Poverty Alleviation of National Energy Administration

　　【Overview】  In accordance with the decisions of the State Council and the arrangements of the State Council Leading Group of Poverty Alleviation and Development, in 2010, the National Energy Administration (NEA) continued to take it as the primary task of poverty alleviation and development to improve people’s livelihood, strengthen energy construction and boost the development of impoverished areas, creatively fulfilled its responsibilities and continued to improve the energy level for people’s production and living, providing an important energy guarantee for the leapfrog economic development of poverty-stricken areas.

　　【Policy study and formulation】 In 2010, National Energy Administration and relevant departments jointly conducted field research in Xinjiang, Yunnan, Inner Mongolia, Gansu, Ningxia and Shaanxi Province, completed research reports on how to boost the energy development and the coordinated economic and social development in these regions and put forward suggestions on major projects and support policies as a reference for decision-made of the central government.

　　To implement the major decisions and plans of the central government on promoting the leapfrog development and long-term stability of Xinjiang and address the basic energy-supply problem in three prefectures (Kashi, Hetian and Kizilsu Kirgiz Autonomous Prefecture) in the southern areas of Xinjiang as soon as possible, in accordance with the opinions of the Central Research Group on Xinjiang’s economic and social development and the requirements of the three prefectures in the southern regions of Xinjiang, the National Energy Administration organized Xinjiang Autonomous Region Development and Reform Commission, China National Petroleum Corporation and the State Grid Corporation of China to study and put forward the implementation plan for energy supply in the three prefectures, issued the "Circular of the National Energy Administration Concerning the Issuance of Implementation Opinions on Energy Supply for Three Prefectures in the Southern Regions of Xinjiang", put forward the overall requirements, objectives and major projects for energy construction in the three prefectures in the next two or three years and made a thorough deployment for the project implementation.

　　【Development of planning】 Give priority to the western impoverished areas in approving the overall planning for development of coal mines. National Energy Administration successively approved the overall planning for Zhundongxi Heishan Mine of Xinjiang, Wujianfang Mine of Inner Mongolia, Shajingzi Mine of Gansu and Guxu Mine of Sichuan, actively promoted the construction of large-scale coal bases in North Shaanxi, East Ningxia, East Inner Mongolia and Huanglong, and guided Xinjiang Autonomous Region Development and Reform Commission to develop planning for the development of large-scale coal bases in Xinjiang.

　　To implement the instructions of the State Council leaders, the National Development and Reform Commission, National Energy Administration and relevant departments and units of Inner Mongolia Autonomous Region, Shaanxi Province, Gansu Province and Ningxia Hui Autonomous Region planned to issue the “Guidance on the Comprehensive Energy Development in the “Golden Triangle” of Inner Mongolia, Shaanxi, Gansu and Ningxia”. The National Energy Administration was responsible for the coordination and convergence as well as the drafting of the “Guidance” and conducted field research and integrated study together with relevant departments.

　　In August 2010, it started preparation of “Implementation Plan for Exploration, Development and Utilization of Coalbed Methane in Xinjiang (2011-2020)” and actively supported the development of coalbed methane in Xinjiang. National Energy Administration organized Xinjiang Autonomous Region Development and Reform Commission and the Xinjiang Production and Construction Corps Development and Reform Commission to prepare the planning for a new round of rural power grid upgrading and three-year construction and organized the development of planning for the electric power construction in the areas without electricity in Xinjiang.

　　In order to make Xinjiang a large national oil and gas production, processing and reserve base, a large coal chemical industry base, a large wind power base and a major thoroughfare for land transportation of energy so as to change Xinjiang’s energy resource advantages to economic advantages, based on the prophase studies and communications with departments concerned, the National Development and Reform Commission and National Energy Administration held a meeting to study and make a deployment for the development of overall planning for the transformation of energy resources of Xinjiang. On the basis of in-depth research of coal development and transport, construction of thermal power and electric power delivery, coal fuel and development of chemical industry, renewable energy development, oil and gas development and pipeline construction and other major issues, according to the meeting, we must adhere to market-oriented scientific planning, speed up the development and utilization of superior resources, coordinate current and long-term development and partial and overall situation, and develop workable implementation plan for strategic development of national energy industry so as to promote the scientific, harmonious and leapfrog development of energy industry in Xinjiang.

　　【Working mechanism】 To implement the spirit of the central work conference on Xinjiang's development and boost the energy development in Xinjiang, based on the “Opinions of the CPC Central Committee and the State Council on Promoting the Leapfrog Development and Long-term Stability of Xinjiang” (Zhong Fa  [2010] No. 9) and the “Planning for Division of Responsibilities for Major Policy Measures to Implement the ‘Opinions of the CPC Central Committee and the State Council on Promoting the Leapfrog Development and Long-term Stability of Xinjiang’”, the National Energy Administration assigned the relevant tasks and issued the “Notice of National Energy Administration on the Issuance of ‘Division of Labor for Supporting Energy Development in Xinjiang’”. Various divisions respectively formulated specific work plans. On this basis, the working team for supporting Xinjiang’s development was set up to understand the situation of energy construction and counterpart support in Xinjiang, coordinate Xinjiang-related work and write the briefings. A normal working mechanism was established.

　　【Financial support】 In 2010, the central government’s budget for western urban grid construction and renovation was 1 billion Yuan. The state issued 7.33 billion Yuan for the rural electric network alteration in the western regions, 1.15 billion Yuan for electric power construction in the regions without electricity, 68 million Yuan for complementation geological exploration for western coal mine projects, 102 million Yuan as interest subsidy for coal industry upgrading and 520 million Yuan for safety renovation. In 2010, according to the central government budget, 500 million Yuan was issued for the construction of wind power transmission projects, mainly for Jiuquan of Gansu, Hami of Xinjiang, Inner Mongolia and Yunnan, etc.

　　In the urban power grid construction and transformation, rural power grid upgrading and electric power construction in the areas without electricity, the central government always gives priority to impoverished areas in policy formulation. The coverage of the 50% of the central government’s investment in rural power grid upgrading and electric power construction in the areas without electricity was expanded from 15 poor counties in the southern part of Xinjiang to 54 counties in Xinjiang. In 2010, according to the central government’s budget, 492 million Yuan was issued to support the urban power grid construction and renovation projects in Xinjiang, of which 370 million Yuan was for Xinjiang Autonomous Region and 122 million Yuan for Xinjiang Production and Construction Corps; and 170 million Yuan was allocated to support the wind power transmission projects in Hami. In 2010, 2.02 billion Yuan of central government investment was provided to support the rural electric network alteration and upgrading in Xinjiang, of which 780 million Yuan was issued according to the central government budget; 510 million Yuan was allocated for the electric power construction in the regions without electricity, of which 250 million Yuan was within the central government budget. In 2010, 620 million Yuan was allocated for the rural electric network alteration and upgrading in Xinjiang Production and Construction Corps, of which 300 million Yuan was within the central government’s budget; and 140 million Yuan was invested in electric power construction in the regions without electricity, of which 50 million Yuan was within the central government budget.

440  million Yuan was invested in the electric power construction in the regions without electricity, of which 300 million Yuan was within the central government budget; and 1.25 billion Yuan was issued for the rural electric network alteration and upgrading, of which 1 billion Yuan was within the central government budget. The proportion of central government’s budget for investment in electric power construction in the regions without electricity and rural electric network alteration and upgrading in Sihuan, Yunnan, Gansu and Qinghai Province rose from 20% to 50%.

　　【Project construction 】 1. Strengthen power grid construction. The National Energy Administration vigorously supported the power grid construction in impoverished areas and strengthened regional electric network construction to further narrow the range of areas without electricity and enhance the power supply capacity and reliability in impoverished regions. The key power grid construction projects it supported included Qinghai-Tibet DC Interconnection Project, Xinjiang and the Northwest Power Grid Interconnection Project, Xiangjiaba - Shanghai HVDC Transmission Demonstration Project, East Ningxia DC Power Transmission Project, etc.

2. Strengthen the power supply construction. The National Energy Administration vigorously supported the power grid construction in impoverished areas. In 2010, it approved the construction of thermal power projects of about 11.6 million kilowatts in 12 western provinces (municipalities, autonomous regions), accounting for 29% of the total in China. The size of the thermal power projects included by the state grid development planning was nearly 10 million kilowatts, accounting for about 38% of the thermal power in China. It not only met the electricity needs of western regions, but also promoted the economic and social development of western regions through changing resource superiority into economic advantages by “West-East Power transmission” project.

3. Promote the development of coal industry. The National Energy Administration approved the construction of a number of coal mines including Xinwei Colliery of Sichuan, Mahuangliang Coal Mine of Shaanxi and Yangjiacun Colliery and Guhuajian Coal Mine of Inner Mongolia, approved Xie’ertala and Talahao of Inner Mongolia, Xiaojihan of Shaanxi, Hetaoyu Coal Mine of Gansu, Jinfeng Coal Mine of Ningxia and Xiheishan Opencast Coal Mine of Xinjiang to carry out the preliminary work, and actively promoted the construction of large-scale coal bases in Shaanbei, East Ningxia, East Inner Mongolia and Huanglong and the integration of coal resources in Shanghaimiao Minery Area of Inner Mongolia.

4. Promote oil and gas pipe network construction. The National Energy Administration vigorously supported the construction of the Sebei Gas Field - Xining – Lanzhou Natural Gas Pipeline Project and the Golmud - Lasa Gas Pipeline Project and optimized the oil and gas transmission network in the western regions. In order to implement the spirit of [2010] No. 9 Document and the relevant requirements, National Energy Administration set the goal for the natural gas project benefiting the people in southern part of Xinjiang and the project is being constructed smoothly.

5. Support the development of oil refining, coal fuel and biofuel industry. In 2010, the National Energy Administration approved seven projects, namely Keqi coal-gas project with annual production capacity of 4 billion cubic meters of Inner Mongolia, Huineng coal-gas project with annual production capacity of 1.6 billion cubic meters of Inner Mongolia, Guanghui dimethyl ether project with annual production capacity of 800,000 tons in Xinjiang, Xin’ao dimethyl ether project with annual production capacity of 400,000 tons in Inner Mongolia, Qinzhou oil refining project with annual production capacity of 10 million tons in Guangxi, Pengzhou oil refining project with annual production capacity of 10 million tons in Sichuan and COFCO’s cassava fuel ethanol project with annual production capacity of 200,000 tons in Inner Mongolia, and approved Xinjiang’s Qinghua coal-gas demonstrative project with an annual production capacity of 5.5 billion cubic meters to carry out the preliminary work. The technology of Shenhua Group’s megaton direct coal liquefaction plant continued to be improved after repeated testing and the 160,000-ton indirect coal liquefaction plant was running well. Yankuang Group’s indirect coal liquefaction technique planned to be launched in Yulin of Shaanxi Province passed the pilot plant test. Guangxi achieved promotion of ethanol gasoline by closed operation. Sichuan’s 60,000 t/y and Guizhou’s 50,000 t/y tung tree biodiesel industrialization demonstration projects were launched.

6. Strengthen hydroelectric development. It organized the preparation of planning for the hydroelectric development from Hukou of upper reaches of the Yellow River to Erduo, Tongtian River, Jinsha River’s upper reaches, etc, approved Wunonglong, Dahuaqiao and Tuoba of Lancang River in Yunnan, Yingliangbao, Angu and Laoyingyan of Dadu River in Sichuan, Mamayan of Beipan River in Guizhou and Hanjiangjia River of Shaanxi Province as well as other related hydroelectric projects to carry out preliminary work, and approved the expansion of Jin’anqiao Hydropower Station in middle reaches of Jinsha River in Yunnan, Guandi and Tongzilin Hydropower Station of Yalong River in Sichuan, Yantan Hydropower Station of Hongshui River in Guangxi and Zangmu Hydropower Station of Brahmaputra River in Tibet, etc.

7. Actively develop and utilize wind energy and solar energy. the National Energy Administration launched Phase I project of ten million kilowatts of wind power base in Gansu, actively promoted the construction of one million kilowatts of wind power bases in Maoqi and Tongliao of Inner Mongolia, promoted the planning and construction of ten million kilowatts of wind power bases in Inner Mongolia, approved the development plan for Southeast Part of the ten million kilowatts of wind power base in Hami, Xinjiang, and cooperated with a few departments to jointly launch the “Golden Sun Project” and support solar electrical energy generation in border and remote areas to improve the energy conditions for production and living of local farmers and herdsmen.