Energy Update - China Wields "Iron Hand" on Energy Efficiency
CHINESE state media have reported that 2,087 highly energy inefficient, unsafe and polluting industrial plants and equipment are to be shut down within two months.
The notice from the Chinese government covers 18 varying industries including steel, paper, cement and dyeing. It is reported that these threatened plants are primarily outdated industrial facilities.
The government’s target is to reduce energy intensity, that means reducing the amount of energy used to generate each unit of gross domestic product, by 20% from the 2005 level, the reduction is the basis of the Chinese five year plan, Which is in its final year, during the first four years they reduced it by 14.4%, within touching distance of their pledge.
Earlier this year, after seeing a rise of 3.6 percent in energy intensity during the first quarter, Chinese Premier Wen Jiabao announced that he would use an “Iron Hand” in dealing with enterprises that did not tackle their energy efficiency. This seemed to result in a small reduction in the second quarter, smoothing out the first half figures to a .09 per cent over the six month period.
Large Chinese companies are more or less on the same level as their foreign equivalents, the problem appears to be a lack of energy efficiency amongst the many SMEs.
The Wall Street Journal reports Lin Boqiang, director of the China Center for Energy Economics Research at Xiamen University, as saying:
"The facilities of small enterprises with backward technologies is essential to meet the country's energy and environmental targets"
Enigin Distributors find that small to medium size enterprises often realise the full potential of Enigin's energy saving solutions very quickly, as they begin to control their energy use in real-time through Enigin's Eniscope system.
Alex Wang, of the Natural Resources Defence Council told The Guardian newspaper:
"There is no doubt this announcement is significant, especially because it is complete with real consequences; if they don't meet the target they will be barred from obtaining loans, for example,"
"[This announcement] shows how these five year plan targets can really mobilise behaviour … people's career prospects are riding on meeting them," added Wang.
Along with Enigin's Eniscope real-time energy data businesses discover that they can control their energy use and emissions by applying the correct technologies and strategies to meet governmental targets, protect themselves from penalties and save money at the same time.
