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Gov't Draws Outline of Energy Supply System

A stable, economical and clean state energy supply system will be established in China, says a central government document formally release on Wednesday.

The "Decision of the State Council on Implementing the Interim Regulations on Promoting the Adjustment of Industrial Structure," adopted earlier this month by the Chinese cabinet, targets the country's industrial structure adjustment, which is regarded as a "major task" for the government in the coming years.

The energy issue assumes importance in the document, which outlines the key areas in the establishment of the state energy supply system.

To meet the increasing demand for electricity, the Chinese government will give priority to the development of high-efficiency coal-power, develop hydro-power on an environment-friendly basis, and develop nuclear-power in an active manner.

The country will also expand and improve state power grids in the future, and enlarge the scale of electricity transmission from the resource-rich west to the power-thirsty east, according to the State Council document.

A group of large-scale coal production bases will be established in China, says the document. Some medium and small-sized coal mines will be upgraded to guarantee safe production, while some small mines with unqualified working conditions will be closed down.

The document also calls for a comprehensive utilization of such mining resources as gangue, coal bed gas and mine water, and encourages the joint operation of the coal mining and electricity generating sectors.

According to the document, the Chinese government will also increase input in the exploitation of petroleum and natural gas, and expand overseas cooperation in this field in the coming years.

Development of new and renewable energies will be encouraged in China. The document says the Chinese government will encourage the exploitation and utilization of new, clean energies to gradually replace petroleum, and accelerate the scaled production of clean coal.

Development of other new energies, such as wind power, solar energy and biological energy, will also be encouraged in China, it adds.

(Xinhua News Agency December 21, 2005)

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