Wind Energy In China
China’s Energy Consumption  |  Wind Energy in China   |  Alternative Energy in China

China’s Energy Consumption

According to Business Financial Publishing, LLC (“BFP”), China is a country with a population numbering 1.34 billion people.  The Chinese economy as a whole is flourishing, with annual real GDP growth over the last five years ranging between 7.5 to 9.1%, translating into total GDP growth of 50% in just five years. 
The sustained growth in GDP has meant that the average Chinese consumer is becoming more affluent and urban disposable income is estimated to have grown by over 17% according to a Deutsche Bank AG report on China.
According to the Canadian Trade Commissioner Service[1], China is enjoying an extended period of economic growth that is driven by commercial and economic reform, fixed asset investment, and international trade.  In 2005, GDP growth continues higher-than-expectations at approximately 9.5%, with few signs of a slowdown.   Key economic indicators for the past three years (shown below) highlight the scale of economic growth:

Source : Global Insight, World Overview, 2005. *Forecast
With China’s economy growing rapidly, China’s energy demands have increased dramatically.  In 2004, China was the world’s second largest consumer of energy (oil and gas) with 6.5 million barrels per day.  According to the EIA, China’s annual crude oil consumption increased from 3 million barrels per day in 1993 to 5.2 million barrels per day in 2002, or a compounded annual growth rate of 6.3%.  The EIA forecasts that daily consumption of crude oil in China will grow at 3.5% per annum and reach 12.8 million barrels by 2025.
In the Eleventh Five-Year Plan effective 2006 to 2010, the Chinese Government clearly outlines the directions to be followed by the energy industry and associated government agencies:

1. Enhance oil and natural gas exploration capabilities;
2. Employ leading edge extraction techniques to increase oil extraction efficiency rates; and,
3. Promote the use of environmentally friendly energy-efficient new materials.

As noted above, China’s economic growth over the past 20 years has meant enormous increases in electrical power demands, 65% to 70% of which come from coal. China is the world's largest coal-consuming country and home to 16 of the world's 20 most polluted cities on the planet, according to the World Bank. At least 400,000 people in China die each year from air-pollution-related illnesses, the World Bank reports.
Pollution is not China's only energy problem. It is also plagued by frequent and widespread power failures because its generating capacity cannot keep pace with industrial and consumer demands. The country leads the world in purchases of TV sets and other appliances.