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This report provides a detailed, bottom-up analysis ofenergy consumption in China. It recalibrates official Chinese governmentstatistics by reallocating primary energy into categories more commonlyused in international comparisons. It also provides an analysis of trendsin sectoral energy consumption over the past decades. Finally, itassesses the future outlook for the critical period extending to 2020,based on assumptions of likely patterns of economic activity,availability of energy services, and energy intensities. The followingare some highlights of the study's findings: * A reallocation of sectorenergy consumption from the 2000 official Chinese government statisticsfinds that: * Buildings account for 25 percent of primary energy, insteadof 19 percent * Industry accounts for 61 percent of energy instead of 69percent * Industrial energy made a large and unexpected leap between2000-2005, growing by an astonishing 50 percent in the 3 years between2002 and 2005. * Energy consumption in the iron and steel industry was 40percent higher than predicted * Energy consumption in the cement industrywas 54 percent higher than predicted * Overall energy intensity in theindustrial sector grew between 2000 and 2003. This is largely due tointernal shifts towards the most energy-intensive sub-sectors, an effectwhich more than counterbalances the impact of efficiency increases. *Industry accounted for 63 percent of total primary energy consumption in2005 - it is expected to continue to dominate energy consumption through2020, dropping only to 60 percent by that year. * Even assuming thatgrowth rates in 2005-2020 will return to the levels of 2000-2003,industrial energy will grow from 42 EJ in 2005 to 72 EJ in 2020. * Thepercentage of transport energy used to carry passengers (instead offreight) will double from 37 percent to 52 percent between 2000 to 2020,.Much of this increase is due to private car ownership, which willincrease by a factor of 15 from 5.1 million in 2000 to 77 million in2020. * Residential appliance ownership will show signs of saturation inurban households. The increase in residential energy consumption will belargely driven by urbanization, since rural homes will continue to havelow consumption levels. In urban households, the size of appliances willincrease, but its effect will be moderated by efficiency improvements,partially driven by government standards. * Commercial energy increaseswill be driven both by increases in floor space and by increases inpenetration of major end uses such as heating and cooling. Theseincreases will be moderated somewhat, however, by technology changes,such as increased use of heat pumps. * China's Medium- and Long-TermDevelopment plan drafted by the central government and published in 2004calls for a quadrupling of GDP in the period from 2000-2020 with only adoubling in energy consumption during the same period. A bottom-upanalysis with likely efficiency improvements finds that energyconsumption will likely exceed the goal by 26.12 EJ, or 28 percent.Achievements of these goals will there fore require a more aggressivepolicy of encouraging energy efficiency

Energy Use in China: Sectoral Trends and Future Outlook