Business in China Discovering the New Five-Year Energy Plan

On April 15th, the China-Italy Chamber of Commerce (CICC) hosted experts and major Italian players in the Energy Field to discuss the 14th Five-Year Plan for a Modern Energy System and its business implications.

The plan issued last March by China's National Development and Reform Commission (NDRC), outlines China’s targets for annual energy supply capacity, and it is designed for accelerating the development of a clean, low-carbon, secure, and highly efficient energy system.

We were glad to host Mr Marco Midolo, First Counsellor and Head of the Economic and Commercial Office at the Embassy of Italy to the P.R.C for the opening remarks. 

While striving to achieve carbon neutrality by 2060, China has the world’s highest energy intensity. According to our first speaker, Mr Guido Giacconi, Co-founder and Chairman of In3act Business Consulting, from the energy perspective, the conflict between energy security and decarbonization emerges as a critical point.

Following this, Mr Luigi Minervini, Chairman of Ansaldo Energia GT Technology Shanghai, discussed what to expect in terms of potential strategic implications from some of the main goals of the plan, such as energy security, energy transition, energy efficiency, and innovation capabilities. Focusing on power generation, opportunities might arise for clean coal applications, gas, energy storage, renewables, and nuclear.

Mrs Teti Licursi, Office Activities & New Initiative Analyst ENI representative Office Beijing, then provided insights on the meaning of building a “modern energy system” and discussed the main economic and social development indicators for the 14 FYP Period focusing on the indicators for Green Development.

Our last speaker, Mr Matteo Tanteri, Chairman and CEO at Snam China, discussed the specific targets set for 5 areas, remarking the possible implications of the impressive goals set for National Gas storage capacity. He also referred to the “Hydrogen 14th 5Y Plan”, the first policy guidance for Hydrogen which underpins its strategic importance.

Panelists shared the view that hydrogen in the short term will be for China more an opportunity for the manufacturing sector, either in the production of electrolysers or in fuel cell mobility. With regards to energy mix, China has highlighted that green hydrogen should be the preferred source in the medium term; its economic sustainability has to be proven in the long term once current energy prices will abandon current peaks.

Our Chairman, Mr Paolo Bazzoni, closed this session that was aimed at providing tools to understand the newly issued plan in such a critical sector for our companies.