The Communist Party's Central Comprehensive Deepening Reform Committee recently approved the Implementation Opinions on the Reform of the Operation Mechanism of the Oil and Gas Pipeline Network and the establishment of an independent national oil and gas pipeline network company. This initiative will significantly transform China's oil and gas sector into a more competitive and non-discriminatory environment for all players.
As photovoltaic (PV) technology advances, development and construction costs continue to decrease. In 2017 the average construction cost for new PV power plants was 45% lower than in 2012, which led the state to reduce subsidies and ease the pressure on subsidy funds. As such, in May 2018 and January 2019 various government bodies issued two policies concerning PV power generation, which have both contributed to the industry's development.
The Ministry of Justice recently published for public comment the draft Atomic Energy Law, which the legislature had been drafting for nearly 30 years. Together with the Nuclear Safety Law, which entered into force in January 2018, the law is expected to form the fundamental legal framework for China's nuclear energy industry. This article discusses two important issues concerning nuclear energy in China: the relationship between the two laws and the nuclear damages compensation system.
The State Council recently issued Several Opinions on Promoting the Coordinated and Stable Development of Natural Gas. The opinions aim to accelerate the development and use of natural gas in a coordinated and stable manner, advance the energy production and consumption revolution and build a clean, low-carbon, safe and efficient modern energy system. The main purpose of the opinions is to aid in the development of strategies on the comprehensive development of the natural gas industry.
The 2018 negative list was released in the middle of the current Sino-US trade war and is thus largely a gesture to show China's commitment to making consistent, reformative progress towards trade liberalisation. The new negative list has significantly opened the market up to foreign investment, particularly in the energy sector. Among the restrictions which have been lifted are those regarding power grid construction and the exploration and exploitation of oil and natural gas in free trade zones.
The National Energy Administration recently issued the Interim Administrative Measures for the Development and Construction of Distributed Wind Power Projects, which aim to simplify the existing approval and development process for wind power projects. The development of distributed wind power will help to realise the sustainable development of China's wind power industry, accelerate energy transformation and revitalise the development of the national economy.
The National Development and Reform Commission (NDRC) recently promulgated its Plan for Building the National Carbon Emission Trading Market (Power Generation Industry). According to the NDRC, the plan's implementation will play an important role in establishing the national carbon market and constitutes the official start of the national carbon emission trading system. However, a robust carbon emission trading system and a fair market trading environment for investors are still a long way off.