Last week, the National Energy Administration issued a notice titled "Guiding Opinions on Energy Work in 2023", which pointed out that we will deepen the work of carbon peaking in the energy sector, accelerate the construction of new power systems, vigorously develop non fossil fuels, consolidate the foundation of safe and reliable replacement of new energy, strengthen the clean and efficient use of coal, focus on controlling fossil energy consumption, and solidly promote the adjustment and optimization of energy structure.

It is expected that the growth rate of power generation in 2023 will reach 7.7%, and green power is expected to maintain high growth in energy supply capacity. The opinion predicts that the total national energy production will reach around 4.75 billion tons of standard coal by 2023, and the energy self-sufficiency rate will steadily increase. Crude oil production is stable and increasing, natural gas production is fast increasing, coal production capacity is maintained at a reasonable level, electricity is sufficient, and the installed power generation capacity reaches about 2.79 billion kilowatts, with a power generation capacity of about 936 trillion kilowatt hours, and the transmission capacity of the "West East Power Transmission" is about 310 million kilowatts. In 2022, China's electricity generation is 8.69 trillion kilowatt hours, and based on this, the expected growth rate of electricity generation in the next 23 years is 7.7%. In terms of energy structure transformation, the opinions suggest that the proportion of coal consumption has steadily decreased, and the proportion of non fossil fuels in the total energy consumption has increased to around 18.3%. The installed proportion of non fossil energy power generation has increased to about 51.9%, and the proportion of wind and photovoltaic power generation to the total social electricity consumption has reached 15.3%. Steadily promote the substitution of electricity in key areas, promote the full coverage of green certificate issuance, do a good job in connecting with carbon trading, improve the renewable energy electricity consumption guarantee mechanism based on green certificates, scientifically set the consumption responsibility weight of each province (district, city), and increase wind power and photovoltaic installation by about 160 million kilowatts throughout the year. In 2022, the proportion of wind and solar power generation to the total electricity consumption in society is about 13.7%, while the previously planned proportion of non fossil fuels in the overall electricity consumption for 22 years was 17.3%. Overall, the transformation of energy structure is still actively and steadily advancing, and new energy is expected to maintain high growth.

| Promote flexibility transformation and promote the large-scale application of hydrogen energy. This opinion clearly states that efforts will be made to promote the "three reforms of coal and electricity" linkage. Compared to the previous year's positive promotion wording, there is a significant strengthening. Simply put, the "three transformations linkage" refers to three technological transformations carried out for coal-fired power units: energy-saving and carbon reduction transformation is aimed at reducing coal consumption and carbon dioxide emissions of coal-fired power units; Heating renovation is aimed at enabling coal-fired power units to bear more heating loads and replace inefficient and high emission dispersed small boilers; The flexibility transformation is aimed at further improving the load regulation capacity of coal-fired power units, releasing more energy space for new energy consumption, and helping the safe and stable operation of the power grid. Flexibility transformation is currently an important means of supporting the integration of new energy into the grid, which is particularly important in the context of the high tech energy installation target proposed this year, but policy support is still needed.

The proportion and growth rate of wind and photovoltaic power generation in total social electricity consumption have increased. According to the 2023 Energy Work Guidance, the proportion of wind and photovoltaic power generation in total social electricity consumption will reach 15.3% in 2023, an increase of 1.5 percentage points compared to 13.8% in 2022; The 2022 Energy Work Guidance proposes that the proportion of wind and photovoltaic power generation to the total electricity consumption in society will reach around 12.2% in 2022, an increase of 0.5 percentage points compared to 11.7% in 2021, and a final increase of 2.1 percentage points. That is to say, from the guidance, the expected target growth rate for 2023 is higher, and the actual results may also be higher.

In terms of new energy development, the phrase "vigorously developing wind and solar power" in the 2022 Energy Work Guidance has been replaced by the phrase "vigorously developing wind and solar power" in the 2023 Energy Work Guidance. The biggest change lies in actively promoting the large-scale development of solar and solar power. According to the notice issued by the Comprehensive Department of the National Energy Administration in March on promoting the large-scale development of solar thermal power generation, it is proposed to strive to increase the annual construction scale of solar thermal power generation in the country to around 3 million kilowatts during the 14th Five Year Plan period. At the same time, the new guidance proposes for the first time the plan to start the construction of offshore photovoltaics.

The 2023 Energy Work Guidance focuses on improving the regulatory capacity of the energy system and promoting the transformation of the energy consumption side. The specific means are Vigorously promote the energy-saving and carbon reduction renovation, flexibility renovation, and heating renovation of coal-fired power units. Accelerate the construction of supportive regulatory power sources that meet the conditions, and start production of a batch of coal-fired power projects. Improve and improve the policy system for pumped storage development, and accelerate the construction of a batch of pumped storage projects. With underground gas storage tanks as the main focus and coastal LNG storage tanks as auxiliary, promote the intensive layout of gas storage facilities, and accelerate the construction of Daqing Shengping, Chongqing Tongluo Gorge, and Huangcao Gorge Construction of underground gas storage facilities has begun in Pingdingshan, Henan, Huai'an, Jiangsu, and other areas. We will steadily promote the construction of coal reserve bases and enhance the government's ability to dispatch coal reserves Emphasis is placed on actively promoting the transformation of the energy consumption side, accelerating the construction of intelligent distribution networks and active distribution networks, improving the flexibility of accepting new energy and the carrying capacity of diversified loads, improving the electrification level of production and daily energy, and promoting clean and low-carbon transformation in industries, construction, transportation, and other fields. Promote the construction of charging infrastructure, launch and operate the national charging infrastructure monitoring service platform, and improve the service guarantee capacity of charging facilities. Improve the long-term mechanism of clean heating, steadily and orderly promote the addition of new clean heating projects, and promote the steady improvement of winter clean heating in northern regions.