Energy Development and Urbanization in China

Abstract

Aims: China is the largest energy consumer and producer in the world. Energy is crucial for the enduring and healthy development of China. Promoting urbanization has been regarded as a strategic measure for China to release the potential of domestic demand against the background of enduring international financial crisis. Usually, urban areas are more energy intensive than rural ones. Therefore, it's very meaningful to understand the relationship between energy and urbanization. The main aim of the paper is to study the relationship between energy and urban developments based on the analysis of China's energy and urban development, and provide a clear picture of the impacts of urbanization on energy development, which contributes to forming a base for further study of urban and energy relevant policies. Scope: The paper presents a thorough analysis of China's energy development and urbanization. Then it conducts a systematic and in-depth study of the impacts of urbanization on energy development quantitatively and qualitatively. Finally, some helpful recommendations are provided for the coordinated development of China's energy industry and urbanization. Core findings: (1) Urban development will bring about interregional impacts on energy flow pattern. The new pattern is likely to be described as remaining stable in the eastern region, speeding up in the central and gradually increasing in the western. (2) Urban development will promote to form new intraregional energy systems. The city will be the most energy-intensive in the new system. The layout of the urban industrial system will be a “U-shape” in terms of energy intensity. The urban industrial system can be divided into three parts, namely, the core zone including the city itself, suburb zones and exurban zones. The core zone is the most energy intensive among the three. The exurban zones are more intensive than the suburb zones. (3) Urban development will increase energy consumption. In the period of 2015∼2020, the incremental energy consumption effected by urban development will be 664 million tce; in the period of 2021∼2030, that will be 774 million tce. (4) Urban development will influence energy mix thanks to people's awareness of environmental and eco-system protection, and implementing such technologies as smart grid, UHV transmission and so on. Also, urban development will increase electricity consumption. Conclusions: Urbanization and energy development are two strategically important issues. By 2030, hundreds of millions of people will transfer from village to city. Many new cities and city clusters will emerge, which will give rise to the transfer of industry and influence the development of energy. China's urban development both provides a precious opportunity and constitutes an immense challenge for its energy development. Firstly, the plan for urban development and that for energy development should be coordinated in terms of infrastructure layout, energy mix, energy supply and distribution, etc. Secondly, give full play to smart grid in such aspects as integrating renewables, promoting energy conservation, leading to consumption habits and meeting the demand of divers and multilateral services, accommodating electric vehicles and so on. Thirdly, adhere to such principles as advocating environmental and eco-system protection, developing in a way of being driven by innovation, and taking urban and rural situations into account accordingly. Fourthly, combine the transformation of its energy production and consumption with the development of urbanization, more organically, systematically and efficiently.