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Investment Estimation in the Energy and Power Sector towards Carbon Neutrality Target: A Case Study of China

Author

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  • Han Wang

    (Department of Electrical Engineering, Tsinghua University, Beijing 100084, China)

  • Wenjuan Dong

    (Low Carbon Energy Laboratory, Tsinghua University, Beijing 100084, China)

  • Hongji Li

    (Huadian Electric Power Research Institute Co., Ltd., Hangzhou 310000, China)

  • Ershun Du

    (Low Carbon Energy Laboratory, Tsinghua University, Beijing 100084, China)

Abstract

The transition towards low-carbon energy and power has been extensively studied by research institutions and scholars. However, the investment demand during the transition process has received insufficient attention. To address this gap, an energy investment estimation method is proposed in this paper, which takes the unit construction costs and potential development of major technology in the energy and power sector as input. The proposed estimation method can comprehensively assess the investment demand for various energy sources in different years, including coal, oil, natural gas, biomass, power, and hydrogen energy. Specifically, we applied this method to estimate the investment demand of China’s energy and power sector from 2020 to 2060 at five year intervals. The results indicate that China’s cumulative energy investment demand over this period is approximately 127 trillion CNY, with the power sector accounting for the largest proportion at 92.35%, or approximately 117 trillion CNY. The calculated cumulative investment demand is consistent with the findings of several influential research institutions, providing validation for the proposed method.

Suggested Citation

  • Han Wang & Wenjuan Dong & Hongji Li & Ershun Du, 2023. "Investment Estimation in the Energy and Power Sector towards Carbon Neutrality Target: A Case Study of China," Sustainability, MDPI, vol. 15(5), pages 1-14, March.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:5:p:4630-:d:1088246
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    References listed on IDEAS

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    1. Xinxu Zhao & Li Zhang & Xutao Wang & Kun Wang & Jun Pan & Xin Tian & Liming Yang & Yaoxuan Wang & Yu Ni & Chenghang Zheng, 2025. "Quantitative Assessment of Coal Phaseouts and Retrofit Deployments for Low-Carbon Transition Pathways in China’s Coal Power Sector," Sustainability, MDPI, vol. 17(13), pages 1-31, June.

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