big dreams for china's energy 'golden zone'

China's economy has enjoyed robust growth for the past three decades and transformed into the world's second-largest economy. Nevertheless, China faces obstacles on its path to greater prosperity. The country struggles with electricity power shortages and underdevelopment in rural areas, particularly in northwest China.

Accordingly, China's National Development and Reform Commission and the National Energy Administration have pledged their whole-hearted support for the establishment of an energy "golden zone" to connect the energy-abundant region of Yulin City in North Shaanxi Province, Ordos in southwestern Inner Mongolia and the Ningdong energy and chemical base in the Ningxia Hui Autonomous Region.

China envisions a grand future for the golden triangle of energy. Development guidelines indicate that by 2020, coal production in the region could total 1.45 billion tons, while oil output could reach 54 million tons and natural gas could reach 55 billion cubic meters.

Planners will build the energy zone along the Yellow River to transport coal along with oil and natural gas from the Middle East and Central Asia. Centuries ago, northwest China was recognized as the 'Silk Road,' where merchants from China, the Middle East and Central Asia traveled through the region to trade goods. The area may soon be called the 'Energy Road.'

San Hongbo, a senior researcher at the Chinese Academy of Social Sciences, explains the significance of the energy 'golden zone.' "Many parts of China are facing energy shortages, and abundant energy resources including coal and natural gas (are located) in the zone." He said, "The development of the 'golden zone' will promote local economic growth and create jobs."

The establishment of the zone comes at an opportune moment since China is succumbing to the grips of severe power shortages. Many factories and companies must curtail operations to prevent widespread blackouts. This summer, Shanghai will need to endure electricity rationing.

Shanghai's municipal government is urging offices and shopping malls to close their doors on the hottest days of the year. Electricity for China's financial hub is struggling to meet peak demand. But Shanghai is not alone as 26 provinces in China are dealing with similar circumstances.

China is the world's largest consumer of energy, which relies on coal for more than 70 percent of its energy needs. Some critics of Beijing's energy policies argue that China is too dependent on coal and fossil fuels and that rising energy consumption through coal power plants will continue to worsen the nation's already prevalent pollution problems.

That may seem true, but if China wishes to maintain their strong economic trajectory, the country needs to secure a plentiful supply of electricity. If not, power rationing, shortages and blackouts will adversely impact the country for many years to come, perhaps even decades.

A look at the details of the energy 'golden zone' reveals how this project could play a substantial role in resolving energy crises. Coal is the most critical resource when it comes to meeting China's high energy demands. The World Security Institute publishes China Security, which analyzes the energy and environmental issues facing the country.

In regards to coal, Zhao Daojing of China Security website wrote, "coal is and will continue to be the primary source of energy in China as domestic resources are abundant. Energy specialists generally agree that there is a sufficient endowment of domestic coal to sustain China's present consumption for decades."

Zhao does highlight environmental concerns about the coal industry, but Beijing is addressing this issue by promoting alternative energy resources including hydroelectric power, wind power and solar power as well. China's energy 'golden zone' is already a hotbed for investment in alternative energy resources. The total wind power capacity of Xinjiang accounts for 20 percent of nationwide wind power capacity.

Cindy Li of China Security explains the geography of the region:

"Xinjiang Uygur Autonomous Region comprises two basins and three mountain chains in northwest China. The ridges and falls make this area crowded with air currents, an abundant wind energy resource. Xinjiang Weather Bureau plots out nine blocks with abundant wind resources. The wind resource reserve in Xinjiang can reach 910 billion kWh and is capable of large-scale development."

Northwest China experiences a sunny and dry climate, which makes it a desirable location for solar power plants. So, the energy 'golden zone' can utilize the wind and sun along with coal and fossil fuels to expand the energy supply.

China is showing the world how it is embarking on an effective strategy to resolve the national energy crisis by using all forms of energy resources: natural and alternative. For China to succeed and become the world's largest economy, the country must meet ever-increasing energy demands, so offices, homes and factories can run smoothly for the greater good.

Meanwhile, the local economy is expected to receive enormous benefits from projects that would bring much-needed jobs, investments and infrastructure construction. The energy 'golden zone' can connect isolated northwest China with the rest of the country, which would mean it's a win-win situation for everyone involved.

Tom McGregor is a China Radio International columnist

Source - http://english.cri.cn/6909/2011/07/08/2741s647320.htm