China

CN-3b:Top-10,000 Energy-Consuming Enterprises Program

Policy Description

The Top 10,000 Program, which is a mandatory program in the 12th Five-Year Plan period, expanded from the Top 1,000 Program of the 11th Five-Year Plan (FYP) and now covers two thirds of China's total energy consumption. Approximately 15,000 industrial enterprises that use more than 10,000 tonnes of coal equivalent (tce) per year, around 160 large transportation enterprises, and public buildings (including schools and univeristies), hotels and commercial enterprises that use more than 5,000 tce per year are included in the program. The target of the Top 10,000 Program is to save 250 million tce by 2015. 

Description

The Top 1,000 Energy-Consuming Enterprises Program, which targeted the largest 1,000 enterprises in China, successfully achieved and surpassed its energy-saving target of 100 milliion tons of coal equivalent (Mtce) during the 11th FYP with reported savings of just over 150 Mtce. During the 11th FYP, the Top 1,000 Program was gradually expanded at the local level. Provinces established energy conservation programs to cover smaller enterprises in the local “Double-Hundred” programs or provincial “Top 1,000” programs. This built the foundation for expanding the Top 1,000 program to the Top 10,000 Program under the 12th FYP. 

The Top 10,000 Program aims to cover two thirds of China’s total energy consumption, or 15,000 industrial enterprises that use more than 10,000 tonnes of coal equivalent (tce) per year, and around 160 large transportation enterprises (such as large shipping companies), and public buildings that use more than 5,000 tce per year [1].The total number of enterprises covered by this program reaches to around 17,000.

The target of the Top 10,000 Program is an absolute energy-saving target of 250 Mtce by 2015 [5]. To achieve the 16% energy intensity reduction relative to 2010 (economic energy intensity, i.e., energy consumption over GDP), the total energy-saving target for China is 670 Mtce (assuming GDP growth of 8.5% per year). This means the share of the energy-saving target of the Top 10,000 Program is 37% of the total energy-saving target (*1). 

The 250 Mtce saving target will be disaggregated to local provinces and cities. The target setting process is said to be the following:

  • Local companies report their estimated energy-saving potentials to the local government
  • Local provinces estimate total energy-saving targets for their provinces and submit their proposed targets to the central government
  • The central government reviews the proposed target. 
  • Provincial and central governments negotiate the targets before final targets are determined.

Local governments will evaluate local enterprises’ progress toward their energy-saving target and publicize the results. For the enterprises that do not meet their annual energy-saving target, mandatory energy audits will be conducted and adjustment/retrofits will be required. Local governments are authorized to supervise the progress of local enterprises, as well as supervise centrally owned large State-Owned Enterprises. 

The key elements of the Top 10,000 Program include [5]:

  • establishment of energy conservation working groups in enterprises,
  • implementation of the target responsibility and accounting system, allocating targets to companies, plants and workshops,
  • conducting energy audits and developing energy conservation plans, based on the Technical Principle of Energy Audits in Enterprises (GB/T 17166), 
  • implementation of energy audit systems,
  • conducting energy efficiency benchmarking,
  • establishment of energy management systems following China's energy management standard (GB/T 23331),
  • expansion of the energy managers training pilots,
  • implementation of energy utilization reporting system,
  • continuation of phasing-out of backward technologies,
  • acceleration of energy conservation retrofits by allocating special funding for annual retrofits and cooperating with Escos,
  • improvement of energy measurement and measuring instrument, encouraging companies to build energy management and control centers and to use autmoation and IT, and
  • establishment of energy conservation incentive mechanisms 

The provincial targets will be as follows:

Provincial allocation of Top 10,000 program targets
Province Target (mtce)
Beijing 2.00
Tianjin 4.86
Hebei 21.75
Shanxi 13.85
Inner Mongolia 11.60
Liaoning 14.00
Jilin 4.37
Heilongjiang 6.25
Shanghai 6.85
Jiangsu 22.05
Zhejiang 10.05
Anhui 8.40
Fujian 5.25
Jiangxi 4.35
Shandong 25.30
Henan 15.82
Hubei 7.44
Hunan 6.19
Guangdong 15.30
Guangxi 4.47
Hainan 0.37
Chongqing 3.06
Sichuan 10.09
Guizhou 3.91
Yunnan 4.96
Tibet 0.03
Shaanxi 6.70
Gansu 3.70
Qinghai 0.83
Ningxia 3.05
Xinjiang 3.15
Total 250.00

 

Policy Information Expand this section for information on the key features of the policy, such as its date of introduction, categorization, main objective(s) and linkages with other policies.

Policy Categorisation

Policy Instrument Type: Administrative

Position in the Pyramid

About Us

Participation: Mandatory

Period

Start Date: 2011

End Date: 2015

Policy Linkages

Supported By Financial Rewards for Energy-Saving Technical Retrofits Supporting Measure
Supported By Differential Electricity Pricing for Industry Supporting Measure
Complements Ten Key Projects Program Supporting Measure
Supported By Mandatory Energy Managers and Energy Audits Supporting Measure
Supported By Energy Performance Contracting and Energy Service Companies (ESCOs) Supporting Measure
Supports Energy and Carbon Intensity Targets of the 12th Five Year Plan Effort Defining
Supported By Industrial Energy Performance Standards Effort Defining

Agencies Responsible

National Development and Reform Commission

Primary Objective: Energy

Objective

­- To improve energy management at key-energy consuming enterprises (those that consume more than 10,000 tce/yr) according to China’s Energy Conservation Law. ­- To upgrade the level of energy efficiency of the Chinese industrial enterprises to the advanced level in the world.

Target Group

Industrial enterprises that use more than 10,000 tce per year, public buildings (hotels, restaurants, and schools) that use more than 5,000 tce per year, and large transportation enterprises. In total, there will be about 15,000 industrial enterprises. Taking into account the public buildings and transportation enterprises, around 17,000 entities will be included in the Top 10,000 Program.

Driver of energy consumption or emissions affected by policy: Total energy consumption

Implementation Information Expand this section for information on targets, monitoring, verification and enforcement regimes, and implementation requirements and tools.

Coverage

The Top 10,000 Program covers two thirds of total national energy consumption [2], or 85% of the total estimated industrial energy use [3].

Quantitative Target? yes

Target: The energy-saving target of the Top 10,000 Program is 250 Mtce, which is based on the provincial targets submitted to and negotiated with the central government. The target is defined as the total energy savings in 2015 against a growth baseline [4].

Progress Monitored? yes

Verification Required? yes

Enforced? yes

Sanctions: If enterprises do not meet the annual energy-saving target, mandatory energy audits will be conducted and adjustment/retrofits are required to be taken within a limited period of time.

Requirements on the Target Group

 

  • Implementation of the target responsibility system
  • Implementation of energy audit systems
  • Conduct energy efficiency benchmarking
  • Establishment of energy management systems at enterprises
  • Implementation of energy utilization reporting system
  • Acceleration of energy conservation retrofits and improvement of energy management skills (*2).

Support by Government

 

  • Expansion of the training pilots of Energy Managers to more provinces and cities
  • Promotion of energy-efficient technologies.
  • Financial incentives and financing support for energy-efficient technical retrofits.
  • Adjustment of the export taxation policy to limit exports of energy-intensive products.
  • Fiscal and financial incentives to encourage and promote energy performance contracting and energy service companies (ESCOs).
  • Promotion of new market mechanisms, such as voluntary emission trading pilots.

Implementation Toolbox

Energy Auditing Guides for Industrial Enterprises 

  • The Chinese government requires all new and large fixed-asset investment to conduct energy-efficiency assessments and energy efficiency reviews. As a part of this, the Chinese government issued specific guidelines for the iron and steel sector, on how to prepare the reports for energy-saving assessments of fixed-asset investment projects. 

Training programs 

In 2014, China’s National Energy Conservation Center (NECC) in collaboration with technical partners implemented a system of “Online Monitoring of Key Energy-Using Enterprises” in three pilot city/provinces, including Beijing, Henan Province, and Shaanxi Province, covering a total of 184 companies. The Online Monitoring system focuses on the Key Energy-Using Enterprises with an annual energy consumption of at least 5,000 tce/year. These companies very often are also Top-10,000 Enterprises. The Online Monitoring system tracks national energy consumption, energy intensity, and electricity consumption over a five-year period, and the energy mix of the current year. The Online Monitoring system aims to provide services to national and provincial governmental agencies, understand energy use and carbon dioxide emissions by province and industry in a timely fashion, and develop needed measures to reflect local trends and address local needs. NECC is expected to expand the pilot from 184 companies in 2014 to 16,000 companies in 2015. 

Complexity of Implementation

Government

unclear

Target Group

unclear

Impacts, Costs & Benefits Expand this section to find information on policy effectiveness and efficiency.

Impact Quantitative Estimate Qualitative Estimate
Estimated effect on energy consumption or emissions The expected total savings of the Top 10,000 program is 250 Mtce by 2015.
Estimated costs/benefits for industry
Estimated cost for government

References & Footnotes

References

[1] He Ping. Industry Program Director of China Sustainable Energy Program, the Energy Foundation. Personal Communication. Nov 2011.

[2] Energy Research Institute of NDRC, China. Personal Communication. Nov 2011.

[3] He Ping. Industry Program Director of China Sustainable Energy Program, the Energy Foundation. Personal Communication. Nov 2011.

[4] Energy Research Institute of NDRC, China. Personal Communication. Nov 2011.

[5] National Development and Reform Commission, 2011. The Notice on the Implementation Plan of the Top-10,000 Energy-Consuming Enterprises Program. December 2011. http://www.ndrc.gov.cn/zcfb/zcfbtz/2011tz/t20111229_453569.htm

Footnotes

(*1) Based on the Twelfth Five-Year Comprehensive Work Plan of Energy Conservation and Emission Reduction, “Key Energy Conservation Projects”, which include energy-efficient retrofits (in boilers and furnaces retrofits, motor system energy conservation, energy system optimization, waste heat and pressure utilization, oil conservation and substation, building energy conservation and green lighting), industrialization of energy-efficient technologies and demonstration, incentives on energy-efficient projects, promotion of energy performance contracting and energy conservation capacity building, will achieve another 300 Mtce of energy savings during the 12th FYP.

(*2) For more details, see the Twelfth Five-Year Comprehensive Work Plan of Energy Conservation and Emission Reduction here: http://hzs.ndrc.gov.cn/newzwxx/t20110907_433096.htm