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 2011, 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.

　　【Development of planning】The “ ‘12th Five-Year Plan’ for the Development of Coal Industry” determines the overall layout for national coal production and development is to control the development in East China, stabilize the development in central China and boost the development in western regions. During the "12th Five-Year Plan" period, combined with the construction of coal transport outlets and the ecological environment’s carrying capacity, we’ll accelerate the coal resource development in the western areas to boost the economic and social development of western poor areas.

　　Give priority to the central and western impoverished areas in approving the overall planning for development of coal mines. In 2011, the National Energy Administration successively approved the overall planning for the mining areas of Muli of Qinghai, Xiangning of Shanxi, Baiyanghe of Xinjiang and Zhungeer of Inner Mongolia as well as the overall planning for the development of Shanghaimiao Energy and Chemical Base of Inner Mongolia, coordinated to solve the problems in the coal development of Taigemiao Prospecting area of Xinjie, Zhugeer Mining area, Shanghaimiao Mining area in Inner Mongolia, guided Shaanxi Provincial Development and Reform Commission to prepare the plan for the development of Shaanbei Energy and Chemical Base, and guided Xinjiang Autonomous Region Development and Reform Commission to prepare the planning for large-scale coal base building in Xinjiang.

　　In order to implement the spirit of the central work conference on Xinjiang’s work, increase efforts on the utilization of coal bed gas (coal gas) of Xinjiang and comprehensively promote the development of coalbed methane industry, in August 2010, the National Energy Administration issued the "Notice on the Preparation of the ‘Implementation Plan for Exploration, Development and Utilization of Coalbed Methane in Xinjiang (2011-2020)’" (Neng Mei Han [2010] No. 36) and required relevant department to prepare the planning for the exploration, development and use of coal bed gas in Xinjiang, mainly Zhundong, Zhunnan, Kubai and Tuha coal field. In 2011, Xinjiang Autonomous Region Development and Reform Commission submitted the “Referral on the ‘Implementation Plan for Exploration, Development and Utilization of Coalbed Methane in Xinjiang (2011-2020)’" (Xin Fa Gai Neng Yuan [2011] No. 76).

　　Continue to implement the major decisions and deployments of the Central Committee on promoting Xinjiang's leapfrog development and long-term stability to solve the problem of basic energy supply in the three prefectures of South Xinjiang as soon as possible. In March 2011, the National Development and Reform Commission issued the "Approval of the National Development and Reform Commission on the Planning for the Natural Gas Popular Project in South Xinjiang”. On this basis, PetroChina wrote a feasibility study report on the natural gas project of South Xinjiang.

　　Organize central and western provinces (autonomous regions and municipalities) and Xinjiang Production and Construction Corps Development and Reform Commission to prepare the “12th Five-Year Plan” for the upgrading of rural power grids, giving priority to the poor areas not involved in the renovation or not comprehensively renovated in the allocation of projects and funds; organized Inner Mongolia, Sichuan, Yunnan, Tibet, Qinghai, Xinjiang and Xinjiang Production and Construction Corps Development and Reform Commission to prepare planning for the power construction in the region without access to electricity.

　　Start the preparation of the “Special Program for the Development of Cellulose Fuel Ethanol Industry”. Taking straw and other agricultural and forestry residues as well as new energy grass as key raw materials, we intensified scientific and technological innovation to promote the industrialization of cellulosic ethanol. The planning implementation will create investment of 36 billion Yuan to encourage the issuance of 72 billion Yuan, increase 550,000 jobs and annual production value of 45 billion Yuan, and help farmers’ income generation of 16.2 billion Yuan.

　　Prepare the development planning for oil-bearing energy forest. We established oil-bearing energy forest bases of 4.22 million hectares in the waste mountain areas and farmland suitable for energy development in 369 counties of 21 key areas. After the base building, the annual production value is expected to reach 19 billion Yuan.

　　【Policy research and development】 In order to implement the spirit of the fifth central conference on Tibet work and the "Opinions of the CPC Central Committee and State Council on Promoting the Leapfrog Development and Stability of Tibet” (Zhong Fa [2010] No. 4) to boost the development of electricity industry in Tibet. In August 2011, the National Energy Administration held the Forum on the Development of Hydropower Industry in Tibet, made deployments on the hydropower development during the "12th Five-Year Plan" period and put forward new ideas and requirements for the counterpart support for Tibet by electricity development, aiming to boost the economic development and improve the living standards of the masses in Tibet.

　　In order to boost the development of non-food biomass industry and accelerate the structural adjustment and industrial restructuring of fuel ethanol, the National Energy Administration introduced new grain fuel ethanol tax policies, determined to gradually reduce and completely cancel the preferential tax policies on grain fuel ethanol in 2015, unify the subsidy standard for grain fuel ethanol and reduce the subsidies, and promulgated the fixed subsidy standard for non-grain fuel ethanol.

　　In order to further protect the legitimate rights and interests of the hydropower immigrants and actively develop hydropower industry under the premise of good resettlement of immigrants, the National Energy Administration organized the relevant units and local enterprises to carry out study on policy measures and methods for innovating the thinking for relocation, hydropower development, “construction after relocation” and the combination of hydropower immigrant and urbanization, and stressed the requirements of “taking poverty reduction among the immigrants as an important goal of hydropower immigrant to guarantee the long-term livelihood and development of the immigrants”.

　　【Financial assistance】In 2011, it allocated 1.25 billion Yuan of funds for the upgrading of rural power grids in Tibet, of which 1 billion Yuan was central budget fund; 500 million Yuan of funds for the construction of the regions with no access to electricity, of which 400 million Yuan was central budget fund; arranged 2.23 billion Yuan of funds for the upgrading of rural power grids in Xinjiang, of which 800 million Yuan was central budget fund, 620 million Yuan of funds for the construction of the regions with no access to electricity, of which 250 million Yuan was central budget fund; arranged 620 million Yuan of funds for the upgrading of rural power grids in Xinjiang Production and Construction Corps, of which 300 million Yuan was central budget fund; 1.31 billion Yuan for the upgrading of rural power grids in the Tibetan areas of Qinghai, Sichuan, Yunnan and Gansu, of which 660 million Yuan was central budget fund, and 530 million Yuan of funds for the construction of the regions with no access to electricity, of which 260 million Yuan was central budget fund.

　　In 2011, 500 million Yuan of central budget funds was issued for the implementation of wind power transmission projects in Xinjiang, Inner Mongolia, Yunnan, Shaanxi, Ningxia, etc. We newly built 500-kv transmission lines of 238 km with power transmission capacity of 750,000 kVA; 220-kv transmission lines of 1217.3 km with power transmission capacity of 1.29 million KVA and 110-kv transmission lines of 484.3 km.

　　In 2011, we supported the implementation of 146 coal mine safety improvement and gas control demonstration mine construction projects in Inner Mongolia, Guangxi, Chongqing, Sichuan, Guizhou, Yunnan, Shaanxi, Gansu, Ningxia, Qinghai, Xinjiang and Xinjiang Production and Construction Corps, arranged central budget funds of 690 million Yuan to encourage the issuance of project investment of 2.62 billion Yuan; arranged central budget funds of 40.03 million Yuan to support the geological supplementary exploration of the coal mines in western regions; and arranged central budget funds of 84.57 million Yuan to support the construction of 13 coal industrial upgrading projects in Chongqing, Sichuan, Yunnan, Shaanxi and Xinjiang.

　　In March 2011, we approved the preliminary design of fire fighting work projects in Shihezi Nanshan Fire Zone, Manas Taxihe Fire Zone, Bukesaier and Shituoluoai Fire Zone of Xinjiang. The total project investment was 510 million Yuan, of which 459 million Yuan was central budget funds. In 2011, we allocated 91.74 million Yuan of central budget funds for firefighting work.

　　【Power grid construction】 The National Energy Administration vigorously supported the power grid construction in impoverished areas and further narrowed the range of areas without electricity to enhance the power supply capacity and reliability in impoverished regions. The key power grid construction projects it supported in 2011 included Nuozhadu Power Station’s 800-kv DC transmission project for Guangdong, Xiluodu You’an Power Station’s ±500-kv DC transmission project for Guangdong and the Fenghuang-Wusu-Yili 750-kv transmission and transformation project in Xinjiang, etc.

　　【Power supply construction】 In 2011, the National Energy Administration approved the construction of thermal power projects of about 24 million kilowatts in 12 western provinces (municipalities, autonomous regions), accounting for 51% 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 25% 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.

　　【Development of coal industry】 In 2011, the National Energy Administration approved the construction of 18 coal mines in Inner Mongolia, Sichuan, Gansu, Guizhou and Shaanx with production capacity of 93.9 million tons per year, and approved the launching of the preliminary work of 17 coal mines in the western provinces and autonomous regions including Inner Mongolia, Sichuan, Guizhou, Yunnan, Gansu, Ningxia and Shaanxi with a total production capacity of 67.2 million tons per year.

　　【Oil and gas pipe network construction】 Provide strong support for the construction of oil and gas pipeline network in impoverished regions to improve the security of energy supply. We approved the implementation of preparatory work for the construction of Shaanxi’s Jingbian - Xi'an natural gas pipeline and four natural gas pipeline projects connecting Shaanxi and Beijing. In order to launch Line III of the West-to-East Gas Pipeline Project as soon as possible, we actively coordinated to solve the problems in the preliminary work of the project and speeded up the approval procedures for the construction of Changqing Oilfield - Hohhot Crude oil Pipeline Project.

　　【Hydroelectric development】 We made arrangements for the orderly project construction in accordance with the overall objective of launching hydropower station projects of 120 million kilowatts and completing the construction of hydropower station projects of 80 million kilowatts during the “12th Five-Year Plan” period. In 2011, we arranged the planning for the construction of hydropower station projects at the upper reaches of Yalong River and the lower reaches of Naqu River and Brahmaputra River with the preliminary work funds for hydropower projects, and the planning for the construction of hydropower projects in other main rivers had been basically completed or entered into the final stage. We approved the implementation of preparatory work for hydropower station projects, such as Erxia, Bala, Dawei, Hongheqiaotou and Gasa River Grade I project in Jiaomuzu River of Sichuan Province, Maerdang of the Yellow River, Suwalong, Lawa and Yebatan at the upper reaches of Jinsha River and Qinghai Yellow River Cihaxia Hydropower Station. We approved the construction of a number of hydropower stations such as Ahai Hydropower Station at the middle reaches of Jinsha River, Huangjinping Hydropower Station and Houziyan Hydropower Station of Dadu River in Sichuan, Nuozhadu Hydropower Station of Lancang River in Yunnan, Xiaoxuan Hydropower Station of Du River in Hubei, Huangfeng Hydropower Station of the Yellow River of Qinghai, and Kajiwa Hydropower Station and Lizhou Hydropower Station of Muli River in Sichuan.

　　【Development and utilization of wind energy and solar energy】 The National Energy Administration launched Phase II project of ten million kilowatts of wind power base in Gansu, actively accelerated the construction of ten million kilowatts of wind power bases in Xinjiang, implemented two one million kilowatts of wind power bases in Hami and Daban City of Xinjiang, jointly launched the “Golden Sun Project” with a few departments, supported remote areas to develop solar power generation, and especially solved the electricity problem of the regions without access to electricity in Qinghai and Tibet.

　　【Biofuel industry】 Start the research of sustainable development strategy for aviation biofuel industry of China. In accordance with the MOU on the Development of China's aviation biofuels industry and MOU on the sustainable aviation biofuel test flight under the framework of US-China Energy Cooperation Program, at the end of October 2011, the National Energy Administration and the Civil Aviation Administration of China jointly organized the first test flight of aviation bio-fuel in China and achieved a complete success. Meanwhile, we approved the establishment of the National Energy R&D Center for Non-food Biomass and started the preparation for the establishment of the Technical Committee for Standardization of Non-food Biomass of Energy Industry.