Western China energy development and west to east energy transfer: Application of the Western China Sustainable Energy Development Model

Abstract

China is striving for coordinated regional economic development and to solve the energy shortage in eastern China through a western China development plan with one focus being energy development and west to east energy transfer. This paper describes Western China Sustainable Energy Development Model (WSED) to evaluate various energy development scenarios for western China. The model includes a Western China MARKAL model, a Computable General Equilibrium Model for Western China (WCGE), and an Energy Service Demand Projection Model (ESDP). The ESDP provides energy service demand projections for the Western China MARKAL model, while the WCGE provides macroeconomic inputs for the ESDP and analyzes the impact of different energy development scenarios on western China economy. A reference scenario and several different west to east energy transfer scenarios with and without consideration of the water constraints and the endogenous technology learning are presented. The modeling describes the energy consumption, carbon emissions, water consumption, energy investment cost, and the impact on western China GDP of the different scenarios through the year 2050. These results have implications on sustainable energy development policies and sustainable west to east energy transfer strategies.