ENERGY TRANSITION IN CHINA

Sino-German Energy Partnership

Accelerating the energy transition in China and Germany through continuous political, economic, regulatory and technological exchange

Since its initiation in 2006 at the Sino-German Forum for Economic and Technological Cooperation, the bilateral cooperation between China and Germany in the energy sector developed into a strategic partnership. As the central platform for institutionalized energy policy dialogue between the two countries, it links three levels of action: high-level bilateral dialogue; business-to-government exchange and an exchange of experiences on technical and regulatory solutions that promote the energy transition.

Objective

The main objective of the partnership is to foster and advance the far-reaching and profound energy transitions ongoing in both countries by exchanging views, best practices and knowledge on the development of a sustainable energy system, primarily centered on improving energy efficiency and expanding the use of renewable energy.

Approach

Regular working group meetings and high-level bilateral meetings facilitate in-depth political and technical dialogue between German and Chinese decision-makers on the energy transition.

For China, the National Development and Reform Commission (NDRC) and the National Energy Administration (NEA) oversee the partnership, while the Federal Ministry for Economic Affairs and Climate Action (BMWK) takes the lead on behalf of Germany.

Two thematic working groups have been established under bilateral agreements to facilitate cooperation as well as intensify the exchange of information, experiences, and best practices. On the Chinese side, the working group on “energy” is led by NEA, while the working group on “energy efficiency” is headed by NDRC.

Working Group on Energy:

Promotion and system integration of renewable energy
Electricity market regulation and reform
Power sector flexibilisation and energy storage
Sustainable heating
Green hydrogen

Working Group on Energy Efficiency:

Energy efficiency in industry, city quarters and buildings, including the implementation of demonstration projects
Energy efficiency networks
Innovative business and financing models

Furthermore, the energy partnership aims to encourage think tanks and private sector cooperation and showcase successful technologies, innovative services, and business models to drive the energy transition forward. Both sides have agreed to jointly implement demonstration projects promoting energy conservation to demonstrate exemplary solutions for energy efficiency in industry, as well as integrated district energy planning to serve as reference for China.

The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH was commissioned by the BMWK with the implementation of the bilateral energy partnership with China. A secretariat with full-time advisors in Berlin and Beijing serves as a point of contact and coordination for its activities.

Results

The Chinese energy market’s legal and technological framework has been improved, enabling more environmentally friendly and socially responsible development. This involved numerous exchange formats such as expert workshops, study tours and round table discussions incorporating the private sector.
These events have also helped to intensify the dialogue on energy topics between Germany and China. For example, Chinese stakeholders have embraced the German model of using energy-efficiency networks as a tool for promoting energy savings, making particular use of this approach in their energy-intensive industrial sector. The Chinese policy for promoting renewable energy also draws on lessons learned in Germany.
The energy partnership also supports bilateral exchange in the context of major international events such as the International Forum on Energy Transitions (IFET) in Suzhou and the Berlin Energy Transition Dialogue (BETD).

Highlights

Through its numerous initiatives and activities, the Sino-German Energy Partnership constantly enhance the bilateral cooperation and supports the transformation of the energy systems in both countries.