China is working to increase the proportion of natural gas in the energy mix and is also developing shale gas. These factors provide a good opportunity for the development of distributed energy. In the conventional definition, distributed energy includes three types of technologies: high-efficiency gas cogeneration, renewable energy development and utilization, and industrial waste heat and residual pressure utilization. The Washington-based International Distributed Energy Alliance (WADE) is known as the "United Nations for International Cogeneration and Distributed Energy." WADE is committed to accelerating the development of the world's efficient cogeneration, distributed renewable energy systems, increasing economic efficiency and reducing environmental burden. Recently, a Beijing reporter interviewed David Sweet, CEO of WADE. China Energy News: What are the advantages of distributed energy compared to the energy model of large-scale, highly concentrated development and long-distance transmission? David Sweet: For many years WADE has developed an economic model for analyzing the energy situation in each region. After years of practice and scientific analysis, WADE believes that distributed energy can reduce the overall cost of energy production and utilization. The comprehensive cost here is not only reflected in how to reduce the cost of power generation. A large amount of energy in traditional coal-fired power plants is lost in the form of heat, and distributed energy does not have this problem; reducing the overall cost is also reflected in reducing transmission costs, using distributed energy. Power generation can shorten the transmission distance, reduce energy consumption during power transmission, and reduce costs. China Energy News: In your opinion, what is the prospect of China's distributed energy development? David Sweet: First, China is paying more and more attention to environmental protection, and cogeneration as an important means of distributed energy is an important way to mitigate the effects of climate change. This provides a good environment for the development of distributed energy in China. More importantly, at present, China is working to increase the proportion of natural gas in the energy structure, and is also vigorously developing shale gas. These factors provide a good opportunity for the development of distributed energy. As far as I know, China's "Twelfth Five-Year" development plan proposes to promote the rapid growth of natural gas production, promote the development and utilization of unconventional oil and gas resources such as coalbed methane and shale gas, and promote the promotion and application of distributed energy systems. Because of the massive development of shale gas, the United States is experiencing the “natural gas revolutionâ€, and the terminal originally planned to receive imported LNG is being converted into an LNG export terminal. Once the export is realized, the US LNG is likely to be sold to Asian countries. The shale gas mining method adopted in the United States has also been promoted in China. In the field of shale gas, what the United States is experiencing is likely to become what China will do tomorrow. Therefore, I believe that with the development of shale gas, China's distributed energy will usher in a better future. China Energy News: Distributed energy has been mentioned more in recent years. In your opinion, what are the main obstacles to promoting distributed energy in China? David Sweet: From the technology itself, distributed energy is not new. Although distributed energy accounts for a small proportion of China's current energy structure, its total volume is large and its development is relatively fast. However, policy is still a major obstacle, and the current policy environment for distributed energy development needs to be improved. In addition, China still lacks sufficient natural gas supply, and the main body of natural gas development and supply does not necessarily tend to develop distributed energy. However, shale gas development may change this situation. Because shale gas is more dispersed than conventional natural gas resources. The total length of natural gas pipelines in China is small and unevenly distributed. This makes it more attractive to develop distributed energy sources in shale gas producing areas. Specifically, China's natural gas transportation pipelines are mostly built around conventional natural gas production bases, and the total length and layout of pipelines are insufficient to meet future shale gas development. Then, in the future, the shale gas produced in China is likely to be consumed on the spot, rather than being transported through the pipeline. Local governments are also more inclined to develop distributed energy. After all, distributed energy is a cleaner, more economical and efficient way of energy. In short, along with the increase in China's total natural gas production and the diversification of supply sources, especially with the large-scale development of shale gas, the main obstacles in the development of distributed energy will be overcome. China Energy News: You are very optimistic about the opportunities that shale gas development will bring to distributed energy, but China's shale gas development is still in its infancy, and the prospects will be many uncertainties. David Sweet: China should have confidence in the future of shale gas, and don't doubt the future of this energy. The prosperity of shale gas in the United States today is probably the future of China's shale gas. It is because of the shale gas development that the United States supplies too much natural gas, and the people enjoy almost the lowest natural gas prices in the world. The chemical industry and manufacturing industry in the United States benefit from shale gas development. It also brings a lot of employment opportunities. Of course, whether the hydraulic fracturing method used in the US shale gas mining process will bring environmental pollution is still a controversial topic. However, the fracturing method itself is a technology with many years of application history, and safety has long been confirmed. As long as the operation is correct and properly regulated, the benefits of shale gas development to China will far outweigh the risks.
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