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By Guo Jiaofeng, Li Jifeng & Gao Shiji, Research Team on “The Analysis on the Impact of Novel Coronavirus Pneumonia and Countermeasures”, DRC

Research Report, No. 21, 2020 (Total 5765) 2020-2-27

Abstract: The outbreak of novel coronavirus pneumonia in 2020 has a limited direct influence on the energy supply of coal, oil, natural gas and electricity, while the severe impact on the lives of residents and production activities of enterprises has led to a sharp decline in energy demand in the short term. The analysis results show that although the decline of energy demand will increase the operating difficulties of the industry, the energy industry is dominated by large state-owned enterprises with strong resilience. The balanced energy supply and demand scenario will not change in 2020, which can effectively support the needs of China’s response to the epidemic and recovery of the economy. Therefore, the energy industry needs to unite understanding and take positive measures to accelerate the recovery of the economy and further reduce the general industrial and commercial electricity price. The industry needs to support relevant enterprises to seize the window period of low international oil and gas prices to increase imports, and take advantage of the current energy demand slowdown to deepen the institutional reform of the oil, gas and power sector. It needs to promote the development of smart energy and smart cities, reduce the cost of comprehensive energy use, and effectively support China’s economic recovery after the virus is finally brought under control.

Key words: novel coronavirus pneumonia, energy supply and demand, deepen reforms, economic recovery