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China Utiltiteis:China Environmental 澳门新萄京Protection &Clean Energy Corporate Day

    Into the second year of China’s 13th five-year period, the country’s
environmentalprotection & clean energy sector continues on an uptrend in
total investment.More water and waste treatment projects are entering
the execution stageunder public-private partnership (PPP), with PPP
funds increasingly popular asa financing channel. Solar capacity
additions reached a new high at 24GW in1H17, and grid curtailment
reduction was on track in both wind and solar;

The reform of China’s energy structure is a long way

US President Donald trump paid a state visit to China from November 8 to
November 10. During his visit,China and the United States signed 34
contracts totaling $253.5 billion. The largest concentration is in
energy, over $100 billion.

The signing of the big energy bill has boosted the import of clean
energy, especially natural gas, which facilitate the reform of China’s
energy structure.

澳门新萄京,China has witnessed the environment destruction of improper energy
structure and recent years she has tried to optimize the energy
structure.

 Energy production and composition of China

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Data is complied rom National Bureau of Statistics of the People’s
Republic of China

China has slowed the pace of energy production in recent years,
especially in 2013, China has begun to reduce the production of primary
energy and increased the clean energy, aiming to adjust the source, but
energy consumption is still growing. Proper energy demand growth will
benefit energy structure adjustment. When it faster,due to the urgency
of resources and meet the demand of energy, China has no choice, but use
coal.

 Energy consumption and composition of China

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Data is complied rom National Bureau of Statistics of the People’s
Republic of China

Even though China’s total energy consumption has risen in recent years,
the consumption ofraw coal has decreased, and the consumption of clean
energy has increased.

Apart from the energy production situation will affect the improvement
of China’s consumption energy structure, China’s imports of clean energy
will also affect. China’s import volume of natural gas in 2016 has
fluctuated greatly from the international impact, which is relatively
stable in 2017, but still fluctuates. And this has always been a
negative factor for China’s natural gas consumption.

China’s natural gas imports from 2016 to October 2017

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 Data from the website of general administration of customs, P.R. China

In order to better guide the reform of China’s consumer energy
structure, China has also issued relevant documents in recent years. In
2014, China issued Strategic Action Plan for Energy
Development (2014-2020)
, focusing on optimizing the energy structure
and developing clean and low-carbon energy as the main direction of
energy restructuring.

It is also mentioned that we should gradually reduce the proportion of
coal consumption,raise the proportion of natural gas consumption, and
increase the proportion of renewable energy and nuclear power
consumption, such as wind power, solar energy and geothermal energy, to
form an energy consumption structure,commensurate with China’s national
conditions and scientific and reasonable energy consumption.

In January 2017,the National Energy Administration released the 13th
five-year plan for energy development
, which set a binding control
index for coal consumption for the first time.

 Energy Consumption Target by 2020

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The speed of transition depends largely on the pace of future energy
growth. China’s energy restructuring mainly refers to the clean
replacement of coal. Based on China’s energy resources and energy
security, the share of oil will remain stable for along time. The real
change will be the reduction of coal and cleaner natural gas, as well as
the increase in nuclear, wind and solar energy in clean energy.

Coal consumption of China from 2013 to 2016

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              Unit: Ten thousand tons of standard coal                  
                                                               Data is
complied from National Bureau of Statistics of the People’s Republic of
China

Coal, as the largest energy source in China’s energy consumption
structure, is the key toenergy optimization. In recent years, China’s
energy transformation has accelerated significantly.

 Clean energy consumption of China from 2013 to2016

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Data is complied from National Bureau of Statistics of the People’s
Republic of China

Revolution in energy production and consumption will further stimulate
the demand for natural gas, but China’s current gas more largely rely on
the international supply. The inadequate domestic exploration causes the
difficulty in increasing natural gas consumption.

As we can see from the data of 2016, raw coal has reduced at 62% and it
will continue to be a downward trend. While the consumption of natural
gas has risen in recent year,but it is 6% in 2016. Only four years from
the target, which is difficult to meet.

Energy consumption structure in 2016 of China

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Data is compliedrom National Bureau of Statistics of the People’s
Republic of China

In recent years,China has been adjusting its energy planning and
increasing its input. However, to achieve a comprehensive energy
transformation, it is not going to happen overnight. Energy
transformation is a long-term job. In reality, coal consumption is
erratic and fluctuating.

In the future,China’s energy transformation must completely rid itself
of its dependence on coal consumption and enter the future of new
energy. This road is not easy, but it is imperative.

    the growth of natural gas consumption has also recovered to a
mid-teen level.Nevertheless, challenges exist, such as the uncertainty
related to intensifyingproject competition, potential risks related to
an overheating PPP market, anda widening renewable subsidy funding gap.
Meanwhile, against the backdropof an improving macro economy, it is
critical to convey the right messages toinstitutional investors, which
tend to view environmental and clean energy asstructural plays rather
than cyclical beneficiaries.。

China Environmental Protection & Clean Energy Corporate Day。

    Deutsche Bank is pleased to invite you to our 5th dbAccess China
EnvironmentalProtection & Clean Energy Corporate Day, which will be held
at Deutsche Bank’sHong Kong office, International Commerce Centre, on
October 13(Friday).。