Archive for 8.3.1 Top 1000 Energy Consuming Companies

China’s Industrial Energy Consumption Trends and Impacts of the Top-1000 Enterprises Energy-Saving Program and the Ten Key Energy-Saving Projects

This study analyzes China’s industrial energy consumption trends from 1996 to 2010 with a focus on the impact of the Top-1000 Enterprises Energy-Saving Program and the Ten Key Energy-Saving Projects. From 1996 to 2010, China’s industrial energy consumption increased by 134%, even as the industrial economic energy intensity decreased by 46%. Decomposition analysis shows that the production effect was the dominant cause of the rapid growth in industrial energy consumption, while the efficiency effect was the major factor slowing the growth of industrial energy consumption. The structural effect had a relatively small and fluctuating influence. Analysis shows the strong association of industrial energy consumption with the growth of China’s economy and changing energy policies. An assessment of the Top-1000 Enterprises Energy-Saving Program and the Ten Key Energy-Saving Projects indicates that the economic energy intensity of major energy-intensive industrial sub-sectors, as well as the physical energy intensity of major energy-intensive industrial products, decreased significantly during China’s 11th Five Year Plan (FYP) period (2006-2010). This study also shows the importance and challenge of realizing structural change toward less energy-intensive activities in China during the 12th FYP period (2011-2015).

8 Energy Intensive Industries, 8.3.1 Top 1000 Energy Consuming Companies

The Challenge of Reducing Energy Consumption of the Top-1000 Largest Industrial Enterprises in China

In 2005, the Chinese government announced an ambitious goal of reducing energy consumption per unit of gross domestic product (GDP) by 20% between 2005 and 2010. One of the key initiatives for realizing this goal is the Top-1000 Energy-Consuming Enterprises program. The energy consumption of these 1000 enterprises accounted for 33% of national and 47% of industrial energy usage in 2004. Under the Top-1000 program, 2010 energy consumption targets were determined for each enterprise. The objective of this article is to evaluate the program design and initial results, given limited information and data, to understand the possible implications of its success in terms of energy and carbon dioxide emission reductions and to recommend future program modifications based on international experience with similar target-setting agreement programs. Even though the Top-1000 program was designed and implemented rapidly, it appears that – depending upon the GDP growth rate – it could contribute to somewhere between approximately 10% and 25% of the savings required to support China’s efforts to meet a 20% reduction in energy use per unit of GDP by 2010.

8.3.1 Top 1000 Energy Consuming Companies

China’s Top-1000 Energy-Consuming Enterprises Program: Reducing Energy Consumption of the 1000 Largest Industrial Enterprises in China

In 2005, the Chinese government announced an ambitious goal of reducing energy consumption per unit of GDP by 20% between 2005 and 2010. One of the key initiatives for realizing this goal is the Top-1000 Energy-Consuming Enterprises program. The energy consumption of these 1000 enterprises accounted for 33% of national and 47% of industrial energy usage in 2004. Under the Top-1000 program, 2010 energy consumption targets were determined for each enterprise. The objective of this paper is to evaluate the program design and initial results, given limited information and data, in order to understand the possible implications of its success in terms of energy and carbon dioxide emissions reductions and to recommend future program modifications based on international experience with similar target-setting agreement programs. Even though the Top-1000 Program was designed and implemented rapidly, it appears that – depending upon the GDP growth rate — it could contribute to somewhere between approximately 10% and 25% of the savings required to support China’s efforts to meet a 20% reduction in energy use per unit of GDP by 2010.

8 Energy Intensive Industries, 8.3.1 Top 1000 Energy Consuming Companies

Constraining Energy Consumption of China’s Largest Industrial Enterprises Through Top-1000 Energy-Consuming Enterprise Program (Proceedings of the 2007 American Council for An Energy-Efficient Economy’s Summer Study on Energy-Efficiency in Industry )

Between 1980 and 2000, China’s energy efficiency policies resulted in a decoupling of the traditionally linked relationship between energy use and gross domestic product (GDP) growth, realizing a four-fold increase in GDP with only a doubling of energy use. However, during China’s transition to a market-based economy in the 1990s, many of the country’s energy efficiency programs were dismantled and between 2001 and 2005 China’s energy use increased significantly, growing at about the same rate as GDP. Continuation of this one-to-one ratio of energy consumption to GDP – given China’s stated goal of again quadrupling GDP between 2000 and 2020 – will lead to significant demand for energy, most of which is coal-based. The resulting local, national, and global environmental impacts could be substantial. In 2005, realizing the significance of this situation, the Chinese government announced an ambitious goal of reducing energy consumption per unit of GDP by 20% between 2005 and 2010. One of the key initiatives for realizing this goal is the Top-1000 Energy-Consuming Enterprises program. The comprehensive energy consumption of these 1000 enterprises accounted for 33% of national and 47% of industrial energy usage in 2004. Under the Top-1000 program, 2010 energy consumption targets were announced for each enterprise. Activities to be undertaken include benchmarking, energy audits, development of energy saving action plans, information and training workshops, and annual reporting of energy consumption. This paper will describe the program in detail, including the types of enterprises included and the program activities, and will provide an analysis of the progress and lessons learned to date.

8 Energy Intensive Industries, 8.3.1 Top 1000 Energy Consuming Companies