China’s National Development and Reform Commission (NDRC) issued the Dual Control System of Total Energy Consumption and Energy Intensity on September 16, pointing towards further capacity restrictions.
The system required provinces in China to build up the lists of high energy consumption and energy intensive projects in construction, to be constructed and in existence, and send the lists and their improvement plans to NDRC.
Moreover, NDRC will strengthen the guidance to the newly-added projects of high energy consumption and energy intensity with energy consumption above 50,000 standard coal on energy efficiency, environmental protection requirements, industrial policies and related layouts.
The number of provinces, such as Qinghai, Ningxia, Guangxi, Guangdong, Fujian, Yunnan, Jiangsu and Hubei, were added to a list of the highest level warning areas in terms of total energy consumption. This means that the control on crude steel production will intensify by the end of the year, even though the restrictions in such provinces like Jiangsu are already high – to limit utilization rates to 30-50 percent by the end of September.
By the year of 2025, China will perfect the dual control system in question and improve the utilization efficiency, while by the year of 2030, China will decrease the energy consumption intensity, while optimize the energy structure.
All provinces should strengthen the energy audit on projects, especially on projects with high fossil energy consumption.