Global Agenda Council on Energy Security 2012-2014
Energy security is the reliable, stable and sustainable supply of energy at affordable prices and social costs. Exploring and implementing long-term sustainable solutions in this complex field are vital to promote peace and economic growth. Currently, one of the most important examples in this global landscape is China. Chinese energy demand continues to grow with coal accounting for 70% of the primary energy mix and 80% of electricity production. The Chinese market has traditionally been heavily controlled by the state with prices often not reflecting costs of production and with a disconnect between fuel/generation prices. Moreover, environmental sustainability has suffered, as meeting demand has taken precedence over other concerns. China is taking steps to reform the pricing of electricity, coal and natural gas by limiting further growth of demand and tackling pollution, which is now a source of serious public concern.