid Sichuan Electric Power Company ( ) [10] Annual Research and Consultation Report of Electrical Energy Substitution in No.13th 5-years of State Grid Sichuan Electric Power Company 152