HISTORY of ENERGY & ELECTRICITY Part 4, China Goes All In for All Fuels are Important, 2000-2022

China entered the WTO in 2001. Since then it has increased in Manufacturing Might to become the World’s Largest Manufacturer and the World’s Largest Economy. To do so, it has built more electric power capacity in 20 years than the U.S. did in the preceding 150 years. China is a perfect example of how Energy and Economic Prosperity are inextricably related. First the U.S. showed the world how to use energy to replace muscle power by building our Industrialized economy using energy. This post, Part 4 shows how China has powered their manufacturing-based economy.

The relationship of energy and economic prosperity has always fascinated me. Parts 1-3 of this series focus on the America’s progress in energy development, electricity generation advances and rise in economic prosperity from 1850-2000. America during that 150 year period became the world’s largest Industrialized economy. Lifting millions of people from living in poverty to becoming the richest nation on earth. 

That to me is impressive, but if we want a more recent example of the inter-relationship of energy and economic prosperity, China provides such an example. China’s climb to lift millions out of living in poverty over a couple decades is an amazing accomplishment. China used an aggressive “All Fuels are Important” policy become the world’s wealthiest country on a PPP basis (Purchasing Power Parity). From last to first in about 20 years.

Like America’s rise a hundred years ago, the best interests of the people and the nation were put first, before restrictive regulations as we Americans (thanks to an out of control Bureaucracy) get hung up on. The following two charts show electricity growth and economic growth of China.

From Our World in Data, China’s Electricity Generation by Fuel Source

China entered the World Trade Organization in 2001 and immediately began ramping up manufacturing facilities for aluminum and steel production. In just fifteen years China went from insignificant steel and aluminum production to becoming the world’s leader and by 2016 was producing more than 50% of the world’s aluminum and steel.(3)

Dick Storm presentation to Delaware County Bar Association, July 2016
World Steel Production, S&P Global, 2022

Leadership in Energy & Manufacturing, Creates Wealth of a Nation

China has become the world’s largest manufacturer. This, unfortunately has been accomplished by many American businesses simply partnering or willingly yielding market share (along with 100 years of technological experience) to the Chinese. According to Statista:

From Statista 2022

China’s Electricity, Energy Sources and Plans for the Future

China has embarked on an aggressive path of “All Fuels are Important”. I have advocated this for many years for the U.S.A. As I covered in History of Energy and Electricity in Part 3, America invented, perfected and produced the first commercial nuclear power plants. We designed and built the best and cleanest coal plants. These U.S. plants were amongst the cleanest and most efficient coal plants in the history of power generation of all the world. Then, we quit. I would like to think “Paused” but with the Bureaucrats in Washington, Pausing means quitting. So, is it any wonder that China has passed us in manufacturing capacity? Worse yet, influence in the world. Getting back to China’s appproach to “All Sources of Energy are Important”.

I personally believe (along with many others(16) that most of Climate Change is from natural forces and that America’s energy security and reliability should be priority #1. Apparently on matters of Climate and Energy, China thinks like I do. Can’t think of much I agree with on China, but on “All Fuels are Important”, China and I do agree. For now, China is using enormous quantities of Fossil Fuels to power their Economy (and wealth, they own about 4% of American Treasury Bonds). Later, more nuclear and renewables will also be applied to their Grid. They already have the largest hydroelectric generation in the world. The Chinese have a good balance of Dispatchable generation and renewables.

Economist Magazine

China’s Coal Plants

Time Magazine’s August 2021 issue(5) states that China plans to build 43 new coal plants. These are planned to be clean and efficient, but in fact, coal fueled.

Not only are 43 coal plants planned to be built in China, but through their Belt and Roads Initiative, China is financing and building coal plants all over the world.(15) Reminescant of the way the U.S.AID did when I started my career in the 1960’s. Now, China is Financing, Manufacturing and Constructing power generation equipment and installing facilities all over the world.(7)

China is Building Coal Plants all over the World, not only in China

Nuclear Power

China does in fact have a forward path of matching electricity Demand with carbon-free nuclear power. Admiral Rickover and the U.S. Navy may have invented and perfected safe nuclear power generation but, China is the largest Benefactor from nuclear power generation. The new Westinghouse AP-1000 Units under construction by South Carolina Electric and Gas were stopped due to mismanagement and nine Billion USD in budget overruns. Southern Company’s Vogtle AP-1000 Units under Construction in Georgia are far over budget and behind schedule. Now planned for startup in 4th Quarter 2022(9)

China, on the other hand, plans 150 new nuclear plants and has already started up their Westinghouse AP-1000 Unit(10) Shandong Nuclear Power Co.’s Haiyang nuclear power plant is pioneering two significant aspects of nuclear diversification in China: district heating and desalination. Some of the other 150 nuclear plants are listed in the World Nuclear Association update of November 2021(11) China is on the way to leading the world in nuclear power generation.

Hydroelectric

China generates more electricity than any other country from hydroelectric power. The “Three Gorges Dam” at 22.5 GW capacity , is the largest power station in the world.(13) Suffice it to say, China, like America has taken advantage of available river flows to install dams and hydroelectric generation. Still, most of the Dispatchable electric power must come from coal, nuclear and gas plants. The chart below was done by the EIA about 2017 to show what the U.S. Dept. of Energy Forecasted for China electric power generation through 2040.

Solar and Wind Generation

Renewables in China are also huge. (6) China is also the world’s largest manufacturer of solar and wind turbine components. The chart below shows the world renewables generation. Keep in mind, renewables are not “Dispatchable”. The variations in Demand must be handled by Dispatchable power generation capacity such as those conventional systems mentioned above. Namely, coal, gas, nuclear, hydro and to a small extent, oil fueled generators. The two blue lines at the lower right of the chart are wind and solar and worldwide total about 10% of generation. The majority of the Bulk Power generated from renewables is from Hydroelectric power.(13) Hydroelectric power, by the way, is Dispatchable.

IEA Global Energy Review
IEA Global Ene rgy Review 2021

Conclusions

China has taken full advantage of All Sources of Energy and especially all forms of energy used to generate electricity. They have used their enormous wealth from exporting manufactured products to provide funding to build more manufacturing capabilities and to expand their influence to other countries of the world. China is a current example of how abundant and reliable energy can be used to accummulate wealth and influence in the world. Another metric of how the rapid build out of manufacturing capacity has increased wealth is to consider that four of the 10 largest banks in the world are Chinese owned.(14)

China understands the importance of “ALL Fuels are Important”. Meanwhile, the U.S. leadership is attempting to crush our major energy producing companies through excessive regulations and restrictions as well as foolish “Woke” social policies.(1) Then there is the foolish ESG Movement favored by the Democrat Party, the World Bank, Blackrock, major U.S. Banks and many U.S. manufacturing and Media corporations. The “Woke” ESG movement is weakening America and strengthening China, Russia, Iran and other countries not aligned with Freedom loving western nations.

It would be wise for our elected officials to wake up. We can only hope and pray that they do so before it is too late.

Dick Storm, Feb. 21, 2022

References:

  1. Daily Signal, Feb. 18, 2022: https://www.dailysignal.com/2022/02/18/biden-administration-adds-climate-roadblocks-to-future-pipelines-energy-projects/
  2. Global Steel Production, S&P Global: https://www.spglobal.com/platts/en/market-insights/topics/energy-price-crisis
  3. Dick Storm presentation on Energy in the U.S.A. to the Delaware County Bar Association, July 2016: https://dickstormprobizblog.org/2016/07/25/energy-and-economic-prosperity-my-thoughts-dick-storm/
  4. China to Build 150 new Nuclear Reactors in next 15 years, Nov. 2021, CNET.com: https://www.cnet.com/news/why-the-us-should-learn-from-chinas-nuclear-power-expansion/
  5. China is Building 43 new coal plants, Time, August 2021: https://time.com/6090732/china-coal-power-plants-emissions/
  6. China, World Leader in Renewables Manufacturing, Center for Strategic & International Studies : https://www.csis.org/east-green-chinas-global-leadership-renewable-energy
  7. China’s Belt and Roads Initiative
  8. China’s Carbon Emissions, The Economist Magazine:
  9. Power Magazine update on Vogtle Nuclear Plant, Dec. 2022: https://www.powermag.com/oft-delayed-vogtle-expansion-on-track-for-2022-start/
  10. Power Magazine, December 2021, China starts up Westinghouse AP-1000 Nuclear Unit: https://www.powermag.com/how-an-ap1000-plant-is-changing-the-nuclear-power-paradigm-through-district-heating-desalination/
  11. World Nuclear Reactors Under Construction, Nov. 2021: https://world-nuclear.org/information-library/current-and-future-generation/plans-for-new-reactors-worldwide.aspx
  12. World’s largest Hydroelectric Generating Plants, Power Technology: https://www.power-technology.com/features/feature-the-10-biggest-hydroelectric-power-plants-in-the-world/
  13. Global Energy Review, IEA December 2021: https://iea.blob.core.windows.net/assets/d0031107-401d-4a2f-a48b-9eed19457335/GlobalEnergyReview2021.pdf
  14. World’s Largest Banks: https://en.wikipedia.org/wiki/List_of_largest_banks
  15. China to build 150 GW of new coal plants by 2025: https://www.reuters.com/business/energy/chinas-zhejiang-approves-new-11-bln-coal-fired-power-plant-2022-02-09/
  16. Donn Dears Book, “Net-Zero Carbon, The Climate Policy that is Destroying America” Order at Amazon.com

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