Central financial subsidies will soon decline, clean heating meets the sustainable test

This autumn and winter clean heating and renovation work in northern areas continued to advance. A few days ago, the State Council held a video and telephone conference on heating and supply work in the northern region this winter and spring to make arrangements. Subsequently, Minister of the Ministry of Ecology and Environment Huang Runqiu went to two cities in Hebei Province to investigate and emphasized the prevention of re-burning of scattered coal.

According to the previous introduction by the Ministry of Ecology and Environment, the treatment of clean heating and loose coal is one of the most difficult tasks for air pollution control in recent years. On the one hand, "coal-to-gas" and "coal-to-electricity" contributed more than one-third of the reduction in PM2.5; on the other hand, higher renovation costs also increased the heating burden of rural residents. Financial subsidies are one of the main means that all localities rely on, but this year is also the first fall and winter of the decline of central financial subsidies. It is worth paying attention to how clean heating work will proceed. How to effectively activate market means, cultivate users' green energy consumption habits, effectively prevent the re-burning of loose coal, and find a solution that is suitable for the local area. Perhaps the test for the northern cities has really begun.

The State Council requires the continuity of the subsidy policy The clean heating renovation in winter in the northern region has entered its fourth year this year. At the end of 2016, the 14th meeting of the Central Finance and Economics Leading Group made requirements for promoting clean heating in winter in the northern region. At the end of 2017, ten ministries and commissions issued the "Clean Heating Plan in Winter in the Northern Region (2017-2021)" (hereinafter referred to as the "Plan") to implement the overall deployment of clean energy heating in the northern region.

Bulk coal substitution is an important part of clean heating renovation. It is reported that coal is the main heating in the northern region in winter, which consumes about 400 million tons of standard coal each year, of which scattered coal (including coal for low-efficiency small boilers) accounts for about half, mainly in rural areas. For the same 1 ton of coal, the emission of air pollutants from scattered coal is more than 10 times that of coal-fired power plants. Scattered coal has become one of the "primordial culprits" of smog in northern regions in autumn and winter.

Zhao Yingmin, the vice minister of the Ministry of Ecology and Environment, once introduced at the press conference of the State Council Information Office on the 21st that during the "13th Five-Year Plan" period, my country has concentrated its efforts to promote the management of scattered coal in the Beijing-Tianjin-Hebei region and surrounding areas, and the Fenwei Plain. More than 25 million households have been treated with loose coal, and about 200,000 square kilometers south of Beijing have basically been replaced by loose coal.

Ministry of Ecology and Environment stated that it will strictly prevent the re-burning of loose coal On September 24, the "China Bulk Coal Comprehensive Management Research Report 2020" (hereinafter referred to as the "Report") compiled by He Kebin, academician of the Chinese Academy of Engineering and Dean of the School of Environment of Tsinghua University, was released. Introduction to the "Report", 2017-2019, The northern clean heating pilots have been expanded from the initial 12 to 43 in 2019, and the central and local financial investment exceeded 100 billion yuan.

At present, central financial subsidies are one of the important sources of funds for local governments to promote clean heating renovation. According to the previous deployment, the subsidy policy is valid for 2017-2019. After the three-year period expires, if there are no additional transformation tasks, the central fiscal subsidy will be withdrawn and the local government will bear it.

Outsiders worry that the subsidy decline will increase the heating cost of the people, which will affect the advancement of the replacement of bulk coal and bring the risk of re-burning of bulk coal. According to the results of the clean heating satisfaction survey in four provinces and eight cities in 2019, 43% of users said that they would use loose coal to varying degrees without subsidies, and 34% of users said they would reuse traditional loose coal for heating. % Of users indicated that they would use scattered coal as auxiliary heating energy.

The Ministry of Ecology and Environment conducted a spot check at the beginning of 2019 and found that 36.1% of the villages that have completed clean replacement of scattered coal have reburned, and a large amount of scattered coal is out of supervision. The Baoding Development and Reform Commission, the former Baoding Quality Supervision Bureau and other departments were named for ineffective performance of their duties.

The "Report" also stated that in the 2019-2020 heating season, the phenomenon of backburning of loose coal still exists. According to the analysis of 2000 heating questionnaires, the sales of bulk coal increased by about 30%-40% compared to before the Spring Festival. In June 2019, the Ministry of Ecology and Environment interviewed the municipal governments of Baoding and Langfang in Hebei Province on the comprehensive treatment of air pollution in the autumn and winter of 2018-2019. The inspection team found that Baoding City completed only 29.1% of clean coal promotion tasks in 2018. The clean heating subsidy fund is not raised in place, management is not standardized, and the allocation is not timely, which affects the enthusiasm of the people to use gas and electricity for heating, and the re-burning of scattered coal occurs in some coal-free areas.

From October 23 to 24, Huang Runqiu, Minister of the Ministry of Ecology and Environment, went to Handan City and Baoding City, Hebei Province to investigate the replacement of clean heating and loose coal. He emphasized that it is necessary to further strengthen market supervision, resolutely ban loose coal, and strictly prevent the re-burning of loose coal. Although subsidies are an effective way to replace scattered coal, it is not a "permanent solution" because the government cannot fully cover such high transformation costs. Take Beijing’s “coal-to-electricity conversion” as an example. Each household’s annual subsidy for 10,000 kWh is 0.2 yuan per kWh. If this subsidy intensity is extended to all northern regions, the operating expenses alone will require 200-300 billion subsidies per year. Have not considered the huge initial investment.

"It is impractical to fully cover the cost of clean heating through financial subsidies and administrative price cuts. It is necessary to find dividends through resource optimization." The person in charge of the Electric Power Department of the National Energy Administration has previously stated that the promotion of clean heating is essentially a policy-guided heating field. Structural reforms on the supply side. It is completely hoped that financial subsidies and the "wait and depend" policy will not be able to do a good job of clean heating. All localities must explore a set of clean heating models suitable for themselves based on actual conditions.

The person in charge said that clean heating must achieve a "business-oriented, government-driven, and affordable for residents" model. The government uses fiscal and price policies as "medicine primers" to establish a benign market environment, guarantee basic people's livelihood needs, and implement key environmental protection tasks; enterprises use their professional advantages to discover the dividends brought by the optimized allocation of resources in the market, and improve the quality of clean heating; user establishment Green intensive modern energy consumption habits.

Previously, the "Plan" put forward the goal that by 2021, the clean heating rate in the northern region will reach 70%. Strive to use about five years to basically realize the clean heating of scattered coal in heavily smog urbanized areas, and form a fair and open, diversified operation, and clean heating market with high service levels. After the central financial subsidies and even local financial subsidies have gradually declined, how to effectively activate market means, cultivate users' green energy consumption habits, effectively prevent the re-burning of loose coal, and find a local solution that may be the test of the northern cities.

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