ETI Integration

—

Energy Transportation Information Networks Integration

Global Energy Interconnection

Development and Cooperation Organization

FOREWORD

Energy, transportation and information networks (ETI networks) are pivotal infrastructure

for human society. ETI networks are characterized by wide coverage, huge scale of

population served and of investment, high returns on investment, and provision of

strong driving force to related industries, which ensures that ETI networks form a pillar of

economic growth, a fundamental guarantee and engine of innovation for modern society.

Seizing the opportunities presented by the new energy and information revolutions,

the promotion of safe, reliable, cost-effective, green and low-carbon development of

energy, transportation, and information networks has become a shared goal of countries

worldwide.

At present, despite rapid development in their respective fields, ETI networks face

continuing difficulties including low resource efficiency and dwindling marginal benefit.

In recent years, global economic growth has been caught in a downward spiral, which

has been exacerbated by the recent onslaught of COVID-19. In order to foster a stronger

recovery, and to revitalize the global economy, a new focal point must be found. ETI’s

fundamental, strategic and pioneering role in economic development makes the

acceleration of the ETI networks’ coordinated development a matter of great urgency and

significance. To comply with network infrastructure’s tendency towards wider coverage,

digitalization, and increasing intelligence, efficiency and user-friendliness, and integrated

functionality, ETI networks must better integrate resources, facilities, data, and services,

permitting highly efficient resource use, highly integrated functionality, and extensive

global interconnectivity. In this way, they can catalyze technological innovation and industrial

upgrading, promoting and leading the high-quality development of the global economy.

Drawing upon innovative ideas and experience from the transportation and information

sectors, in combination with the latest Global Energy Interconnection (GEI) research and

practice, this book sets forth a vision of Energy, Transportation and Information Network

Integration (ETI Integration) which can be summarized by the slogan “Watts, Bits and

Metres”. ETI Integration refers to a comprehensive system of next-generation infrastructure

that is widely interconnected, highly intelligent, efficient, clean, low-carbon, open and

shared. As a higher stage of global infrastructure development, ETI Integration will help

resolve a raft of long-standing constraints on sustainable human development, paving the

way for sustainable human development in future. Through holistic planning, coordinated

development, and joint dispatching & scheduling, ETI networks leverage but only the

digital and information-based advantage of “Internet+”, but also the large-scale, intensive

cross-network and cross-sector integration advantage of “+Internet”. The synergies and

overall value thus created will facilitate the innovative, green, efﬁcient, and coordinated

development of economic society. Innovative development refers to development

which fosters new technologies, business models, industries, and paradigm such as

clean energy, E-Mobility, Internet of Vehicles, and AI. Through thorough mobilization of

various factors of production, the global economy will thereby be transitioned from its

current industrial basis to a form defined by digital technology, platforms, and networks,

injecting new impetus to economic growth. Green development refers to development

which accelerates “clean replacement” in energy production and “electricity replacement”

in energy consumption in the transportation and information technology sectors. Efforts

will be made to expedite the transition of traditional industry to a low-carbon, green form,

to promote the development of the recycling economy, to reduce global carbon emissions,

and to improve the environment, in order to permit the harmonious coexistence of man

and nature. Efﬁcient development refers to development which improves the efficiency

of resource usage and allocation, sparing labor, capital, land, resources and other factor

inputs while encouraging cost reduction, efficiency enhancement and value improvement

through ETI channel sharing, facility sharing, terminal co-construction and functional

integration. Efforts to speed up the digital and intelligent transformation and upgrading

of traditional industries, to foster an efficiency-driven intensive economic growth model,

and to facilitate high-quality economic development, are also necessary. Coordinated

development refers to promotion of the whole-cycle coordinated development of ETI

networks across planning, construction, and operation, in order to achieve overall

optimization of energy, personnel/material, information, and value flows, and to drive

cross-border integration in various industries. This will also necessitate the elimination of

international/interregional policy, financial and technological barriers, in order to promote

economic and trade exchange, flows of funds, technology transfer and personnel

exchange, thus promoting economic globalization and regional integration to build a

community for the shared future of mankind.

After reflecting on the respective development processes of ETI networks, and

considering their future trends, this book proposes an innovative theoretical framework for

ETI Integration, comprehensively expounds upon the inevitability, feasibility and driving

forces of ETI Integration, and summarizes relevant innovative practices. On this basis, it

examines and proposes development paths of ETI Integration, analyzes key areas and

directions of development in technological and mechanism innovation, and anticipates the

tremendous changes in economic and social development that ETI Integration will bring

about. This book contains six chapters:

The first chapter gives an overview of network infrastructure, explains its key role in

economic and social development, and analyzes the main challenges facing ETI networks

and likely trends in their future development.

The second chapter reviews progress in the development of ETI networks, analyzes their

current status, main challenges, and development trends, and looks forward their future

functionality, format, and characteristics, and the great value they can deliver.

The third chapter analyzes the inevitability of ETI Integration, elaborating upon its “4-5-

5” theoretical framework, so named for four major driving forces (reform, innovation,

efficiency, policy), a five-layer integrated structure (power, infrastructure, data,

application, and paradigm), and five major models (energy, infrastructure, data,

operation, and industry), thus providing a theoretical basis for the guidance and promotion

of the development of ETI Integration.

The fourth chapter introduces the forms, typical scenarios and pathways of ETI

Integration, analyses its 4 forms and 12 application scenarios, and proposes ETI

Integration pathways and key areas from urban, domestic, transnational perspectives.

The fifth chapter elaborates on the direction of ETI technology and innovation

mechanisms, conducting an in-depth analysis of the latest progress and future prospects

of ten key ETI technologies, and proposes ideas and measures for innovation mechanisms

from six perspectives (coordinated planning, construction and operation, financing and

investment, standards, policies, and international cooperation).

The sixth chapter examines the huge impact and driving effect that ETI Integration is

set to have upon the world from five perspectives (including industrial sector integration,

economic development, environmental restoration, improvements in quality of life, and

civilizational progress).

ETI Integration will establish a new pattern of network infrastructure, bringing about

extensive and profound change in economic and social development, and in human life

and livelihoods. Ongoing progress in science and technology and growth in social needs

will continually expand ETI Integration’s range of application scenarios and innovative

practices in areas including smart energy, smart transportation, and smart cities, thereby

broadening its prospects for integrated development. This book is intended to provide

a useful source of reference material and guidance for government departments,

international organizations, businesses, financial institutions, and scientific research

institutes, for purposes including policy formulation, strategic research, promotion of

technological innovation and project development. We sincerely look forward to the

concerted efforts of all parties concerned in promoting ETI Integration, and to pooling our

knowledge, working together for a better future for humanity.

CONTENTS

FOREWORD

Overview of Network Infrastructure Development.................................................................001

1

1.1 General Overview....................................................................................................................002

1.1.1 Main Categories........................................................................................................002

1.1.2 Components ..............................................................................................................005

1.1.3 Basic Characteristics ...............................................................................................008

1.1.4 Main Features............................................................................................................009

1.2 Key Roles..................................................................................................................................012

1.2.1 Foundation for Social Development.....................................................................012

1.2.2 Engine of Economic Growth..................................................................................013

1.2.3 Impetus for High-quality Development................................................................013

1.2.4 Key to Sustainable Development..........................................................................015

1.3 Current Challenges.................................................................................................................016

1.3.1 Resource Sharing .....................................................................................................016

1.3.2 Balanced Development...........................................................................................017

1.3.3 Planning and Coordination.....................................................................................018

1.3.4 Network Efficiency....................................................................................................018

1.3.5 Network Safety Assurance.....................................................................................020

1.3.6 Environmental Protection........................................................................................022

1.3.7 Technical Standards ................................................................................................023

1.3.8 Policy Mechanisms...................................................................................................023

1.4 Development Trends..............................................................................................................024

1.4.1 Wide-area Coverage................................................................................................024

1.4.2 Digitalization ...............................................................................................................025

1.4.3 Intelligentization.........................................................................................................025

1.4.4 High Efficiency ...........................................................................................................027

1.4.5 Friendliness.................................................................................................................028

1.4.6 Integration...................................................................................................................029

1.5 Summary...................................................................................................................................030

I

Current Status and Development Trends of ETI Networks................................................031

2.1 Energy Network.......................................................................................................................032

2.1.1 Overview......................................................................................................................032

2.1.2 Coal..............................................................................................................................035

2.1.3 Oil..................................................................................................................................044

2.1.4 Natural Gas.................................................................................................................058

2.1.5 Electricity.....................................................................................................................068

2.1.6 Global Energy Interconnection ..............................................................................078

2.2 Transportation Network.........................................................................................................095

2.2.1 Development History................................................................................................096

2.2.2 Current Development Status..................................................................................099

2.2.3 Global Transportation Interconnection................................................................111

2.3 Information Network...............................................................................................................119

2.3.1 Development History................................................................................................119

2.3.2 Current Development Status..................................................................................124

2.3.3 Global Information Interconnection ......................................................................132

2.4 Summary...................................................................................................................................138

2

3

Theory and Models of ETI Integration.........................................................................................139

3.1 ETI Networks’ Direction of Development..........................................................................140

3.2 Theoretical Foundations of ETI Integration.......................................................................143

3.2.1 Definition of ETI Integration.....................................................................................143

3.2.2 Main ETI Network Structures.................................................................................144

3.2.3 Five-layer Integrated Model....................................................................................147

3.3 Models of ETI Integration......................................................................................................149

3.3.1 Energy Integration.....................................................................................................149

3.3.2 Infrastructure Integration.........................................................................................150

3.3.3 Data Integration.........................................................................................................152

3.3.4 Operation Integration ...............................................................................................154

3.3.5 Industry Integration...................................................................................................156

3.4 Driving Forces of ETI Integration.........................................................................................158

II

3.4.1 Reform.........................................................................................................................158

3.4.2 Innovation ...................................................................................................................160

3.4.3 Efficiency.....................................................................................................................161

3.4.4 Policy............................................................................................................................163

3.5 Summary...................................................................................................................................167

Paradigms and Development Paths of ETI Integration........................................................169

4.1 Major Paradigms of ETI Integration....................................................................................170

4.2 Application Scenarios of ETI Integration ...........................................................................172

4.2.1 Integrated Urban Utility Tunnel..............................................................................172

4.2.2 Multi-station Integration...........................................................................................174

4.2.3 Shared Posts and Towers......................................................................................177

4.2.4 Smart Grid ..................................................................................................................181

4.2.5 Power Information Fusion.......................................................................................187

4.2.6 Green Energy Data Centers...................................................................................190

4.2.7 Electric Transportation.............................................................................................191

4.2.8 Hydrogen-powered Transportation......................................................................199

4.2.9 PV Highways..............................................................................................................205

4.2.10 Smart Transportation...............................................................................................207

4.2.11 “Power +” Integrated Service Platform................................................................214

4.2.12 Sea-air Hubs of ETI Integration.............................................................................215

4.3 The Development Path of ETI Integration.........................................................................220

4.3.1 Urban ETI Integration...............................................................................................220

4.3.2 National ETI Integration ...........................................................................................227

4.3.3 Transnational ETI Integration..................................................................................229

4.4 Summary...................................................................................................................................232

4

ETI Integration Technology and Mechanism Innovation ....................................................233

5.1 Innovation..................................................................................................................................234

5.1.1 Technological Innovation.........................................................................................234

5.1.2 Mechanism Innovation.............................................................................................235

5

III

5.2 Key ETI Integration Technologies .......................................................................................236

5.2.1 Energy Storage Technology...................................................................................236

5.2.2 Electric Transportation.............................................................................................238

5.2.3 Hydrogen-powered Transportation......................................................................240

5.2.4 Maglev Transportation.............................................................................................241

5.2.5 Wireless Charging.....................................................................................................243

5.2.6 Power Routers...........................................................................................................246

5.2.7 Artificial Intelligence ..................................................................................................248

5.2.8 Big Data.......................................................................................................................249

5.2.9 The Internet of Vehicles...........................................................................................251

5.2.10 Unmanned Driving..................................................................................................253

5.3 Innovation of Mechanisms for ETI Integration..................................................................256

5.3.1 Planning and Coordination.....................................................................................257

5.3.2 Construction and Operation...................................................................................259

5.3.3 Financial Investment.................................................................................................260

5.3.4 Alignment of Standards...........................................................................................262

5.3.5 Policy Guarantees.....................................................................................................263

5.3.6 International Cooperation........................................................................................265

5.4 Summary...................................................................................................................................266

ETI Integration to Create a Better World....................................................................................267

6.1 A Seismic Shift in Industrial Development ........................................................................268

6.2 Rapid Global Economic Development...............................................................................270

6.3 Notable Ecological/Environmental Improvements..........................................................272

6.4 Appreciable Improvements in Standards of Living.........................................................274

6.5 An Astonishing Step for Human Civilization.....................................................................275

6.6 Summary...................................................................................................................................277

6

REFERENCES........................................................................................................................................278

IV

Overview of Network

1

Infrastructure Development

ETI Integration

Network infrastructure, such as the ETI networks, functions as a powerful

driver and fundamental guarantor of human social development, and

plays a key role in promoting high-quality, sustainable socio-economic

development. As the demands imposed by society increase, the tasks

and roles entrusted to network infrastructure are increasing in significance.

At present, network infrastructure as a whole is undergoing a boom in

development, but continues to face problems and challenges in terms of

quality, efficiency and effectiveness, which necessitate reform, innovation

and a faster pace of development. To comply with the laws and trends

relevant to the development of the energy, transportation, and information

technology sectors, network infrastructure must embrace development that

is wide-ranging, integrated, vigorous, intelligent, approachable and efficient.

1.1 General Overview

The ETI networks, the pivotal component of global network infrastructure, will extensively

connect economic and social entities via oil and gas pipelines, power cables, railways,

highways, and optical cables. It will thus comprise many sub-networks of various

topologies, enabling efficient transmission and optimal allocation of energy, materials, and

information, providing strong support to the normal operation and rapid development of

the economy and society.

1.1.1 Main Categories

Classiﬁcation

1

The ETI networks, as the carrier of energy, materials, and information, will play a

pioneering fundamental strategic role as a catalyst of socio-economic development.

Specific categories of ETI networks are shown in Table 1-1.

Energy networks include four categories: oil and gas pipeline networks, heat-supply

pipeline networks, power grid networks, and energy transportation networks. Oil and gas

pipeline and heat-supply pipeline networks transmit oil, natural gas, and heat energy

using pressurized pipelines. Power grid networks first convert primary energy from fossil

fuels, hydro, nuclear, wind, and solar power sources, etc., into electricity for transmission.

Energy transportation networks transmit fossil fuels and hydrogen energy via road, rail,

water and other networked means.

Transportation networks also include four categories: highway networks, railway

networks, aviation networks, and shipping networks. Highway networks comprise

highways of all levels, upon which various means of transportation such as bicycles,

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1

Overview of Network Infrastructure Development

motorcycles, and automobiles provide mainly short- and medium-range passenger

and freight transportation. Railway networks are comprised of rail tracks supporting

trains as a means of transportation. They are suited to medium-distance, high-volume

passenger and freight transportation. Aviation networks consist of air routes plied by

aircraft, and are suited to medium- and long-distance, high-value-added passenger and

freight transportation. Shipping networks are composed of natural waterways or artificial

canals, upon which various types of ships provide transportation suited to bulk commodity

transportation with low urgency requirements to specific areas.

Information networks fall into two categories: postal networks and E-communications

networks. Postal networks mainly disseminate messages via physical transportation,

with text and symbols serving as carriers of information. E-communications networks

mainly transfer messages via coaxial cables, optical fibers, and electromagnetic waves,

upon which optical and electrical signals act as information carriers. E-communication

networks have gradually become the dominant systems for information communication in

modern society, and will remain so in future. This book’s research on information networks

therefore focuses on E-communication networks.

Table 1-1 Main Categories of Network Infrastructure

Transmission object /

Category

Transmission method/tool

medium

Oil & gas pipeline network

Heat-supply pipeline network

Power grid network

Oil & gas

Pipelines

Heat energy

Electricity

Energy

Networks

Power cables

Fossil fuels & hydrogen

energy

Energy transportation network

Transport vehicles

Highway network

Railway network

Aviation network

Shipping network

Postal network

Motor vehicles

Trains

Transportation

Networks

Passengers & cargo

Airplanes

Ships

Mail

Tansport vehicles

Information

Networks

Optical & electrical

signals

Power cables, optical fibers,

electromagnetic waves

E-communications network

ETI networks incorporate mutual interlinkages. For example, energy transportation

networks combine energy and transportation networks, postal networks combine

information and transportation networks, and Power Line Communication (PLC) networks

combine electricity and information networks. To clearly define the boundaries between

ETI networks, this book adopts the objects of network transmission as the major criterion,

thus classifying oil and gas pipeline networks, heat-supply pipeline networks, and other

energy transportation networks as elements of the energy network, the postal network as

an element of the information network, and so on.

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ETI Integration

Development History

2

The evolution of network infrastructure is closely linked with the industrial revolution. The

innovation and development of the ETI networks, an essential driving force for industrial

revolutions, has played a key part.

In the late 18th century, the invention and use of steam engines and mechanized

production unleashed the First Industrial Revolution, during which society progressed

from agrarian to industrial civilization, and coal replaced firewood as the main source of

energy. Network infrastructure that emerged during this period mainly comprised city

coal gas pipeline networks, transportation networks (railways, canals, and sea transport

facilities) and postal networks, powered by steam engines.

In the late 19th century, the boost provided by the invention and application of internal

combustion engines and electric generators gave rise to the Second Industrial Revolution.

Rapidly increasing oil consumption ushered in the era of electrification. Network

infrastructure that emerged during this period included oil and gas pipeline networks,

power grid networks, high-speed transportation networks powered by internal combustion

engines (highways, air transport facilities), telegraph networks, and telephone networks.

In the late 1960s, it was the invention and adoption of electronic information technology

and automated production that provided the catalyst for the Third Industrial Revolution,

during which humanity transitioned from industrial to information-based civilization.

Oil replaced coal as the main energy source, with natural gas gradually gaining in

importance. Network infrastructure that emerged during this period mainly included:

electrified railways, optical fiber networks, satellite communication networks, and mobile

communication networks.

Since 2010, the ongoing integration of physical and information worlds has provided

further impetus to intelligent production, powering the Fourth Industrial Revolution. Society

is now transitioning from information-based to intelligent civilization. Clean energies

such as solar, wind, hydro, and hydrogen power will gradually replace fossil fuels as

major energy sources. To date, the resulting innovations in network infrastructure mainly

include UHV power grids, inter-city high-speed railways, EV charging networks, 5G

communication networks, and the industrial IoT. But as science and technology continue

their advance, and society’s demands become more exacting, further innovations in

network infrastructure are sure to arise. The history of network infrastructure’s development

is summarized in Figure 1-1.

004

1

Overview of Network Infrastructure Development

First Industrial

Revolution

Second Industrial

Revolution

Third Industrial

Revolution

Fourth Industrial

Revolution

Late 18th century

Late 19th century

Late 1960s

2010 to present

Coal/steam

Oil/internal

Power grid

engine combustion engine network

Smart energy

Energy

Networks

Internet &

mobile

internet computing...

IoT/cloud

Postal

services

Telegraph &

phone

Information

Networks

Transportation

Networks

Steam trains & Diesel locomotives, EVs, high-speed

ships... automobiles, airplanes... trains...

Smart

transportation

Figure 1-1 History of the Development of Network Infrastructure

1.1.2 Components

At its most basic level, network infrastructure is comprised of nodes and links. Nodes are

connected by links to compose various network structures, which exhibit network effects

and enable network functionality in a variety of forms.

Nodes

1

“Node” refers to a facility or device capable of generating, transmitting, receiving and/or

storing energy, material and/or information. The nodes of ETI networks are shown in Table 1-2.

Table 1-2 Components of network infrastructure nodes

Network Category

Node

Oil refineries, gas production stations

Heat-supply centers

Oil & gas pipeline networks

Heat-supply pipeline networks

Power grid networks

Energy transportation networks

Highway networks

Energy

Network

Power plants, substations

Stations, airports, docks

Bus stations, gas stations

Railway stations

Railway networks

Transportation

Network

Aviation networks

Airports

Shipping networks

Docks

Postal networks

Post offices

Information

Network

E-communication networks

Servers, Routers,data centers, communication base stations

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ETI Integration

Nodes can be classified into core nodes and ordinary nodes. The core node is the hub

of network transmission, distribution, storage, and exchange, and is a key part of the

network backbone. For example, in Beijing, Shanghai, Zhengzhou, and Wuhan where

multiple main railway lines converge, a large number of passengers and goods are

distributed from the railway stations. These places constitute the core nodes of China's

railway network (as shown in Figure 1-2).

Haerbin

Urumqi

Beijing

Dalian

Shijiazhuang

Lanzhou

Lianyungang

Zhengzhou

Shanghai

Wuhan

Chengdu

Hangzhou

Nanchang

Guiyang

Lasa

Kunming

Liuzhou

Jiulong

Guangzhou

Figure 1-2 Core Nodes of Chinese Railway Network

Links

2

Links connect network nodes and carry the objects of transmission. Links fall into

two categories: physical links such as oil and gas pipelines, power cables, and

communication optical fibers; and intangible transmission medium such as

electromagnetic waves. The components of various kinds of network infrastructure link

are shown in Table 1-3.

006

1

Overview of Network Infrastructure Development

Table 1-3 Components of Network Infrastructure Link

Network Category

Link

Oil & gas pipeline networks

Heat-supply pipeline networks

Power grid networks

Energy transportation networks

Highway networks

Oil & gas pipelines

Heat-supply pipelines

Power cables

Energy Network

Transport links

Highways

Railway networks

Railways

Transportation Network

Information Network

Aviation networks

Aviation links

Shipping networks

Shipping channels

Transport links

Postal networks

Telecommunication cables, optical fibers,

electromagnetic waves

E-communication networks

Network Topologies

3

Common topologies currently adopted for network infrastructure, such as ETI networks,

are summarized in Figure 1-3.

Star

Ring

Tree

Mesh

Bus

Figure 1-3 Common Network Topologies

●

ꢀ Star topologies. Star network topologies feature a single central node, which makes

them simple, and easy to construct and manage, but at the cost of disadvantages

including high overall link length, high costs, and poor reliability.

●

ꢀ Ring topologies. All nodes are connected in a ring, with energy, materials, and

information transmitted in one direction, and temporarily stored and forwarded by each

relay node before finally reaching their target node.

●

ꢀ Tree topologies. Nodes connect on the basis of a hierarchy, with higher levels

imposing greater requirements in terms of reliability. This structure is more complicated,

but this is offset by lower overall link length and costs; it is also easy to expand.

●

ꢀ Mesh topologies. This generalized network topology can have multiple central nodes,

with no obvious transmission hierarchy or overall direction of flow.

●

ꢀ Bus topologies. Mainly adopted in information networks, in this topology all nodes are

connected to a bus , which typically only permits information transmission and receipt by

one pair of nodes at a time.

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ETI Integration

1.1.3 Basic Characteristics

Fundamentality

1

Network infrastructure forms a foundation for the development of human society, playing a

crucial role in people’s lives and livelihoods. Thus, to be specific, it must provide certain

fundamental guarantees. The public services and products provided by ETI networks,

such as heat, electricity, logistics, and communications, are basic and indispensable

for agricultural production, industrial manufacturing, and people’s lives. Second, it

determines production efficiency. The operational efficiency, safety and reliability of

the ETI networks profoundly affect the efficiency and quality of products and services

provided by other sectors of production. Third, it affects social costs. Since energy,

logistics, and communication costs are important elements of society’s costs of living

and livelihoods, progress in the development of network infrastructure is conducive to

reducing these social costs overall.

Public Beneﬁt

2

Network infrastructure mainly provides cost-effective and convenient public services;

these can promote overall improvements in social welfare. First, it must offer affordable

public services. In addition to generating economic benefits, network infrastructure must

underscore the fundamental guarantees, and the improvements in quality of life, that it

delivers, by ensuring that the public services it offers are affordable. Second, it must

deliver great social beneﬁt. The effectiveness of network infrastructure mainly manifests

indirectly via user convenience, benefiting society as a whole. For example, high-speed

railways requires large scale investment, have high maintenance costs, and generate

little initial income, perhaps even making losses, but can create favorable conditions for

urbanization and regional integration, thereby producing significant social benefit.

Long Life Cycle

3

Network infrastructure’s construction-to-use life cycle is relatively long. First, its

construction is time consuming. Network infrastructure projects, especially where

these are large transnational/trans-regional projects, are large in scale, difficult to

construct, and involve complex tasks such as coordinated planning, coordination

of interests, environmental protection, and investment and financing. As a result,

their construction can take decades. Second, its payback period is long. Initial

investments may take 15 to 25 years to recover, because these are large, and

because the focus on providing public benefit precludes high user prices. Third, it

has a long life cycle. With effective maintenance, infrastructure such as railways and

bridges can be used for hundreds of years, yielding continuous flows of economic,

social, and environmental benefits.

Pioneering Role

4

In general, the construction of network infrastructure occurs slightly in advance of

economic development. To be more specific, firstly, network infrastructure must

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1

Overview of Network Infrastructure Development

be planned in advance. To cope with uncertain conditions, advance planning and

deployment of network infrastructure is required to better adapt to potential changes

in economic development. Second, network infrastructure must feature lookahead

construction. Since the network infrastructure will underpin future socio-economic

development, its construction must be forward looking in order to allow it to play its

role in boosting development. Third, network infrastructure’s support capability

must remain a step ahead. As the demands and requirements of socio-economic

development increase, network infrastructure must remain a step ahead in terms

of scale and support capability, slightly exceeding current demand to leave room

for growth.

Monopolistic Competition

5

Network infrastructure sectors are generally monopolized by one or a few companies, for

the following reasons. First, the relevant industries possess high barriers to entry.

Ordinary enterprises have difficulty entering these sectors due to the large scale of

investment necessary, long payback period, and high demands in terms of technology

and knowhow. On the other hand, network infrastructure assets are highly specialized,

difficult to sell off, and prone to represent large sunk costs^A, also making it difficult

for enterprises to exit the industry. Moreover, due to the huge social impact network

infrastructure exerts, governments do not generally allow enterprises to exit. Second,

network infrastructure is a natural monopoly. Resources such as energy, information,

and logistics channels are generally scarce; excessive competition in public utilities can

easily lead to redundant construction and resource wastage, while limiting competition

facilitates exploitation of network infrastructure’s economies of scale, and maximization of

the cost-benefit ratio.

1.1.4 Main Features

Economies of Scale

1

Economies of scale imply that the average cost of providing public services using

network infrastructure decreases as the scale of transmission expands. Network

infrastructure’s total costs include fixed and variable costs. Fixed costs refers to costs

which are unaffected by the scale of production, mainly depreciation on fixed assets^B, site

rent, property taxes, and fixed wages for employees. Variable costs refer to costs that do

vary with the scale of production; mainly raw material costs, bonuses, and consumables

costs. Network infrastructure’s economies of scale possess two dimensions: falling

average fixed costs and falling average variable costs.

The average ﬁxed cost decreases as the scale of network transmission expands. In

an energy, transportation or information network, increasing the number of nodes and links

‘Sunk costs’ refer to an enterprise’s already paid out expenses, typically fixed asset investment.

‘Depreciation of fixed assets’ refers to the method of accounting for the cost of fixed assets by

apportioning these over their useful lives.

A

B

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ETI Integration

inevitably increases the fixed asset investment . For a given service life, higher fixed asset

investment usually implies higher fixed costs (depreciation of fixed assets, etc.). However,

after the network goes into operation, the larger the network scale and transmission

volume, the lower the average fixed cost per unit of transmission volume will typically be,

as shown in Figure 1-4 (a).

Average variable costs are relatively low. When the ETI networks are complete and in

operation, an expansion of the scale of transmission of electricity, oil & gas, or information,

will only affect a few variable costs, such as materials, labor, and consumables

costs. Due to the large scale of transmission, the average variable cost per unit of

transmission will tend to be low (potentially approaching zero), while the marginal cost^A

of the network infrastructure will be close to (potentially almost equal to) the average

variable cost.

As the scale of network transmission expands, the average fixed cost of the network

infrastructure will decrease. Since the average variable cost is low and little affected by

the scale of transmission, the average total network cost (average fixed cost plus average

variable cost) will also decrease as the scale of network transmission expands, gradually

approaching the marginal cost, as shown in Figure 1-4 (b).

Economies of scale for network infrastructure are clearly different compared to

those of other industries. For non-network infrastructure industries, increased

capital and labor inputs, i.e., increased variable costs, are required to expand the scale

of production. But if production occurs on an excessively large scale, the productivity of

labor and capital declines, eventually leading to increasing marginal costs, as shown in

Figure 1-4 (c). Comparing Figure 1-4 (b) and 1-4 (c) reveals why network infrastructure

is a natural monopoly. Unlike other industries, as the scale of network infrastructure

increases, average variable costs continue to decline, improving the network’s efficiency.

Thus, limited competition, or even operation as a monopoly, is most conducive to the

efficient construction and operation of large networks.

Higher initial investment

Average cost

Marginal cost

Lower initial investment

Marginal cost/average variable cost

Scale of transmission

Scale of production

(a) Relationship between average

fixed cost and scale for network

infrastructure

(b) Relationship between average

cost and scale for network

infrastructure

(c) Relationship between average

cost and scale for other industries

Figure 1-4 Relationship Between Average Costs and Industry Scale in Different Industries

‘Marginal cost’ refers to the increase in total cost due to an addition unit of production (or sales).

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Network Effects

2

Network effects^Arefer to increases in the user value of network infrastructure resulting from

expansion of network scale. As numbers of network nodes and links increase, network users

have the opportunity to exchange energy, materials, or information with an increased number

of other users. They also have increased opportunities take cost, speed, efficiency and

other factors into account when selecting an optimal transmission path in order to maximize

their benefits. For example, as the transportation network develops, efficient integration of

multiple transportation modes permits logistics and people flows to reach more countries

and regions more economically and quickly via increasingly optimal routes. Another example

is the development of the Internet, whose growth has allowed users to communicate with

more people, search for information on more servers, and conduct e-commerce with more

companies, thus delivering greater value.

Network effects and economies of scale are mutually complementary for network

infrastructure. Expanding network scale enhances both the network infrastructure’s

economies of scale and its network effects, with economies of scale continually reducing

the cost per additional node, and network effects continually increasing the benefit per

additional node. This combination of network effects and economies of scale allows

network infrastructure to deliver high cost-benefit ratios, well-suited to their users.

Spillover Effects

3

“Spillover effects” refers to the unexpected effects of an activity on people or society other

than the acting organization or system. Spillover effects from network infrastructure

can not only act as direct drivers of economic development and investment,

but can also indirectly fuel the development of other industries. For instance,

development of transportation networks can directly reduce logistics costs, propel regional

economic integration, and boost the rapid development and aggregation of industries in

underdeveloped areas. The construction and transformation of power grid networks can

provide more cost-effective, adequate, safe and reliable power supplies, reducing the cost of

energy in production and people’s lives. The development of information networks can reduce

information asymmetries, improving national economies’ overall operating efficiency.

‘Network effects’ were outlined by Israeli economist Oz Shy in The Economics of Network Industries.

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1.2 Key Roles

Network infrastructure plays a fundamental, strategic and pioneering role in socio-

economic development, in the following four main respects, as shown in Figure 1-5.

Fundamental

Investment driver

guarantee

Foundation

for social

development

Engine of

economic

growth

Economic pillar

Industry booster

Engine of

Employment

promoter

innovation

Innovative

Clean & low-

carbon

development

Provides

impetus for

high-quality

development

Key to

sustainable

development

Transformational

development

Universal access

Efficient

Inclusive growth

development

Figure 1-5 Effects of Network Infrastructure on Socio-economic Development

1.2.1 Foundation for Social Development

Network infrastructure, such as ETI networks, occupies a vital and indispensable position

in the development of modern economies and societies. To be specific, first, network

infrastructure provides a foundation for energy, transportation, and communications,

for lifestyles and livelihoods in a society, and the level of network infrastructure development

determines the level of socio-economic development of any country. Second, network

infrastructure serves as the pillar of the economy. Through its wide coverage, large

population served, huge scale of investment, high returns on investment, and by providing

a strong impetus to other related industries, network infrastructure acts a crucial pillar

of economic development in all countries. Third, network infrastructure powers

innovation, giving rise to innovative development which exerts huge leading and

radiation effects, especially in the previous industrial revolutions.

Energy, information, and transportation networks are like the circulatory, muscular

and nervous system of human body, each with its own function, yet together acting

as a whole. The energy network functions similarly to the “circulatory system”.

Adequate, reliable, economical energy supply is required to fuel the establishment and

efficient operation of modern industrial systems. The energy needs of socio-economic

development must be satisfied by transferring energy from its location, or location of

production, to areas of consumption, via power grids, transport networks, and oil & gas

pipeline networks. The transportation network serves as the “muscular system”.

It delivers various materials needed for people’s lives and livelihoods from areas of

production to areas of consumption, thus supporting socio-economic development. The

development of transportation has promoted a gradual transition in humanity’s mode of

production, from self-sufficiency to specialized production and exchange of the results.

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Transportation thus provides essential support for the operation of modern economies.

The information network functions like the “nervous system”. It performs information

processing and storage like the brain, and coordinates physical systems, controlling

energy and transportation infrastructure much like nerves.

1.2.2 Engine of Economic Growth

The development of network infrastructure can drive large-scale, long-term investment,

stimulate the development of up and downstream industrial chains, and stabilize and

boost employment. As an important means of shoring up the economy, it can provide a

strong impetus for sustained, stable economic growth.

Network infrastructure stimulates economic growth. Network infrastructure’s capital-

intensive nature implies that it aggregates large volumes of financial and social investment,

thereby exerting strong stimulating effects on the economy. Estimates in the World Bank’s

World Development Report 1994 indicated that for every 1% increase in infrastructure,

GDP per capita would increase by 1%. Furthermore, over the past 40 years of reform and

opening up, China has made huge investments in infrastructure, with network infrastructure

playing a huge role in China’s remarkable economic development and rapid growth.

Network infrastructure stimulates industrial development. On one hand, network

infrastructure can underpin the development of other industries, making it well-suited

to catalyzing industrial agglomeration and stimulating the local economy. For example,

in underdeveloped areas with rich mineral resources, the construction of power grid

and transportation networks can stimulate the development of a local mining industry,

attracting smelting, manufacturing and other industries, and promoting urbanization and

the development of commerce and services. On the other hand, network infrastructure

involves numerous up and downstream industries, including materials, equipment

manufacturing, finance, construction, commerce, and services. Developing network

infrastructure can therefore guide and drive the development of these industrial chains,

triggering upscaling of related enterprises’ production and operation, and accelerating

innovation in the application of technology.

Network infrastructure boosts employment. Development of network infrastructure

creates a large direct demand for labor. After the infrastructure has been completed

and put into operation, considerable numbers of workers are still required for operations

and maintenance, expanding demand for labor in traditional industries and boosting

employment. Network infrastructure can also drive the development of up and downstream

industrial chains, promote the transformation and upgrading of traditional industries, and

spawn new opportunities, new industries, and many new jobs. For example, China’s 5G

communication network is expected to require total investments amounting to 1.2 trillion

yuan, creating 3.1 million jobs between 2020 and 2025.

1.2.3 Impetus for High-quality Development

Network infrastructure’s innovative development can create tremendous change in

people’s lives and lifestyles, spawning new technologies, new business models, and new

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industries, promoting economic transformation and development, and improving resource

allocation and utilization efficiency, thus serving as continual source of impetus for high-

quality economic development.

Network infrastructure catalyzes innovative economic development. The innovative

development of network infrastructure can create a range of new application scenarios,

triggering reconstruction of many stages of economic activities including production,

distribution, exchange, and consumption, and spawning new technologies, products,

and business models. For example, the emergence of power grid networks gave rise

to industries such as power equipment manufacturing, electrified transportation, and

electrochemistry. The development of information networks gave rise to e-commerce,

social media, and remote services. Looking ahead, the development of new infrastructure

such as 5G communications and electric vehicle (EV) charging networks will

catalyze technological innovation in AI and blockchains, thereby expediting industrial

transformation and upgrading.

Network infrastructure promotes economic transformation and development.

Over the course of history, the development of oil and gas pipeline networks, highway

networks, and railway networks has pushed society into the era of industrialization. Power

grid, telegraph and telephone networks marked the dawning of the era of electrification.

The Internet and mobile Internet have served to kick-start the information age. Currently,

advanced information and communication technologies such as big data, cloud

computing, AI, the Internet of Things, and blockchain are inducing various network

infrastructures’ digital and intelligent development, driving the transition from the traditional

economy towards the digital economy, sharing economy, and platform economy.

Network infrastructure promotes efficient economic development. First, it improves

energy efficiency. With the energy network shifting towards an electricity-centric form,

electrification of the transportation network is accelerating. Meanwhile the information

network’s increasing demand for electricity is continuously increasing the share of electricity

in final energy consumption. As a result, since the economic efficiency of electricity^A

is 3.2 times that of oil and 17.3 times that of coal, the efficiency of society as a whole is

significantly improving. Second, it improves the efficiency of production. Network

infrastructure’s development and progress catalyzes innovation and broadens the adoption

of new technology, bolstering the upgrading of traditional industries, and promoting the

development of emerging industries, thereby improving the efficiency of production. For

example, the industrial Internet is capable of real-time monitoring of equipment status,

fault prevention and automatic isolation, and production process optimization, reducing

energy consumption, and improving production efficiency through in-depth and efficient

data mining. Third, it improves the efficiency of resource allocation. Development

of infrastructures like ETI networks, the transitioning of medium and low-voltage power

grids to UHV, of steam locomotives to electrified high-speed railways, of coaxial cables

to fibre-optic broadband, optimizes and improves the efficiency and scope of allocation

of various resources, reducing the costs of production and of living to society as a whole.

The economic efficiency of electricity refers to the economic value created by one tce of electricity.

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Overview of Network Infrastructure Development

1.2.4 Key to Sustainable Development

Developing a clean, low-carbon, safe, efficient, and interconnected network infrastructure

is the most fundamental mechanism for coping with climate change, mitigating

environmental pollution, and resolving unbalanced development. It is therefore key to the

sustainable development of human society.

Network infrastructure promotes clean, low-carbon development. In 2018, the carbon

emissions of the power and transport sectors accounted for 42% and 23%, respectively,

of the global total, making these key sectors for global carbon emission reduction.

Construction of UHV grid networks, EV charging networks, hydrogen energy networks

and other infrastructures will advance the large-scale replacement of fossil fuels with

clean electricity, accelerate the development of clean and low-carbon technologies and

industries, and reduce carbon emissions at their source. In addition, the advancement of

information networks will support digitalization and increase the intelligence of energy and

transportation networks, in turn adding impetus to the rapid development of smart energy,

smart transportation, and smart cities, reducing resource wastage, improving energy

efficiency, and further promoting clean and low-carbon development worldwide.

Network infrastructure improves the universality of coverage and inclusiveness of

development. First, it promotes universal access to public services. Given its public

benefits and fundamental significance, governments often prioritize the development of

network infrastructure in order to underpin production and living standards, improving

the breadth of cost-effective access to adequate supplies of energy, convenient travel,

and high-quality information services. Second, it assists disadvantaged groups.

The development of network infrastructure will broaden the application of technologies

including smart homes, self-driving EVs, robots, advanced medical equipment,

and automated facilities for the disabled, thus improving conditions of living, travel,

communication and medical care for disadvantaged groups including the elderly and the

disabled, enhancing their quality of life and contentment. Third, it boosts educational

equity. Developing information networks will improve access to online distance education,

offering people from different countries equal access to a variety of educational resources

regardless of region, race, age, or gender, thus achieving global educational equity.

Network infrastructure promotes inclusive economic growth. First, it contributes

to poverty alleviation. The rollout of network infrastructure in developing countries and

underdeveloped regions can stimulate investment, promote industrial development, and

generate employment opportunities, thereby increasing local residents’ incomes. As network

infrastructure is extended to underdeveloped regions, local living and working environments,

medical and educational conditions can be significantly improved. Second, it reduces

disparities in regional development. Developing network infrastructure can strengthen

economic and trade ties, fund flows, technology transfer and personnel exchanges between

countries and regions, fueling the advance of economic globalization and regional integration.

For example, large interconnected power grids can transmit clean energy from developing

countries to developed countries, converting developing countries’ resource advantages into

economic advantages and thereby narrowing the gap between developing and developed

countries, enabling common prosperity to be achieved.

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1.3 Current Challenges

To better support socio-economic development, network infrastructure, in its roles both as

a “stabilizer” and “accelerator”, must address eight problems, shown in Figure 1-6.

Resource

sharing

Policy

mechanisms

Balanced

development

Planning &

coordination

Technical

standards

Challenges

faced

Network

efficiency

Environmental

protection

Security

protection

Figure 1-6 Challenges to the Development of Network Infrastructure

1.3.1 Resource Sharing

Inadequate facility sharing. Network infrastructure consists of a collection of “nodes”

(devices, terminals, hubs etc.) and “lines” (utility tunnels, power lines, etc.). At present,

the overlap between various types of network infrastructure is dominated by “point-

to-line connection”, followed by “line-to-line coupling” and “network integration”. The

relationship between gas stations/charging piles and highways is an example of “point-to-

line connection”. “Line-to-line coupling” is occasionally exhibited by interoperating power

grid and optical fiber networks. Network integration or ETI Integration, as seen in smart

cities, however, remains in its infancy. As a result, sharing of resources such as devices,

terminals, hubs and lines remains limited, often leading to redundancy in construction and

resource wastage, lower resource utilization rates and increased total social costs.

Insufﬁcient Data sharing. The explosive growth and massive accumulation of data have

occurred during the information age, as well as improvements in data mining and usage,

has led to significant improvements in the efficiency of resource allocation and production.

However, while communication networks of all kinds remain incompletely interconnected,

the orderly flow and efficient inter-system sharing of information remains inhibited.

The problem of “data silos” hinders overall planning, dispatching & scheduling, and

coordinated development of different systems, which reduces the efficiency and benefits

of socio-economic activities.

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Difﬁculties in upgrading existing facilities. Developed over decades or even centuries,

network infrastructures such as ETI networks form several relatively independent systems,

each complying with its own design principles and operating rules. The various types

of network infrastructure extant and slated for installation today do not usually adopt the

concept of resource sharing. Therefore, transforming these existing facilities will requires

extensive efforts, and changing people’s long-term usage habits will require significant

manpower and material resources, increasing the cost of this social development.

1.3.2 Balanced Development

Huge disparities in regional levels of development currently exist. Developed

regions and countries such as Europe, the USA, and Japan offer far superior financial

and technological conditions, as well as network infrastructure that is stable in structure,

wide in coverage, high in transmission capacity, and efficient in allocation capability. By

contrast, many developing countries in Africa, Central and South America, and South

Asia have yet to developed modern network infrastructure systems. Their inhabitants

therefore lack access to stable, adequate, economical, efficient, safe, reliable, clean and

low-carbon public services, such as energy, transportation, and information services,

for production and living purposes. Unbalanced regional development would increase

these gaps in economic development between countries and regions, with deleterious

consequences for the sustainable development of the global economy as a whole.

Existing infrastructure connectivity is low. Interconnected network infrastructure

can promote economic and trade exchange between countries and regions, leverage

complementarities, and narrow disparities between developing and developed countries.

But at present, network infrastructure’s transnational and transcontinental interconnection

channels are few in number, limited in capacity, and low in efficiency, hampering wide-

ranging, efficient large-scale allocation of various resources. For example, power grid

networks have yet to be globally interconnected, with interconnectivity between many

countries totally lacking or poor at best. In 2018, transnational and transcontinental

power transactions amounted to only 1.3% of the value of trade in fossil fuel, and what

transactions there were mainly concentrated within the EU.

Unbalanced inter-sector development. Compared with the transportation and

information networks, the development of the energy network is lagging, with global

energy transmission and allocation remaining mainly reliant on the transportation network.

But oil and gas pipelines account for a relatively small proportion of the transportation

network’s transmission volume, and even in the majority of developing countries and

regions, power grids remain relatively underdeveloped. An energy system exploiting

complementarity and mutual reinforcement by varied energy sources has yet to be

established. This in turn is hampering the development of other networks. For example,

the energy consumption of 5G communication base stations is about three times that

of 4G base stations. This huge demand for power, and related high electricity costs, is

hindering the popularization of 5G. Renewed breakthroughs in technologies such as clean

energy, energy storage, and smart grids, therefore remain necessary in order to improve

grid networks’ transmission capacity, intelligence, safety & reliability, economic efficiency,

and robustness.

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Development within industries remains uneven. In a network, the transmission capacity

of the entire system is often dependent on the lowest capacity links. For example, in

transnational/trans-regional transmission and exchange of power, the lowest-capacity

link can act as a bottleneck, restricting overall transmission capacity between large

interconnected grids. Thus the overall efficiency of a comprehensive system composed

of multiple subsystems can often depend on a relatively underdeveloped subsystem.

For instance, despite possessing a developed aviation industry, Ethiopia is held back by

relatively backward railway and highway systems, with deleterious effects on the efficiency

of the country’s import and export trade logistics.

1.3.3 Planning and Coordination

Lack of overall planning. Many countries worldwide continue to lack long-term,

stable, systematic and scientific national strategic plans for network infrastructure of

various types. A general lack of systematic top-level design and unified planning for

transnational/transcontinental network infrastructure interconnection also persists. For

example, implementation of optical cable projects for international submarine-terrestrial

communication is basically left up to communications operators, large Internet companies

and other investors in various countries to determine, based on traffic demands. This

lack of strategic coordination and international planning can easily lead to redundant

construction of excessive channels.

Insufficient inter-sector coordination. Various types of network infrastructure are

relatively independent, and designed to suit the interests and optimal development

paths of their own. Many countries in the world lack a holistic perspective, and do not

actively promote overall planning and coordinated network development. For example,

construction of underground integrated utility tunnels remains in its infancy worldwide.

Most network infrastructures in most countries, including underground cables and optical

fibers, are planned, constructed, scheduled, operated and maintained independently,

which can easily lead to redundant construction, resource wastage, and low efficiency.

Sometimes, poor planning can even lead to early renovation or reconstruction of facilities.

Insufficient intra-sector collaboration. In most countries, a great deal of room for

the optimization of network infrastructure remains, and patterns allowing subsystems

to complement one another and develop together have yet to be established. For

example, in 2018, fossil fuels accounted for about 81% of global primary energy

demand, but only 23% of that was converted into electricity and transmitted via

power grid networks. The various energy systems, such as power grid, oil and gas

pipeline, heat-supply, and energy transportation networks, lacked overall coordination,

comprehensive dispatching & scheduling, and information sharing during the process

of development, impairing the formation of a complementary, efficient and coordinated

energy service system that integrates coal, oil, gas, electricity, and heat.

1.3.4 Network Efﬁciency

Low resource utilization rates. Meeting increasing demands for energy, materials,

and information, requires the network infrastructure to continuously branch out, but

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the transmission and allocation capabilities of many existing facilities have not been fully

exploited. For example, the power grid networks in many countries and regions operate with

low load rates, with most lines operating with light loads in a long term, and only relatively

small numbers of lines operating at load rates in excess of 50%. The power output of the

power supply equipment remains consistently out of proportion with the loads. Moreover,

increasing the load of oil and gas pipelines can sometimes prove a lengthy process. For

instance, the China-Russia Eastern Gas Pipeline project is scheduled to transport a mere

4.6 billion m³of gas in 2020, finally reaching its full capacity of 38 billion m³only in 2025.

Limited peak-load regulation ability. Flows of energy, logistics, personnel and information via

network infrastructure such as the ETI networks are all highly volatile. In most countries around

the world, network infrastructure has clearly insufficient capacity for peak-load regulation. It

also faces structural problems concerning maximum versus average flow rates, which can

easily lead to problems such as traffic congestion, low grid load rates, or overinvestment in

network construction. This severely limits the operating and economic efficiency of networks,

and creates security risks which cannot be neglected.

High transmission losses in traditional energy networks. Compared with transportation

and information networks, most countries’ traditional energy networks suffer from relatively

high transmission losses. Controlling loss rates in oil and gas transportation, and in

medium and low-voltage power transmission, therefore has great significance in terms

of minimization of economic losses, energy conservation and environmental protection.

For example, during oil and gas storage and transportation, oil evaporation and pipeline

leakage losses account for 40%-50% of total losses. China’s annual losses due to oil and

gas evaporation and leakage exceed 1 billion yuan per year. Oil and gas leakage also

constitutes a direct cause of environmental pollution and damage to human health. In

many developing countries and regions, traditional power grids’ integrated line loss rates

are far higher than those in developed countries, wasting resources and reducing their

economic benefit.

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1.3.5 Network Safety Assurance

Significant improvements in network safety are necessary. First, existing network

structures are often not robust. Increased network interconnection can mean that local

failures cause global chain reactions. For example, in recent years, the USA, India and other

countries suffered several blackouts. On August 14, 2003, a large-scale power outage hit

the Midwest and Northeast of the USA and Ontario, Canada, leaving some areas without

power supply for as long as four days. On July 13, 2019, a 25-hour blackout hit Manhattan,

New York City, USA, affecting tens of thousands of residents. Second, existing networks

possess poor disaster-resistance capability. As a rule, existing network infrastructure

possesses a poor capability for responding to emergencies, including natural disasters such

as heavy rains, floods, mudslides, and earthquakes, or incidents of sabotage, and takes

a long time to recover. Third, safety incidents frequently occur. Globally, the number of

network infrastructure-related security incidents has been on a downward trend. However,

due to their large absolute number, these incidents can still seriously impact people’s

lives and property security. For example, in 2018, approximately 245,000 traffic accidents

in China, caused 63,194 deaths and direct property losses of 1.38 billion yuan. Fourth,

energy security is in need of enhancement. The fossil fuel-dominated energy structure

is increasingly depleting many countries’ fossil fuels reserves, and long-term constraints

on oil and gas availability are, together with volatility in energy prices, creating enormous

energy security risks. In order to preserve the fossil fuel system, all countries worldwide

have been forced to undertake significant political, military, diplomatic, and economic

investments, imposing great demands on national resources. Fifth, information security

improvements are necessary. Since 2019, information network attacks have become the

fifth largest risk factor in the world, imposing far greater demands on information security

technology. Were critical infrastructure to be destroyed by cyber attacks, society would

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Overview of Network Infrastructure Development

suffer unimaginable losses. For example, in 2016, a cyber attack on a nuclear power plant in

Germany occurred, caused it to undergo an emergency shutdown. Had the hackers gained

control of the plant, or even destroyed it, the consequences could have been disastrous.

Network infrastructure has insufficient support capability. First, supply capacity

must be improved. There are still 3 billion people worldwide reliant on firewood, charcoal,

and animal waste for cooking and heating, and 840 million people without access to

electricity. People in Sub-Saharan Africa, South Asia, and Central and South America

continue to suffering severe energy shortages. In 2020, the number of Internet users

reached 4.54 billion, but about 40% of the world’s population remains without access to

the Internet. Second, coverage must be expanded. Network infrastructure coverage

in many developing countries remains very incomplete, with huge unsatisfied demand

for project construction. For example, in 2017, 3% of Chinese cities with populations

exceeding 200,000 continued to lack expressway coverage. Third, transmission

capacity must be strengthened. In order to achieve faster, higher-capacity resource

allocation, the transmission capacity of existing network infrastructure must be

continuously enhanced. For example, even the transmission capacity of optical fiber

and 5G mobile communication networks will seem inadequate compared to the needs

of future ultra-high-speed, ultra-wideband, ultra low-latency, and air-space-ground

integrated communication. R&D and deployment of new communication technologies

and communication infrastructure must therefore be expedited. Fourth, regional

development is unbalanced. The marked unevenness of regional development is greatly

hindering transnational/ transcontinental interconnection of network infrastructure. For

example, compared with developed countries’ robust power grids, shaky power grids

in developing countries and regions are prone to frequent power outages. Cities in Sub-

Saharan Africa undergo 700 hours’ power outages per year, on average.

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1.3.6 Environmental Protection

Carbon emissions: Electricity and transportation are the two sectors with the greatest

carbon dioxide emissions, accounting for 42% and 23%, respectively, of global carbon

emissions in 2018. Thus carbon mitigation in energy and transportation networks is

key to coping with global climate change. Ecological issues: The power, transport,

and industrial sectors currently cause over 90% of the world’s air pollution emissions,

including sulfur dioxide and nitrogen oxide, and 85% of PM 2.5 emissions. Construction

and operation of network infrastructure can cause environmental pollution in the form of

waste gas, waste water, solid waste residues, and oil and gas leakages, potentially also

causing environmental problems such as destruction of vegetation, soil erosion and forest

degradation, thus damaging the ecosystem.

In order to deal with carbon emissions and ecological problems resulting from network

infrastructure, speeding up clean replacement must be emphasized. Network

infrastructure’s current energy demands continue to be met mainly using fossil fuels.

Indeed, in 2018, fossil fuels supplied 81% of global primary energy demand. Carbon

dioxide from fossil fuel combustion accounts for over 70% of total global greenhouse

gas emissions, making this the root cause of global climate change. Accelerating clean

replacement on a global scale is therefore urgently needed. Attempts to promote

electricity replacement are also necessary. With electricity now accounting for less than

20% of global final energy consumption, the electrification of network infrastructure must

be accelerated. For example, in 2018, the number of EVs globally totaled 5.1 million, with

China accounting for about 50% of this. However, the market share of EVs in China was

only 4.5%.

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1.3.7 Technical Standards

Standards are inconsistent across countries. For example, only 60% of the world’s

railway tracks comply with the 1435 mm gauge standard. Electric grid networks operate

on both 50 Hz and 60 Hz frequencies. 4G mobile communication networks comply with

multiple standards in different regions. Inconsistency of standards leads to technical

incompatibility of equipment, hindering transnational/transcontinental interconnection of

infrastructure.

Industrial standards are not coordinated. As the pace of network infrastructure

development increases, various industry standards increasingly overlap. International

standards organizations for different industries have yet to establish a complete and

uniform system of industrial standards, leaving potential for overlapping industrial

standards to contradict one another, impeding overall cross-industry planning,

interoperation, and coordinated dispatch & scheduling.

Incompatible data standards. Advanced information technologies such as big data,

cloud computing, and AI have become engines powering the high-quality development of

various industries. But an ongoing lack of data standards unified across industries makes

it difficult for data to flow orderly and to be fully shared and efficiently utilized across

industries and fields, impeding network infrastructure’s creation of “1+1>2” synergies.

1.3.8 Policy Mechanisms

Policy coordination is lacking. At the international level, inadequate coordination

of policies and regulations for network infrastructure planning and design, project

construction, industrial development, and international assistance, is impeding countries’

risk management, dispute resolution, and sharing of benefits, hindering the implementation

of model projects and the ongoing improvement of interconnections. At the domestic

level, network infrastructures are generally managed by various government departments,

and a lack of adequate and effective coordination between these departments in policy

formulation and implementation is quite common. Overlapping functions and unsound

management can therefore easily lead to “fragmentation” in the planning, construction

and operation of various network infrastructures, resulting in duplicated construction,

resource wastage and reduced efficiency.

Poorly suitable mechanisms. First, international policy coordination mechanisms

remain mostly incomplete, failing to form a structure for multilateral governance

encompassing the relevant fields and stakeholders. They are also failing to exert strong

positive effects on coordination of interests, risk management and control, policy

integration, dispute resolution, and international assistance. Second, the financial

mechanisms are lacking in innovation. The construction of network infrastructure

remains highly dependent on government funds, with the proportion of private capital

remaining low. With this relatively isolated investment and financing model, market vitality

remains under-exploited, and huge policy barriers to international investment have created

upward pressure on many countries’ government debt, hindering network infrastructure’s

high-quality and sustainable development.

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1.4 Development Trends

Technological innovation and increasingly close connections among various technological

fields are leading network infrastructure to develop in the direction of wide-range

coverage, digitization, intelligence, high-efficiency , and environmental-friendliness,

integrated functionality, as shown in Figure 1-7.

Wide-area

coverage

Integration

Friendliness

Digitalization

Development

trends

Intelligenti-

zation

High

efficiency

Figure 1-7 Network Infrastructure Development Trends

1.4.1 Wide-area Coverage

Wide-area coverage refers to the extension of network infrastructure from local to

national, transnational, transcontinental, and even global coverage, with coverage and

numbers of service users continually expanding.

Transnational interconnection is in full swing. Development of the ETI networks

is showing a trend towards wider coverage. In terms of energy, 66% of the world’s

oil, 32% of the world’s natural gas and 18% of the world’s coal were traded between

countries or continents in 2014. From 2000 to 2014, cross-border trade in electricity

between OECD countries increased 32%. As the large-scale development of clean

energy continues, and electric grid networks begin to interconnect, transnational and

transcontinental electricity transactions will come to dominate energy trade. In terms

of transportation, a network covering the world’s major countries and regions, with

1.37 million kilometers of railways, and 380,000 kilometers of highways, air routes

and shipping routes, has taken shape. In terms of information network, information

interconnection has come about with over 450 submarine optical cables and 1,100

communication satellites now in mission.

User numbers are continuously expanding. Energy, transportation and information,

as important foundations of the development of modern society, have all expanded

024

1

Overview of Network Infrastructure Development

from covering relatively few users to providing universal access to the public as a

whole. For example, the number of global Internet users increased from 2.63 million

in 1990 to 2.8 billion in 2014, an increase in excess of 1,000 fold. Meanwhile the

proportion of the global population without access to electricity dropped from 24.4%

in 1990 to 11.2% in 2017. In the future, technologies such as distributed energy, the

Internet of Things, and satellite-based internet will permit geometric increases in the

number of network-connected terminals, expand the network’s geographic coverage

and further increase the number of users.

1.4.2 Digitalization

Digitalization refers to the process of transforming information into data which is

processed via mathematical models and stored by computers. The digitalization of

network infrastructure involves the extensive application of information processing

technology in all aspects and stages, including ETI networks, reshaping production

methods and improving their efficiency and quality.

Digitalization of facilities: Since the Information Revolution, information and communication

technology (ICT) has developed at a blistering pace. The practical application of sensor,

communication, and computer technologies is boosting digital development in network

infrastructure areas including information collection, transmission, processing and storage. In

the future, next-generation ICT technology will be used to construct virtual digital models of

network infrastructure. Mutual mapping, real-time linkage, efficient collaboration, and precise

feedback between physical facilities and their “digital twins”, will optimize the efficiency of

operation, allowing the value of data to be fully leveraged.

Digitalization of business: full-range digital management and control will be implemented

covering the planning, design, construction, operation, and maintenance of network

infrastructure, including lifecycle health performance monitoring. Availability of digital

information will permit trend analysis, operation dispatch & scheduling, automatic control and

other services, such as digitalized power and traffic dispatch & scheduling. E-commerce

platforms, social networks, ride-hailing platforms and other new digital businesses will further

promote the development of the digital economy, platform economy and sharing economy.

1.4.3 Intelligentization

Intelligentization refers to the process, based on digitalization, of gradually empowering

network infrastructure with human-like perception, learning, self-organization, self-adaptation

and behavioral decision-making capabilities, thereby greatly improving its intelligence of

operation and control, and enhancing its ability to mitigate security and failure risks.

Levels of intelligence have greatly improved. For information networks, innovations

in ICT technologies have eliminated barriers imposed by human physiological limitations

on computing ability, memory capacity, and read-write speeds, laying the foundation for

intelligentization of information networks. The Internet and mobile communication networks

have resolved the problem of “data silos”, promoted the development of big data and cloud

computing, and are greatly improving information networks’ analytical power and memory

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ETI Integration

capacity. Smart sensors, edge computing, and the IoT are further providing increased

availability of “nerve endings” to information networks, improving their “perceptual abilities”.

AI empowers information networks with “logical thinking ability”, enabling them to engage in

self-organization, self-adaptation, independent learning, and independent decision-making

behavior. Looking ahead, innovative breakthroughs in information and communication

technologies such as 6G communication, quantum computing, and blockchain will promote

network infrastructure’s continued intelligent development. For energy networks, deep

coupling of first-class information technology is creating modern, intelligent energy systems.

Real-time collection, processing, and transmission of equipment and operating status

information from oil and gas pipeline networks, heat-supply pipeline networks, and power grid

networks is now a reality. The value of this data can be fully tapped through the application of

big data techniques, thereby improving the self-organization and self-adaptation capabilities of

energy networks. In this way, energy network are gradually developing the ability to carry out

independent behavioral decision-making, trend prediction, precision control, fault prevention,

and recovery, to permit safer, cleaner, more efficient, and more flexible energy transmission,

allocation and sharing. For transportation networks also, deep coupling with cutting-edge

information technologies and transportation networks is building intelligent transportation

systems. Advanced technologies such as sensors and the Internet of Vehicles (IoV) are

empowering vehicles with intelligent functionality such as multi-dimensional perception, high-

accuracy positioning, risk pre-warning, and assisted driving. Cloud computing, AI and other

technologies are permitting transportation networks to operate intelligently, with emergency

response, command and dispatch, ridesharing, and vehicle-road collaboration capabilities.

Self-driving vehicles are the epitome of transportation network intelligentization. With use of

technologies such as sensors and the IoV, these vehicles constantly collect and transmit

vehicle and road condition information in real time. Technologies including AI and big data,

are allowing traffic information platforms to analyze and process such data for risk warning,

and vehicle-road collaboration purposes. Together, these technologies are set to make self-

driving and automatic route planning a reality.

Network security and reliability have greatly improved. First, systems’ self-healing

ability is being enhanced. Adoption of advanced information technology is gradually

empowering network infrastructure with strong self-healing capabilities, making network

architecture increasingly stable and reliable. For example, smart grids will become capable of

automatically detecting and disconnecting faulty connections, in case of failure, guaranteeing

safe and reliable operation for the system as a whole. In addition, network infrastructure

will intelligently ensure that its key links and core nodes operate with a certain degree of

redundancy, permitting rapid resumption of operation in the event of failure. Second, fault

prevention capability is being enhanced. As digital and intelligent technologies develop,

network infrastructure O&M is developing rapidly in the direction of real-time status monitoring,

risk pre-warning, and automatic fault prevention functionality. For example, future smart grids

will detect and eliminate potential risks through drone and robot inspection, and via sensor

networks. Third, information security is being strengthened. In response to information

networks’ security problems, many countries have made heavy investments in terms of funds

and talent, in this field, driving continuous progress in the relevant technologies and thus

contributing to improvements. For example, through complex technologies such as distributed

data structures, consensus mechanisms, and hashing algorithms, blockchains can effectively

resist network attacks and prevent tampering with their data.

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1

Overview of Network Infrastructure Development

1.4.4 High Efﬁciency

High efficiency refers to continuous improvements in the transmission, operation and

resource utilization efficiency of network infrastructure.

Transmission efficiency is continuously improving. First, transmission speed is

increasing. Railways’ maximum operating speed increased from 13 km/h in 1825, to 350

km/h in 2008, a near 26-fold increase. And optical fiber transmission rates have increased

from 45 MB/s in 1976 to 40 Gbps in 2013, an increase of nearly 900 times. Second,

transmission capacity is expanding. DC transmission has developed from nominal 100

kV voltage and 20 MW transmission capacity in 1954, to 1100 kV and 12 GW in 2016,

an increase in power transmission capacity of hundreds of times. In 1998, an Internet

user generated 1 MB of traffic per month, a figure which had risen to 10 GB in 2014, and

continues to grow at an annual rate of 40%.

Operating efficiency and structural functionality are continually improving. The

modern transportation network, a comprehensive system involving road, rail, aviation, and

water transport, enables flexible transferring and rapid interconnection between different

modes of transport, thus permitting convenient and efficient freight and passenger

transport. Operation control levels have improved. Digital and intelligent technologies

are promoting ongoing improvements in the efficiency of network infrastructure. For

example, in 2018, Guangzhou, China, upgraded its urban traffic dispatching platform

using “Internet+” technology to optimize traffic flow. This reduced the congestion index for

the central urban area by 25%.

Resource utilization rates are constantly improving. Network infrastructure’s efficiency

of utilization of equipment, channels and other resources, and intensity of consumption

of resources, have needed to continuously improve to meet the growing demands for

public services resulting from socio-economic development. For example, during the early

development of renewable energy, power networks were not robust and stable enough to

accommodate renewable energy sources large-scale integration into power grids, leading

to issues with “curtailment of excessive wind and PV power generation”. As smart grids

have matured, coordinated optimization of power-grid-loads-storage has continuously

improved, and the need for “curtailment” has been greatly reduced. The efficiency of

thermal power generating units has also improved significantly.

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ETI Integration

1.4.5 Friendliness

The concept of friendliness is drawn from green development and people-orientation,

and describes increasingly environmentally-friendly planning, construction and operation

of network infrastructure, which also improves to provide more user-friendly service and

user experiences.

Network infrastructure is environment-friendly. During the planning process, stringent

environmental assessment requirements can be imposed on network infrastructure. All

projects must formulate practical, feasible environmental protection measures, and strictly

implement them during construction. For example, 26 specially-designed bridges and

passages were incorporated above the tunnels of the Qinghai-Tibet Railway to permit the

migration of rare wild animals such as Tibetan antelopes and Tibetan wild asses, and to

protect the environment of the Qinghai-Tibet Plateau. During the construction process,

advancing technological innovation, economizing on channel resources, and promoting the

sharing of equipment and facilities is emphasized. For example, the corridor efficiency of

1100 kV DC UHV transmission lines is 7 m/GW, twice that of 500 kV DC HV transmission

lines, sparing land and other resources. By laying optical cables and installing communication

base stations on transmission towers, material and land consumption is further reduced.

During operation, energy supply to and consumption by network infrastructure will transition

towards a clean energy and clean power-dominated mode. On the production side, clean

power generation will promote green energy development, greatly reducing carbon emissions

and environmental pollution. On the consumption side, the widespread use of electricity will

expedite improvements in energy efficiency, driving the development of the sharing and

recycling economies as represented by car-sharing, and reducing wastage of energy and

other resources.

Network infrastructure is user-friendly. The services it provides to users are rapidly

improving in terms of “availability, usability, and practicality”. Availability means that

increasing numbers of users are gaining access to satisfactory, economical, convenient

and safe public services via network infrastructure, giving people of different nationalities,

regions, races, ages, and genders more equal access to various resources, such as

automatic facilities for the disabled and online distance education. Usability refers to the

fact that network infrastructure is becoming more intelligently available to users as science

and technology continue to develop and progress. For example, information networks’

user interfaces have developed from DOS command lines to Windows, and from there on

to voice assistants such as Siri. Transportation networks’ user interfaces have developed

from manual driving, to aided-driving, and on to self-driving vehicles. Long hours of

professional training are no longer required in order to interact with network infrastructure,

eliminating “barriers to access” to high-quality public services for everyone. Practicality

means that network infrastructure is increasingly able to satisfy humanity’s longstanding

pursuit of service which are “comfortable, easy to use, and available anytime, available

anywhere”. For example, the mobile communication network frees humanity from the

shackles of physical communication links. The rapid development of smart grids too, is

satisfying increasingly diverse and personalized energy needs. Looking ahead, continued

technological innovation in network infrastructure is sure to provide faster, better, safer and

more convenient public services.

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Overview of Network Infrastructure Development

1.4.6 Integration

Integration describes network infrastructure’s development in the direction of resource

and facility sharing, terminal co-construction and functionality integration.

Regarding internal integration, the internal subsystems of various types of network

infrastructure are rapidly approaching technological compatibility, mutual recognition of

standards, and functional and business integration. For example, great headway has

been made in integrating information networks, such as telecommunications, Internet and

cable television networks. Internal integration of networks not only reduces the required

investment and O&M costs, but can also transform the independent specialized networks

into a comprehensive network, and transform multiple separate business networks into a

multi-business network. It can also spawn new value-added services, technologies, and

modes and business paradigm, greatly expanding the scope of the services provided to

the public.

Regarding cross-system integration, this remains in its infancy, since technological

updating is ongoing at blistering pace, and new industries and modes and business

paradigm continue to spring up. For example, many countries have begun construction

of shared “urban integrated utility tunnels” for their ETI networks. Cross-system integration

can avoid redundant construction, promote resource sharing, and expedite overall cross-

network planning, coordinated operation, and joint dispatching & scheduling, thereby

greatly improving the efficiency of resource allocation and productivity of network

infrastructure. It can also boost innovation in technology, models and industries, and

speed up industries’ large-scale and intensive development, thereby creating significant

spillover effects and overall value.

029

ETI Integration

1.5 Summary

●

ꢀ Network infrastructure’s characteristics include its foundationality, ability to

generate public benefit, pioneering role in development, long life cycle and natural

monopoly, as well as main features such as scale, network, and spillover effects,

delivering great value in terms of socio-economic development.

●

ꢀ ETI networks, as the important network infrastructure, can underpin social

development, drive economic growth, boost high-quality development, and lead

sustainable development, playing a fundamental strategic and pioneering role in

socio-economic development.

●

ꢀ The functionality and overall value of network infrastructure are limited by

problems and challenges related to resource sharing, developmental balance,

planning and coordination, network efficiency, security protection, environmental

protection, technical standards, and policy mechanisms.

●

ꢀ Network infrastructure is developing towards wide-range coverage, digitalization,

intelligence, efficiency and friendliness, and integrated functionality, with expansion

of functionality and improvement in the efficiency and convenience of services

ongoing, granting it an increasingly important position in people’s lives and

livelihoods.

●

ꢀ Coordinated innovation in and accelerated development of the ETI networks

will facilitate network infrastructure’s functioning as both a “stabilizer” and as an

“accelerator” providing strong impetus for human social development.

030

Current Status and Development

Trends of ETI Networks

2

ETI Integration

Energy, materials, and information are three basic elements indispensable

to production and human life. Their three essential elements of transmission

are the ETI networks—energy, transportation, and information—which

have brought tremendous changes to economic and social development

at each stage in history. ETI networks now cover a wider range than ever,

with enhanced functions and greater levels of internal connection. They

are characterized by broad interconnectivity, intelligence and efficiency,

green and low-carbon energy, and comprehensive integration. Globally

interconnected information and transportation networks have taken shape,

and energy interconnection extended beyond domestic borders to become

transnational and even transcontinental interconnection. Speeding up the

construction of Global Energy Interconnection (GEI) and improving global

transportation and information interconnection will help realize coordinated

ETI development and the construction of network infrastructure.

2.1 Energy Network

Global energy paradigms have shifted from fuel wood to coal, and then to oil, gas

and electricity. The current global energy supply structure relies on fossil fuels as the

main source with clean energy as a supplement. The construction of various energies’

distribution networks has played an important role in the progress of human society and

civilization. Construction is accelerating for GEI that can meet the needs of future energy

development of energy, with clean energy in the leading position and electricity at the

center. This infrastructure will play an increasingly important role in ensuring energy

supplies and promoting clean development.

2.1.1 Overview

Energy is the “blood” of economic and social development. From 1965 to 2017,

the total annual consumption of primary energy worldwide increased from 5.38 Gtce

to 19.2 Gtce. That’s an increase of 2.5 times at an average annual growth rate of 2.5%.

Annual per capita energy consumption increased from 2.1 tce to 2.6 tce, an increase

of 23.8% (see Figure 2-1). During the same period, the gross world product (GWP)

increased from 1.97 trillion US dollars to 81.2 trillion US dollars, with the correlation

coefficient between economic growth and energy consumption exceeding 0.95. The

global demand for primary energy in 2050 is expected to reach 26 Gtce—an increase

of 30%—indicating the increasingly important role of energy in providing a basic

guarantee for economic development.

032

2

Current Status and Development Trends of ETI Networks

200

180

160

140

120

100

80

100

192

92.9%

178.2

98

170.6

94.3%

96

153.0

133.4

94

92

90

88

86

84

82

80

122.5

102.5

89.0%

82.5

87.0%

86.8%

85.1%

53.6

87.3%

86.9%

2012

60

40

20

0

1965

1975

1985

1995

2000

Year

2005

2010

2017

Total primary energy consumption

Proportion of fossil fuels

Figure 2-1 Primary Energy Consumption across the World

At present, the primary energies available for human use mainly consist of coal, oil, natural

gas and other fossil fuels, as well as clean energies like hydropower, wind, solar, nuclear,

ocean, and geothermal energy. In terms of fossil fuels, coal, oil, and natural gas currently

serve as the main sources for energy production and consumption around the world. In

2017, fossil fuels accounted for more than 85% of primary energy consumed worldwide.

Oil, natural gas, and coal accounted for 34%, 23% and 28% respectively. In terms of

clean energy, the World Energy Council estimates that clean energy resources explored

worldwide exceed 150,000,000 TWh per year, equivalent to 45,000 Gtce and 38 times the

remaining proved reserves of fossil fuels across the world^A. Hydropower resources are largely

distributed along the main river basins of Asia, South America, North America and Central

Africa; wind energy resources are mainly exploitable in the Arctic and its surroundings as

well as high-latitude areas in Asia, Europe and North America; solar resources are mainly

to be found in East Africa, North Africa, the Middle East, Australia, Chile and other low- and

mid-latitude equatorial regions. Most of the areas rich in clean energy are expansive and

sparsely populated, hundreds to thousands of kilometers away from the centers of production

and human residence. Thus energy needs to be widely allocated for proper utilization.

The energy network is an important platform and vehicle for energy production,

allocation and consumption. The energy network connects energy development to

energy use. It mainly consists of units for energy production, transmission and distribution,

and use and storage, as shown in Figure 2-2. “Energy source”, the unit of production,

As measured by a coal consumption rate of power generation of 300 gce/kWh.

A

033

ETI Integration

mainly consists of coal, oil, natural gas, electricity, heat and other energies’ exploration

and production equipment. “Energy grid” is the unit of transmission and distribution. It

indicates transmission and distribution networks for electricity, gas, oil, and equipment for

cooling and heating. “Energy load” refers to the unit of energy consumption, i.e., the large

number of end users. “Energy storage” indicates the unit of reserve, including all manner

of devices for storing electricity, gas, oil, heat, and cold. The energy network lies at the

center of the global energy development and utilization, covering a massive amount of

infrastructure. It is pivotal to the realization of energy efficiency.

Non-thermal coal transport (by railway, highway, sea, and inland waterway)

Direct road transport, inland waterway transport, etc.

Coal

Coastal

power plant

Power transmission

channel

Ocean

transport

Belt

Riverside

power plant

Transit

port

Power transmission

channel

Coal mine railway

Inland river

Backbone railway

Coal

Inland

power plant

Power transmission

channel

Dedicated railway

for freight station

Railway, highway

Freight

station

Coal freight transport

Railways, highways, rivers, etc.

Sending

power

plant

Power transmission channel

Coal transport for

power plants

Wind/fire bundling

and wind/lighting/

fire bundling for

transmission

Power transmission channel

Wind &

solar power

plants

Wind and

solar energy

Hydropower

plant

Hydropower

Power transmission channel

Nuclear

power

plant

Nuclear

energy

Power transmission channel

Gas

power

station

Power transmission channel

Natural

gas

Multiple modes such as pipeline, shipping, railway, highway, and inland river

Figure 2-2 Energy Network Structure

Oil

refinery

Oil

The development of the energy network is inseparable from dominant energy sources.

As shown in Figure 2-3, prior to the 19th century, fuel wood was the leading energy, coal

accounting for less than 20% of the energy consumed around the world. Energy allocation

was primarily based on the local balance of fuel wood resources. Yet with the Industrial

034

2

Current Status and Development Trends of ETI Networks

Revolution, the proportion of coal consumed after the 1880s had risen sharply, to more than

70% at maximum. Since then, a global coal transportation network has gradually taken shape

and the scope of energy allocation expanded. Following the mid-twentieth century, as the

proportion of oil and natural gas use continued to rise, coal consumption declined rapidly. In

1973, the proportion of oil in overall energy consumption reached its peak. The construction of

global oil and gas pipeline networks and dedicated shipping lines was accelerated, gradually

forming an oil and gas distribution network. After the two oil crises breaking out in the 1970s

and 1980s, the proportion of oil consumed declined while that of natural gas continued to

rise. Clean energy developed rapidly, and the electricity-based energy network entered a new

stage of rapid development.

Development of coal

transport network

Rapid development of oil

and gas pipeline network

Rapid development

of grids

(First major energy

conversion)

(Second major energy

conversion) coal to oil and gas

(Third major energy

conversion) oil and

gas to new energies

Energy

conversion fuel wood to coal

90

80

70

60

50

40

30

20

10

0

1850

1875

Coal

1900

1925

Year

Oil

1950

1975

2000

Natural gas

Other

Nuclear energy

Hydropower

Figure 2-3 Global Energy Development

2.1.2 Coal

Development history

1

Coal use has a long history. As shown in Figure 2-4, coal has been used in China for

over 6000 years; it was the first country in the world to utilize coal, which it did for making

handcrafts. Then 2000 years ago, China, Ancient Greece and Ancient Rome began to use

coal as fuel, mainly for heat and iron-making. With improvements in productivity and rising

energy demands, the scale of coal mining and use expanded rapidly. In the early 12th

century, coal use was popularized in China’s capital during the Northern Song Dynasty.

By the 17th century, Britain had become the first Western country to use coal on a large

scale. Across the world, however, fuel wood continued to be the main energy source. Coal

production and consumption remained limited in scope and to local areas. The transport

and trade of coal were quite small in scale.

035

ETI Integration

Humans begin to use

coal to make crafts

The first Industrial Revolution promotes

large-scale coal mining and utilization

6,000-

7,000

years ago

2,000

years ago

1780s

Coal is used as fuel

Proportion of oil

surpasses that of coal

Mid-20th

century

Around

1881

1965

The coal industry expands in

scale and intensity

Coal accounts for more than 50% of

energy consumption, becoming the

world’s leading energy source

Figure 2-4 The Development and Use of Coal

The first Industrial Revolution caused demand for coal to surge. The invention and

application of the steam engine in the 1880s was a major contributor to the first Industrial

Revolution. In the fields of industrial production, transport, and mining, machines came to

replace manual, animal, water and wind power at a large scale. Coal quickly became the

world’s leading energy source; the scale of its production and utilization rapidly increased. In

1913, the world’s coal output was 1.32 billion tons—a sevenfold increase over 1860 levels—

accounting for 92.2% of the world’s total primary energy output. By that time, the world

had definitively entered the “coal age”. Driven by growth in demand and improvements

in production and transportation capacities, coal trade and transport continued to make

considerable progress. From 1840 to 1913, the volume of the global trade in coal grew at an

average annual rate of 5.4%, higher than overall economic growth over the same period.

The coal industry has shifted to large-scale, intensified development. Since the mid-

twentieth century, when many countries began placing higher requirements on coal in

terms of production safety, mining and utilization efficiency, and resource and environmental

impacts, the coal industry has developed toward a larger scale and deeper intensification.

In terms of production, a large number of small- and medium-sized coal mines have been

shut down, while large coal production bases have been intensively developed instead. Coal

companies continue to increase the scale of production and market share through mergers

and reorganizations. In China, for example, the number of coal mines has decreased from

37,000 at the beginning of this century to about 5300 in 2020. In 2012, the output of just

14 coal bases accounted for 88% of China’s coal production, and that figure is expected

to reach 95% by the end of 2020. Looking at the rest of the world, the output of the top 10

coal companies account for 10% of the total, and the top four coal companies in major coal-

producing countries such as the United States, South Africa, and Australia enjoy a market

share of over 40%. In terms of consumption, coal is being used in a more centralized way in

the fields of power generation, heating, metallurgy and chemical industry. The burning of bulk

coal is strictly restricted. In China, the United States, Japan, and other major coal consuming

countries, over 80% of coal is utilized in a centralized manner. Large-scale, centralized mining

and utilization improve the efficiency of coal resource use, facilitate the centralized treatment

of pollutants generated during coal production and consumption, and reduce direct damage

to and negative effects on the environment.

036

2

Current Status and Development Trends of ETI Networks

Current development status

Supply and demand

2

A

Coal is the most abundant fossil fuel in the world. As of 2019, the remaining proved

and recoverable reserves of coal resources in the world were about 1.1 trillion tons,

respectively 2.1 and 2.8 times that of oil and natural gas in terms of calorific value. As

for the reserve to production ratio, coal mining can be expected to last for 132 years

at current levels—50 years longer than oil and natural gas extraction. Coal is widely

distributed; it has been discovered in more than 80 countries and regions around the

world. It is mainly concentrated between 30 and 70 degrees north latitude in the northern

hemisphere; this area’s coal accounts for 70% of the world total. In terms of distribution by

geopolitical region, the most abundant reserves are found in the Asia-Pacific (456.8 billion

tons of proved reserves, about 42.7% of the world’s total), followed by Europe and Eurasia

(325.7 billion tons of proved reserves, 30.4% of the world’s total), North America (257.3

billion tons, about 24.1% of the world’s total), and then Central/South America, the Middle

East and Africa (accounting for only 2.8% of the world’s total). In terms of distribution

by country, the United States, Russia, Australia, China, and India have the world’s top

five reserve volumes, accounting for 75.5% of the world’s total. The global distribution of

proved coal reserves in 2019 is shown in Figure 2-5.

Coal reserves (Unit:100 million tons, %)

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Global coal production is slowly centralizing. In 2019, upon the third year of

consecutive growth, total coal production came to nearly 8.13 billion tons worldwide. Over

the past decade, global coal production increased at a rate of about 1.4% per year, which

is significantly slower than the previous decade’s rate of over 4%. In terms of region,

coal output in the Asia-Pacific, Europe/Eurasia, and North America account for nearly 95%

of the world’s total, with the Asia-Pacific region alone accounting for 74.4%. In terms of

country, China, India, the United States, Indonesia, and Australia are the top five coal-

producing giants, accounting for 78.2% of the world’s total. Since 1985, China has been

the world’s largest producer of coal, its output in 2019 nearly 3.85 billion tons, accounting

037

ETI Integration

for 47% of the global total—five times more than India, the second-largest producer.

Changes in the distribution of coal production by world region are illustrated in Figure 2-6.

North America

Central and

9.4%

North America

26.3%

South America

1.5%

The Asia Pacific

26.7%

Europe and

Eurasia

10.7%

Africa

4%

Central and

South America

0.3%

Africa

4.2%

The Middle East

0.1%

The Asia-Pacific

74.4%

Europe and Eurasia

42.4%

1980

2019

Figure 2-6 Coal Production by World Region

The proportion of coal used for primary energy continues to decline. In 2019,

approximately 5.43 Gtce was consumed across the world, a decrease of approximately

0.6% from 2018 and marking the fourth year of decline in six years. Coal is giving way

to natural gas and renewable energies. In developed countries, coal consumption has

reached its peak, while in OECD countries, coal consumption only increased 2.9% from

1971 to 2019, showing a downward trend after 2007. Meanwhile, the rapid growth of coal

consumption in China, India and other countries has delayed the global proportional

decline in coal consumption since the 1980s. Still, with the increased consumption of oil,

natural gas and renewable energies, the ratio of coal to all primary energy consumed

worldwide has continued to decline from the second half of the 20th century—from 37% in

1965 to 27% in 2019, the lowest level in the past 16 years, as shown in Figure 2-7.

40

35

30

25

20

15

10

5

0

1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2019

Year

Figure 2-7 The Proportion of Coal in Total Primary Energy Consumption

038

2

Current Status and Development Trends of ETI Networks

The global trade in coal, mainly by sea, is growing in volume. The world’s coal trade

has seen several major increases, and from 1971 to 2019 there have been major changes

in coal importers and exporters. In 1971, the world’s coal trade accounted for only 5% of

production, which rose to 10% in 1996. In 2019, that figure had risen to 17% of production,

for a global volume in trade of approximately 1.4 billion tons. There are currently two

regional markets for the coal trade—the Asia-Pacific market, and the European/American/

Atlantic market. In the Asian Pacific market, coal is mainly exported from Australia and

Indonesia to China, Japan, South Korea, India and other countries. In the European/

American/Atlantic market, coal is mainly exported from South Africa and Russia to the

UK, France, Germany and other countries. Except for a few countries connected by land,

where coal is transported by rail and road, most coal transport is by sea. The ratio of the

seaborne coal trade to the global total increased from 61.5% in 1970 to 92.5% in 1996,

and has remained above 90% since then.

Transport and distribution

B

Coal is mainly transported by water, rail and road. In practice, many modes of transport

may be applied together. Given the imbalance in coal supply and demand, differential

prices, and improved transportation capacities, cross-border and cross-regional coal

transportation has continued to progress. Thus the current layout is a global transportation

system with waterways and railways as the primary means and roadways as a

supplement.

Waterways. The water transport of coal consists of transport by open sea as well as by

inland waterway, featuring a large transport volume, low freight, low infrastructure and

maintenance costs and other advantages. It is mainly used for medium-to-long distances.

The disadvantages are that transport by water takes a long time, and some navigable

channels are affected by seasonal changes in water level. Nevertheless, shipping remains

the main mode of international coal transport. Coal is first transported from the production

base to the transit port by rail or road, then by sea to its country of destination. Global coal

transport by sea is primarily for the two regional markets—the Asia-Pacific market and

European/American/Atlantic market, as shown in Figure 2-8. Main coal importers of the

Asia-Pacific market include China, Japan, South Korea, and India. Coal is transported to

these countries from Indonesia, Australia, the United States, Canada, Colombia and others

through the North American West-Far East route (from the United States and western

Canada to East Asia), the Caribbean/North American East-Far East route (from the

Caribbean, Gulf of Mexico, and eastern North America to East Asia), the Southeast Asia-

Far East route (from Southeast Asia to China, Japan and Korea), and the Australia/New

Zealand-Far East route (from Australia and New Zealand to China, Japan and Korea). The

main importers in the European/American/ Atlantic market include the United Kingdom,

France, Germany and other European countries. Coal is transported from Australia,

Indonesia, South Africa, the United States, Canada, Colombia, and others to the European

continent through the Australia/New Zealand-Northwest Europe route (from Australia and

New Zealand to northwestern Europe), the Eastern North America-Northwest Europe route

(from the United States and Canada to northwestern Europe), the Caribbean-Northwest

Europe route (from the Caribbean to Western Europe), and the West Africa-Europe route.

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Railways. The transport of coal is by railway is the main form of overland coal transport.

This means is characterized by a large transportation capacity, relatively low cost, limited

influence on the natural environment, and high levels of safety and stability. It also sees

great advantages in energy conservation and emissions mitigation. When it comes to the

long-distance movement of coal, rail transport consumes one-seventh the energy and

discharges one-thirteenth of the pollutants that road transport does. In recent years, there

has been a trend of transporting coal and other bulk cargoes first by road and then rail.

Rail transport plays an increasingly important role in the shipment of coal. In terms of

international trade, rail transport supports the development of inland cross-border trade.

Coal is widely shipped by rail within North America, the European continent, and among

countries of the former Soviet Union—for example, rail is the main method of coal transport

between the United States and Canada with Mexico, between European countries, and

between Russia, Ukraine and Kazakhstan. In China—the world’s largest coal producer

and consumer—rail transport plays the leading role. China has built a number of railroads

specifically dedicated to coal in order to improve transport capacity. Four major channels

have been built—northern, central, southern and vertical—through these, coal resources

are directly transported from Shanxi, Shaanxi, and western Inner Mongolia to the Beijing-

Tianjin-Hebei, Northeast, and Central China regions. These routes are key to balancing

the otherwise uneven coal supply and demand factors across regions.

Roadways. The transport of coal by road is highly flexibly, occupies little space, adapts

well to varying terrain conditions, and offers diverse equipment. It is generally useful

for medium- and short-distance transportation within a region and under specific

geographical conditions. Roadways serve as an important supplement to water and rail

transport, with both concentrated and distributed services. When the limited capacity

of railways is unable to satisfy high demands for coal, roadways can also come in to

supplement long-distance, cross-regional demand. However, in the long run, with the

continuous improvement of railway capacities and increasingly strict requirements on

road transportation (e.g. load and scale restrictions or bans), long-distance road transport

will come to be replaced by railways. Still, for areas that are not covered by railways or for

short-distance transport, highways will continue to play an important role.

Challenges

3

Coal production and consumption have high emissions resulting in serious pollution. Coal

causes significant damage to the natural environment—whether water, soil, or atmosphere—

in the process of its mining, transport, and use. Coal mining can cause ground collapse,

land infertility, damage to vegetation, and groundwater contamination. Coal storage often

involves toxic substances and salt from the coal gangue penetrating the surrounding soil and

groundwater. Coal transport overland causes severe dust pollution along rail and highway, in

addition to the emission of particulate matter concentrations (for either method) far exceeding

standard limits. Coal may enter the oceans and rivers to directly pollute waterways during

transport over water. Most significantly, coal burning and utilization is one of the main causes

of air pollution and global climate change. The sulfur dioxide generated by coal combustion

accounts for about 80% of all sulfur dioxide emitted by humans and is the direct cause of

acid rain. Coal mining and burning have led to massive greenhouse gas emissions. In 2018,

the volume of methane from coal burning across the world reached 40 million tons. The

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impact on climate change is greater than that of all the world’s shipping and aviation activities

combined. The carbon dioxide emitted in coal-fired power generation accounts for 30% of all

carbon dioxide released and poses a threat to humanity’s long-term development and survival.

Coal transport puts pressure on traffic. In terms of waterways, the transport capacity

of coal by water has long been restricted by the sizes of ports, the number of ships, and

ships’ carrying capacities. These metrics have improved only in recent years with the rapid

construction of ports and the expansion of ship sizes. However, inland water transport relies on

river, lake and sea channels, and inland areas’ demand for coal cannot be met by waterways

alone. Some channels are also affected by changes in season and weather. In terms of

railways, insufficient rail transport capacities have become a bottleneck for coal utilization

due to railroads’ long construction periods and large investments required even as demand

for coal is rapidly increasing. Except for certain lines dedicated to coal, coal transport by rail

will conflict with the movement of passengers and other goods and materials. Transportation

capacities are inflexible and vulnerable to interference from other means of transportation.

In particular, coal will be in short supply during passenger peaks or due to severe weather.

Moreover, the long distance and complicated procedures of transport by rail lead to sharp

increases in the ultimate cost of coal utilization. In terms of roadways, coal transport requires

a lot of road. Coal transport vehicles congest main channels of traffic, seriously affecting the

circulation of personnel and other goods. Furthermore, vehicles transporting coal on highways

are generally medium-to-large in size, with full loads of more than 60 tons—some with more

carriages even exceeding 120 tons. The passage of such heavily loaded vehicles greatly

shortens the life of road surfaces and seriously damages bridges and culverts.

Coal transport lacks economical value and rationality. More than 60% of the coal

mined worldwide each year is used to generate power. For a long time, the direct

transport of coal to energy consumption centers for on-site power generation has

increased demand for the large-scale and long-distance shipment of coal. Given

coal’s naturally uneven distribution, areas rich in coal are often far away from centers of

consumption, resulting in repeated shortages of coal and electricity. As opposed to the

direct transport of coal, the construction of coal-fired power plants within coal production

bases and the conversion of coal into electricity—which is then sent to centers of energy

consumption center via power grid—can help break the coal transport bottleneck and

address a number of coal issues at their source. At present, coal transport still accounts

for more movement of coal energy than long-distance power transmission, creating

many problems for energy security, environmental impact, and economic efficiency.

First of all, energy security excessively relies on the transport of coal. A stable supply

of energy for centers of consumption requires the continuous expansion of transport

capacity, putting tremendous pressure on the transportation system and leaving energy

transmission vulnerable to interruption from natural disasters. Second, the intensive use

of coal power in centers of consumption leads to localized pollution such as acid rain

and particulate emissions. Loss caused by environmental pollution is positively correlated

with a region’s population density and per capita GDP. Energy consumption centers are

generally densely populated and have insufficient environmental carrying capacities;

therefore, there is hardly space in the environment for the development of coal power in

the first place. The further construction of coal-fired power plants in centers of energy

consumption will only face higher and higher environmental and spatial constraints while

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Current Status and Development Trends of ETI Networks

hampering a region’s potential for sustainable development. Third, coal transport for

consumption is far inferior to long-distance power transmission in economic terms. In

China for example, the feed-in tariff under coal transport is 0.06-0.13 yuan/kWh higher

than it is for electricity transmission from coal power bases in Hexi, Dingxi and the Xiji-

Haiyuan-Guyuan region to load centers in East and Central China.

Development trends

4

Looking forward, the development and utilization of coal will continue to be optimized.

In terms of production, efforts will be made to optimize coal’s development layout and

production structure. As for consumption, efforts will be made to promote clean, low-

carbon and efficient uses of coal.

Optimized development layout. In recent years, the coal industry has come to a consensus

over the construction of coal mines—that they should be large or extra-large, modern,

and located in areas rich in coal resources, while small coal mines and those not up to

standard should be rectified or closed. The industry is also moving to optimize coal’s mode

of production and industrial structure. First, coal will be developed and planned in a more

unified and orderly manner. The scale of exploration and intensity of developing coal are to

be identified in consideration of resource endowment, transport capacities and environmental

carrying capacities, so new coal mines are built in line with existing production capacities and

over-exploitation is avoided. Second, large-scale coal bases will be built to further standardize

the order of coal exploitation, increase the utilization rate of infrastructure, promote the

application of advanced technology, improve the mining area environment, and enhance the

level of production safety. These bases will play a more important role in future coal production

as the large coal enterprises relying on them become the main forces of coal production and

the concentration of the coal industry. Third, as environmental protection makes ever-more

stringent demands, coal development and environmental protection must be coordinated, and

mining activities’ soil and water pollution kept to a minimum.

Withdrawal from coal power is accelerating around the world. With rapid declines in the

cost of renewable energies for power generation, and stronger regulations for emissions

mitigation, many countries have launched plans for their withdrawal from coal power. The

proportion of coal-fueled power continues to decline around the world. Since 2014, upwards

of 30 countries and regions have issued policies on coal withdrawal (see Table 2-1). France

plans to shut down all coal-fired power plants by 2023; the UK plans to close all of its coal-fired

power facilities by 2025; and the Netherlands, Finland and Canada are banning the use of

coal for power generation from 2030. Germany, which currently uses 35% coal power, plans to

close all of its coal-fired power plants by 2038 at the latest. And although the United States has

announced its withdrawal from the Paris Agreement, its coal-fired power generating capacity

has fallen sharply in the past ten years, reaching its lowest level in the past 42 years in 2019.

China and India have also worked vigorously to optimize their coal production structures,

increase investment in renewable energies, and slow down the growth of coal. In terms of the

costs of power generation, coal power is quickly losing its advantage. It is estimated that by

2022, 60% of the world’s coal-fired power plants will no longer be competitive compared with

renewable energy; by 2025, this figure should rise to 73%—or in Europe, 100%. In terms of

reducing carbon emissions, the quantity of coal used worldwide by 2030 needs to decrease

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80% from 2010 levels, and the use of coal for power generation should basically be prohibited

by 2050 if the temperature rise limit in the Paris Agreement is to be met. In short, considering

competition in prices and the wide push for emissions reduction, withdrawal from coal power

is unstoppable. Coal is expected to totally exit the global energy system in the future.

Table 2-1 Promised Deadline for Phasing Out Coal-fired Power

Generation by Country/Region

Country

Time

Belgium

2016

Spain

2019

New Zealand

2022

France

2023

Italy

Austria

2025

The

Netherlands

Country

The UK

Ireland

Israel

Greece

Finland

Time

Country

Time

2025

Sweden

2030

2025

Portugal

2030

2025

Denmark

2030

2028

Hungary

2030

Switzerland

2030

Luxembourg

2030

Country

Time

Angola

2030

Ethiopia

2030

Costa Rica

2030

Chile

Mexico

2030

Germany

2038

2030

Coal will gradually returns to the basic attributes of raw materials. As coal power hastens

to make its exit, new areas are opening up or expanding for its application. With chemical

technology, coal can be converted into clean fuels or other special chemicals. In terms of

coal-based fuel, clean gases (methane, synthesis gas, hydrogen, etc.) or liquids (methanol,

synthetic oil) can be made from coal through vaporization and liquefaction. Other than these,

coal is an important raw material for the production of chemicals like olefins, ethylene glycol

and ethanol, as well as plastics, synthetic rubber, and synthetic fibers. In recent years,

breakthroughs have been made in technology for the clean and efficient conversion of coal,

with a number of significant demonstration projects. There is, for example, a demonstration

project for the direct liquefaction of coal at a scale of one million tons. Mass production has

been achieved in indirect coal liquefaction, coal-to-olefin, and coal-to-ethylene glycol. High-

quality oil and chemical raw materials have been made from coal. Technical problems in

the conversion of coal into raw materials have been solved, and now sulfur dioxide, nitrogen

oxides and other pollutants generated during the conversion process can be centrally handled

to advance clean and efficient uses of coal. As technology and its applications mature, coal

will be transformed from a fuel into an industrial raw material seeing wide use in the production

of clean fuels and industrial products. These clean and efficient uses of coal will do yet more

to promote the revolution in coal production and utilization, ensuring safe and stable supplies

of energy and the protection of ecological environments.

2.1.3 Oil

Development history

1

The demand for kerosene for lighting triggered a boom in the commercial exploitation of

oil. China was among the first countries to use petroleum. The Chinese term shiyou (“rock oil”)

is first recorded in Dream Pool Essays by Shen Kuo, a scientist of the Northern Song Dynasty

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(960-1127 AD): “There is shiyou in Fuyan. Gaonu County has been said to produce a kind of

oil-like water. That is it.” In 1853, Canadian chemist Abraham Gesner distilled kerosene from oil

for the first time. With its low price, kerosene quickly replaced whale blubber as the main fuel

for lighting. In 1859, American Edwin Drake used a steam-driven drilling machine at Oil Creek

in Titusville, Pennsylvania, unearthing the first industrial oil well at 21.6 meters’ depth and

consequently triggering a twenty-year boom in oil development and utilization. A total of 56

million gallons of oil gushed out of Oil Creek. Kerosene lamps could be seen everywhere, and

oil became an indispensable resource for production and living. In 1879, the United States

built the world’s first oil pipeline, stretching across Pennsylvania for a total length of 109 miles

and a diameter of 6 inches. It became an important channel connecting oil fields and refining

centers. The development history of oil is shown in Figure 2-9.

Gesner is first to distill

kerosene from oil

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The price of oil reaches

The second

oil crisis

World’s first oil

pipeline is built

in the US

an all-time high of

USD 147.25

Drake discovers

industrial oil at

Oil Creek

The first oil crisis

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WTI crude oil futures for May delivery plummet by

about 300% to USD -37.63 per barrel, a negative

value for the first time in history

Figure 2-9 History of Oil Development

The invention of the internal combustion engine drove demands for oil ever higher. In

1876, Nikolaus Otto, a German engineer, invented the first four-stroke internal combustion

engine. That supported the subsequent development of diesel engines, gasoline engines,

and modern means of transportation like airplanes and Model T cars—one innovation after

another giving constant momentum to the development of industry and transportation. With

the popularization of the internal combustion engine, oil demand came to exceed supply.

From 1900 to 1980, global demand for oil increased rapidly, oil prices rising from just over

USD 20 to about^A50, as shown in Figure 2-10. Oil prospectors who had made their fortunes at

Oil Creek in Pennsylvania expanded to California and Texas, to Mexico, Iran, and Venezuela.

By the mid-twentieth century, new oil fields had been discovered on every continent except

Converted to the value in USD in 2009.

A

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ETI Integration

Antarctica. The most famous include the Ghawar Oil Fields, Greater Burgan Oil Fields, Bolivar

Coastal Fields, and the Daqing Oil Fields.

130

120

110

100

90

80

70

60

50

40

30

20

10

0

Year

2018 price in USD

Average prices in the US from 1861 to 1944

Prices of light crude oil in Arabia announced by Ras Tanura from 1945 to 1983

Brent Spot Prices from 1984 to 2018

(deflated according to the US Consumer Price Index)

The day’s price in US dollars

Figure 2-10 Oil Prices from 1861 to 2018^A

The oil trade promoted the development of transnational pipelines. In the latter half of the

20th century, most major newly discovered oil fields were located in remote areas, and local

oil consumption was low, which spurred the development of long-distance oil transport. Highly

efficient and economical, oil pipelines became the best means of long-distance transport over

land. During the Second World War, marine transportation was interrupted, only quickening

the development of long-distance pipelines. The United States, Soviet Union, and Canada

all built backbone pipeline networks—for example, the crude oil pipeline stretching 2158

kilometers from Texas to Pennsylvania, the refined oil pipeline stretching 2754 kilometers from

Texas to New Jersey, the crude oil pipeline stretching 2856 kilometers from Edmonton (Canada)

to Buffalo, New York, the 1511-kilometer Caspian crude oil pipeline and the 1900-kilometer

Sakhalin oil and gas pipeline in Russia.

Current development status

2

Supply and demand

A

Oil resources are unevenly distributed across the world, with great discrepancies in

quality. As of the end of 2019, the world’s total proved oil reserves^B—approximately 244.6

Source: BP Statistical Review of World Energy 2019.

A

Refers to the remaining oil reserves that can be extracted under current economic and technological conditions.

B

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Current Status and Development Trends of ETI Networks

billion tons—were mainly distributed between 20 and 40 degrees and between 50 and

70 degrees north latitude. There are two major oil-producing regions between 20 and 40

degrees: the Persian Gulf and the Gulf of Mexico, with the North African oil fields of some

significance as well. Between 50 and 70 degrees lie the famous North Sea oil fields, the

Russian Volga and Siberian oil fields, and the oil fields in the Gulf of Alaska. With regards

to the distribution by continent and geopolitical region, proved reserves in the Middle East

(mainly consisting of light crude oil) come to approximately 112.9 billion tons, accounting

for 48.1% of the world’s total. Proved reserves in in Central/South America (mainly heavy

crude oil) come to approximately 50.9 billion tons, or 18.7% of the world’s total, while

proved reserves in North America come to about 36.3 billion tons, accounting for 14.1%

of the world’s total. Canada mainly produces heavy crude oil, and the United States

produces a kind of mid-grade crude oil. Russia/Central Asia and Africa are also rich in oil

reserves, respectively accounting for 8.4% and 7.2% of the world’s total. Proved reserves

in the Asia-Pacific region account for only 2.6% of the world’s total, and those in Europe

for only 0.8%. The proportion of proved oil reserves by region is shown in the figure 2-11.

The Middle East

Central and South America

0.8

North America

2.6

Russia and Central Asia

Africa

7.2

0.9

3.0

The Asia Pacific

Europe

1.6

8.4

8.0

2.9

6.6

Total reserves

of 244.6 billion

tons in 2019

9.4

48.1

Total

9.4

14.1

reserves of

216.1 billion

tons in 2009

Total

49.2

reserves of

180.2 billion

14.2

53.7

18.2

tons in

1999

18.7

15.2

7.5

Figure 2-11 Remaining Proved Oil Reserves by Region (%)^A

Global oil production has steadily increased, with North America playing an

increasingly important role. After the Second World War, the world economy developed

rapidly and oil demand grew at a constant rate. Global annual output of oil nearly doubled

from 1965 to 1980, increasing from 1.57 billion tons to 3.09 billion tons—an average

annual growth rate of 4.3%. Oil output continued to grow steadily into the 1880s, but at

a significantly slower rate. From 2009 to 2019, average annual growth in oil output was

1.0%, reaching 4.48 billion tons in 2019. The United States, Russia and Saudi Arabia are

currently the top three countries for oil production, respectively accounting for 16.7%,

12.7% and 12.4% of world’s 2019 total. From 2009 to 2019, the proportion of oil produced

in North America increased from 16% to 24.9%, as shown in Figure 2-12.

Source: BP Statistical Review of World Energy 2019.

A

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100

90

80

70

60

50

40

30

20

10

0

100

90

80

70

60

50

40

30

20

10

0

The Asia Pacific

Africa

The Middle East

Europe

Central and South America

North America

Russia and Central Asia

1994

1999

2004

2009

Year

2014

2019

1994

1999

2004

2009

Year

2014

2019

Figure 2-12 Changes in Oil Production and Consumption by Region (%)

The world’s oil consumption has shifted focus to the Asia-Pacific region. In 2019,

global oil consumption came to 4.45 billion tons, making for a year-on-year increase

of 0.8% and an average growth rate of 1.1% over the past decade. Oil consumption

centers tend to be diversified, and consumption shifts are occurring toward East Asia,

South Asia, and the Middle East. From 2008 to 2015, East and South Asia’s increase

in oil consumption accounted for 97.3% of the global net increase, with 50.7% of that

consumed in China and 16.2% in India.^AAs China enters a stage of normalization, the

growth rate of oil consumption has slowed, but given its large base, the country still ranks

among the top in terms of annual growth. In 2016, India’s growth rate for oil consumption

11%, indicating its status as a main force for oil demand in the world.

Oil is the most traded fossil fuel in the world. Oil is the most highly traded energy

commodity. From 2009 to 2019, the annual volume of trade in oil increased from 54 million

barrels/day to 71 million barrels/day worldwide, making for an average growth rate of

2.3%. The Middle East and Russia are key exporters, while the export volumes of the

United States and Canada are also increasing year by year. Oil is primarily exported from

developed regions such as Europe and North America, and imported by Asia-Pacific

countries such as China and India. The flow of the 2019 global oil trade is depicted in

Figure 2-13.

Source: RIPED, Analysis of New Characteristics and Influence of World’s Oil and Gas Patterns.

A

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Current Status and Development Trends of ETI Networks

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Network development

B

The oil transport network consists of both sea and land channels. At present, nearly two-

thirds of the oil traded in the world is moved by tanker, while about a third is by pipeline.

Sea channels mainly refer to transportation by tanker; land channels include both oil

pipelines and railways.

Global oil Sea channels. Oil is shipped by tanker through sea channels, from oil-producing

areas (mainly in the Middle East, West Africa, and South America) to the United States,

Europe, and the Asia-Pacific region for which China is representative. ① The largest outbound

flow of crude oil for sea transport comes from the Persian Gulf in the Middle East, is shipped

to the Arabian Sea through the Strait of Hormuz. This oil then moves further eastward to India

or across the Strait of Malacca to China, Japan and Korea; or, it moves westward to Europe

or the Gulf of Mexico and US east coast via the Bab el-Mandeb and the Suez Canal, or by

the Cape of Good Hope. ② West African crude oil is shipped to East Asia via the Cape of

Good Hope; or it is shipped across the Atlantic to Europe or North America. North African

oil, meanwhile, is shipped to Asia across the Suez Canal. ③ Russia ships its oil westward to

Asia via the Suez Canal and eastward to China, Japan and South Korea through the Sea of

Japan. ④ Oil is shipped across the Atlantic from the eastern coast of the Americas around

the Cape of Good Hope to East Asia, as well as from the western coast via the Pacific Ocean

to Asia. There are also short- and middle-distance regional routes such as South America to

North America, Southeast Asia to East Asia, the Mediterranean to the North Sea, West Africa

to Western Europe, West Africa to North America, and Western Europe to North America. Main

tanker routes are shown in Figure 2-14.

Global oil pipeline network. The oil pipeline network consists of both crude and

refined oil pipelines. As of the end of 2017, global crude oil pipelines and refined oil

pipelines in service came to approximately 420,000 kilometers and 250,000 kilometers

in respective length (as shown in Table 2-2), mainly concentrated in North America,

Europe, Russia, Central Asia, and the Asia-Pacific region. The top three countries

in terms of total length of oil pipelines are the United States, Russia and China. As

for crude oil, there are large discrepancies in its quality based on the conditions of

different oilfields, as well as differences in the composition complex; the degree of

standardization remains low. Requiring a specific refining process with specialized

equipment, crude oil is therefore primarily transported from oilfields to specific

refineries via “point-to-point” long-distance pipeline (or through crude oil depots and

tanker shipping). In terms of refined oil, their pipelines are primarily used to connect

various refineries, refined oil depots and sales terminals (though tanker shipping is

also used here). Refined oil’s high degree of standardization makes it conducive to the

formation of interconnected pipeline networks.

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Table 2-2 Total Length of Oil and Gas Pipelines in Service Worldwide, 2017 (km^A)

Location

The Asia Pacific

Russia and Central Asia

Europe

Crude oil pipeline

46,000

Refined oil pipeline

54,100

62,700

20,000

24,900

22,600

North America

Latin America

210,100

27,000

91,500

22,900

Africa and the Middle East

Total

52,200

40,400

422,900

251,500

North America. Oil fields are mainly distributed along the Gulf of Mexico and Gulf of

California, Alaska, and at the eastern foot of the Rocky Mountains. Refining and chemical

centers are mostly distributed throughout the Gulf of Mexico, whose refining capacity

accounts for 50% of the North American total. The continent has a vast network of crude

oil pipelines, the total length of crude and refined oil pipelines together currently reaching

about 300,000 kilometers. Crude oil pipelines in the United States are mainly used to

transport crude oil produced in Texas, Oklahoma, and Louisiana to the Gulf of Mexico,

Cushing (Oklahoma), and the Midwest. Transnational pipelines, meanwhile, transport

Canadian crude oil to the US’s Rocky Mountains and Midwest. The Canadian crude oil

pipeline begins in British Columbia and moves through Alberta; it then extends to western

Canada and the US west coast or eastward to Saskatchewan, eastern Canada, or

southward to the United States. The distribution of oil pipelines in North America is shown

on the following map.

Europe. This small continent is the major oil consuming area in the world, depending

largely on imports. In 2019, Europe’s imports of crude and refined oil reached 523 million

tons and 209 million tons, respectively. Within Europe, oil is mainly produced in the

Carpathian Mountains and North Sea oil fields. Petroleum refineries are mainly found in

Germany, Hungary and Spain, with a production capacity of 15.72 million barrels per

day. Rotterdam in the Netherlands is one of the world’s three largest oil refining centers.

The total length of oil pipelines in Europe comes to about 48,000 kilometers, featuring a

mature market and complete infrastructure. Europe is actively developing import channels

and has built an efficient oil pipeline network for energy security. Its crude and refined oil

pipelines are roughly equal in length. Their distribution is shown on the following map.

Russia and Central Asia. In this vast region, oil resources are mainly distributed

over the West Siberian, Volga River, Timan-Pechora, and Sakhalin Island (Far East)

oil and gas areas, the Caspian Sea coast, the Aral Sea Basin, the Fergana Basin and

Source: Zhu Quezhi, Li Qiuyang, et al., Development Status and Trend of Global Oil and Gas Pipelines

in 2017.

A

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Karakum Desert. Petroleum refining is mainly done in Russia’s European area, which

achieves a production capacity of 8.31 million barrels per day. The crude oil industry

is characterized by a large amount of resources, low rate of consumption, a dual-

ladder model, and an export economy. The region has put a great effort into export

diversification and the development of crude oil pipelines, which currently run 83,000

kilometers. That includes 63,000 kilometers of crude oil pipeline and 20,000 kilometers

of refined oil pipeline. The following map shows the distribution of oil pipelines in

Russia and Central Asia.

The Asia Pacific. Oil resources in the Asia-Pacific region are mainly found in China’s

Songliao Basin, Bohai Bay and western South China Sea, on eastern Sumatra and

northern Kalimantan of Indonesia, and in Myanmar’s central and southern regions.

Petroleum refining is mainly accomplished in China, India, Singapore and Japan, whose

production capacity comes to 35.52 million barrels per day. Oil pipelines in this region

add up to over 100,000 kilometers. Despite the Asia Pacific’s late start, it sees the fastest

growth in oil consumption worldwide, and its oil pipeline network and other infrastructure

have improved greatly. In China, pipeline networks have basically taken shape for the

north-to-south and west-to-east transport of oil. The distribution of oil pipelines in the Asia

Pacific is shown on the following map.

The Middle East and Africa. Oil resources here are mainly found in the Persian Gulf, North

Africa, and West Africa. The Middle East currently has 152 large oil fields, constituting 25% of

the world’s total for their kind. The Middle East’s refining and chemical industries have mainly

developed in Iran, Saudi Arabia and the UAE, with a production capacity of 10.02 million

barrels per day, while those in Africa are mainly found in Egypt and Algeria, with a production

capacity of 3.2 million barrels per day. Total oil pipelines in Africa and the Middle East are

nearly 93,000 kilometers long. The oil pipeline with the world’s largest transport volume is

found here; it is a 1219-kilometer diameter pipe stretching 1200 kilometers from Apukaike (in

the Persian Gulf) in the east to Yanbu Port (in the Red Sea) in the west. The annual output of

this pipeline can reach approximately 100 million tons of oil. The distribution of oil pipelines in

Africa and the Middle East is shown on the following map.

Latin America. The oil resources of South and Central America are mainly found in

the northern oil-producing areas like Venezuela. Petroleum refinement mainly occurs

in Brazil and Venezuela, with a production capacity of 5.98 million barrels per day. The

total length of oil pipelines in the region comes close to 50,000 kilometers. Crude oil

pipelines connect oil-producing areas to major ports, and crude oil is transported to

Europe, America and the Asia Pacific by sea. The following map shows the distribution

of oil pipelines in Latin America.

Construction and operation

3

Over a century has passed since the building of the world’s first long-distance oil pipeline

in 1879. There is now a mature model of oil pipeline construction covering the entire

process—upstream oil and gas field exploration and development, midstream oil and gas

pipeline construction and operation, and downstream oil and gas sales—which plays an

important role in pipeline interconnection.

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Main participants. These include the governments of sovereign nations, investors,

operators, constructors and equipment providers. Governments play a leading role

in overall planning for oil pipelines and international energy cooperation; they are

mainly responsible for developing strategies and layouts for pipelines, for their nation’s

cooperation policy, and for the supervision of pipeline projects and related enterprises.

Investors mostly consist of large-scale monopoly companies—whether from the countries

of resources, transit, or demand. They jointly provide equity capital for pipeline project

companies based on shareholder agreements. Operators are responsible for awarding

contracts on pipeline construction and operation, coordinating oil and gas producers and

sellers, and ensuring the stable operation of oil and gas pipeline projects. At present, the

major operators around the world include PipeChina, Kinder Morgan of the United States,

and Gazprom of Russia, as shown in Table 2-3. Constructors are responsible for the

physical construction of oil pipeline projects.

Table 2-3 Pipeline Length and Proportion of Main Operators Worldwide

Pipeline length

(10,000 km)

Percentage (%)

of the global total

Main countries

United States

Main operators

Kinder Morgan, ONEOK,P AA, Enterprise,

Phillios66

49.4

21.0

Russia

Canada

China

Gazprom, Transneft

TransCanada, Enbridge, Buckeye, Colonial

PipeChina

29.9

17.7

11.3

12.7

7.6

4.8

Modes of construction and operation. There are three major modes of construction

and operation: segmented, joint, and mixed. Segmented construction and operation.

Resource countries and demand countries should each set up a project company for

the construction and operation of oil pipeline within their own territory, with the national

border setting the boundary. The countries with demands will buy out oil at the border

from metering stations and not be involved in the development of upstream resources or

the construction and operation of pipeline beyond their border. Joint construction and

operation. Companies from demand countries, resource countries and transit countries

should establish a joint independent pipeline project company to invest in and operate

oil pipelines. This mode is used for the US-led Chad-Cameroon pipeline project. As

another iteration of this mode, participants may establish a joint venture company for each

segment of pipeline. The company from the country in which that segment is located

enjoys the controlling stake, with participation and investment by the other cooperating

parties. Mixed construction and operation. Throughout the entire transnational pipeline,

multiple modes can coexist. The mixed mode is often adopted for transnational oil

pipeline projects. Diverse investment entities are introduced to share the benefits and

risks according to each country’s actual conditions. Upstream and downstream industries

are operated and coordinated through the “transnational transportation coordination

mechanism” for the entire pipeline.

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Column 2-1 Major Oil Pipeline Projects under Construction

Second-phase oilfield pipeline in Agadem, Niger. The Niger-Benin oilfield

pipeline construction runs a total length of 1982 kilometers. It is a component of

the surface engineering and pipeline construction integration for the second phase

of oilfield development in Agadem, Niger. Its annual transmission capacity is 4.5

million tons, and within Niger, its accounts for nearly two-thirds of total pipeline. It

will lead from the oil and gas resource area in Niger’s Agadem Rift Basin southward

to Benin’s Port of Saimei on the coast of the Gulf of Guinea. The Niger-Benin

pipeline project is the CNPC’s largest investment in overseas cross-border oil

pipeline construction. Construction began on September 17, 2019 and the pipeline

is expected to be officially put into operation in January 2022.

Keystone XL oil pipeline in Canada. The Keystone XL pipeline, which exports heavy

oil from Canada to the United States, has a total length of nearly 2000 kilometers and a

designed carrying capacity of 830,000 barrels per day. It is one of the most important

projects for transporting oil Alberta in Canada. However, construction has been delayed

by the United States several times due to environmental concerns. TransCanada

Corporation initiated pre-construction work, but in November 2018, the government of

Montana once again prohibited the company from building the pipeline in its territory

on the grounds of environmental protection. TransCanada Corporation has recently

submitted an amendment to the Montana court that would allow it to continue with pre-

construction work including meetings with stakeholders and pipeline adjustments.

United States Permian Basin Oil and Gas Pipeline Project. The development of

shale oil has led to a rapid increase in oil production from the United States’ Permian

Basin. With the increase in the associated gas, the Permian Basin’s output of natural

gas has also risen significantly. Conflicts emerged between the carrying capacity of

oil and gas pipelines at the end of 2017, however, and became the main factor limiting

the region’s production growth. Many mid-stream companies have started to invest

in pipeline projects in the Permian Basin. According to EIA, there are currently nine

announced or in-construction oil and gas pipeline projects in the Permian Basin, to be

put into operation before 2021. These pipelines will transport crude oil to Texas and

Louisiana to ease the Permian Basin’s carrying capacity restriction. Production in the

basin is estimated to double by 2023 to about 8 million barrels per day.

Challenges

4

The global oil industry is seeing excessive production capacities and decreasing oil

prices. After 2013, guided by strategies for “energy independence” and “America First”,

the United States has relaxed restrictions on carbon emissions, intensified exploration

and development, improved domestic supply capacities, and actively competed for share

of the international market. Russia, striving to maintain its influence in the global energy

sector, has stepped up its efforts in oil exploration and development by allowing private

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capital to enter the Arctic for development, speeding the expansion of its production

capacity and international market share. The game between OPEC, Russia and the United

States over oil production control and reduction has become increasingly fierce. With

the outbreak of COVID-19 in 2020, oil consumption has hit a slump, and oil prices are

continuing to decline. Large shale oil companies such as Whiting Petroleum, Diamond

Offshore Drilling, and Chesapeake Energy have filed for bankruptcy as a result.

Clean, low-carbon energies are increasingly competitive, while the oil consumption

is declining. Major energy-consuming areas such as China and the European Union have

attached great importance to clean energy development, actively worked to fulfill the Paris

Agreement, set emissions reduction targets, and formulated relevant policies to support

low-carbon and clean energy consumption. Large international investors have likewise

directed economic resources toward green energy and low-carbon with green credits,

green funds, and technological developments in renewable energy and natural gas, ever

decreasing the cost of clean energies for power generation. Various nations’ governments

have continuously upped requirements for environmental protection and penalizations

pipeline leaks and tanker spills—an indirect means of increasing the costs for oil development

and transportation. This, in turn, has significantly improved the competitiveness of clean,

low-carbon energies. The proportion of oil in primary energy consumption has dropped

from nearly 40% in the 1990s to 33.1% in 2019. The proportion of renewable energy and

natural gas consumed has increased significantly, as shown in the below in Figure 2-15.

50

40

30

Oil

20

Coal

Natural gas

10

0

Hydropower

Nuclear energy

Renewable

energy

1994

1999

2004

2009

2014

2019

Year

Figure 2-15 Primary Energy Consumption

International geopolitical conflicts have triggered fluctuations in the oil market. After

World War II, political struggles over oil resources involved have intensified. Considering

oil producers’ and transit countries’ ever-stricter control over transport pipelines, as well as

the lack of industry-recognized technical standards, the international oil cooperation has

become prohibitively inefficient. In 1973, the Fourth Middle East War broke out. The ten

major Arab member states of OPEC announced a reduction in oil production and increase

in oil prices. Oil prices spiked up more than twice. The oil crisis lasted for three years,

causing US industrial production to drop by 14%, significant slowdowns to the economic

growth of all industrialized countries, and the most serious global economic crisis post-

World War II. The Iran-Iraq War broke out in 1980, again causing oil prices to skyrocket.

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Development trends

5

Oil will return to the basic attributes of raw materials. According to statistics, 70%

of the world’s crude oil is used as fuel, and only 30% for raw materials. There is large

volume, fierce market competition, serious resulting pollution, and low added value for

products like gasoline, diesel, ordinary lubricating oil and asphalt that are made through

the refining and fractional distillation of petroleum. But the further processing of crude oil

can produce chemical raw materials such as ethylene, propylene, amide and benzene.

Crude oil is therefore an important foundation for the development of related industries.

Studies show that oil is 1.6 times more economically valuable when used for raw materials

as when used for fuel. With the development of natural gas and clean energy, demand for

oil as a fuel has decreased and its comparative advantage as a chemical raw material has

increased. Looking ahead, more oil will be used for the production of high value-added

chemical products.

Oil channels are developing into networks. Oil-producing and oil-consuming countries

have generally attached high importance to their own energy security and the development

of their oil and gas pipelines. They have expanded channels for oil export and import

and strengthened the strategic layout of energy channels. Most governments are actively

promoting the development of pipeline network interconnection. According to China’s Fourth

Five-Year Plan, 12,000 kilometers of new oil pipelines are to be built—the total length of

pipeline reaching 77,000 kilometers by 2025.^AAs the international energy game comes to

a draw and conditions for international cooperation improve, countries will launch a new

round of cooperation over pipeline development strategies and technical standards. The

operational efficiency of oil pipeline networks around the work will then be further enhanced.

Pipeline operation is getting smarter. Information technology, computing and

modern communications have all helped advance the development of intelligence in

the oil and gas pipeline industries, realizing remote real-time monitoring, information

collection and operation management for pipelines, as well as AI-powered decision-

making and operations in certain key areas. Fiber-optic communication allows for the

rapid and stable transmission of pipelines’ daily production data. Additional pipeline

monitoring systems can detect small leaks and automatically close pipelines in the case

of emergency to prevent oil from contaminating water resources. Intelligent applications

can double transportation capacity, greatly improve efficiency, and thus to a large degree

improve energy conservation and environmental protection. As informatization and AI

technology continue to progress, smart oil pipelines featuring “full digital handover, full

intelligent operation, and full life cycle management” will be the industry trend. With the

construction of smart pipelines, the entire system will be integrated into a whole, which will

continuously improve technological support and technological integration—connecting

artificial intelligence, big data, and cloud computing with the oil pipeline network. AI will

also improve platforms for information sharing, promote pipeline network management

and planning, and maximize the efficiency of pipeline resources.

Source: National Development and Reform Commission, China National Energy Administration,

Medium and Long-term Oil and Gas Pipeline Network Planning.

A

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2.1.4 Natural Gas

Development history

1

The initial stage of commercial development (1732-1915). As technology evolved,

drilling depths increased from an initial 150 meters to 1000 meters. There were over

1100 wells by 1900. The UK was the first to use natural gas for street and home

lighting. In 1732, Karisher Spadin, a Brit, proposed to provide lighting for Whitehaven

Street with methane discharged from coal mines. In 1813, the Gas Light and Coke

Company in Westminster, London, UK, won the first municipal contract for gas lighting.

In the United States, natural gas was used for street lighting in Battiermore, Maryland, in

1816. Most natural gas at this time was coal bed methane extracted from coal mines,

which was inefficient and extremely harmful to the environment. In 1821, the United

States established the first natural gas company, after which many more companies

for gas lighting were founded across the world, but particularly in Europe and the

United States. Natural gas consumption continued to increase, with transnational and

transcontinental trades in natural gas appearing during the mid-to-late 19th century

and the early 20th century. The development and utilization process of natural gas is

shown in Figure 2-16.

The UK is the first to use

natural gas for street and

home lighting

Monroe gas field, the first

large gas field, is discovered

in the US

The Panhandle-Hugoton gas field,

the first super-large gas field is

discovered in the US

1732

1821

1916

1917

1918

The first natural gas company is

established in the US

The first LNG plant is built in the

US’s West Virginia

With the shale gas revolution, the

United States becomes a net

exporter of natural gas

The first interstate gas pipeline

with a length of 1000 kilometers is

built in the US

Global natural gas production

exceeds 2 trillion cubic meters

2017

2008

1990

1940

1925

Global natural gas production

exceeds 3 trillion cubic meters

The first natural gas turbine generator

set is built in Switzerland

Figure 2-16 The Development and Use of Natural Gas

Rise of the industry (1916-1949). In the 1920s and 1930s, with the discovery, development

and utilization of two large gas fields—the Monroe and Panhandle-Hugoton Fields—the

United States realized the world’s first complete industrial system for natural gas, and

brought the industry into a modern stage of exploitation and consumption. Natural gas

transmission pipelines were constructed rapidly and brought continuous increases in

natural gas production. The large volume of transcontinental trade injected new impetus

into the US natural gas industry. From 1927 to 1931, the United States built 12 main gas

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Current Status and Development Trends of ETI Networks

transmission lines, each of which approximated 20 inches in diameter and more than 200

miles in length. These pipelines explored markets for the US’s three largest gas fields in

the Western Hemisphere. The natural gas industry continued to grow and develop; then

in 1940, the world’s first natural gas-powered turbine was invented in a power station in

Switzerland. In the 1920s, with the rise of natural gas and chemical research in the United

States and Germany, people started to use natural gas to make chemical products such

as formaldehyde, acetic acid, and synthetic rubber. Natural gas for power generation

and the chemical industry continued to develop, soon to become important pillars of

the industry.

Development of industrial trade (1950-2000). The global natural gas industry developed

rapidly after World War II. On one hand, war-affected countries needed to be revived,

and had huge demands for natural gas and other sources of energy; on the other hand,

this increase in demand stimulated enthusiasm for the exploration and development of

oil and gas. Many large and super-large gas fields were discovered in North Africa and

the Middle East with huge reserves of associated gas. Natural gas was developed on a

large scale after 1970. In 1990, global production of natural gas exceeded 2 trillion cubic

meters. In 2000, it reached 2.4 trillion cubic meters. Not only were a large number of

gas fields discovered and exploited during this period, but the development of pipelines

and improvements in supporting gas storage facilities also meant rapid growth for the

transnational natural gas trade. American government also relaxed control over trading

and pricing in the natural gas market following the 1970s, such that natural gas prices

tended to be reasonable. In the early 1990s, natural gas futures trading was created in the

United States, which helped improve the industrial system of natural gas.

Developments in clean and efﬁcient production and use (2000 to the present). Oil and

climate and environmental crises have come along in succession. Countries are paying

more attention to clean and efficient solutions for the development and utilization of natural

gas. With technological reform and innovations over the past ten years, natural gas’ use

efficiency has been improved. New industries involving unconventional natural gases

and technologies for producing hydrogen from natural gas have emerged and continue

to develop, rapidly expanding the market for natural gas. In 2018, global production of

shale gas reached 670.3 billion cubic meters, accounting for 17.3% of world’s total natural

gas production—with 607.2 billion cubic meters coming from the United States, 48 billion

cubic meters from Canada, and 10.8 billion cubic meters from China. The rapid growth of

shale gas production has changed the structure of the world’s energy supply.

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Current development status

Supply and demand

2

A

Natural gas is mainly distributed in the Middle East, North America and Eurasia.^AAs

of the end of 2019, the global proved reserves of natural gas were approximately 198.8

trillion cubic meters—most to be found in the Middle East, Europe, and other Eurasia

regions. Proved reserves in the Middle East were 75.6 trillion cubic meters, accounting

for 38% of the global total; the proved and recoverable reserves in Russia/Central Asia

were 64.2 trillion cubic meters, 32.3% of the world’s total. The proved reserves of the

Asia Pacific, North America and Africa respectively accounted for 8.9%, 7.6%, and 7.5%

of the global total. With the advancement of exploration technology, proved reserves

of natural gas continue to increase. From 1980 to 2019, the world’s remaining proved

and recoverable natural gas reserves increased from 71 trillion cubic meters to 198.8

trillion cubic meters, an average annual growth rate of 2.6%. However, as the scale of

development and use continue to expand, the reserve and production ratio of natural gas

has fallen to 50 years. The Middle East and Russia-Central Asia see the highest reserve

and production ratios—108.7 years and 75.8 years, respectively. Regional distribution of

the remaining proved and recoverable natural gas reserves can be seen in Figure 2-17.

The Middle East

Russia and Central Asia

1.7

4.0

The Asia Pacific

North America

Africa

7.5

3.1

4.4

Central and South America

Europe

7.6

38.0

8.3

4.2

5.2

Total reserves

of 198.8 trillion cubic

meters in 2019

5.5

8.9

43.2

Total reserves

of 170.5 trillion

cubic meters

in 2009

8.3

Total

5.3

7.1

39.9

reserves of

132.8 trillion

cubic meters

in 1999

8.2

32.3

27.3

30.0

Figure 2-17 Global Distribution of Proved Reserves of Natural Gas, 1999—2019 (%)

Natural gas production continues to grow around the world, with the United States

ranking number one. In 2019, global natural gas production came to 4 trillion cubic

meters, which was 2.8 times that in 1980, representing an average annual growth rate of

2.6%. Natural gas is mainly produced in North America, Russia/Central Asia, the Middle

Refers to the remaining natural gas reserves that can be extracted under current economic and

technical conditions.

A

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Current Status and Development Trends of ETI Networks

East and the Asia Pacific; together these account for 83.7% of the world’s total. In recent

years, natural gas production has been on the rise in Africa, the Middle East and the Asia

Pacific. From 2009 to 2019, the average annual growth rates of natural gas production in

the Middle East, the Asia Pacific, and North America were, respectively, 5.7%, 4.0%, and

3.3%. At present, the United States, the Middle East, and Russia are the world’s largest

producers of natural gas. In 2019, their respective outputs accounted for 23.1%, 17.4%,

and 17% of the global total, and their combined output exceeded half of the global total.

In recent years, China has also entered a stage of rapid development in the production

of natural gas. In 2019, China’s output of natural gas reached 177.6 billion cubic meters,

2.1 times that of 2009 and accounting for about 4.5% of the world’s total, ranking fifth

in the world.

Consumption growth has slowed in North America and the Asia Paciﬁc, but growth

in Europe has rebounded.^AAs shown in Figure 2-18, from 2018 to 2019, the growth

rates of natural gas consumption in North America and the Asia Pacific dropped from 9.1%

to 3.1% and 8% to 4.7%. Their combined consumption accounted for 49% of the global

total. Meanwhile, Europe’s growth rate of consumption increased from -2.1% in 2018 to

1.1%, thanks to a substantial increase in LNG (liquefied natural gas) imports.

12000

10000

8000

6000

4000

2000

0

6

5

4

3

2

1

0

-1

-2

-3

-4

4.7

3.1

2.3

1.1

0.9

-1.5

-2.7

2015

2016

2017

2018

2019

Year-on-year increase in 2019 (%)

Figure 2-18 Natural Gas Consumption by World Region

Growth of the global trade in natural gas has slowed down. In 2019, the global volume

of trade in natural gas was 984.4 billion cubic meters, showing a year-on-year increase of

4.9% and a rebound from 2018. In contrast, the global volume of trade in pipeline natural

gas was 499.4 billion cubic meters, a decrease from 2018. Trade volume in LNG (liquefied

natural gas) grew rapidly, accounting for 49.3% of the total trade volume compared to

42.8% in 2016. As shown in Figure 2-19 below, the increase in LNG imports was mainly

seen in Europe and Asia, while the increase in exports is largely attributable to the United

States and Russia.

Source: Liu Chaoquan, Jiang Xuefeng, Overview of the Domestic and Foreign Oil and Gas Industry

Development in 2018 and Outlook for 2019.

A

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Development status of networks

B

As of 2017, there were approximately 1.24 million kilometers of natural gas pipelines

in operation worldwide, accounting for 64.8% of all oil and gas pipelines^A. Most of the

world’s natural gas pipelines are found in North America, Europe, Russia/Central Asia and

the Asia Pacific, these respectively accounting for 37.7%, 21.4%, 16.5%, and 13.2% of the

combined total. In terms of country, the United States, Russia and China have the longest

natural gas pipelines in total.

North America’s natural gas pipeline network. In 2019, North America’s natural gas

production came to 1.13 trillion cubic meters and consumption came to 1.06 trillion cubic

meters. An immense network of gas pipelines has been built among Canada, the United

States and Mexico. As of 2017, these lines totaled 469,500 kilometers in total length. They

connect major gas producing areas in North America (such as western Canada, Texas,

Louisiana, Oklahoma, and offshore facilities in the Gulf of Mexico) with natural gas users

in the United States, Canada, and Mexico.

Europe’s natural gas pipeline network. In 2019, Europe’s natural gas production came

to 2359 trillion cubic meters while consumption totaled 5541 trillion cubic meters.^BEurope

has the highest density of gas pipelines in the world today. As of 2017, its natural gas

pipelines totaled 266,600 kilometers in length. The criss-crossing of pipelines constitutes

a cluster of networks from east (the Eurasian border) to west (the Atlantic) and from south

(Sicily, the Strait of Gibraltar) to north (Norway’s North Sea). Today, natural gas can be

transported from and to any corner of Europe for consumption.

Russia/Central Asia’s natural gas pipeline network. In 2019, Russia and Central Asia’s

natural gas production reached 8465 trillion cubic meters and consumption came to 5737

trillion cubic meters. The region largely inherited the unified gas supply system of the

Soviet Union. Now it is the largest natural gas transmission pipeline network in the world.

As of 2017, the total length of the natural gas pipelines in Russia/Central Asia reached

205,700 kilometers.

The North Africa-Europe Intercontinental gas pipeline network. The gas transmission

system between North Africa and Europe consists of two major projects: from Algeria

to Italy, and from Algeria to Spain. The Algeria-Italy gas pipeline moves through Tunisia

and across the Mediterranean Sea to Sicily; it is 2500 kilometers long and 1220 meters

in diameter with eight compressor stations. The Algeria-Spain gas pipeline passes

through the Strait of Gibraltar to Seville. Its diameter is 1220 mm; its total length comes

to 1434 kilometers. From Seville, pipelines extend to Portugal, France and Germany.

Upon connection with Italy and Spain’s networks, these two major systems link Africa and

Europe for the world’s first intercontinental gas transmission pipeline network.

Source: Zhu Quezhi, Li Qiuyang, et al., Development Status and Trend of Global Oil and Gas Pipelines

A

B

in 2017.

Source: BP Statistical Review of World Energy 2019.

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Asia-Pacific Gas Pipeline Networks. In 2019, natural gas production in the Asia-

Pacific region came to 6,721 trillion cubic meters and consumption to 8,699 trillion

cubic meters. As of 2017, the total length of natural gas pipelines in the region reached

164,200 kilometers. The construction of China’s long-distance natural gas pipelines is

making steady progress; now 67,000 kilometers in total length, a network of natural gas

transmission pipelines running through China and connecting overseas is quickly taking

shape. Moving ahead, focus will be on the construction of main pipeline networks and

regional connection lines such as the third, fourth and fifth lines of West-East natural gas

transmission, the China-Russia East Line, the four lines of the Jingbian-Beijing Pipeline,

and the Erdos-Anping-Cangzhou Pipeline. Before long, a complete and proper natural

gas pipeline network system will be in place nationwide.

Construction and operation

3

Crude and refined oil pipelines are highly dependent on oil fields, refineries oil depots,

and so on. While the model of construction is fixed and simple to that certain extent, the

natural gas pipeline network is quite complex, featuring diverse modes of construction

and development. Moreover, the operation and management of natural gas networks are

distinct to their home countries. The United States, Russia, and EU countries enjoy highly

developed natural gas pipeline networks, ranking among the highest in terms of the scale

and complexity of natural gas pipeline transmission infrastructure. These countries adopt

several typical modes of construction and development.

Market-led development. In the United States, pipeline transport and sales businesses

are completely separate. Pipelines are exclusively operated by the gas company under

the supervision of federal and state government. As for transport, its licensed institutions

consist of independent pipeline service companies and the pipeline transport subsidiaries

of integrated energy companies. The US government prevents monopolization by

stipulating open market access to pipeline transportation services and proportional

allocations when transportation capacities are limited. Beyond protecting the interests

of pipeline network users and consumers, it is also necessary to ensure that pipeline

operators can obtain reasonable returns for the long-term stability of natural gas

transmission and distribution services.

Government-led development. In Russia, the natural gas pipeline network is managed

by the government with a high level of intervention. Russian Natural Gas Transportation

Co., Ltd., a subsidiary of Gazprom, which is a state-owned monopoly covering natural

gas pipeline networks’ upstream, midstream and downstream businesses. The Russian

government believes that the establishment of a unified gas pipeline network system is

the basis for the natural gas industry’s development, and an important guarantee for the

rational deployment of energy and ever-improving reliability and safety of the gas supply.

It is a choice in line with Russia’s national conditions.

Mixed modes of operation. Germany’s privatized model. Germany’s long-distance

pipeline network consists of multiple privately-owned pipelines, each monopolized by

a single company. The government, then, encourages investment through authorized

operations and preferential fiscal and taxation policies, protects consumer interests

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Current Status and Development Trends of ETI Networks

with price controls, and promotes an overall orderly market development. Britain,

Italy and France’s state monopoly models. These three countries make large-scale

investments in infrastructure, and the development of their natural gas industries rely on

state monopolies. Once the natural gas industry had matured in the UK, state-owned

companies were privatized, the market liberalized, and third-party suppliers introduced.

Italy and France, however, continued to use the national monopoly model for the operation

of their natural gas pipeline networks. They only embraced liberalization after the

establishment of a unified natural gas market in the European Union. The Netherlands’

co-ownership model. In the Netherlands, the natural gas pipeline transmission business

is operated and managed by the joint companies of state-owned and private enterprises.

Column 2-2 Major Natural Gas Pipeline Projects Under Construction

The China-Russia and China-Russia East natural gas pipelines. Separate

pipelines being built respectively in China and Russia are to be connected near the

national border for a total length of about 6500 kilometers, a designed capacity of

38 billion cubic meters per year, and a gas supply cycle of 30 years. The Russian

section is called the “Power of Siberia” pipeline, with a length of 3200 kilometers;

it was near completion by the end of 2018. The Chinese section is 3371 kilometers

long; it consists of a northern section (Heihe-Changling), middle section (Changling-

Yongqing) and southern section (Yongqing-Shanghai). The northern section was

put into operation in October 2019, and the entire pipeline is to be connected by

the end of 2020.

Line D of the China-Central Asia Natural Gas Pipeline. The China-Central Asia

Natural Gas Pipeline has three sections (A, B, and C) already completed and put

into service, totaling 12,000 kilometers in length. It constitutes one of the world’s

largest operational oil and gas pipeline systems, with a current capacity of 55

billion cubic meters per year. Line D of China-Central Asia Natural Gas Pipeline

begins in Turkmenistan, passes through Uzbekistan, Tajikistan and Kyrgyzstan, and

enters Xinjiang in China. It is connected to China’s fifth line for West-East natural

gas transmission, with a total length of 1000 kilometers and a designed capacity of

30 billion cubic meters per year. The construction of the Tajikistan section of Line

D began in September 2014, while the Kyrgyzstan section started construction in

2019 and will finish in 2020.

TurkStream Natural Gas Pipeline. This natural gas hub system that extends from

Russia to Turkey via the Black Sea and is expected to reach the Turkey-Greece

border and southern Europe after bypassing Ukraine for gas supply. Natural gas

should be suppliable to Bulgaria and Serbia via the TurkStream Pipeline starting in

2020, to Hungary in 2021, and to Slovakia in the latter half of 2022. The TurkStream

Pipeline has a designed gas transmission capacity of 63 billion cubic meters per

year. Four seabed branch lines are planned with a total length of 910 kilometers—

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two-thirds of which overlaps with the South Stream Pipeline. Seabed construction

began in June 2017 and was completed in November 2018, while the onshore

section in Turkey was completed in 2019. At present there is no clear plan set for

the completion of the onshore section in Greece.

Nord Stream 2 Natural Gas Pipeline. As shown in Figure 2-20, the Nord Stream

2 extends from Russia directly to Germany along the bottom of the Baltic Sea,

bypassing Ukraine, Belarus, Poland and the Baltic countries. Its designed capacity

is 27.5 billion cubic meters per year. This project is a part of the cooperation

between Russia’s Gazprom and five European companies. Gazprom is the

exclusive shareholder of “Nord Stream 2” Co., Ltd, responsible for the project and

for shouldering half of its 9.5 billion euro cost.

Figure 2-20 Schematic Diagram of North Stream No. 2 Natural Gas Pipeline

Challenges

4

Low pipeline utilization. Natural gas pipelines are currently the main solution to regional

conflicts over oil and gas production and consumption. However, with changes in regional

oil and gas supply and demand, as well as the addition of more pipelines, some of the

completed pipelines have not reached their designed capacity. Load rates are low, and

reserved transportation capacities far lower than their rated levels. Moreover, a portion of

pipeline load can only be gradually realized over a long period. For example, according

to plan, the China-Russia East Pipeline is expected to transport 4.6 billion cubic meters

in 2020. Per the agreement between China and Russia, the full load of 38 billion cubic

meters will only be achieved by 2025.

High development and transportation costs. Despite the world’s abundant reserves of

natural gas, there are multiple obstacles to tapping this natural gas supply. For upstream

production, regulatory problems often hinder the development of low-cost natural gas

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Current Status and Development Trends of ETI Networks

reserves. In some regions, governments acquire natural gas by controlling the market and

means of competition. In the mid-stream, the cost of natural gas transmission and supply

is still high. For example, over 60% of LNG transport costs go towards transmission,

liquefaction and regasification.

Unspeciﬁc carbon emissions policies. When climate and air quality policies are clear

and consistent, the shift to natural gas as fuel has helped reduce emissions. However,

most markets’ policies for climate change mitigation or emissions reductions are

insufficient. Therefore, coal consumption still accounts for 44% of emissions from the

global energy sector. Sufficient market value must be put behind reducing the emission

of carbon dioxide, particulate matter and other pollutants to maximize natural gas’

contributions to greenhouse gas emissions reduction in the short term. As for the long

term, consistent policies are equally critical to the development of technologies that

reduce the intensity of gas emissions (including biomethane, hydrogen, and CCUS).

Development trends

5

Natural gas is an important transitional energy source. Natural gas is a low-carbon

fossil fuel with abundant natural reserves. In the global energy structure’s transition to

clean energies, natural gas provides a comparatively climate- and environment-friendly

alternative to coal and oil. According to predictions from BP, natural gas consumption will

reach 5.4 trillion cubic meters by 2040—representing an increase of 40.3% over 2018

(when consumption was 3.85 trillion cubic meters). Natural gas currently accounts for

26% of primary energy consumption, close to the proportion of oil (27%), which continues

to decrease. Natural gas and renewable energy have become the only two energy types

demonstrating constant growth in consumption. It will be difficult to replace fossil fuels

with renewable energy sources within the next 20 years due to constraints of resource,

environment, and cost. For the present moment and near future, natural gas is an

important interim energy source in the low-carbon transition.

Increased scale and interconnection of natural gas pipelines. Connecting pipeline

networks is an important approach to improving the reliability of gas supply, expanding

the natural gas market, and strengthening the flexibility of dispatch. Certain large-scale

gas pipeline networks—from regional to national and international to intercontinental—

have already taken shape. Europe, the world region with the largest consumption of

natural gas, has representative networks. Due to Europe’s resource constraints, most

natural gas consumed needs to be imported. In order to maximally meet the needs of

neighboring countries and improve pipelines’ utilization efficiency, Europe has developed

a construction plan featuring the interconnection of backbone lines, connection of

branches, and highly networked regional pipelines. The scale of global pipeline

networking is expected to increase continuously in order to form a complete global

pipeline network meet the needs of offshore natural gas and unconventional natural gas

transmission. The construction of a natural gas pipeline network will facilitate resource

mobilization and global economic development.

Hybrid hydrogen transmission is an important trend for the future development of

natural gas networks. According to the IEA (International Energy Agency), as of early

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2019, 37 demonstration projects across a number of countries were researching the

addition of hydrogen to natural gas networks. This research focuses on the feasibility

of adding hydrogen to natural gas distribution networks for domestic and commercial

heating, testing the impact of varied proportions of hydrogen on key equipment, materials,

terminal equipment and electrical transmission appliances, and verifying the technology

and monitoring of underground storage for hydrogen-supplemented natural gas. Russia

and Germany have included plans for hydrogen mixing in the Nord Stream 2 natural gas

pipeline project soon to be completed. The CEO of energy giant Uniper—the German

operator of North Stream 2—and the Secretary General of the European Union of the

Natural Gas Industry predict that the hydrogen mixing ratio can reach 80%. However,

because the energy density of hydrogen is lower than that of natural gas, and hydrogen is

more corrosive to pipeline equipment, efficient and safe means of transport for the mixed

hydrogen will be an important topic for the future development of natural gas networks.

2.1.5 Electricity

Development history

1

Early development. People have certainly known about lightning since ancient times, but

many ages passed before electricity was actually put to use. As shown in Figure 2-21, around

600 BC, the ancient Greek philosopher Thales recorded how rubbed amber could attract

feathers. In 1746, Pieter van Musschenbroek, a professor at Leiden University, invented the

Leyden jar, which could store static electricity. In 1748, Benjamin Franklin who had been born

in the United States invented the lightning rod, and in June 1752, he successfully collected

static electricity from thunderclouds via the string of a kite. Alessandro Volta, a professor

at Italy’s University of Pavia, used copper and zinc as electrodes in dilute sulfuric acid to

create the voltaic battery. “Volt,” the unit of voltage, was subsequently named after him. This

innovation ushered in a new era of development in power.

The 35 km Niagara Falls Buffalo

Transmission Line Plant is completed,

establishing the dominance of AC

power

Edison builds the world’s first

commercial power plant

in New York

Paris builds world’s first thermal

power plant

1875

1880

1882

1886

1895

Nikola Tesla invents the

alternating current generator

Westinghouse built the first AC

transmission system

Sweden builds a 620 km, 380 kV

ultra-high voltage transmission line

with 450 MW transmission power

The US builds the first steam

turbine generator with a

capacity of 200 MW

China builds a 640 km, 1000 kV

UHVAC transmission line

2009

1956

1952

1934

1929

The Soviet Union’s 1000 km, 400 kV The United States’ Grand Coulee

Kuibyshev-Moscow transmission

line is put into service and raised to

500 kV in 1959

Dam is put into operation, a

hydropower station with a unit

capacity of 108 MW

Figure 2-21 Development of the Power Industry

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Current Status and Development Trends of ETI Networks

Urban power grids. In 1875, the world’s first thermal power plant was built in Paris,

France. In 1882, Thomas Edison built the world’s first power plant for commercial use in

New York (with an installed capacity of 660 kilowatts and 1.6 kilometers of 110 volt DC

cables for power transmission). Electricity has since become a public commodity. In 1880,

Nikola Tesla invented the alternating current generator. Voltage at the power plant side

was increased and transmitted to distant cities via powerline, then lowered at the user end

to reduce power transmission loss and ensure safety. From 1885 to 1886, Westinghouse

built the first AC transmission system. In 1895, it constructed the 35-kilometer transmission

line from Niagara Falls Power Plant (equipped with three 3,675-kilowatt hydroelectric units)

to Buffalo, New York. This line, which could be used for both lighting and electrical drive,

confirmed the dominant position of AC power transmission.

Domestic interconnection. Domestic power grid construction was promoted from the late

19th to the mid-20th century. In 1916, the first 132kV line was built in the United States; in

1929, the US manufactured the first steam turbine generator with a capacity of 200,000

kilowatts. In 1932, the Soviet Union put its Dnieper Hydroelectric Station into operation

with a unit capacity of 62,000 kilowatts. Soon after in 1934, the US’s Grand Coulee Dam

hydroelectric power facility went into operation, with a unit capacity of 108,000 kilowatts.

After decades of development in the electricity industry, a power grid took shape that

relied on AC power generation, transmission and distribution technology. Its initial unit

capacity was low—no more than 200MW—as was the transmission voltage—220 kV at

most. The operating technology was still in its infancy. Grid failures and outages were

frequent occurrences.

Transnational interconnection. The scale of the power level of grids continued to

expand from mid-century into the late 20th century, forming a large-scale interconnected

power grid. Generating units reached a unit capacity of 300-1000 MW, and an ultra-high

voltage AC/DC transmission system (at 330 kV and above) was built. Grid connection

in Europe and North America began to develop rapidly in the 1950s. In the 1950s and

1960s, low-cost, high-efficiency, large-capacity generating units entered use, requiring

large-capacity power grids for their operation.

Column 2-3 The Development of UHV Grids

In response to the expansion of the power grid, the voltage class of power grids

had to advance in step. UHV power transmission has been researched since

the 1960s. China has been particularly active in the research and engineering of

UHVAC and UHVDC transmission technology as a means to ensure the large-scale,

optimized allocation of energy resources into the 21st century. At present, there

are twelve 1000 kV UHVAC transmission projects that have been built and put into

operation in China: Southeast Shanxi-Nanyang-Jingmen, Huainan-North Zhejiang-

Shanghai, North Zhejiang-Fuzhou, Xilin Gol League-Shandong, Huainan-Nanjing-

Shanghai, West Inner Mongolia-Tianjin South, Yuheng-Weifang, Xilin Gol League-

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Shengli, Suzhou-Nantong GIL, Beijing West-Shijiazhuang, Zhangbei-Xiong'an, and

West Inner Mongolia-Jinzhong; there are also thirteen 800 kV UHVDC transmission

projects: Xiangjiaba-Shanghai, Jinping-Southern Jiangsu, Hami South-Zhengzhou,

Xiluodu-West Zhejiang, East Ningbo-Zhejiang, Jiuquan-Hunan, North Shanxi-

Jiangsu, Xilin Gol League-Taizhou, Shanghaimiao-Shandong, Jarud-Qingzhou,

Yunnan-Guangdong, Nuozhadu-Guangdong, and Northwest Yunnan-Guangdong,

as well as the East Junggar-Anhui 1100 kV UHVDC transmission project. UHV

technology has been applied in other countries as well, such as Brazil and India, for

the long-distance transmission of clean energy.

Current development status

2

Global power demand

A

Global power demand and the proportion of clean energy in power generation

continue to increase. From 2009 to 2019, total global power generation increased from

20,300 TWh to 27,000 TWh, an increase of nearly a third and an average annual growth

rate of nearly 2.7%.^AIn recent years, clean energy’s proportion of installed capacity

in total power generation has increased rapidly. The proportion of renewable energy

increased from less than 1% in 1987 to more than 10% from in 2019—an average annual

growth rate of over 0.5%. Changes from 1987 to 2019 in the proportion of various primary

energies for power generation are shown in Figure 2-22.

50

40

30

Oil

20

Coal

Natural gas

Hydropower

10

Nuclear energy

Renewable energy

0

Other

1987

1991

1995

1999

2003

Year

2007

2011

2015

2019

Figure 2-22 Use of Various Primary Energies in Power Generation Worldwide, 1987—2019

Source: BP Statistical Review of World Energy 2020.

A

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The proportion of electricity in ﬁnal energy consumption continues to increase. As

shown in Figure 2-23, from 2000 to 2016, global final energy consumption increased from

10.1 Gtce to 13.6 Gtce, with an average annual growth rate of about 1.9%. The proportion

of electricity in final energy consumption, meanwhile, increased from 15% to 19%, and

electricity demand has grown at an annual rate of 3.2%, two-thirds faster than the overall

growth of final energy consumption.

100

90

80

70

60

50

40

30

20

10

0

Coal

Oil

Natural gas

Electricity

Thermal energy/

other

2000

2005

2010

2016

Year

Figure 2-23 Global Final Energy Consumption

Electricity trade in energy trade is in a relative low proportion and has mainly

concentrated in Europe. Compared to that of fossil fuels, the current volume of cross-

border trade in electricity is relatively small—equivalent to about 80 Mtce. In other words,

its volume is only 2% that of the cross-border trade in fossil fuels.^AElectricity is most

traded among Europe’s OECD countries. From 1974 to 2018, this region’s electricity

imports increased from 89 to 491 TWh (as shown in Figure 2-24); the proportion of

electricity in the total local power supply increased from 2.0% to 4.5%, with an average

annual growth rate of 4.1%. Electricity is also traded between Russia, Kyrgyzstan,

Turkmenistan, Ukraine and other countries of the former Soviet Union, as well as between

Bosnia, Herzegovina, Bulgaria, Croatia, Romania and Serbia in Southeast Europe. Over

the past decade, China has invested heavily in electricity infrastructure. In 2017, net

exports from China reached 13 TWh, more than six times the 1994 figure.^B

Source: Liu Zhenya, Global Energy Interconnection.

Source: IEA, Electicity Information 2019: Overview.

A

B

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500

400

300

200

100

0

1974

1980

1985

1990

1995

2000

2005

2010

2015 2019

-100

-200

-300

-400

-500

Imports

Exports

Net trade

volume

Figure 2-24 Electricity Trade among European OECD Countries, 1974—2019^A

Development status of power grids

B

Development of power grids is closely related to national conditions such as the

national or regional scales of the economy, socio-economic development history,

development stage, energy distribution, energy infrastructure and power supply

structure. Currently, the total length of 110 kV and above transmission lines in

the world exceeds 5 million km, which already constitute a number of regional

interconnected power grid networks. In North America, the United States and Canada

are strongly committed to north-south cross-border interconnection to coordinate

Canada’s bountiful and inexpensive hydropower and the United States’ thermal

power. Europe, meanwhile, boasts a large number of countries with close, cooperative

economic ties and a high degree complementarity in power supply structure and load.

Power is frequently exchanged across European borders. International interconnection

of grids has been advanced. In contrast to Europe’s many countries, Russia occupies

a large territory; its main energy resources are distributed in a centralized yet uneven

manner. Russia has embarked on its own road for the development of large-scale

synchronous grids. Grid interconnection has been realized in other regions including

southern Africa, the Persian Gulf, and South America. Countries around the world are

speeding up the process and expanding the scale of grid interconnection.

Asia. Power grids in Asia incorporate multiple regionally interconnected grids such as

those in China and the Persian Gulf, as well as national power grids like those of Japan,

South Korea, India, and Southeast Asian countries. As of yet there is no unified power

grid interconnecting the continent. In 2016, the largest load in Asia was 1.91 TW and the

largest installed capacity 3.14 TW. In China, the highest AC class is 1000 kV, while in

South Korea and India it is 765 kV; most other countries have 500 kV, 400 kV or 220 kV.

Europe. Europe’s power grids have the highest level of interconnection; they consist of

five synchronous power grids respectively located in continental Europe, Northern Europe,

the Baltic Sea, the United Kingdom, and Ireland, as well as independent power grids such

Source: IEA, Electicity Information Overview.

A

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Current Status and Development Trends of ETI Networks

as those of Iceland and Cyprus. The area covered by Europe’s interconnected grids. The

operators of the aforementioned national and regional transmission grids constitute the

European Network of Transmission System Operators. As of 2017, the European Network

of Transmission System Operators had a presence in 36 countries, with an installed

capacity of 1.14 TW, a generating capacity of 3,597.1 TWh, approximately 478,000

kilometers of cross-border transmission lines, 424.1 TWh of cross-border traded electricity,

and over 500 million users.^A

North America. A solid mainframe has been established for AC power grids of 500

kV (400 kV in Mexico), with five AC synchronous grids currently in operation across

the major regions of North America respectively, eastern North America, western

North America, Texas, Quebec in Canada, and Mexico. The eastern and western

power grids both pass through and cover the eastern and western parts of the United

States and Canada (excluding Quebec). The highest voltage class of western North

America’s power grids is 500 kV, and the same value has been applied in most regions

of eastern North America as well. Only in some areas of the United States, such as

along the southern coast of the Great Lakes, were a number of 765 kV demonstration

projects built in the 1970s to meet major industrial areas’ needs for power supply. In

2017, the installed capacity of the eastern North American power grid exceeded 800

GW, making it one of the world’s largest synchronous grids. There is an independent

345 kV main grid built in Texas. It interconnects asynchronously with the eastern and

western power grids at 1.25 GW. In Canada, Quebec’s 735 kV main grid was built to

enable the large-scale north-to-south transmission of hydropower for consumption.

Finally, in Mexico, a 400 kV main grid was built around the capital and in the central

and southern regions.

Central and South America. Strong 500 kV AC main grids have been built in a number of

countries including Brazil, Argentina, Venezuela, Colombia and Uruguay (Venezuela: 400

kV). Relying on transmission projects connecting large hydropower stations, the highest

voltage class in Brazil reaches 750 kV AC and 800 kV DC, while that in Venezuela

reaches 765 kV AC. In Peru and Chile, 500 kV AC main grids have taken shape, while

other countries’ main grids are mostly 230 kV AC or below. AC or DC back-to-back

interconnections of various voltage classes (750 kV, 500 kV and 220 kV) have been

achieved through the Itaipu Hydropower Station and other large cross-border hydropower

stations between Brazil in the east and Paraguay, Argentina and Uruguay in the south. In

the west part of the continent, AC interconnections of 230 kV or 115 kV have been realized

between Colombia, Ecuador and Venezuela, with a small exchange capacity. Meanwhile

in Central America, a 230 kV AC interconnected network has been established between

six countries from Guatemala to Panama.

Africa. Africa’s power grids cover more than 50 countries and regions. They are

unfortunately characterized by low coverage, low transmission capacities, high rates of

power loss, and low reliability in the power supply. The Republic of South Africa enjoys

Africa’s best power grid infrastructure, with voltage classes as high as 765 kV AC and

Source: ENTSO-E, 2017 Annual Report.

A

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533 kV DC. North African countries have a number of 500/400 kV AC main grids.

Except for a few in northern Africa and in the Republic of South Africa, most countries

have a maximum voltage class no higher than 330 kV. Some countries altogether lack

high-voltage transmission grids or domestic interconnection. In terms of cross-border

grid interconnection, the degree remains low beyond northern and southern Africa, with

a low exchange capacity and excessive voltage classes for the existing channels of

interconnection, mainly applying AC. Africa’s intercontinental connection to Europe and

Asia has basically been achieved, however. North Africa is connected to Europe and Asia via

the double-circuit 400 kV Morocco-Spain line and the single-circuit 400 kV Egypt-Jordan line.

Oceania. No nationwide transmission network has been formed in Oceania outside of

Australia and New Zealand. In Australia, a 330/275 kV AC synchronous power grid has been

built around the main power bases and load centers of the east and west (excluding the

Northern Territory). A 500 kV power grid has also been built in New South Wales and Victoria

to transmit power to Melbourne and the capital, Sydney. In terms of cross-regional connection,

New South Wales and Victoria have achieved 330 kV AC synchronous interconnection, and

Victoria and South Australia have achieved 275 kV AC synchronous interconnection relying

on hydropower transmission. Queensland and New South Wales have realized 330 kV

synchronous interconnection relying on coal and gas power transmission. Meanwhile, relying

on Tasmanian hydropower, the 400 kV DC Loy Yang interconnection project transmitting

power from Georgetown to Victoria has been built in Tasmania across Bass Strait.

Challenges

3

Power shortages restrict economic development. Electricity is the basic energy

source for modern industrial development. For every percentage-point growth of GDP in

developing countries, there is 1.2-2.3 percentage points more demand for power. Power

shortages severely restrict economic growth in these regions. As of 2017, there were

840 million people without electricity in the world, and a complete supply of electricity

had yet to be achieved for 96 countries, most of which are located in sub-Saharan Africa

and Central and South Asia. In 1995, only 20% of the sub-Saharan African population

had access to electricity; in 2017, that figure had increased to about 40%, still leaving

approximately 600 million people to live without electricity. A lack of energy has adversely

affected Africa’s economic development. Nigeria, with the largest economy in Africa, has

a power access rate of only 54%. Nigerian technology companies face 30 or more power

outages every month, and more than half of people regard the lack of electricity as a

“major” or “serious” restriction on business.

Table 2-4 Electricity access rate in different countries (proportion of total population: %)^A

Number

Country Name

Burundi

2016

9.6

2017

9.3

2018

11.0

11.8

1

2

Chad

10.4

10.9

Source: World Bank.

A

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Current Status and Development Trends of ETI Networks

continued

Number

3

Country Name

Burkina Faso

Niger

2016

16.9

17.5

11.0

17.4

22.9

19.8

20.3

21.9

23.3

27.7

27.1

29.4

31.6

32.8

35.3

39.9

39.0

26.7

40.7

33.5

41.5

42.9

40.4

35.3

43.6

47.0

41.2

47.4

2017

17.5

18.2

12.7

18.2

24.1

24.2

23.4

25.1

26.0

29.3

29.8

34.1

33.4

32.7

40.3

40.5

34.5

31.8

42.0

35.4

42.9

44.3

43.8

33.7

46.0

48.3

43.1

48.0

2018

14.4

17.6

18.0

19.0

25.9

26.1

28.2

28.7

31.1

32.4

34.7

35.3

35.6

39.8

41.0

41.5

42.7

43.3

44.0

44.5

45.0

45.3

47.0

48.5

49.6

50.9

51.3

4

5

Malawi

6

Congo, Dem. Rep.

Madagascar

Liberia

7

8

9

Sierra Leone

South Sudan

Guinea-Bissau

Mozambique

Central African Republic

Rwanda

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

Somalia

Tanzania

Zambia

Zimbabwe

Benin

Uganda

Angola

Guinea

Mauritania

Ethiopia

Haiti

Lesotho

Korea, Dem. People’s Rep.

Eritrea

Mali

Togo

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Overall development of grid interconnection in global is lagging behind. As of

2017, the total length of grid lines came to 75 million kilometers worldwide. Of that,

less than 10,000 kilometers were cross-border lines. The intercontinental grid sees an

overall low level of interconnection, yet unable to meet the future needs of large-scale

renewable energy development/utilization and long-distance allocation.^AIn 2014, global

(transnational) electricity delivered only amounted to 1,400 TWh. Trade in electricity

lags behind that in oil and natural gas, and development is unbalanced across world

regions. Electricity delivered in Europe, North America, and Central and South America is

respectively 905.4 TWh, 152 TWh and 113.6 TWh, accounting for 85% of the world’s total.^B

New energy development and new power consumption businesses have brought

new challenges. Power generation by clean energies such as wind and solar is subject

to random and intermittent factors, which poses huge challenges to their large-scale

development and utilization in terms of power grid control and coordination. Fortunately,

the safe and stable operation of the power grid can be achieved through automation,

coordinated control, and energy storage. Advancing these technologies will enable the

large-scale grid connection of clean energy and accurate prediction and control on their

power-generating side. Meanwhile, the development of new power-reliant businesses

such as electric vehicles and smart home appliances only puts higher demands on the

quality of power supply and service. More than ever, power supply companies are tasked

with providing safer, more reliable, economical, high-quality, and open power supply

plans, continuously expanding the content and scope of power services, providing more

flexible and diversified services for two-way interactions between users and power grid,

and giving users themselves more choices and autonomy.

Development trends

4

The level of clean electricity production continues to improve. With technological

advancements and the application of new materials, the development of clean energies

(wind, solar, and ocean) is increasingly efficient. Clean energies’ technical economy and

market competitiveness are increasing, and structural adjustments toward clean energy

and electricity are accelerating. Clean energy has become a common choice among major

countries around the world. IEA predicts that by 2024, the total installed capacity of renewable

energy power generation will increase by over 60% to 4000 GW—twice the current capacity—

and that annually deployed capacity will grow to 280 GW, 60% higher than the current

capacity. The new round of growth is mainly driven by photovoltaic (PV) power generation,

with particularly rapid expansion in the European Union, high demand in Indian market, and

the explosive growth of installed capacity in Vietnam. The accelerated growth of onshore

wind power in the United States, the European Union and China also supports its rebound.

Resource allocation optimization continues to improve. Given the long distances between

areas rich in resources such as water, wind, and solar energy, and areas with high demand

Source: Transnational and Transcontinental Grid Interconnection Technology and Prospects by Global

Energy Interconnection Development and Cooperation Organization.

A

Source: Global Energy Analysis and Outlook by State Grid Corporation of China.

B

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for these resources, centralized large-scale development and long-distance transmission are

the critical trends in the future development of energy bases. This poses higher requirements

for energy transmission and allocation capacities. In recent years, Europe has intensified the

development of offshore wind power, and has planned to build large-scale solar and wind

power generation bases in North Africa and the Middle East to transmit electricity to Europe

via high-voltage cable. According to the research conducted by the US Department of Energy,

most of the country’s high-quality onshore wind energy resources are found on Great Plains

of the Midwest, though electricity demands are most urgent along the eastern and western

coasts. If future targets for wind power development are to be met, then large-capacity, long-

distance power transmission is required between wind energy source areas and load zones.

Power system safety and reliability continues to improve. Large generating units, large

power stations and large power grids coexist in codependence. Generating units and power

stations must be connected to the power grid for safe and reliable operation and to give full

play to their benefits. In Brazil for example, as the power grid in the south was connected

to that in the southeast, shortages in power supply have been reduced and other great

benefits have been realized as well. Meanwhile in China, now that five-province (or region)

interconnection has been achieved in the south, western China’s transmission system can

immediately provide emergency support if a large unit trips or other failures occur in the

receiving-end power grid of Guangdong Province. As the voltage class and strength of the

power grid structure increase, the number of yearly accidents related to power grid stability

in China dropped from 19 in the 1970s to just two in 1997; since 1997, no grid blackout

accidents have occurred. The scale of global grid interconnection is only expected to increase

in the future, further improving the safety and reliability of the power system.

Power grids continue to get smarter and friendlier. Combined with advanced

communication, information and control technologies, already automated power grids will

become increasingly digitalized and intelligent. The governments of various countries are

adding momentum to the development of smart grids. The United States has established

a legal framework for smart grids as the core of its energy strategy; the European Union

has developed a smart grid development strategy framework; Japan has implemented

smart grid demonstration projects in Kyushu and Okinawa; South Korea has erected a

smart grid demonstration project on Jeju Island. China, meanwhile, has supported smart

grids as a strategic emerging industry, conducted a large number of pilot projects, and

achieved fruitful results in large-scale power transmission technology, smart energy

meters, large-capacity energy storage batteries, and new energy power generation and

grid-connected control. In the future, relying on advanced technology for measurement,

modern information and communications, big data, and the Internet of Things, a “nervous

system” covering power source, grid, load and storage will be established with high-

speed, real-time perception capacities. Large-scale supercomputing ability will enable

the “digital twin” of the physical power system will be born. AI technology for control and

operating systems will be upgraded and incorporated into the “nerve center” of the next-

generation power system. Coordination and symbiosis will be achieved among various

renewable energy sources along with the integration of power and information flows.

The grid’s ever-increasing intelligence and friendliness will stimulate additional industrial

upgrades and economic development around the world, improve the sustainability of the

energy supply, and successfully meet the diversified demands of energy users.

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ETI Integration

2.1.6 Global Energy Interconnection

Challenges and trends of global energy development

1

Major challenges

A

Fossil fuels have long fueled the development of industrial civilization, and in the course

of doing so, have posed challenges to human survival and development such as resource

scarcity, environmental pollution, climate change, poverty, and health hazard. The mode

of energy production and consumption based on fossil fuels needs to be changed.

Scarcity of fossil fuels. Unreasonable modes of resource production and consumption have

led to the accelerated depletion of fossil fuel resources all over the world. The cumulative

total output of fossil fuels over the past 50 years is equivalent to nearly 550 Gtce; this has

laid a foundation for humans’ economic and social development. Fossil fuel is non-renewable;

its large-scale development and utilization will inevitably lead to a shortage of resources.

At current levels of mining intensity, the earth’s coal, oil and natural gas will be respectively

depleted in 132, 50 and 50 years. In the foreseeable future, resource shortage will constitute

a major bottleneck for the sustainable development of energy. Global energy resources

and energy consumption are inversely distributed; easily exploitable fossil fuel is being

rapidly consumed by a minority of the world’s countries. At present, 97% of coal resources

are collectively found in Eurasia, the Asia Pacific and North America; more than 80% of oil

resources are found in the Middle East, North America, and Central and South America;

more than 70% of natural gas resources are found in Europe, Eurasia, and the Middle East,

as shown in Table 2-5. The shortage of fossil fuel has severely restricted improvements both

in economy and well-being. Competition over energy has led to frequent conflicts in some

regions and inflicted long-term human suffering.

Table 2-5 Reserves and Distribution of Coal, Oil and Natural Gas across the World

Coal

Oil

Natural gas

Remaining

proved and

recoverable

reserves

Remaining

Reserve- proved and

production recoverable

Reserve- proved and

production recoverable

Reserve-

production

ratio

Prop-

ortion

(%)

Prop-

ortion

(%)

Prop-

ortion

(%)

Region

ratio

reserves

ratio

reserves

(100 million

tons)

(years) (100 million

tons)

(years) (trillion cubic

meters)

(years)

North America

2580

140

24.5

1.3

342

158

354

511

13.7

18.8

29

14

8

7.1

4.2

13

46

Central and

South America

136

Europe and

Eurasia

3235

144

30.7

1.4

>100

53

215

9.2

23

67

33.9

76

The Middle

East

1132

166

48.3

7.2

72

42

76

14

38.4

7.3

110

61

Africa

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Current Status and Development Trends of ETI Networks

continued

Coal

Oil

Natural gas

Remaining

proved and

recoverable

reserves

Remaining

Reserve- proved and

production recoverable

Reserve- proved and

production recoverable

Reserve-

production

ratio

Prop-

ortion

(%)

Prop-

ortion

(%)

Prop-

ortion

(%)

Region

ratio

reserves

ratio

reserves

(100 million

tons)

(years) (100 million

tons)

(years) (trillion cubic

meters)

(years)

The Asia

Pacific

4449

42.2

100

79

63

2.8

17

50

18

9.2

29

50

Total

10548

132

2441

100

197

100

Climate change is worsening. The burning of fossil fuels contributes the vast majority of the

world’s greenhouse gas emissions. The carbon dioxide produced in this process contributes

56.6% of all anthropogenic greenhouse gas emissions. Humans’ intensive use of fossil fuels has

caused the concentration of carbon dioxide in the atmosphere to rise over the past 160 years

from about 280 ppm to about 400 ppm. As the average global temperature is now 1.1°C higher

than before the Industrial Revolution (as shown in Figure 2-25), and the five years from 2015 to

2019 were the hottest ever on record, we have clearly shifted from global warming to “global

heating”. Sea levels is rising. As the concentration of carbon dioxide in the atmosphere continues

to rise, ocean acidification accelerates, thermal content increases, and sea levels rise. Since the

20th century, the global sea level has risen by 0.19 meters. In 2019, it reached its highest level

since records were first kept. Cryosphere is shrinking. Loss of the Greenland ice sheet has

accelerated sharply in the past 20 years. In July alone, 179 billion tons of sea ice disappeared.

Permafrost in the Arctic permafrost is thawing 70 years earlier than predicted, and Antarctic

ice is melting at a rate three times faster than a decade ago. The snow line of the Qinghai-Tibet

Plateau—the world’s “Third Pole”—is continuously moving up in altitude, and the area of glaciers

is decreasing at an accelerating rate, currently 1314 km²/decade. Biodiversity is under threat.

Climate change leads to reductions in forested areas, the desertification of grasslands, and

the shrinking of mangroves and coral reefs in coastal and marine ecosystems. According to

statistics, there are currently more than 31,000 species facing extinction worldwide. A quarter of

mammals, nearly half of all plants, and one-eighth of the bird species are on the verge of extinction.

HadCRUT

NOAAGlobalTemp

GISTEMP

ERA5

1.2

1.0

0.8

0.6

0.4

0.2

0

JRA-55

-0.2

1850

1875

1900

1925

1950

1975

2000

2025

Year

Figure 2-25 Global Average Temperature variation (1850—2019)

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Ecological environment is under threat. A large amount of pollutants are produced

from the burning of fossil fuels, including sulfur oxides, nitrogen oxides, inhalable

particulate matter, and ozone, all exceeding the carrying capacity of the environment.

Resulting problems, like acid rain for example, and seriously interfere with production

and life. As for air pollution, cities, as energy consumption centers, are where air

pollution is most concentrated, as shown in Figure 2-26. According to WHO estimates,

nine out of ten people live in areas where the air pollution exceeds the standard,

and about 7 million people die from air pollution every year, accounting for one-

ninth of global mortality. Problems caused by air pollution including acid rain, smog

and eutrophication have mounted huge challenges to social development and food

security. As for freshwater and soil pollution, over 80% of the world’s industrial

wastewater is discharged directly without treatment. Most of the world’s rivers are

experiencing deteriorations in water quality. Approximately 485,000 people die

every year from drinking contaminated water. Just seven spoonfuls of metallic lead

can contaminate one hectare of land or 200,000 cubic meters of water, and it takes

about 300 years to regenerate one centimeter’s thickness of soil. The world currently

produces more than 2 billion tons of waste every year, and 85% of the municipal

waste is disposed via landfills, resulting in severe soil pollution. As for marine

pollution, oil and other chemical pollutants have changed the ocean’s pH value,

salinity and transparency and seriously harmed marine ecologies. From 1970 to 2016,

approximately 5.73 million tons of oil was spilled by oil tankers; from 1970 to 2000, the

nitrogen and phosphorus content of the world’s offshore areas increased by 10%-80%

as a result of human emissions. Eutrophication and oxygen depletion in oceans has

led to large-scale die-offs of marine life, with the Bay of Bengal, East China Sea, South

China Sea, Tokyo Bay, and New York Bay as some of the heavily polluted areas.

Figure 2-26 Annual average concentration distribution of PM_2.5in 2016

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Current Status and Development Trends of ETI Networks

Energy poverty is especially serious. Currently, about 840 million people in the world do not

have access to electricity. This population is widely distributed across more than 100 countries

and regions. About 3 billion people still use firewood, coal, charcoal and other heavily polluting

energy sources for cooking and heat. There is a high correlation between poverty and the lack

of access to electricity. The majority of the world’s impoverished population—over 80%—are

found in sub-Saharan Africa and South Asia. These two regions also have high concentrations

of people without electricity. Poverty only leads to a further dearth of investment in the region,

and as a result, these areas lack basic energy and power infrastructure. Meanwhile, no

electricity lowers labor productivity, restricts industrialization, and further exacerbates poverty.

Development Trends

B

Energy production will be cleaner. Throughout the world’s energy history, all major energy

shifts have been from high-carbon to low-carbon—coal replaced fuel wood; oil replaced coal;

then natural gas underwent rapid development. Gradually the energy transition is moving in a

cleaner direction. In fact, the world is rich in clean energy resources. Theoretically exploitable

hydro, wind, and solar power are equivalent to 38 times the remaining proved and recoverable

reserves of fossil fuels around the world. The intensity of radiation on the Sahara Desert is

over 2200 kWh/m², the solar energy absorbed by a one-square-meter area equivalent to

two barrels of oil per year. Just 7.7% of the Sahara Desert’s solar energy (the equivalent

of an 830x830 kilometer square) could satisfy the future global demand for electricity. In

the coming energy transition, zero carbon emissions in clean energy development and

utilization—such as by hydro, wind, or solar power—will inevitably be the priority. The installed

capacities of developable clean energy technology are shown in Figure 2-27 Figure 2-29^A.

~

Figure 2-27 Technologically developable installed capacity of global large hydropower bases

and forecast of installed capacity in 2050

Source: GEIDCO.

A

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Figure 2-28 Technologically developable installed capacity of global large wind power bases

and forecast of installed capacity in 2050

Figure 2-29 Forecast of installed capacity of global large-scale solar energy bases in 2050

Energy consumption will be electrified gradually. Electricity is a clean and economical

secondary energy source. Any kind of primary energy can be converted into electricity, and

almost all energy consumption can use electricity. For every kilowatt-hour of electricity used,

17.3 times more economic value is generated than with coal, or 3.2 times more than with oil.

082

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Current Status and Development Trends of ETI Networks

An increasingly higher percentage of electricity is being used in final energy consumption,

from 8.8% in 1971 to 19% in 2017; electricity consumption has thus surpassed coal, heat and

natural gas one after the other. Studies show that for every one-percentage-point increase in the

proportion of electricity, energy intensity drops by 3.7%. Based on current consumption levels,

that reduction is equivalent to 720 Mtce, clearly demonstrating electrification’s potential to raise

energy efficiency. Many countries and regions are now aware of the importance of increasing

levels of electrification. For example, in the EU Energy Roadmap 2050, the EU is poised to

reduce total energy demand and increase power demand by 50%-80% by 2050 (relative to 2010

levels). Similarly, China’s Energy Production and Consumption Revolution Strategy (2016-2030)

proposes to substantially improve levels of urban electrification at the consumption end. Moving

ahead, the electrification level of end-use energy worldwide is expected to continue to increase.

Energy allocation will be globalized. In today’s world of economic globalization, no country is

an island that can seclude itself or tackle the energy crisis on its own. At present, about 20% of

coal, 75% of oil and 32% of natural gas are allocated across national and continental borders,

and regional interconnected power grids have taken shape in North America, Europe and

other regions, transmitting hundreds of gigawatt-hours of electricity every day. The evolution

of energy allocation—from point-to-point supply to transnational, trans-regional and even

global deployment—is an inevitable result of economic globalization and an objective trend

to meet the requirements of energy security and economy. As clean energies develop, the

power system will be the main vehicle of global energy allocation; the power trade will be the

main form of global energy trade; a globally interconnected and efficient power network will

necessarily emerge to meet the demands of large-scale, efficient utilization of clean energy.

Concept and connotation of Global Energy Interconnection

2

Basic connotation

A

GEI is a modern energy system steering the world towards clean energy production,

widespread energy allocation, and the electrification of energy consumption. It is a basic

platform for the large-scale development, transmission and utilization of clean energy

resources, a key support for energy transitions and upgrades, emissions reduction,

and improvements in efficiency. Essentially, the GEI concept can be understood as

“Smart Grid + UHV Grid + Clean Energy” (see Figure 2-30), where the smart grid is

the foundation, the UHV grid is the key, and clean energy is the priority. GEI will promote

clean replacements of fossil fuels in energy generation and consumption, increase

levels of electrification across all of society, and revert fossil fuels to their basic and more

economically valuable roles as raw industrial materials.

Smart grid. GEI employs advanced energy technologies—such as intelligent control, new

energy storage, DC grid, and high-efficiency power consumption—as well as advanced

information and communication technologies—such as cloud computing, big data, and the

IoT—to promote the integration and consumption of clean energy in centralized or distributed

manners, meet the grid integration needs of various types of intelligent power equipment and

interactive services, realize intelligent interaction and efficient coordination among power source,

grid, load, and storage, and ensure the safe and economical operation of the power system.

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ETI Integration

Foundation

Smart grid

Key

Priority

UHV Grid

Clean energy

+

Figure 2-30 Basic Elements of GEI

UHV Grid. GEI will build large power transmission channels using the 1000 kV AC and

800 kV and 1100 kV DC systems to connect areas rich in clean energy resources with

metropolis load centers. For one, this will take full advantage of highly interconnected

grid’s energy storage and adjustment functions to tackle imbalances in supply and

demand resulting from the volatility, intermittency or seasonal fluctuations of renewable

energies like wind and solar power. In addition, it will also make full use of interconnected

grids’ resource allocation function to resolve discrepancies arising from the inverse

distribution of global clean energy endowments and major load centers. UHV (ultra-high-

voltage) technology boasts such prominent advantages as long transmission distances,

large capacities, high efficiency, low line loss, little use of land, and high levels of safety

(the technical parameters of UHV are given in Figure 2-31). UHV grid can thus support the

safe and stable operation of the global power system.

AC transmission

DC transmission

15 (GW)

1100 kV

800 kV

500 kV

1000 kV

500 kV

Approx. 5 (GW)

Transmission

power

8-10 (GW)

3 (GW)

Approx. 1 (GW)

Approx. 6000 (km)

Approx. 3000 (km)

Approx. 1000 (km)

1100 kV

800 kV

500 kV

1000 kV

500 kV

Approx. 1500 (km)

Approx. 500 (km)

Transmission

distance

16% (thousand kilometers)

2.6% (thousand kilometers)

1100 kV

800 kV

500 kV

1000 kV

500 kV

Approx. 0.3% (100 km)

Approx. 1% (100 km)

Transmission

loss

7% (thousand kilometers)

Approx. 7 (m/GW)

Approx. 8.5 (m/GW)

1100 kV

800 kV

500 kV

1000 kV

500 kV

18-28 (m/GW)

Approx. 55 (m/GW)

Transmission line

corridor efficiency

Approx. 13 (m/GW)

1030 [yuan/(km·MW)]

1680 [yuan/(km·MW)]

1100 kV

800 kV

500 kV

1000 kV

500 kV

1750 [yuan/(km·MW)]

2500 [yuan/(km·MW)]

Unit cost

2580 [yuan/(km·MW)]

Figure 2-31 UHV Grid Technical Parameters

084

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Current Status and Development Trends of ETI Networks

Clean energy. The development and utilization of clean energies (hydro-, wind, solar,

ocean, biomass, etc.) require a number of measures for on-site electric conversion

in resource-rich areas and global allocation via backbone power grid for flexible

localized distribution by smart grid. Discrepancies in resource, season, time zone and

electricity pricing all become driving forces for efficiency, performance and quality in

clean development. Clean, safe, affordable and efficient energy will be accessible to

all, contributing to a new structure of harmonious relations among humans, nature and

environment, developing in a green, low-carbon and sustainable way.

Development path

B

GEI development essentially refers to the cross-regional and cross-temporal complementarity

and allocation of clean energy via wide-coverage, large-scale interconnected power networks.

GEI forms a global energy transition pattern of “two replacements, one increase, one

restoration, and one conversion” (see Figure 2-32) to address major global challenges

such as resource scarcity, environmental pollution, health issues and poverty, while brining

fundamental changes to global politics, economy, society and environment.

Development Concept

Development Goal

Green, innovative,

open, shared

Establish GEI to meet global power

demand with clean and green alternatives

Development Path

Composition

Smart Grid + UHV Grid + Clean Energy

Figure 2-32 Concept and Signiﬁcance of GEI Development

Clean Energy Replacement. Clean energy replacement refers to replacing fossil fuels

with clean energy alternatives such as solar, wind, and hydro-power for generation, and

for supply, the formation of an overall clean-dominant energy structure. Effectively tapping

into clean energy can greatly reduce the greenhouse gas and pollutant emissions caused

by the burning of fossil fuels, thereby greatly benefitting environment and health. GEI

can take full advantage of clean energy even while significantly reducing the costs of

economic development. Thus the development of an industrial system for clean energy

can make a range of sustainable development goals into reality.

Electricity Replacement. This refers to the replacement of coal, oil, natural gas and

firewood with electricity. Specifically, the electricity in question is generated from clean

085

ETI Integration

energy at the consumption side, thus reducing the consumption of fossil fuels and

achieving green, low-carbon development.

One increase. The “increase” is in energy efficiency, for improved energy conservation

and reduced energy intensity. Because electricity is an efficient and clean secondary

energy source, the most effective way to improve energy efficiency is to vigorously

promote electrification. A highly electrified energy system will furthermore support our

increasingly information-saturated society and intelligent industries.

One restoration. The “restoration” is of fossil fuels to their basic roles as industrial raw

materials, in which capacity they can contribute much greater socio-economic value. The

return of fossil fuels to fossil chemicals complements the development of clean energy.

According to the laws of economic value, scientific methods of intensively using and

recycling fossil chemicals can form an ecologically harmonious circular economy. No longer

combusting fossil fuels will significantly reduce greenhouse gas and pollutant emissions,

resulting in great benefits to environment and health. It will also maximally conserve resources

that would otherwise face the challenges of material and resource exhaustion.

One conversion. This “conversion” is of carbon dioxide and water into such fuel and raw materials

as hydrogen, methane, and methanol through electricity. Conversion can resolve resource

dilemmas and satisfy the demands of sustainable development. Energy has multiple attributes,

and electricity can play various roles in the synthesis of organic substances and production of

raw materials—thanks to, for example, the development of electrochemical technologies that

produce hydrogen and ammonia from electricity. This functionality of electricity will only further

promote the replacement of fossil fuels with clean power consumption, lift constraints on the

basic resources required for human society, and open up a broad space for economic growth.

Column 2-4 GEI and Hydrogen Energy

In recent years, the role and potential of hydrogen energy for the energy transition have

arrested significant attention. The production of hydrogen by clean electricity constitutes

an important force driving energy decarbonization. A global consensus has therefore

been reached on the importance of hydrogen to the future energy system. GEI, as a

clean, electrified, interconnected, jointly constructed and widely shared modern energy

system, effectively provides efficient means of producing and utilizing hydrogen energy.

In the production link, GEI can accelerate the production of hydrogen by supplying

renewable energy, reduce the cost of production, and accelerate the development

of “green hydrogen” technology. In GEI, hydrogen energy serves as an emergency

backup power source, taking full advantage of fuel cell technology characterized

by small size, no pollution, a long service life, and low maintenance cost. Kept as

backup power supplies at substations, fuel cells are especially reliable in high-

altitude and extreme cold conditions, on islands, and in other harsh climates or

unique geographies. Cells can even achieve customized power supply, making them

an ideal and environmentally friendly alternative to traditional lead-acid batteries.

086

2

Current Status and Development Trends of ETI Networks

Wind turbine

generator system

Power grid network

Electrolytic cell

Hydrogen

Combined heat and

power generation

Storage

Distribution plant

Fuel gas station

Hydrogen fuel

Figure 2-33 Hydrogen Production from Electricity

In the consumption link, GEI will promote the wide application of hydrogen energy

in ammonia production, iron and steel making and chemical manufacturing, while

promoting the comprehensive decarbonization of related industries as well. GEI will

also promote user-end peak-load shifting and electrification. Under the hydrogen by

water electrolysis + hydrogen storage + hydrogen fuel cell mode of power generation,

hydrogen can be produced and stored under load conditions, then supply heat and

power during peak demand, bringing obvious benefits. GEI will integrate hydrogen

energy into the end-use energy system, giving full play to its advantages like flexible

storage and high degrees of safety and control while facilitating the replacement of

traditional fossil fuels. Hydrogen and electricity will cooperate and complement one

another as the principal categories for final energy consumption.

Thermal power

generation

Renewable

energy

Wind

power

&MFDUSJDꢀDBS

Storage

equipment

Solar power

Power grid network

Fossil fuel

Biomass power

Industrial use

City, household

Hydrogen—

Electricity

5SBOTGPSNBUJPO

City,

Sewage

treatment

household

1PXFSꢀHFOFSBUJPO

EFWJDF

Water

electrolysis

Hydrogen network

Hydrogen

storage tank

Long-term, high-

volume storage

'VFMꢀDFMMꢀWFIJDMF

Energy flow

City,

household

Oil refinery,

chemical plant

Electricity

Hydrogen energy

Fossil fuel

Chemical

plant

Motor fuel

Figure 2-34 How the Power Grid Promotes Efﬁcient Use of Hydrogen Energy

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ETI Integration

The inevitability of clean development

C

The urgent need for clean energy on a large scale. Wind and PV power are intermittent

and fluctuating. Only when they are integrated into a large power grid can their development

potential be realized. Furthermore, clean energy resources are unevenly distributed across

the world, as shown in Figure 2-35. For example, 85% of all clean energy resources in

Asia, Europe and Africa are found in the energy belt running from North Africa, through

Central Asia, and to the Russian Far East at an angle of about 45° to the equator.

Meanwhile, the need for electricity is mainly located in other regions such as East Asia,

South Asia, Europe, and southern Africa. The resources and their demand centers are

hundreds to thousands of kilometers apart; therefore, power generation at-the-site, long-

distance power transmission, and large-scale deployment are undeniable necessities.

Figure 2-35 Distribution of global clean energy resources and electricity load center

Breakthroughs in key UHV technologies. UHV lines feature a long distance and large

capacity of transmission. UHV DC transmission at 1100 kV UHVDC can span over 5000

kilometers. This puts world’s major clean energy bases and load centers within range

of another, making clean, instantaneously balanced electricity accessible and optimally

allocated for worldwide use. The 25 UHV projects that have been built in China so far

(11 AC and 14 DC) form the world’s largest UHVAC/UHVDC hybrid power grid, which

operates safely and efficiently. Chinese UHV technology has been successfully applied

in Brazil’s double-circuit 800 kV UHV DC project, which has become a major energy

channel for the development and transmission of hydropower on the Amazon River.

Economic benefits of network interconnection. Various categories of and various

regions’ clean energy resources are complementary when considered across time and

space. Through cross-border and transcontinental grid interconnection, seasonal and

time differences can be exploited for complementary clean power generation and power

load on all continents, for transcontinental peak-load adjustments, and for allocation

and consumption at the global scale. The economy of the network inherently results

in increasing marginal gains. As its scale expands and number of connected units

increases, the network will bring more benefits with limited increases in cost.

088

2

Current Status and Development Trends of ETI Networks

Oil and gas pipeline network interconnection as an important reference. A product of

the last energy transition, the world’s oil and gas pipeline network did tremendous work to

support production and human life in its respective era. Now, driven by the imminent third

energy transition, the energy industry will usher in new opportunities for the development

of global power interconnection. The development of the oil and gas pipeline network

provides an important reference for the development of the power grid today. In terms

of policy, existing policies concerning the interconnection of pipeline networks can be

drawn upon in the active promotion of government-level interconnection cooperation

agreements, recruitment of sovereign states’ participation, and enhancement of projects

to resist political and economic risk. In terms of institutions, international organizations

should assist in coordination and policy-making to establish power interconnection and

reinforce support. A global energy convention with the effect of international law should be

established with all due haste, along with international agencies for dedicated academic

research, standards and certifications, and normalized regional operation/maintenance

organizations with global coverage. In terms of technology, just as the development

of fiber-optic and other technologies of oil and gas pipeline construction promoted the

leapfrog transformation from short-range oil, gas and communication interconnection to

a global network; UHV transmission technology has matured and is soon expected to

make breakthroughs in UHVDC large-capacity submarine cable technology, significantly

reducing the cost of cross-sea interconnection while increasing grids’ scale and efficiency.

In terms of investment and financing, resource supply and consumption needs can

be considered as a whole, with oil and gas pipelines’ “take or pay” model serving as

a reference. This will ensure stable benefits from network infrastructure and improve

financing capacity for power interconnection projects.

Development roadmap and comprehensive beneﬁts

3

GEI, a large-scale systematic project, involves many different countries and fields.

In general, development can be divided into three stages: domestic interconnection,

intercontinental interconnection, and global interconnection. Taking shape by 2050, GEI

will bring comprehensive value and benefits to humankind.

In terms of energy supply, by 2035, the global installed capacity of clean energy will

reach 11.9 TW, accounting for 73% of the total; among this figure, solar, wind, and hydro

power will respectively account for 30%, 23%, and 14%. Other significant clean energies

include nuclear, biomass and geothermal power. By that time, global power demand will

have reached 44,100 TWh in total, with an annual growth rate of 3.66% from 2016 to 2035.

Then by 2050, the global installed capacity of clean energy will have increased to 21.8

TW, accounting for 84% of the total; among this figure, solar power will have increased to

42%, while wind and hydro power will have reached 26% and 11% respectively. Global

power demand will come to 61,600 TWh, with an annual growth rate of 2.25% from 2035

to 2050. Anticipated global power source structure and power demand development are

shown in Figures 2-36 and 2-37 respectively.

In terms of grid interconnection, by 2035, five horizontal and five vertical interconnected

channels will be installed around the world, with Asia, Europe and Africa taking the lead

in trans-continental interconnection for a 330 GW flow of power crossing both regions

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ETI Integration

and continents. By 2050, nine horizontal and nine vertical interconnected backbone GEI

channels will have been built, creating a new pattern of global development, allocation

and clean energy utilization at 660 GW capacity, as shown in Figure 2-38.

30

25

20

15

10

5

0

2016

2035

2050

Year

Thermal power

Wind power

Nuclear power

Solar power

Hydropower

Other

Figure 2-36 Global Power Source Structure

70

60

50

40

30

20

4.5

4.0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0

10

0

2000

2005

2010

2016

2035

2050

Year

Asia

Europe

Africa

North America

Growth rate

Central and South America

Oceania

Figure 2-37 Global Power Demand

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Current Status and Development Trends of ETI Networks

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ETI Integration

Promoting the energy transition

A

A guaranteed sustainable supply of electricity. In the future, demand for energy and

electricity to support global economic and social development will be met in a green way,

ridding humanity of its dependence on fossil fuels by achieving a clean and sustainable

energy supply. As shown in Figure 2-39, by 2050, clean energy will account for over 70%

of the world’s primary energy, and its generating capacity will occupy about 80% of the

global total.

Reduced energy supply costs. The large-scale development and delivery of clean

energy achieved through GEI will effectively reduce the costs of power supply. By 2050,

the average cost of electricity will have been cut by about 2.8 cents/kWh compared to

current global rates, representing a savings in electricity costs of approximately 1.8 trillion

US dollars per year. Europe and Africa will see the largest decrease in average cost per

kilowatt hour—by 3.8 cents/kWh and 3.2 cents/kWh respectively. With this means alone,

electricity costs in Africa can be lowered by about 120 billion US dollars each year,

bringing immense benefits.

300

250

200

150

100

50

0

2015

2020

2025

2030

2035

2040

2045

2050

Year

Fossil fuels

Clean energy

80

60

40

20

0

2015

2035

Year

2050

Fossil fuel-based generation

Clean energy-based generation

Figure 2-39 Supply Trend Comparison between Fossil and Clean Energies

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Current Status and Development Trends of ETI Networks

Stimulating economic growth

B

Greater economic prosperity. Total investment in GEI is expected to exceed 35

trillion US dollars. This will promote the development of emerging industries including

new energy, new materials, high-end equipment, intelligent manufacturing, and

electric vehicles. GEI investment will also promote upgrading in industrial chains,

leading to the creation of new models, types of operation, and forces for economic

development. Power infrastructure quality and specifications will be pushed ahead

with the formation of a smart, green infrastructure network for global interconnection,

joint construction and shared use. The level of investment in GEI will also push the

transformation of the global energy trade transformation into a power trade. The trade

of green energy will constitute a new global paradigm and give fresh momentum to

the world’s economic development.

Common development. Some regions like Africa lag behind much of the world in terms

of economic development but boast a wealth of clean energy resources; now these can

be turned into economic advantages to effectively drive development. With GEI, African

people will be able to seize equal development opportunities, narrow the wealth gap,

resolve imbalances in economic development, address poverty, and thereby achieve

inclusive growth in the global economy.

Advancing social progress

C

Eradicated electrical energy poverty. The current global rate of electricity access is only

85.3%, leaving 840 million people completely deprived. GEI construction will increase

coverage of the energy grid and improve the quality of energy supply. By 2035, the global

electrification rate will increase to 95%; by 2050, essentially all populations will have

access to electricity. Thus all people can look forward to a future of affordable, plentiful,

green and clean power supporting the fruits of modern civilization and definitively

resolving the issue of poverty.

Full-scale employment. GEI incorporates a plethora of fields including energy

development, power production, power grid construction, electrical equipment, alternative

electricity, intelligent technologies, new materials, information communication, and more.

Thus GEI development will create a wide range of jobs; it is estimated that by 2050, over

280 million new jobs will have been created worldwide.

Better human health. The main air pollutants affecting human health are sulfur

dioxide, nitrogen oxides and inhalable particulate matter, primarily from the production

and use of energies—and especially from the burning of fossil fuels and biomass. The

building of GEI and the large-scale development of clean energy will effectively curtail

energy-related pollution, thereby dramatically reducing rates of disease and mortality

caused by energy pollutants. By this measure alone can 8-10 million cases of disease

be prevented each year.

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ETI Integration

Improving the ecological environment

D

Reduced greenhouse gas emissions. Building GEI and instantiating efficient energy

utilization via large-scale grid interconnection can achieve the optimal allocation of clean

energy more quickly. With GEI, greenhouse gas emissions are controlled from the source

by “clean replacement”; various final sectors emissions are reduced through “electric

replacement”; and temperature rise control targets are achievable. With GEI, the global

energy sector’s carbon dioxide emissions will be reduced to approximately 23.3 billion

tons by 2035—34% less than Business-as-Usual (BAU) scenario^A. Then by 2050, the

energy sector’s carbon dioxide emissions will have fallen below 10.3 billion tons—an over

76% difference from the BAU scenario, as shown in Figure 2-40.

90

CO₂reduction compared with NDCs on 2030

80

GEI 1.5°C: 18 Gt

GEI 2°C: 7 Gt

70

60

BAU plan

Cumulative emissions

of 4.8 Gt

Temperature rise over 3°C

50

40

CO₂reduction of long-term low

30

20

10

0

carbon emission strategy on 2050

GEI 1.5°C: 45 Gt

GEI 2°C: 34 Gt

GEI 2°C plan

Cumulative emissions

of 1 trillion tonnes

Temperature rise below 2°C

GEI 1.5°C plan

Cumulative emissions

of 360 Gt

-10

Temperature rise below 1.5°C

2010 2020 2030 2040 2050 2060 2070 2080 2090 2100

Year

Figure 2-40 The roadmap of carbon emission reduction by Global Energy Interconnection

Fewer climate disasters. Climate disasters mainly refer to weather-related disasters

such as droughts, floods, windstorms, etc. occurring in natural systems. GEI, designed

to reduce greenhouse gas emissions at the source, will slow down abnormalizations and

reduce the occurrence of extreme events in global and regional climate systems. It will

particularly abate risks for small island countries and other coastal areas most vulnerable

to rising sea levels. Advanced power transmission and smart grid technologies can

improve energy and power infrastructure’s ability to stand against and prevent climate

disasters. Besides that, they vigorously promote the expansion of electrification, address

electrical energy poverty, and mitigate the economic losses and casualties inflicted by

climate disasters.

The global BAU scenario issued by the International Institute for Applied Systems Analysis (IIASA).

The scenario indicates the development paths for economy, energy, electricity and emissions for

various countries to extend the related published policies.

A

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Current Status and Development Trends of ETI Networks

Lower pollutant emissions. GEI is designed to force fossil fuels’ exit from the stage of

history, as shown in Figure 2-41. By 2035, the emission reductions under GEI scenario

come to 19.5 million tons of sulfur dioxide, 30 million tons of nitrogen oxides, and 4.5

million tons of fine particulate matters. By 2050, those figures come to 50 million, 77.5

million, and 11.5 million tons respectively per year. This scale of emissions reduction

will significantly enhance air quality, reduce incidences of pollution-related disease,

and overall improve human health. In addition, 110 billion cubic meters of water used

in power generation will be saved each year; the discharge of solid waste and the

damage to marine systems caused by the production, allocation and use of fossil fuels

will be drastically reduced. Related issues such as food shortages, desertification, forest

degradation and the loss of biodiversity can also be effectively controlled through the GEI-

driven energy transition.

140

120

100

80

60

40

20

0

SO₂

NO_x

PM_2.5

BAU scenario

GEI Scenario

Figure 2-41 GEI’s Air Pollutant Reduction Beneﬁts

2.2 Transportation Network

Transportation is an important foundation and prerequisite for the development of human

society. Historically, human means of transportation developed from canoes and sailboats

to rickshaws and horse-drawn carriages, then to automobiles, trains, and airplanes, which

fundamentally transformed production and life. We now have a multi-hub, multi-level

transportation network composed of roadway, railway, waterway and air transportation

networks based on various modern means of transportation. This system makes

essential contributions to social progress and economic prosperity. To meet the needs

of future social development and set the conditions for pursuit of a better life, global

transportation interconnection is accelerating and upgrading into a system of “integration,

complementarity, and interconnection by land, sea, river and air”. Interconnection is the

best way to fulfill the leading, and service-oriented role of transportation and promote

sustainable, high-quality economic and social development.

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ETI Integration

2.2.1 Development History

Global transportation has undergone a process of transformation from low-level to high-

level, traditional to modern, and homogenized to integrated. Today movement occurs

by livestock carts on rocky paths, ships in rivers and oceans, trains on tracks, cars on

highways, and aircraft in the sky. Different historical stages witnessed the emergence

of novel tools for transport, each exerting a profound influence over human society and

accelerating the progress of civilization. The major developments in transportation history

are shown in Figure 2-42.

Early 19th century

1830s

1930s

1950s

1970s

Comprehensive

and coordinated

development

Mainly water

transportation

Multimodal

transportation

Rise of road and

air transportation

Mainly rail

transportation

Figure 2-42 Major Developments in Transportation History

Waterway transportation. From the canoes of the Stone Age to the sailboats of

Ancient Egypt and steamships of the 18th century to our modern high-powered sea

vessels, human society has long been accompanied by waterway transportation.

In 1807, American Robert Fulton tested the first steam-powered ship, marking the

birth of modern water transportation industry. Following a subsequent period of

rapid development, waterways became the most important means of transport for

many countries. At that time, in the first half of the 19th century, most industrial and

commercial sectors developed along the banks of inland rivers. With further economic

development, European and North American countries invested in the construction of

modern waterway networks—that are still in use today—offering such advantages as

low costs and large volumes of transport.

Railway transportation. The construction of the first railway in Britain in 1825 marked

the advent of the railway era. In the first half of the 19th century, railways became the

primary means of land passenger and cargo transportation. Compared with other forms

of transportation available at that time, railways were much faster, more convenient, and

economically efficient. Large-scale railway construction became an important factor for

the UK’s industrialization and the rapid rise of the United States in the 19th century. By

the end of the 19th century, the total length of railways worldwide had reached 650,000

kilometers. The United States had built an average of 11,312 kilometers of railway per

year from 1880 to 1890—and more than 20,000 kilometers alone in 1887, a record in world

railway history.

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Column 2-5 Railways and the Rise of National Economies

In the 18th century, the UK ranked ﬁrst among European countries in railway

construction, becoming a contractor and supplier of equipment for railway

construction around the world. From 1836 to 1837, the UK saw its first railway

construction boom, with 2397 kilometers of railways open for traffic. A number of

railway construction companies also engaged in bridge construction, path cutting,

tunnel digging, road construction and other projects that sprung up around the

industry. Later, to address traffic congestion in Wales and Scotland, the second

railway boom made its appearance. The UK built 9734 kilometers of railways in

1850, and 14,512 kilometers in 1860, forming a railway network with London as the

largest hub. The railway network played an important role in the development of the

UK economy. At that time, the United Kingdom began to invest heavily in railway

construction in other countries such as Canada, Australia, Italy, Poland, France, and

the Balkan states, thereby promoting UK investments in foreign trade.

Over the last four decades of the 19th century, economic development in the

United States revolved around railways. In 1791, the Industrial Revolution kicked

off in the United States. Railways were built on a large scale to open up land in the

West and link eastern and western states both politically and economically. The first

railway from Baltimore to Ohio began construction in 1828. In 1860, the total length

of railways in the United States reached 49,002 kilometers and railways undertook

two-thirds of the country's freight transportation. Railway construction continued to

accelerate from there. The first transcontinental railway line was built in 1869; over

the next 30 years, four transcontinental railway lines were built. By 1900, the total

length of railways in the US had reached 414,400 kilometers, and in 1913 that figure

increased to 606,400 kilometers. At that time, this accounted for half of the global

total. Railways played a significant role in the United States’ growth into the world's

largest economy.

Roadway transportation. Prior to the automobile, humans mainly relied on rickshaws and

livestock carts to travel over stony and rural roads. Road transportation began to take off

after 1887, when the first automobile was produced, the automobile industry developing

rapidly after 1918. By 1937, there were 42.1 million automobiles in the world, and the

total length of automobile roads had reached 12 million kilometers. With improvements

in automobile technology and the large-scale construction of high-grade highways, the

mobility, flexibility, high speeds and convenience offered by motor travel came into play,

greatly impacting railway transportation. After the Second World War, road transportation

was solidified as the main mode of modern transportation, and humanity entered the

automobile age.

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Column 2-6 Expressways and Economic Recovery

Germany is the first country in the world to have formally built a highway, which it did

out of military and wartime economic concerns. A high-quality road network dedicated

to automobile travel can reduce the cost of driving by more than 40%—as confirmed

in the well-known “2000-km driving test”. In 1933, in light of Germany’s basic national

policy of radical armament expansion and transportation modernization at the time,

plans were made for the construction of an immense highway network totaling 7500

kilometers. The project would ease severe unemployment caused by the panic in 1929.

With Berlin at its center, roads leading to the borders were connected by additional

circular routes. A decade later (in 1942), 3895 kilometers of highway had been

completed; this would come to play an important role in post-war reconstruction.

Italy’s road network was unable to meet surging postwar demands for automobile

traffic, which adversely affected its economic recovery and development. Therefore, in

1955, Italy formulated plans and began constructing a highway network that could relax

the traffic tensions in the Milan northern industrial zone and develop tourist areas in the

south, from Rome to Naples. By 1975, 5500 kilometers of highways had been built at an

average construction speed of nearly 300 kilometers/year, which provided a great push

to Italy’s rapid economic recovery and development.

Air transportation. Air transportation and road transportation developed over the same

period. With the rapid development of aviation technology from the late 1700s to early

1900s, many aircraft were invented and developed to maturity—including hot air balloons,

airships, gliders and airplanes. The two world wars further stimulated the development of

the aircraft industry. In 1903, the Wright brothers of the United States built the first airplane

in human history, raising the curtain on human air travel. The world’s first civil aviation

craft was manufactured by McDonnell Douglas of the United States in the 1930s, after

which the civil aviation industry developed rapidly, especially after the 1950s. By 1954,

the passenger volume of aircraft had exceeded that of railways. Since then, long-distance

international passenger transportation has mainly relied on airlines.

Initial stage of multimodal transportation. Over the course of transportation development

from the 1950s to 1970s, countries around the world realized both the unique advantages

and disadvantages as well as the mutual impacts of waterway, railway, highway and air

transportation. Through planned coordination between the various modes, the multimodal

transportation system came into being. For most countries around the world, road and rail

transportation have become the most important, while ocean transportation has become the

most important in international trade and air transportation is booming across a number of

countries. Inland waterway transportation occupies a key role in Europe, throughout China’s

Yangtze River Basin, and along the United States’ Mississippi River.

The comprehensive transportation system. From the 1970s to today, developments in

computer and communication technology have ushered human society into the information

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Current Status and Development Trends of ETI Networks

age. This has effected great changes in the transportation system. Modern industrial products

have emerged that are more abundant, lighter-weight, thinner and higher-value. Transportation

has become more quality-oriented, economical, rational, fast, safe and precise. In adaptation

to economic and social development, the transportation industry is rapidly modernizing

toward informatization and integration. Relevant institutions in land, sea and air transportation

are working together to build an integrated transportation system that can detect customers’

information to meet their individualized needs in real time and provide modern, high-quality

cargo and passenger transport services.

2.2.2 Current Development Status

After a century of development, transportation technology for roads, railways, waterways,

aviation and other fields has advanced and matured for the all-around improvement of the

transportation network. All modern modes of transportation have advanced in coordination

alongside one another, resulting in a diversified and comprehensive transportation system

which plays a key supporting role in the rapid development of human society.

Highways

1

Road transportation is highly flexible, with short construction periods, low investments, and

high accessibility in terms of planning and construction. It serves an important intermediary

role within the global transportation system. However, due to its low load capacity, difficulty

accommodating large cargo, and high unit cost over long distances, roads are mainly used by

private citizens for short-distance travel. At present, the total length of high-grade highways

has reached 1.75 million kilometers, including over 310,000 kilometers of expressways

worldwide.^AThe distribution of global high-grade highways and their length in major countries

are shown in Figure 2-43 and Table 2-6, respectively. The United States’ highways and

expressways each account for about 30% of the world’s totals in terms of length. The country

has an interstate highway network surpassing 100,000 kilometers in length, connecting all

cities and towns of over 50,000 residents. Japan, South Korea and Western European countries all

have strong road network foundations, owing to their small areas. Their highway networks are well

in place and road transportation has become the main mode of inland transportation. Germany

and France’s expressways each reach 12,400 and 11,300 kilometers, respectively. Meanwhile,

countries including Spain, Italy, Japan, the United Kingdom, the Netherlands, and South Korea

each have over 2000 kilometers of expressways. China has been active in the development of

its road transportation, achieving remarkable results. The total length of China’s road network had

reached 4.85 million kilometers as of 2018, with expressway length exceeding 140,000 kilometers,

ranking it first in the world. This achievement is particularly astonishing considering the total length

of expressways in 1988 was only 147 kilometers, which demonstrates an average annual growth

rate of 26%. China’s highways now cover 97% of cities and prefecture-level administrative centers

with a population of more than 200,000.

Expressways and first-class highways are all high-grade roads. The main difference between an expressway

and a first-class highway lies in that the expressway is fully enclosed. The main difference between a first-

class highway and a second-class highway lies in that the first-class highway has a central isolation zone in

between. The main difference between a second-class highway and a third-class highway is that the second-

class highway has hard shoulders (non-motor vehicle lane). The fourth-class highway is of the lowest grade.

A

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Table 2-6 Countries Ranked by Total Length of Road (unit: kilometers)

Ranking

Country

USA

Total length of roads

6,853,024

5,903,293

4,846,500

1,751,868

1,452,200

1,215,000

1,042,300

965,446

Length of expressways

108,394

1583

Year of data

2017

2019

2018

2013

2018

2012

2013

2011

2014

2019

2016

2018

2014

2017

2013

2017

2010

2019

2017

1

2

India

3

China

142,500

11,000

2050

4

Brazil

5

Russia

Japan

6

8050

7

Canada

France

Australia

South Africa

Thailand

Spain

17,000

11,882

3132

8

9

920,217

10

11

12

13

14

15

16

17

18

19

20

750,014

1400

696,938

545

683,175

17,109

13,009

2050

Germany

Sweden

Indonesia

Italy

644,480

579,564

523,974

1851

487,700

6758

Finland

Turkey

Poland

UK

454,000

863

426,906

2289

423,997

3731

397,039

3688

As network integration deepens across all continents and road networks improve across

many countries, the transnational highway network has been continuously expanded and

improved. The interconnection of road infrastructure in Europe, the Americas, Asia, Africa

and other regions has begun to take shape and show its effectiveness.

European highways, known as European roads or international E-roads, constitute

an international road network in Europe planned and signed by 20 member states of

the Economic Commission for Europe. The main lines go from north to south and east

to west. North-south: Starting from St. Petersburg, Russia, one major highway passes

through Poland, Hungary, Romania, Bulgaria and Greece to end in Istanbul, Turkey,

with a total length of about 2000 kilometers. Another begins in Copenhagen, Denmark,

stretching to Rome in Italy by way of Germany and Austria, with a total length of 2100

kilometers. Another runs from Gdansk, Poland to Iran via the Czech Republic and Iraq,

with a total length of about 5000 kilometers. East-west: Starting from Vienna of Austria, the

main transverse highway passes through Poland, France and Valencia, Spain to end in

Portugal, totaling about 3200 kilometers.

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The Pan-American Highway runs through the entirety of the American continents—from

Alaska in the north to Tierra del Fuego in the south—for a total length of about 48,000

kilometers. The main line runs from Fairbanks, Alaska to Puerto Montt, Chile—nearly

26,000 kilometers. It interconnects all countries of the Americas except for Panama and

Colombia (the Darien Gap), between which no highway has ever been built.

A pan-Asian highway was proposed by Asian countries and UNESCAP to improve the

Asian highway system. The Intergovernmental Agreement on the Asian Highway Network

was passed at the Intergovernmental Conference on November 18, 2003. The stipulated

plan covers 32 countries with 55 routes for a total length of 140,000 kilometers. At the

60th UNESCAP conference held in Shanghai, China in April 2004, 23 countries signed

the agreement. Most road construction has already been completed for the project. The

longest section starts in Tokyo and runs west of Istanbul, Turkey to reach the Bulgarian

border via the Korean Peninsula, Mainland China and a number of Southeast Asian,

Central Asian, and South Asian countries.

The Trans-African Highway Network is an intercontinental road project currently being

built in Africa based on joint proposal by the UNECA, African Development Bank, and

African Union. It aims to assist regional integration, promote trade and alleviate poverty

in Africa through the development of road infrastructure and management of road-

based trade corridors. The network will consist of nine roads totaling 56,683 kilometers in

length, as shown in Table 2-7. Several project roads have already entered construction or

operation phases.

Table 2-7 Endpoints of the Nine Major Network Routes throughout Africa

Line 1

Line 2

Line 3

Line 4

Line 5

Line 6

Line 7

Line 8

Line 9

Dakar (capital of Senegal)-Cairo (capital of Egypt)

Algiers (Algeria)-Lagos (largest city in Nigeria)

Tripoli (capital of Libya)-Windhoek (capital of Namibia)-Capetown (South Africa)

Cairo (capital of Egypt)-Gaborone (capital of Botswana)-Capetown (South Africa)

Dakar (capital of Senegal)-Ndjamena (capital of Chad)

Ndjamena-Djibouti (capital of Djibouti)

Dakar-Lagos

Lagos-Mombasa (largest port in Kenya)

Beira (second largest port city in Mozambique)-Lobito (port city of Angola)

Railways

2

Railways have large carrying capacities and are seldom affected by weather or seasonal

conditions. They can guarantee a certain degree of regularity and continuity in operations.

Rail is the most economical and affordable means of transportation for bulk commodities

and large passenger volumes. In recent years, the rapid development of high-speed

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railway technology has brought new life to railway construction. Countries are paying more

attention to the role of railways for low-carbon economies and have implemented high-

speed railway strategies. Railway networks have thus maintained a moderate and stable

rate of growth around the world.

At present, the total length of railways worldwide has exceeded 1.28 million

kilometers, including about 52,000 kilometers of high-speed railways. The railway

distribution, density and per capita length in various countries are shown in Figure 2-44,

Figure 2-45 and Figure 2-46 respectively. In 2017, the average density of railways in the

world was 22.3 meters per square kilometer, and density per capita was 340 kilometers

per million people. According to data from the International Union of Railways, the top

countries in terms of railway length are the United States, China, Russia, India, Canada

and Germany. In terms of railway density, the top countries are the United Kingdom,

Switzerland, Belgium, Germany, Austria and Japan. The US rail network operates over

250,000 kilometers of track, making it the largest national rail network in the world.

Many countries are currently expanding the range of their high-speed railway networks

to provide passengers with higher-quality transportation services and increase railways’

operational efficiency. In Asia, Europe, and other regions, plans are being made to build

regionally interconnected high-speed railway networks.

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1000

800

600

400

200

0

Figure 2-45 Railway Density in Various Countries

2.5

2.0

1.5

1.0

0.5

0

Figure 2-46 Per Capita Railway Length by Country

Column 2-7 China Tops the World in High-Speed Rail Length

At the end of 2018, China’s high-speed rail network featuring “four vertical and four

horizontal lines” was completed and put into operation after nearly ten years of rapid

construction. This makes China the only country in the world to operate a high-speed

rail network. As of January 2020, the operational length of China’s high-speed rail had

come to 35,742 kilometers, 68% of the world's total (and far higher than the sum of all

other countries’ and regions’ high-speed rail), definitively ranking China number one. In

general, China has the most developed and fastest high-speed rail network in the world,

followed by Europe and Japan. The United States, with the longest new construction

of railroads in history, currently has only a few high-speed rail lines near New York.

Transnationally, China is located at the east of the Eurasian continent and is one of the

most important links in the Eurasian railway network. Today, China has a total of 10

railway corridors that connect to neighboring countries, including three with Russia,

three with North Korea, two with Vietnam, one with Mongolia, and one with Kazakhstan.

Direct passenger and freight transportation have been realized between China and the

five abovementioned countries. Meanwhile, container trains have opened operations

from China to Germany, the Czech Republic and other countries.

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Europe creates the first transnational railway network. European countries

including France, Spain, Belgium, the Netherlands, the United Kingdom, Germany,

Switzerland and Italy are now interconnected by high-speed rail. The history of this

network can be traced back to 1981, when the first phase of the Paris-Lyon high-

speed railway was built and opened to traffic. Since then, France’s high-speed rail

network developed rapidly and connected to those of Belgium, the Netherlands,

northern Germany, Spain, and the United Kingdom (through the English Channel

tunnel). Spain, Germany and Italy have also invested in the construction of dedicated

high-speed rail lines, but only Spain has built operating lines of a scale equivalent

to that in France. In northwestern Europe, a high-speed rail network connects Paris,

Brussels, Cologne, Amsterdam and London. This constitutes a complete international

high-speed rail network; it is also the core and priority of the European transportation

network as planned by the European Union.

The Pan-Asian Railway Network is making progress. The large-scale “Pan-Asian

Railway Network” consists of three railway lines between 4500 and 5500 kilometers

in length connecting China and Southeast Asian countries for the transport of both

passenger and cargo. The central line will pass through Laos, Thailand and Kuala Lumpur

(the capital of Malaysia) to reach Singapore. The eastern line will pass through Vietnam

and Cambodia to join the central line in Thailand. The western line, meanwhile, will pass

through more cities in southwest China and Myanmar before meeting the central line

in Thailand. Kunming and Bangkok will become the two centers of the railway network.

China is currently applying great effort to construction of the China-Myanmar Railway and

China-Laos Railway interconnection projects. These lines will constitute important new

land passages between China and Southeast Asia.

Plans are on the table for an Asia-Europe high-speed railway. The Asia-Europe

High-speed Railway is to be the main line of the Eurasian high-speed rail network.

China is negotiating with 17 countries on the construction of a high-speed rail network,

and plans to build three north-south high-speed rail lines connecting Asia and Europe

within the next ten years. Upon their completion, it should only take two days of train

travel to reach London from Beijing at a speed of over 200 miles per hour. The three

north-south lines are as follows: one extending through Russia to Germany to join the

European railway system; one connecting Southeast Asian countries such as Vietnam,

Thailand, Myanmar and Malaysia; one connecting China with the United Kingdom,

Singapore, India and Pakistan.

Aviation

3

The rapidity of air transportation cannot be exploited for short-distance transportation. It

is only suitable for long-distance passenger transportation over 500 kilometers, and the

medium- and long-distance transportation of fresh, perishable or high-value goods that

must be delivered within a short timeframe. The aviation industry is experiencing rapid

development. Recent breakthroughs have been made in airport layout, route design, and

transportation capabilities.

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Airports. In 2018, there were 27 airports in the world with a cumulative handling capacity

over 50 million. The United States, Brazil, Mexico, and Canada boasted the most airports.

In 2018, the top 25 airports of ICAO member states saw a total passenger throughput of

184,026. The top ten airports for throughput were Hartsfield-Jackson Atlanta International

Airport, Beijing Capital International Airport, Dubai International Airport, Los Angeles

International Airport, Haneda Airport in Tokyo, Chicago O’Hare International Airport,

London Heathrow Airport, Hong Kong International Airport, Shanghai Pudong International

Airport, and Charles de Gaulle Airport in Paris.

Air routes. Major international air routes currently consist of: (1) North Atlantic routes

between Western Europe and North America that connect aviation hubs such as Paris,

London, Frankfurt, New York, Chicago, and Montreal; (2) Western Europe/Middle East/

Far East routes that connect major hubs in Western Europe to those in Hong Kong,

Beijing and Tokyo; (3) North Pacific routes between the Far East and North America

for flights over the North Pacific between Beijing, Hong Kong and Tokyo to Vancouver,

San Francisco and Miami on the North American coasts. There are other important

international air routes as well—from North America to South America, Western Europe

to South America, Western Europe to Africa, Western Europe to Southeast Asia and to

Australia and New Zealand, from the Far East to Australia and New Zealand, and from

North America to Australia and New Zealand. The air routes between major cities in

the world are shown in Figure 2-47.

Capacity. Scheduled flights delivered 4.4 billion passengers worldwide in 2018, an

increase of 6.9% over 2017 and an additional 284 million passengers; among them,

1.76 billion passengers took international routes—an increase of 6.8%—and 2.56 billion

took domestic routes—an increase of 6.1%. In 2018, freight transportation volume came

to 58 million tons, an increase of 2.4% over the previous year. The growth rate was 4.7

percentage points lower than the previous year. Among the cargo, 37.8 million tons

were delivered over international routes—an increase of 1.6%—and 20.2 million tons by

domestic routes—an increase of 4.1%. Regionally, the Asia-Pacific, Europe and North

America handled the most passengers and cargo, respectively accounting for 37%, 26%

and 22% of the world’s total.

Waterway transportation

4

Waterway transportation has the benefits of low cost, large capacities, and long distances.

However, as a mode of transport greatly subject to the conditions of ports, water level,

season and climate, it experiences long interruptions in service each year. There are both

inland and ocean modes of waterway transportation. Inland river and coastal waterway

transportation are applicable to smaller vessels as an auxiliary to high-volume major

transport routes. Ocean transport is open to multiple points, wide areas and super-

long distances; combined with inland waterway transportation, it can efficiently connect

inland economies with the outside world. Thus port cities at the junction of waterway

transportation routes have economic function both for the hinterland and as international

port cities.

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In terms of inland waterway transportation, Europe, the United States and China all achieve

long transport distances. Europe has a complete inland waterway transportation system

with many inland channels; four in particular stand out: the Rhine and its tributaries, the

Danube and its tributaries, the west waterway transportation channel, and the south waterway

transportation channel. At present, most European Union countries transport 25%-30% of

their bulk cargo volume by water, and about 10%-30% is by container over inland river. In the

Netherlands, Belgium, and a few other countries, the proportion of cargo volume shipped by

waterway has surpassed 30% and continues to grow. The United States has developed a

river transport network reaching in every direction. The inland waterways of the United

States mainly consist of five major systems: the Moby River, the Columbia River, Mississippi

River systems, and the respective coastal waterways of the Gulf of Mexico and Atlantic Ocean.

Currently, the total length of the US’s inland channels is approximately 41,000 kilometers. The

Mississippi River is the main artery for north-south shipping, its trunk stream and tributaries for

shipping coming to 25,900 kilometers in length. The Mississippi connects to many canals, the

Great Lakes, and other water systems. Together, they form an immense water transportation

network. Its annual freight volume exceeds 1 billion tons, accounting for more than 60% of the

country’s total. China has a complete inland waterway transportation system. There are a

number of water systems in China, including the Yangtze River, Yellow River, Huai River, Pearl

River and Amur River. As of 2017, China’s inland waterways had a navigable length of 127,000

kilometers, which account for about 30% of the country’s total length in rivers. Its graded

waterway channels are 66,200 kilometers long, accounting for 52% of the total. The major

inland waterway channels in China are mainly distributed across the Yangtze River, Pearl

River and Huai River; these respectively account for about 50%, 13% and 14% of total inland

channels. After years of construction and development, the main line of the Yangtze River has

become the world’s busiest and most utilized for transport. The main line of the Xijiang River,

meanwhile, has become an important link between southwest China and Guangdong, Hong

Kong and Macao. The Beijing-Hangzhou Grand Canal has become China’s main north-south

artery of water transport. The Yangtze River Delta and the Pearl River Delta are now integral

components of the overall regional transportation system.

In terms of ocean transportation, global seaborne trade volume reached 10.7 billion

tons in 2017, about three times its 1980 level. In 2017, the seaborne trade volume in crude

oil, its products, and natural gas was 3.1 billion tons; bulk cargo volume was 3.2 billion

tons; other dry cargo achieved a volume of 4.4 billion tons. In terms of regional demand

structure, in 2017 the volume of goods loaded in Asia, Europe, America, Oceania, and

Africa accounted for 42%, 17%, 21%, 13%, and 7%, and goods unloaded accounted

for 61%, 20%, 13%, 1% and 5%, respectively. Compared with 2016, Asia’s loaded and

unloaded volumes increased by 2 and 1 percentage points respectively. In Europe,

unloaded goods’ volume increased by 2 percentage points; in America, loaded and

unloaded volume in goods each decreased by 1 percentage point. This convincingly

proves Asia’s position at the center of global demand in ocean transport. In terms of the

world’s maritime fleet, dry bulk, oil tanker, and container fleets are the three main forces

providing ocean transport services. In 2018, the total global capacity of maritime fleets

came to about 1.9 billion tons—with dry bulk, oil tanker, and container fleets respectively

accounting for 42%, 29% and 13%. The total capacity of general cargo ships, natural gas

ships, chemical carriers and dual-purpose ships accounted for 4%, 3%, 2% and 0.3%

respectively. The major shipping routes worldwide are shown in Figure 2-48.

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2.2.3 Global Transportation Interconnection

Challenges

1

The transportation network is an important support and powerful promoter of exchange in

economy and trade, coordinating the development of all the world’s countries. At present,

there is notable variation in different countries’ level of development in transportation networks.

The challenges restricting such development are many—whether in overall planning, balance,

coordination, emissions, pollution, or financing—and these also pose problems for the

integrated and networked development of global transportation infrastructure.

Lack of overall coordination. It is difficult to coordinate different countries’ interests.

Different states’ cross-border transportation and interconnection are greatly affected by

geopolitics and regional relations. As countries act fiercely and strategically out of their own

interests, it becomes difficult to secure infrastructure construction and operation in terms

of safety and the reasonable distribution of benefits. Lack of systematic and strategic

planning. Different national governments find it hard to work together on the interconnection

of transportation networks is due in part to a lack of mechanisms for transnational cooperation

and unification, as well as flawed global and regional mechanisms for transportation

planning. So far, no plan for the building a global transportation network has been developed.

Insufficient development in the overall transportation system. Different modes of

transportation such as railways, highways, waterways, and aviation vary widely in their modes of

management, prohibiting successful coordination between various departments, institutions,

and enterprises. Thus there is no way to reap the one-consignment, one-bill, through-ticket

advantages of a multimodal transportation. At present, multimodal transportation remains

expensive and inefficient, its development seriously hindered.

Varied levels of development. In terms of national development, developed countries

completed a process of rapid urbanization in the mid-20th century. They have already

established comprehensive transportation systems and made relevant scientific and

technological innovations—including in the construction of smart transportation. Developing

countries, on the other hand, lag far behind both in the construction of integrated transportation

systems and in smart transportation R&D; some even have yet to complete or rationalize

the structures of their road networks. In terms of modes of transportation, because

development in some regions and countries has adapted to local conditions, discrepancies

in economies and transport costs cause development in the modes of transportation to be

uncoordinated as well. For example, many developing countries have structural contradictions

in their modes of transportation—especially in freight transport. Roads are pushed beyond

capacity to serve as medium- and long-distance channels of cargo and bulk cargo transport.

Various modes of transportation lack proper coordination, lowering the efficiency and level of

service for multimodal transportation.

Uncoordinated technical standards. Significant discrepancies persist between different

regions’ standards for highway planning, design, technology, construction, procurement,

installation, and management. International roadways have such problems as conflicting

processes and standards, overcomplicated customs clearance procedures, high operating

costs, and a lack of mutual recognition in law enforcement. As for inland waterways, the

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requirements for headroom are constantly being raised. With the large-scale development of

inland waterborne vessels, some urban bridges no longer meet requirements for waterway

grade, and other related infrastructure also requires further standardization. As for multimodal

transportation, one of the most major challenges is that different countries have different rail

gauges. The Trans-Asian Railway, for example, has to connect through various countries’

existing railway facilities, but due to differences in gauge, these connections cannot be

properly made. Most Southeast Asian countries employ the narrow 1000 mm gauge, while

China, Iran, and Turkey use the standard 1435 mm gauge; Russia, meanwhile, employs the

wide 1520 gauge, and some South Asian countries use a gauge that is 1676 mm wide.

High carbon emissions. In 2016, carbon emissions from the world’s transportation sector

contributed about 14% of all global greenhouse gas emissions, and about a quarter of the

total carbon dioxide from fossil fuel combustion, showing an upward trend. Even as emissions

mitigation is promoted in various sectors around the world, carbon emissions in transportation

are only increasing and their growth rate is expected to surpass that of other industries. This

has presented huge challenges to the meeting of Paris Agreement targets. In the United

States, for example, transportation-related emissions had declined and stabilized after

peaking in 2005; but after 2012, they began increasing again year by year. In 2016, for the

first time, emissions from the transportation industry surpassed those from the power industry,

making the former into the largest source of greenhouse gas emissions.

Unaddressed environmental pollution. As countries are becoming more and more

cognizant of environmental protection, they are passing stricter regulations, which put

more pressure on the transportation sector. For one thing, road construction, railway

construction, and various associated service facilities take up large areas of land, thereby

interfering with resource protection and sustainable development. For another, various

pollutants are generated during the construction of transportation infrastructure and during

transportation itself which degrade the flow and quality of surface and groundwater—even

affecting the water reservoirs and leading to serious soil erosion, increased silt, flooding

and groundwater depletion, as well as disruptions to urban roadways’ drainage systems

and the distribution of urban groundwater. Oil spills from offshore tankers also cause

severe damage to the marine environment and its ecosystems.

High investment and financing risks. Transportation infrastructure projects require

large investments, long construction periods, and high risks on returns. For some

underdeveloped countries with small-scale economies, heavy debts, low sovereign

credit, and a government that lacks investment expertise or cannot provide reliable

guarantees, international capital and multinational companies are unwilling to invest in

their transportation infrastructure projects due to the high risks involved.

Development trends

2

In recent years, technological achievements have led to near-constant breakthroughs

in transportation networks. Today, the world is greeting a new era of sci-tech revolution

and industrial transformation. New development stresses rising concepts like innovation,

coordination, “greenness”, openness, and sharing. Following are major development

trends for the transportation network in the new era.

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High efficiency. Speed and carrying capacity are the key factors for improving

transportation efficiency. Speed is the soul of movement, and modern transportation is

focused on developing new high-speed solutions. Increases in the speed of transportation

shorten traffic times and heighten traffic capacities. Currently, expressways, high-speed

rail and supersonic aircraft exemplify the sector’s high-speed development trend. Another

major direction for transportation development is high carrying capacity. Heavy-haul

railways, heavy-load vehicles, and large-scale transport aircraft are realizing higher and

higher capacities. In countries like the US, Canada, Brazil, Australia, South Africa and

China—with vast territories, rich resources, and a high volume of bulk cargo transport—

heavy-load transportation is seeing rapid development and widely employment.

Column 2-8 China’s Haolebaoji-Ji’an Railway—the World’s Longest

Heavy-haul Railway

On September 28, 2019, the Haolebaoji-Ji’an Railway (or the “Hao-Ji Railway”;

formerly the Western Inner Mongolia-Central China Railway)—the world’s longest

single-construction heavy-haul railway—was put into operation. The Hao-Ji Railway

serves as a new north-south line in China’s rail network for energy transport.

According to standards established by the International Heavy Haul Association in

2005, in order for a train to be recognized by global counterparts as a “heavy-haul

train”, at least two of the following three conditions must be met: the traction quality

of each train shall be no less than 8000 tons, the axle load no less than 27 tons,

the length of railway sections no less than 150 kilometers, and annual billed freight

volume no less than 40 million tons.

The Hao-Ji Railway is an important freight line for technically designed to meet

the requirements of heavy haul. At 1814.5 kilometers long, it connects seven

provinces: Inner Mongolia, Shaanxi, Shanxi, Henan, Hubei, Hunan and Jiangxi. It

has a designed tonnage limit of 10,000 tons (i.e. it can handle 10,000 tons of cargo

at a time). Once it is put into use, a single locomotive can pull up to 160 carriages.

Calculated according to a 60-ton capacity for each carriage, one train is the

equivalent of 320 trucks of 30-ton capacity each.

System integration. Different modes of transportation will involve different objects,

means, effects, and economic values. Thus for a single mode to hold a dominant position

is no longer sufficient to meet today’s needs. To maximize the efficiency and fully mobilize

the benefits of different transportation networks, they must become an integrated system

of diverse elements. Rail, road, water and air transport each have unique strengths that

are best taken advantage of in combination with one another. Together they can constitute

a multimodal transportation system of immense and diversified coverage, with a complete

structural layout, efficient connection of facilities, high-speed transfers between hubs,

information sharing and interconnectivity, and various levels of service. In this way,

previously separate and isolated transportation systems can be turned into a diversified,

coordinated, and integrated transportation system.

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Column 2-9 The Value of Integrated Transportation Hubs

Optimized transportation resource allocation. An integrated passenger

transportation hub can effectively coordinate various modes of transportation

and connections between internal routes to realize “zero”-distance passenger

transfers. Fixed and mobile transportation resources are each reasonably allocated

and coordinated within the hub to promote the coordinated development of

an integrated passenger transportation network. This integration will reduce

construction funds and land occupation while enhancing energy conservation and

environmental protection.

Strengthened multi-ﬁeld cooperation. The planning and design of an integrated

transportation hub rely on the cooperation of multiple fields and coordination among

relevant municipal departments. Collaboration between the urban construction,

transportation, and architecture sectors is necessary to realize the fundamental

design of the integrated passenger transportation hub. Meanwhile, cooperation

among multiple fields—urban planning, urban design, transportation planning and

design, traffic engineering and architectural design, for example—can resolve

various complex issues within and in the vicinity of the hub.

Added commercial value. Integrated transportation hubs create huge potential for

the flow of leisure passengers. With the integration and enhanced efficiency and

complementarity of transportation facilities, commerce, culture, entertainment, and

services, passengers’ needs will be better satisfied; the duration of their stays in

the hub complex will be extended; and the transportation hub will be drawn more

intimately into the daily lives of the public.

Cleaner energy. Energy cleanliness is imperative to the healthy development of the

transportation sector; it is also key to the coordination and sustainability of transportation,

the economy, society and the environment. By improving fuel efficiency, applying alternative

energy sources such as hydrogen and fuel cells, and reducing the industry’s reliance on

traditional fossil fuels like oil, transportation-related carbon emissions can be effectively

reduced. Vision 2050, released by the World Business Council for Sustainable Development,

states a prediction that low-carbon transportation will prevail by 2050. According to the carbon

neutrality and emissions mitigation plans of the Global Air Transport Industry, by 2050, the

global aviation industry’s net carbon dioxide emissions will be 50% of what they were in 2005,

and stabilized at their 2019 levels (580 million tons of carbon).

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Column 2-10 Low-carbon Targets in Aviation

Numerous state departments and industries such as aircraft manufacturers, airlines,

airports and air traffic control have incorporated and prioritized energy conservation

and emissions mitigation in their strategic planning for both development and

deployment. Aircraft manufacturers are working to develop more efficient and

energy-saving models. Over the past 20 years, commercial aircraft fuel efficiency

has increased by an average of 2% each year worldwide. Compared with 50 years

ago, carbon dioxide emissions per kilometer per passenger have decreased by

over 80%, nitrogen oxide emissions by 90%, and noise pollution has decreased by

75%. Airbus’ A350 XWB and A320neo respectively have 25% and 15% more fuel

efficiency than traditional models. Airlines have put forth tremendous effort to improve

operational efficiency. In 2017, the daily utilization rate for transportation aircraft

worldwide was 8.7 hours; the average number of seats was 173; the passenger load

factor was 81%. In contrast, 20 years ago these values were 1 hour, 11 seats, and 12

percentage points less, respectively. Meanwhile, completed passenger turnover per

plane has risen by 50%. Air traffic control, meanwhile, is committed to constructing a

new-generation control system. Air traffic control departments in major countries and

world regions have all issued plans for modernizing air traffic control that will apply

new technologies and institute new mechanisms for flexible airspace management to

promote air-ground integration, optimize flight options, maximize airspace capacity,

continuously improve operational efficiency, cut down on delays, reduce fuel

consumption, and curb environmental pollution. In recent years, China’s civil aviation

industry has also done a lot to reduce emissions and conserve energy, publishing

the Implementation Opinions on Further Promoting the Green Development of Civil

Aviation as guidance for the green development of the industry.

Electrification. The electrification of power is an important measure by which the

transportation sector can improve energy efficiency and operating economies. Electricity

is a clean, efficient and convenient secondary energy source. With every one-percentage-

point increase in the proportion of electricity in end-use energy, energy intensity drops by

3.7%. This equates to a drastic reduction in energy consumption per unit of transportation

as well as drastic improvements in efficiency and economy. Electrification of the

transportation sector is simply inevitable, as electricity is central to the future clean energy

structure. Electric motors will replace internal combustion as transportation’s dominant

power source. Electric vehicles, electrified railways, electric ships, and even electric

aircraft will become the main modes of travel and transport.

Wide-area network. In recent years, countries have accelerated the construction of

transportation infrastructure and transnational interconnection, increasing the density of

the transportation network. Europe, having already built complete transnational networks

of highways and railways, will continue to speed up high-speed rail upgrades and the

construction of transcontinental transportation networks to improve interconnection.

According to the African Union’s Agenda 2063, the continent is to build a comprehensive

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high-speed railway network connecting the capitals of all African countries for integrated

and systematic regional transportation. In North America, rail and highway networks are

relatively established; while in Central and South America, large-scale rail and highway

networks have also taken shape. Looking ahead, network interconnection among various

regions of the Americas is only expected to be further strengthened.

Intelligent operations. The fast-paced development of new technologies—such as the

Internet, AI, big data, and cloud computing—has brought with it changes in transportation

infrastructure and equipment as well as models of organization, business, and governance.

Future trends in the transportation industry will revolve around informatization and smart

transportation. Many major world companies are currently active in the field of smart

transportation such that new modes of transportation service are constantly launched. In the

future, we can expect the means and infrastructure of transportation to be fully digitalized,

with a system powered by AI, for all-round improvements in passenger and cargo transport

experience. For example, real-time data analysis and machine vision are already seeing wide

use—in urban traffic planning, passenger flow monitoring, and driving behavior guidance.

Smart parking lots, autonomous vehicles, and off-site traffic law enforcement are being widely

popularized. Meanwhile, the supervision, management, logistics, and other businesses of

seaports are realizing dynamic data analysis and intelligent process management.

Development prospects

3

In the future, the global transportation interconnection will be based on “coordination

and integration, optimized supply, intensive and green orientations, smart innovation,

convenience and efficiency, safety and reliability.” Planning and construction for

road, rail, water and air transport infrastructure will be integrated to create a world-

spanning, multi-modal, three-dimensional system. Various modes of transportation will

realize the full potential of their advantages through integration and in consideration

of different countries’ actual conditions. A modern, networked, multi-level and multi-

centered transportation network will come into being, one that facilitates efficient

cooperation, integrated development and the interconnection of ground, underground,

water and air transportation networks. Transportation efficiency will be comprehensively

enhanced, logistics costs reduced, the environment better protected, system flexibility

strengthened, and sustainable, high-quality economic and social development given

stronger support. Transportation interconnection is the highest-level physical expression

of the global transportation infrastructure network and is an advanced form of the

integrated transportation system. Thoroughly and systematically connecting infrastructure

networks—road, rail, waterway and aviation—will ultimately erect a single, complete,

clearly structured, resource-intensive, efficiently coordinated and interconnected sea, land

and air network. Its main features will include the following.

Full coverage. Global transportation interconnection helps realize the transportation

connections among all countries by efficiently coordinating and promoting the

development of key urban transportation routes, channels between key countries in a

region, and large-scale interregional channels. Global transportation interconnection

can be divided into “three networks” according to the various modes of transportations’

functions and technical and economic features: (1) a developed express network,

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primarily consisting of high-speed railways, expressways, and civil aviation, featuring

a high quality of service quality and high operating speeds; (2) a complete network of

main arteries, primarily consisting of regular-speed railways, national highways, and

waterway channels, featuring high operational efficiency and high-quality service; (3) an

extensive basic network, primarily consisting of provincial roads, rural roads, branch rail

lines, branch waterway channels, and general aviation, featuring wide coverage, high

accessibility, and benefits for a large population.

Comprehensive integration. Global transportation interconnection includes a system of

hubs and a system of intensive and efficient line networks. It is a modern, comprehensive

and three-dimensional transportation network system formed through the effective

connection and coordinated operation of multiple modes of transport (railway, highway,

waterway, and aviation). At the macro-level, the multi-dimensionality of land, sea, and air

interconnections will be strengthened; at the mid-level, channel resources’ comprehensive

coordination will be strengthened to achieve optimal allocation across multiple modes

of transportation in the integrated transportation channel; at the micro-level, effective

connection between multiple modes of transportation and the intensive sharing of space

will be strengthened via transportation hubs.

High intelligence. Promoting the fusion of the transportation industry with new

technologies like big data, the Internet, AI, blockchain, and supercomputing will

empower a new industrial model featuring cutting-edge information technology and

advanced, ubiquitous intelligence. Road transportation will be thoroughly intelligentized

in accordance with procedures; unmanned driving will be fully popularized; and vehicle-

road collaboration technology and vehicle-to-train technology widely used. Railway

transportation will base itself on the integrated application of intelligent systems; smart

railways with unmanned driving and unmanned detection will achieve full-scale operation.

Intelligent EMUs (bullet trains) will realize the auto-perception of working status, self-

diagnosis of operational faults, and self-determined safety measures. Transportation

services will see the full-scale application of electronic tickets, full-journey facial

recognition, 5G coverage and intelligent guidance in stations. As for air transportation,

smart ticketing, intelligent security inspections, and robots for manual labor replacement

and passenger assistance will all become normalized features. Aircrafts will be self-

driving and self-repairing, optimal algorithms calculated for flights, and compatibility

achieved between rail, road, and urban transit.

Convenience and comfort. Global transportation interconnection will significantly improve

the efficiency and safety of travel, promote a rational division of labor between the various

modes of transportation, realize networking, intelligence, and high efficiency for traditional

transportation methods, and build convenient circles of passenger and high-speed cargo

flow. Impulsive last-minute trips to anywhere in the world can become a practical reality,

for which every step along the way will be convenient, comfortable, cost-effective, safe

and timely. Passengers will have a greater sense of gain and better overall experience.

In terms of logistics, a data-driven and socially coordinated supply chain platform will

provide standardized, containerized, and intelligentized products to significantly reduce

the cost of logistics for all of society while meeting demands for economy and timeliness,

thereby realizing a smooth and optimized flow of goods.

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Environmentally friendly green solutions. Global transportation interconnection will

promote optimization in the energy structure of transportation—including the large-

scale application of clean energy, energy conservation and emissions mitigation in

road transport, the central use of new energies and clean electricity in cities’ public

transit, logistics and delivery vehicles, and the overall reduction and control of carbon

dioxide and other pollutant emissions. Resource planning and development will be

strengthened, whether for land, sea, uninhabited island, shoreline or airspace resources,

and conservation and intensity will be promoted in the use of resources. The concepts

of ecological and environmental protection will find purchase throughout the planning,

construction, operation and maintenance of transportation infrastructure; arable land,

woodlands, wetlands and other lands of vital ecological function will be protected; green

traffic corridors will be built; and the transportation environment will be further restored

and protected.

Opened-up integration. Global transportation interconnection, with the major economic

belts of the Eurasian continent at the core, will interconnect railways, highways and other

infrastructure between each region’s major countries and its neighbors, creating a number

of corridors for overland cooperation. As for the seas and skies, the Maritime Silk Road of

the 21st Century and other important shipping routes will be opened and a world-class

international shipping center created to fortify global connections through ocean transportation

and civil aviation, forming a grand international channel. International shipping logistics will

be expanded, international trains launched into service, cross-border road transportation

facilitated, aviation logistics hubs developed, an international logistics supply chain built, the

international transportation governance system improved, and the smooth and integrated

development of global economy and trade all pushed forward.

With global transportation interconnection, the future will see an open transportation

cooperation system—interconnected, intelligent, efficient, and mutually beneficial,

it will enlist the joint participation and efforts of all countries. The system will involve

the building and upgrading of large-scale transportation hub complexes bringing

together high-speed railways, expressways, intercity trains, urban subways, highway

passenger transportation, ports, urban terminals and other modes of transportation.

Construction will speed ahead on the high-quality high-speed transportation network,

high-efficiency ordinary backbone network, basic wide-coverage service network, and

comprehensive smart transportation channels. Gradually, a pattern will take shape

for a more accessible, advanced, adaptable, friendly and coordinated transportation

infrastructure network of three-dimensional hub integration and interconnection.

Modes of production and societal life will undergo profound changes. Humans will be

able to share in diverse, intelligent, and efficient models of transportation service. At

the same time, the needs for green, low-carbon, comfortable, convenient, safe and

reliable transportation will be fully satisfied. The vision for “more livable cities, better

lives, and higher mobility” will become a reality.

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2.3 Information Network

Communication is a basic human need and its tools develop along with the progression

of human society. Since ancient times, people have used symbols, bells, drums, and

fireworks to convey information. Modern communication has brought us the telegraph,

telephone, and the Internet. Today’s information networks are continuously increasing the

scale of their already wide coverage, allowing various regions to share their information

resources. People are also increasingly dependent on information; in fact, information

has become the third most important resource following materials and energy. A new

dawn of scientific and technological revolutions is approaching—especially in information

technology. The integration of information technology, new energy technology and new

material technology is driving innovation and eliciting a large number of green, smart and

ubiquitous technological breakthroughs.

2.3.1 Development History

The information network combines a certain number of nodes and transmission links

to form a communication system where information is transmitted between specified

nodes. In terms of its network function, the information network can be subdivided into

the access network, exchange network, and transmission network, as shown in Figure

2-49. The access network connects the user terminal and local area network to the local-

side switch by either wired or wireless means. The exchange network is composed

of switches. Its basic function lies in routing, connection and data forwarding between

a sending user terminal and a receiving user terminal. The transmission network

provides signal transmission channels between routers and a protected channel for

data transmission.

CPN

Network where Access

user is located network

Exchange Transport

network network

Exchange

network

Access Network where

network user is located

Figure 2-49 The Access, Exchange, and Transmission Networks

As shown in Figure 2-50, the invention of the wired telegraph in the late 1830s marks the

birth of modern communication technology and the first human-built system of remote

communication. Over the next hundred-some years, new inventions emerged including

the wired telephone, satellite communication, the Internet, fiber-optic communication,

and mobile communication. All of these have brought tremendous changes to production

and life.

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1986-1G mobile communication

1991-2G mobile communication

2000-3G mobile communication

2010s-4G mobile communication

2020s-5G mobile communication

1837-Wired

telegraph

1958-Communication

satellite

Future

communication

network

Satellite

communication

network

Mobile

communication

network

Telegraph

network

Telephone

network

Internet

1969-APPANET

1970-Fiber optics

1983-TCP/IP protocol

1989-Internet

Global Information

Interconnection

1876-Wired telephone

Figure 2-50 Development of the Communication Network

The 19th-century inventions of the telegraph and telephone mark society’s entry into

the era of long-distance wired communication. In 1837, Samuel Morse created the first

telegraph for commercial use; in 1844, he sent the first telegram in human history from

Washington to Baltimore. By the 1950s, telegraphy was widely used in Europe and the United

States, the telegraph network gradually extending to cover the United States and European

continent. In 1876, Alexander Graham Bell received a patent in the United States for inventing

the telephone. Then in 1877, the world’s first long-distance telephone line (about 93 kilometers)

was installed in California. In 1915, the first trans-regional telephone line was opened

linking New York and San Francisco. In 1956, telephone cables were laid on the seabed

of the Atlantic Ocean connecting the UK and Canada, and intercontinental long-distance

communication was made possible. The year after Bell’s invention of the telephone, the first

telephone network was built. A telephone network is composed of artificial switches, subsets

and cables, as shown in Figure 2-51. As the number of telephone users increases, multiple

switches need to be deployed in different locations; then telephone networks in various places

need to be connected through hierarchical tandem to systematically connect across cities,

countries, continents and oceans.

International Communications

Gateway Exchanges

DC1

DC2

End Office DL

User

TM

Figure 2-51 Telephone Network

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Long-distance wireless communication began to mature with the invention of satellite

communications in the mid-twentieth century. Satellite communication mainly refers to

a system of radio communication stations on the earth transmitting information over long

distances via satellite relay, as shown in Figure 2-52. The world’s first artificial satellite was

launched in 1957. In 1958, the United States used the satellite “Skoll” to transmit signals

recorded on tapes. Then in October 1960, the US used satellite “Messenger 1B” for delayed

relay communications. Two years later, in July 1962, the United States, the United Kingdom

and France used satellite “Telstar 1” for the first trans-Atlantic relay communications. In

August 1962, the Soviet Union carried out communications between Vostok-3 and Vostok-4.

In November 1963, the United States and Japan used the satellite “Relay 1” for successful

transpacific relay communications. Soon after, in August 1964, Japan and the United States

used the stationary satellite “Syncom 3” to broadcast the Olympic Games. In April 1965, the

United States put the “Early Bird” satellite into geosynchronous orbit over the Atlantic Ocean.

It enabled 240 telephone lines, which could replace nearly all existing Atlantic submarine

cables and work continuously for 24 hours. Since then, satellite communication has been put

into practical use.

Master station of global

navigation

Satellite mobile

communication vehicle

Portable satellite station

Command and control

center

Figure 2-52 Satellite Communication

The Internet was rapidly developed over the mid to late 20th century, setting off an

information revolution in various ﬁelds from politics and economy to culture and society.

In 1969, Joseph C. R. Licklider of DARPA (the Defense Advanced Research Projects Agency,

under the United States Department of Defense) advanced his vision of an “Intergalactic

Computer Network”, by which anyone in the world could at any time connect with others and

access information by means of computers. With Licklider’s funding, ARPANET was created

by the US military in September 1969; this was the earliest predecessor of today’s Internet. In

the mid-1980s, the National Science Foundation (NSF) established six supercomputer centers

and “NSFNET” connecting them in the United States. The network allowed researchers to

access and share research results , as well as search for information. Then in 1989, NSFNET

was renamed “Internet” and opened to the public. The world’s first Internet was thus created;

soon it was connected across all world regions. In June 1990, the Internet replaced ARPANET

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ETI Integration

as the backbone network, and ARPANET officially retired. In 1994, the Internet in the United

States was taken over by commercial institutions, marking its transformation from a network

for scientific research into a global commercial network. It accelerated the popularity and

development of the Internet. The invention and use of the Internet have enabled the long-

distance, real-time, multimedia, and two-way transmission of information while bringing about

many entirely novel business models. Countries all over the world access the Internet, and

various commercial applications such as e-mail, search engines, online shopping, instant

messaging, and online games have been integrated into its functionality. Internet companies

have mushroomed, offering an abundance of new technologies, ideas, and concepts. The

Internet is the mother technology of the far-reaching information revolution extending into

multiple fields.

In the 1970s, fiber optics ushered humanity into the era of high-capacity long-distance

communication. With the development of computers and the emergence of the Internet, the

need for a higher capacity means of long-distance information exchange gained urgency.

Communication cable networks of that time were not efficient enough, facing restrictions in

the distance, speed, and quality of communication. The creation of fiber-optic communication

stepped in to fill that need, becoming another important revolution in communication history. In

1966, Kun “Charles” Gao (a Chinese American), and George Hockham published a paper on

the new concept of optical fiber. Then in 1970, Corning, an American company, successfully

developed an optical fiber with a loss of 20dB/km, officially kicking off the era of fiber-optic

communications. In 1980, the world’s first experimental submarine fiber-optic cable was laid

by the UK; in 1988, the world’s first transoceanic submarine fiber-optic cable system was laid

between the United States, the United Kingdom and France, with a total length of 6700 kilometers.

Compared to their terrestrial counterparts , submarine cables do not occupy land space,

effectively bypassing potential disputes over sovereignty. They have become the most important

method of long-distance and international data transmission. The history of communication

interconnection has now definitively entered the era of submarine fiber-optic cables.

Column 2-11 Advantages of Fiber-Optic Communication

① High capacity. The operating frequency of the optical fiber is eight to nine orders

of magnitude higher than that of regular cable. ② Small attenuation. The attenuation

per kilometer of optical fiber is more than an order of magnitude lower than that of

coaxial cable. ③ Small and light weight. One kilometer of optical fiber weighs about

100g, whereas one kilometer of coaxial (four-tube) cable requires approximately one

ton of copper. ④ High-performance anti-interference. Optical fiber is immune to

electric interferencefrom electric railways, lightning, etc.Therefore, it does not disturb

the operation of other electrical or communication systems. ⑤ High conﬁdentiality.

Transmitted signals can be digitally encrypted, and optical signals do not cause

electromagnetic leakage like electrical signals. ⑥ Low cost. The prices of various

metal materials used for cable continue to rise, but the materials used in optical fiber

can come from a wide range of sources and at low prices. This benefit has been key to

establishing a foundation for the rapid development of fiber-optic communications.

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Column 2-12 Three Periods of Rapid Submarine Cable Construction

The construction of submarine fiber-optic cables began in the 1980s-1990s and

experienced three periods of rapid development: From 1999 to 2002, the Internet

provided a big push for the development of the submarine cable industry, and a

large number of submarine fiber-optic cable projects were initially built and put

into operation. From 2009 to 2012, huge demand for mass communication and the

accompanying large-scale establishment of data centers promoted the second

phase of rapid development for international submarine fiber-optic cables. Finally,

since 2018, increasing demands for data center interconnection and Internet

bandwidth—along with the approaching retirement of many international submarine

cables—have spurred a new cycle of rapid development. The length of deployed

submarine fiber-optic cables from 1989 to 2017 is shown in Figure 2-53.

250000

200000

150000

100000

50000

0

1

5

1989

1991 1993 1995 1997 1999

200

2003 2005 2007 2009 2011 2013 201

2017

Year

Figure 2-53 Length of Deployed Submarine Fiber-Optic Cables^A

Mobile communication technology has developed rapidly since the 1980s; humanity

is now in the mobile era. In 1986, the first mobile communications system was created in

Chicago. Analog technology was employed to convert voice signals to electric signals for

transmission via carrier waves. In the late 1980s, with the successful development of integrated

circuits, voice coding and digital communication technologies, mobile communications

evolved into a digital mode, and the second generation of mobile communications (2G)

appeared. Despite its increase in speed over “1G”, 2G still failed to meet the requirements of

image and video transmission. In 2000, the third generation of mobile communications (3G)

came into being. 3G utilizes broadband wireless communication, with peak rates up to the

order of 10Mb/s and the ability to handle multiple media formats such as images, music, and

video streams. A decade later, in 2010, with the development of mobile data, computing, and

Source: Submarine Telecoms Forum.

A

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ETI Integration

multimedia, the fourth generation of mobile communications (4G) was born. The transmission

rate of 4G can reach 1Gbps in a static state, and 100Mbps at a high speed of movement.

4G’s ultra-high speed has accelerated the shift of applications from the computer end to the

mobile end. Social networking, games, e-commerce, and life services have all gone mobile,

while applications for food delivery, taxi calling, mobile payments, and short videos have

been rapidly popularized. With 4G now commercially available around the world, research

on the fifth generation of mobile communications technology (5G) has been initiated. 5G,

with a higher performance than 4G, supports transmission rates of 0.1 to 1Gb/s for users, a

connection density of 10⁷/km², one-millisecond end-to-end delay, and a peak rate in the tens

of Gbps. 5G not only satisfies the need for communication amongst people, but also between

people and things, or between things and things. This opens up a new intelligence-led era

featuring the interconnection of everything and intensive human-computer interactivity.

Column 2-13 Model Applications of 5G

Some model applications of 5G include: mobile broadband data access in Gbps,

smart homes, smart buildings, smart cities, three-dimensional videos, ultra-high-

definition (UHD) videos, cloud-based work, cloud-based entertainment, augmented

reality (AR), industrial Internet, autonomous vehicles, etc., as shown in Figure 2-54.

Mobile broadband

Gbps data

transmission

3D video, UHD video

Cloud-based work

and entertainment

Smart home/

buildings

AR technology

Voice

Industrial automation

Mission-critical

applications, such as

e-health

Future International

Mobile Communication

System

Smart city

Unmanned vehicles

Large-scale machine

communication

Highly reliable and low-latency

communications

Figure 2-54 5G Application Scenarios

2.3.2 Current Development Status

Fiber-optic cable construction

1

There are more than 400 submarine fiber-optic cables in operation worldwide, totaling over 1.2

million kilometers and connecting all continents except Antarctica (see Figure 2-55).

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ETI Integration

The global distribution of submarine cables is highly regionalized. After years of

construction, an information exchange hub of submarine optical cables has come into

being. It is centered around the United States, China, Japan, Singapore, and the United

Kingdom. However, some other regions like Africa, South America, and South Asia do not

have sufficient cable coverage. These regions have great demand for the improvement of

information infrastructure, presenting huge opportunities for future development.

Resources, policies and geographical advantages promote the formation of an

international ﬁber-optic cable communication hub. On the basis of their accessibility and

large information resources, the United States, the United Kingdom, Japan, Singapore, and

Hong Kong serve as the starting points or key nodes for many international submarine fiber-

optic cables. The US, with a large number of Internet companies rich in content resources and

Internet traffic, energetically promotes the extension of its submarine networks to other parts

of the world. Singapore and Hong Kong enjoy prominent advantages in terms of geography,

open policies, and developed service industries, attracting many Internet giants to build data

centers there and promoting the access of submarine cables from all directions.

Demand for submarine cable construction and replacement is huge. With the large-

scale construction of data centers and popularization of fiber-optic broadband and 5G

networks in Gbps, there will be an enormous demand for submarine cable construction

and replacement after 2020. According to data released by market research company

CRU, 2019 to 2021 will see 55 submarine fiber-optic cable systems planned or already

under construction; they will total more than 350,000 kilometers in length. International

Internet giants such as Google and Facebook have invested in more than 15 international

submarine cables to meet their own business development needs.

Fiber optics are developing rapidly in China. In terms of submarine cable, as of the end

of 2017, four international submarine cable landing stations had been established on the

mainland (Qingdao, Shanghai Nanhui, Shanghai Chongming, and Shantou) and two toward

Taiwan (Fuzhou and Xiamen). Over years of construction, nine international submarine cables

have been connected to mainland China, with a bandwidth of over 40Tbps. Other projects

are under construction or have been proposed.^AIn terms of land cable, in 2019, 4.34 million

kilometers of land cable were installed nationwide, bringing the total length to 47.5 million

kilometers. There are currently 17 international land cable border stations as well as cross-

border terrestrial fiber-optic cable systems connecting China to 12 neighboring countries, with

a total bandwidth of over 70 Tbps. The only neighboring countries China is not yet connected

to via land cable are Bhutan and Afghanistan. By collaborating with their counterparts in

Russia and other countries, Chinese enterprises have opened up major information channels

connecting Asia and Europe—specifically: China-Russia-Europe, China-Mongolia-Russia-

Europe, and China-Kazakhstan-Russia-Europe.

5G construction

2

Major countries around the world have accelerated the commercialization of 5G and

Source: White Paper on China International Optical Cable Interconnection (2018) by CAICT.

A

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Current Status and Development Trends of ETI Networks

allocated more spectrum resources for wireless broadband services. As of July 2019, 31

operators in 19 countries and regions had put 5G into commercial use, and 55 operators

in another 39 countries and regions had identified timetables for 5G’s commercialization. A

total of 73 countries and regions around the world have launched planning and licensing

work for 5G spectrum. Among them, 38 have specified timetables for spectrum auction

or allocation and 31 are in the phase of implementation. With the rapid promotion and

popularization of 5G worldwide, the number of 5G users is expected to reach 230 million

in 2021 and 2.6 billion in 2025 (see Figure 2-56).^A

3.0

2.61

2.5

2.0

1.85

1.5

1.31

1.0

0.72

0.5

0.23

0.04

0

2020

2021

2022

2023

2024

2025

Year

Figure 2-56 Forecasted 5G User Numbers Worldwide

China is realizing accelerated 5G development. The latest statistics released by the

Ministry of Industry and Information Technology show that by the end of June, 2020,

more than 400,000 5G base stations had been built in China, with a recent average of

over 15,000 newly opened facilities per week. As of the end of July, the number of 5G

terminal connections had reached 88 million. Based on the current pace of progress,

the plan to build 500,000 5G base stations within the year will be achieved by the end of

this September. It is estimated that in 2024, China’s 5G users will exceed 700 million, for

a penetration rate of approximately 45%. All sectors of industry, transportation, energy,

medical care, economy and society will be fully equipped with 5G.

The United States is working hard to step up commercial 5G use. At present, the United

States is promoting 5G development in three main aspects—accelerated deployment,

deregulation, and technology applications. In terms of accelerated deployment, US

telecom operators AT&T, T-Mobile, and Sprint have provided 5G services in 19 cities and

are striving to expand 5G network coverage. In terms of deregulation, the US Federal

Communications Commission (FCC) of the United States is intensifying the auction of

wireless frequency bands and helping solve problems such as in the deployment of small

base stations. In terms of technology applications, US telecom operators are exploring

new media, new retail, industrial manufacturing, and smart logistics applications of 5G.

The US FCC has established a $20.4 billion Rural Digital Opportunity Fund to quicken the

pace of innovation for precision agriculture, telemedicine, and smart transportation.

Source: CAICT, Research Department of CITIC Securities.

A

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ETI Integration

South Korea had, as of May 1, 2020, built 115,000 5G base stations and had plans

underway to bring 5G coverage to over 2000 facilities and buildings, such as subway

stations and department stores, within the year. The South Korean government has

issued a “5G+” strategy to encourage the application of 5G technology. It aims to provide

various smart services based on 5G infrastructure, such as unmanned driving, artificial

intelligence, smart factories and smart cities. The government also aims to promote the

application of 5G technology to new areas and industries, to transform and upgrade

industrial structure, and to inspire economic innovation and growth.

Satellite communications

3

According to statistics from the UCS satellite database, there were 2666 satellites in

Earth’s orbit as of April 1, 2020, with communication satellites taking up the largest

proportion at 45%.

In recent years, given the demand for broadband and the development of satellite

technology, plans have been developed for satellite Internet constellations. Countries

have launched Internet-based broadband communication constellations to build a high-

speed, low-latency network with global coverage. This has created a “New World” for

satellite Internet construction. From 1997 to 2019, 343 low-orbit communication satellites

were launched around the world—230 (or 67%) by the United States, followed by Russia,

China, Argentina, Canada, and the United Kingdom.

Satellite systems such as OneWeb, O3b, and Starlink can be considered representatives

of various countries’ network plans.

OneWeb: This is the first new-generation non-geosynchronous orbiting satellite

constellation plan to be approved in the United States. It is expected to involve 720

satellites, with an orbital height of 1200 km and a single-satellite capacity of 7.5Gbps.

OneWeb is expected to be in operation before June 2023, providing global broadband

Internet access services with a total capacity of 5.4Tb/s.

O3b: This satellite Internet constellation system has already successfully entered global

commercial operations. According to plans, O3b will have 42 satellites at a height of

8062 km and aims to provide broadband Internet access services. The O3b constellation

was initially operationalized in 2014 and currently has 16 satellites in orbit that cover

everywhere in the world between 45° north and 45° south latitude. Users can access the

Internet through O3b satellites.

Starlink: Starlink has the largest number of satellites of any satellite system in history.

Ultimately about 12,000 low-orbit satellites are expected to be launched to form an

interconnection network with a capacity reaching 8-10Tb/s. The plan will be completed in

three phases: the deployment of 1584 satellites to 550 kilometers’ altitude; the deployment

of 2825 satellites to 1110-1325 kilometers’ altitude; the deployment of 7518 satellites into

low orbits at altitudes of 335-345 kilometers.

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Current Status and Development Trends of ETI Networks

China has issued low-orbit satellite constellation plans including “Hongyun” and “Hongyan.”

The Hongyun Project plans to deploy 156 low-orbit high-throughput satellites over a

thousand kilometers from the earth’s surface to build a wireless communication network with

global coverage, providing wireless broadband services to China as well as other parts of the

world. In late 2018, China launched the first experimental satellite for the Hongyun Project.

The networking and operation of all 156 project satellites are expected to be completed

by the end of the “14th Five-Year Plan.” The “Hongyan” Project aims to providing satellite

communication services for ships on the earth’s surface. Upon establishment of the network, it

can also provide communication services for active satellites and space stations. The project

is to be carried out in two phases. In the first phase, to be completed in 2022, 60 satellites are

to be completed to service the “Belt and Road” region. The second phase will incorporate

more than 300 satellites, extending broadband business to the world and serving 2 million

mobile users, 200,000 broadband users, and nearly 10 million IoT users, with integrated

services in navigation, aviation, and sailing.

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ETI Integration

Internet

4

Since the beginning of the 21st century, the Internet has profoundly changed our ways of

production and life. Internet terminals have expanded rapidly. Besides the commonly used

computers, TVs, and mobile phones, an increasing number of household appliances are

also connected to the Internet. The mobile terminal has practically become an extension

of human body, truly brining humanity into the Internet age. Global Internet development

has now established a middling pace. User numbers continue to grow, universal services

advance, and network traffic increase at quick rates.

Data volume: In 2019, global Internet data volume reached 41ZB (including mobile

Internet), with an average annual growth rate of nearly 50% over the past ten years.^A

Thanks to 5G and IoT technologies, more scenarios have been created for digital

consumption. It is estimated that by 2025, global data volume will reach 175ZB, with an

average annual growth rate of nearly 30%, as shown in Figure 2-57.

200

180

160

140

120

100

80

100

90

80

70

60

50

40

30

175

131

101

80

65

60

51

41

40

20

10

0

33

26

16.10

8.59

20

6.60

1.80 2.84 4.40

0.13 0.16 0.28 0.49 0.80 1.23

0

Year

Global data volume

Year-on-year growth

Figure 2-57 Global Data Volume and Growth Forecast^B

Bandwidth: According to statistics from market research company TeleGeography, global

Internet bandwidth increased by 196Tbps from 2013 to 2017 and is now up to 295Tbps,

with annual growth remaining at about 30%.

1 ZB =2⁴⁰GB.

A

Source: IDC, CITIC Securities Research Department.

B

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Current Status and Development Trends of ETI Networks

Number of users: As of the first quarter of 2020, the number of global Internet (including

mobile Internet) users had reached 4.54 billion, a penetration rate of 59%, as shown in

Figure 2-58.

50

45

40

35

30

25

20

15

10

5

70

60

50

40

30

20

10

0

Year

Global Internet users

Penetration rate

100

90

80

70

60

50

40

30

20

10

0

Western

Europe

North

America

Eastern

Europe

South

America

Southeast

Asia

East

Asia

South

Asia

Figure 2-58 Global Internet Users and Penetration Rates^A

Source: UN, Hootsuite.

A

131

ETI Integration

Duration of use: The average duration of Internet use per person worldwide is up to

403 minutes, with that of mobile Internet use accounting for more than 50%, as shown in

Figure 2-59.

60

50

40

30

20

10

0

420

410

400

390

380

370

360

350

2014

2015

2016

2017

2018

2019

Year

Mobile Internet proportion

Figure 2-59 Global Internet Usage Time Per Capita^A

Duration

2.3.3 Global Information Interconnection

Challenges

1

Incomplete coverage and integration. Ever since 1898 when Guglielmo Marconi

sent the first radio transmission, there have been constant evolutions in space-based,

air-based, ground-based, and sea-based radio communication. Nevertheless, each

communication system relies on different technical systems and network structures,

making them independent and enclosed, with poor capacities for information exchange

and resulting in uneven development. High-orbit satellites and low-orbit constellations

operate independently and cannot communicate with one another. As for aeronautical

communications, in the beginning, only the front cabin was enabled for standard

communication; it is only in recent years that limited communication services have

been developed, using high-orbit satellites, for public entertainment in the rear cabin.

Constrained by costs, multinational business models, and other issues, satellite

communications cannot be integrated into conventional mobile phones; these services

can only be carried out via highly specialized mobile phones.

Lack of systematic planning. Although countries have attached great importance to the

development of communication infrastructure, top-level design and overall planning are

in short supply when it comes to communication interconnection at the global level, which

prohibits the coordinated development needed for global information interconnection.

Source: Hootsuite, CITIC Securities Research Department.

A

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Current Status and Development Trends of ETI Networks

For example, submarine and terrestrial fiber-optic cable projects for international

communication are almost all negotiated and implemented by various countries’ operators

and mega Internet companies, leading to redundant construction and channels.

Security threats to the information network. As the Internet becomes ever-more

integrated into various economic and social fields, critical infrastructure such as industrial

control systems, important information systems, and basic information networks are

directly or indirectly connected to the Internet, imposing security threats from viruses,

Trojan horses, and hackers. Attacks on critical infrastructure, which were once sudden

and limited in duration, now employ continuous and frequent patterns, seriously affecting

national security, economic order, and social stability. Threats and risks to network security

have become a global problem that all countries must confront and resolve together.

Data silos affecting data sharing and use. Currently, many individuals are “not willing,

daring or able” to share data; as a result, massive amounts of data are scattered across

different industries and institutions to form isolated “islands”. Not willing to share: As most

organizations regard data as a strategic resource crucial to their customer resources and

market competitiveness, they are unwilling to share data from a perspective of subjective

interest. Not daring to share: Some institutions’ data are inherently sensitive, involving

users’ personal privacy, business secrets, or even national security. Sharing data between

institutions may incur such objective obstacles as legal risk. Not able to share: Due

to inconsistencies between institutions’ data structure, data interconnection becomes

difficult, seriously hindering the open sharing of data.

Development trends

2

Wide coverage. With the birth of the telegraph, telephone, television and Internet services,

communication distances have increased from tens to thousands of kilometers; cross-regional

interconnection has been replaced with cross-border and cross-continental interconnection;

user coverage has likewise expanded to meet the needs of information exchange. From the

mid-1800s to the end of the 1980s, information interconnection was largely realized in the form

of coaxial cable. Subject to limiting factors in capacity and efficiency, interconnection was

mainly conducted within-country and over short distances. Yet thanks to the invention and

application of high-capacity and high-efficiency fiber optics, longer-distance communications

have entered the fast lane of development, creating the large-scale transnational and

transcontinental information network that we enjoy today.

Integrated network development. Telephone, television, Internet and other industries

are converging in technology. Each penetrates and overlaps with the other in terms of the

scope of business. Their technologies interlink and communicate via network to achieve

seamless coverage. They both compete and cooperate with one another in operations,

while moving toward the same goals—to provide diversified, personalized multimedia

services and build a modern communication network system. The telecom, mobile, and

cable television networks can all be accessed through a home or personal network or

a remote PC. Telephone, data, and dynamic image services are integrated to realize

multimedia information services like web browsing, e-mail, data exchange, videotexting,

TV conference, video on demand (VOD) and downloading.

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ETI Integration

Broadband transmission speeds. The rapid development of fiber optics, the rise

of broadband mobile, and the appearance of high-speed access technologies have

elevated communication networks’ transmission capacity by several orders of magnitude.

In terms of the backbone network, people are constantly looking for media with higher

transmission bandwidth or transmission capacity. The optical transport network currently

has a rate of 100Gbps, and that figure will reach 400Gbps in the future. In the wired

access network, optical fiber has replaced copper wire. As for wireless access, the mobile

Internet has evolved from 3G to 4G and now 5G with ever-increasing speeds. Accordingly,

the per-bit transmission price has dropped significantly, allowing ordinary users to afford

broadband services. In the future, Gbit access and Pbit backbone network transmission

will be realized as well.^A

Clean energy supply. As the energy system shifts towards clean, low-carbon energies,

the information network’s energy supply will naturally be cleaner as well. More data

centers will be deployed in clean energy bases to meet their demands for clean, low-

cost electricity and coordinate development between clean energy and data facilities.

What’s more, information network infrastructure can make use of clean electricity on-site in

remote and sparsely populated areas by building distributed photovoltaic and wind power

facilities.

Wireless access. The rapid development of wireless communication technology has

promoted the transformation of information network access from wired to wireless, sparing

the use of cables. People now use smartphones, tablets, portable computers and other

devices to access the network anytime and anywhere, whether through Bluetooth, WiFi or

other technological means. Thus communication and data exchange are mutually realized.

User-friendly features. As information technology develops, features become more

user-oriented. In terms of providing information, in the past it was that “people looked

for information”; now, however, “information looks for people.” In the early days of the

Internet, portals would categorize information before providing it to users. In the era of

information explosion, search engines began to see wide use. Now, with AI algorithms,

Internet businesses have achieved the personalized distribution of content. In terms of

entertainment and socializing, both the level of interactivity and the overall experience

have been greatly enhanced with the evolution from graphics and text information to real-

time content creation, sharing, and transmission of news.

1Gbps=2¹⁰Mbps, 1Pbps=2²⁰Gbps.

A

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Development prospects

3

After more than a century of rapid development, global information interconnection

represented by the telegraph, telephone, Internet and satellite communications has

basically taken shape. Future global information interconnection will develop in a faster,

more timely, safer and smarter way, will extend its coverage to everywhere in the world,

and will comprehensively connect existing scattered communication services to enable

every user on Earth to access any network at any time and place, in any way, and to

maintain communication with any other user. Furthermore, the information network will

go beyond the boundaries of the earth, extending further into the solar system and

even beyond it. Information interconnection is playing an increasingly prominent role

in the promotion of all industries. The physical world and the information world will be

further integrated to form a “digital twin” virtual world. New characteristics will emerge

in the application scenarios of global information interconnection . Ubiquitous wireless

connections and the wide application of big data and AI technology will generate new

possibilities that reshape both life and production. The main features of global information

interconnection are as follows:

Space-ground integration. The information network of the future will achieve full global

coverage, seamlessly connecting airspace and land by means of wireless communication

technology. In terms of the form of networking, a novel, three-dimensional and hierarchical

network incorporating the integration of multiple networks and services over time

and space is being built with the help of cellular mobile communications, low-orbit

constellations, low-altitude aircraft, positioning satellites, and fiber-optic communications.

It will cover such natural areas as outerspace, atmosphere, oceans and land. As shown in

Figure 2-60, on land, cities will have wireless accessibility via mobile communication base

stations and WiFi hotspots; cities will be connected to one another by high-capacity fiber-

optic cable. Over sea, air, and space, and isolated land areas, satellites will provide the

major coverage.

The Internet of everything. In the future, the information network will evolve from

“connecting people” to “interconnecting things.” The IoT, as an extension and application

of the Internet, helps perceive and formulate the physical world to conduct real-time

control, precise management and scientific decision-making. In terms of scale, the

number of devices connected to the Internet of Things around the world is increasing ever

more quickly, and will surpass mobile Internet devices. In terms of application, the Internet

of Things promotes the expansion of Internet applications from fields of consumption to

fields of production, and further to all aspects of urban management. Among consumers,

smart wearable devices that integrate Internet and IoT characteristics are seeing rapid

popularization; among producers, companies can use IoT solutions to build smart

factories; among municipal administrators, the Internet of Things serves as the core

element of smart cities, widely used in public safety, traffic, pipeline network monitoring,

and more.

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ETI Integration

High earth orbit

Space-based backbone network

Space-based access

network (Near space)

Space-

based

users

Space-based

backbone node

Space-based

access node

Ground-based

backbone node

users

Air-based

Ground-

based

users

Ground-

based

backbone

node

Ground-

based

backbone

node

Sea-based

users

Data center

Service center

Laser link

Ground-based

node network

International

organizations

Users

Goverments Enterprises Individuals

Microwave link

Terrestrial Internet

Mobile communication network

Figure 2-60 Information Network with Air-ground Integration

High intelligence. In the future, the communication network will be penetrated by

AI technology. Artificial intelligence will penetrate multiple fields including network

performance optimization, network model analysis, network deployment and management,

and network architecture innovation, triggering comprehensive innovations in network

information technology. More computing, storage and business features will be reasonably

distributed at every node along the transmission chain, and will be closely integrated

with big data analysis and AI deep learning to promote the thoroughly intelligent

transformation of the communication network. The new communication network will be

able to automatically understand customer needs, realize automatic resource allocation,

smart closed-loop systems, digital infrastructure cross-layer/cross-domain collaboration,

and perfectly personalized customer services.

A digital twin. With the ubiquity of information and sensory capabilities, a virtual, “digital

twin” of the physical world will be generated. People and people, people and things, and

things and things in the physical world can deliver information and intelligence through

the digital twin world, as shown in Figure 2-61. The virtual world is a digital simulation of

the physical world that can accurately reflect and predict the actual state of the physical

world and each agent within it. The digital twin can thus predict future developments and

intervene in the physical world to help avoid real disasters and mitigate real risks. This will

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Current Status and Development Trends of ETI Networks

improve humans’ living standards and quality of life, enhance the efficiency of production

and social governance, and achieve visions for “reshaping the world.” The digital twin

will play a role not only in the industrial field, but also in smart cities, household life, and

physiological monitoring.

Service system

To drive

Twin data

To drive

Iterative interaction

& optimization

Physical entities

Virtual model

Figure 2-61 Digital Twins

Endogenous safety. In the future, network security will shift from passive defense to

active defense ,and from centralized defense to distributed defense. This will empower the

network with “innate and independent growth” abilities for security defense. From an in-

network perspective, security mechanisms will be deployed in each node, then all nodes’

security components associated through network interconnection for comprehensive and

in-depth awareness. The system will learn and evolve on its own using AI technology to

become even more proficient in defense.

The future global information interconnection—with its ultra-high frequency, ultra-broad

bandwidth, ultra-short time lag, and full coverage without blind spots—will perfect the

communication network and enable people to “have a panoramic view of everything in

the world.” By dint of new technologies such as intelligent perception, edge computing,

and full-coverage UHF network, our abilities of perception, communication, and thinking

can be extended and amplified. All things will be digitized and brought together by

omnipresent network, realizing the interconnection, interaction and integration of all things.

Completely novel phenomena and objects will emerge. If 4G has changed life and 5G will

change the society, then global information interconnection will change the whole world—

from lifestyles to worldviews, to the very means of perception.

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ETI Integration

2.4 Summary

●

ꢀ Energy around the world has already passed through the ages of firewood, coal,

oil and gas, and electricity, forming an energy development structure dominated

by fossil fuels. In line with the requirements for clean energy production, electrified

energy consumption, and wide-area allocation, “clean-oriented, electricity-centric,

and interconnected” GEI will be built to provide clean, economical, safe, and

efficient energy support for sustainable economic and social development.

●

ꢀ Modes of transportation around the world have evolved from sailing boats and

horse-drawn carriages to automobiles, trains, and airplanes. Now a multi-hub and

multi-level transportation network consisting of roads, railways, waterways, and

air transportation has been taken shape. In line with needs for high efficiency,

electrification, intelligence, and wide coverage, global transportation interconnection

is emerging which features “integration, clean and low-carbon solutions, smart

operations, and facility connectivity”. The new system will provide people with safe,

efficient, convenient, comfortable, green, and friendly transportation services.

●

ꢀ The world has undergone an information evolution—from short-distance

to transoceanic and transcontinental transmission, and from fixed to mobile

communications. We now have a well-established modern information network

of telephone, Internet, satellite, and mobile communications. In line with the

requirements for wide coverage, integration, broadband, and wireless access, a

new type of global information interconnection is emerging which features “space-

ground integration, the interconnection of everything, and high intelligence”. It will

bring revolutionary changes to the way we perceive, live, and produce.

●

ꢀ On the whole, ETI networks are developing rapidly towards higher efficiency,

and more intelligent and user-friendly functionality, as their modes of integration

diversify and their global coverage expands, with rising importance in the economy

and society. Additionally, the internal connections of the ETI networks are becoming

tighter and increasingly similar in feature. Compared with the global information

network and transportation network, interconnection of the energy network is

lagging behind. Nevertheless, construction of global energy interconnection is

accelerating, electrification and clean energy are being promoted in the fields of

transportation and information, and coordinated development and innovations

are being facilitated for ETI networks, so as to enhance the overall wellness of

human society.

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Theory and Models of

ETI Integration

3

ETI Integration

Over decades of rapid development, ETI networks have grown increasingly

connected, profoundly changing their forms and functions, and significantly

expanding the scope and efficiency of their transmission capabilities.

Empowered by factors including technological innovation, energy transition,

economic progress, and ecological governance, ETI networks are set to

become deeply integrated at the power, physical, data, application, and

paradigm layers, optimizing their energy, personnel/material, and overall

information flows, and improving their capability to allocate production

factors and utilize resources, thereby raising the quality of and returns

to economic development. ETI Integration is of great significance to the

promotion of the transformation of the world economy, and to the sustainable

development of mankind, as it represents an upgraded and advanced stage

of network infrastructure, and points out the future direction of infrastructure

development, as both an objective requirement of improving productivity,

and an inevitable result of technological progress.

3.1 ETI Networks’ Direction of Development

Energy, transformation and information networks are displaying trends including wide

interconnection, overall coordination, high intelligence, green and low-carbon, and cost-

effectiveness and efficiency. These features are delivering increasingly visible overall

economic, social and environmental value, as shown in Figure 3-1.

Wide

intercon-

nection

Cost-

effective

Overall

coordination

Development

trends

Highly

intelligent

Green and

low-carbon

Figure 3-1 ETI Networks’ Direction of Development

The interconnection of ETI networks is continually increasing, driving their

expansion towards global scale. The scope of ETI networks’ interconnection has

continuously expanded from city to regional level, and from national to transnational and

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Theory and Models of ETI Integration

transcontinental level, with their overall scale and transmission capacity expanding to keep

pace. Their transmission efficiency and distribution capacity is set to further improve now that

a transportation and information distribution platform with global coverage is basically in place.

Although transnational grid interconnectivity has so far been lagging behind, breakthroughs

in high-capacity transmission technologies such as Ultra High Voltage (UHV) power grids and

submarine cables promise to drive wider, more robust and more efficient power distribution,

accelerating the construction of a widely-interconnected global energy network.

ETI networks are increasingly interwoven, showing a trend towards coordinated

development. In the past, ETI networks were relatively independent and weakly

connected. Now, they are becoming more coupled, with an increasing tendency to

intersect and complement one another.

Always an important supporter of the energy network, the information

01

network is set to play a more significant role in supporting the safe operation

of large power grids in response to the future large-scale development of

clean energy, which will increase its share and breadth of distribution.

Various communication and infrastructure devices in the information

02

network, from mobile terminals, routers, and network servers to large

data centers, rely upon safe, reliable and high-quality power supply from

large power grids.

As the transportation network progresses towards electrification and

03

intelligence, electric vehicles, locomotives and shipping will become important

means of transportation, while also acting as consumption terminals on the

energy network, and mobile terminals on the information network.

Thus, ETI networks are becoming increasingly interlinked, with each one’s development

significant impacting both of the others’. ETI networks will therefore move away from their

existing model of independent development to make enhanced contributions via improved

compliance with overall planning and coordination.

Operational methods have greatly improved and are becoming highly intelligent.

Through massive integration of IT devices, energy and transportation networks have

become more informationized and automated. In days to come, thanks to wide adoption

by the energy and transportation networks of technologies such as 5G, the IoT, big

data, cloud computing and AI, the number of devices connected to these networks

will greatly expand, permitting far more extensive information collection. Moreover,

establishment of a unified data platform will make both energy and information networks

more intelligent, improving the interaction of power sources, grids, loads and storage and

better coordinating the interaction between people, vehicles, roads and networks, and

smoothing flows to more efficiently distribute energy, people and materials, thereby further

increasing the intelligence of those networks.

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ETI Integration

The energy consumption mix is undergoing green, low-carbon transition.

Electricity, a clean, efficient and convenient secondary energy, is capable of supporting

the optimization of clean energy resource distribution. Integration of the energy and

transportation networks will drive large-scale development and increased utilization of

clean energy such as hydro, wind, and solar power, as well as promoting widespread

access to e-transport including electric vehicles, trains, ships and aircraft. It will increase

the share of clean energy in primary energy consumption, and that of electricity in end-

use energy consumption(dual increase), transform energy structure and means of

transportation(dual transformation), and permit more efficient energy utilization, thereby

expediting the world’s transition into a new era of green, low-carbon development.

Improved functionality and overall value. By providing more efficient and higher

quality ETI networks, ETI Integration will create increasingly visible overall benefits for

the economy, society and environment. For the economy, better distribution and lower

costs will help to achieve better utilization of factors of production, providing a strong

impetus to economic development and greatly boosting the development of productive

forces. For society, more efficient transmission will spark changes in social functioning,

organizational forms and systems of governance, increasing the efficiency of social

operations. For the environment, clean energy and more efficient resource utilization will

reduce the water, soil, atmospheric and marine pollution caused by the construction and

operation of ETI networks, reduce global emissions of carbon dioxide, and also deliver

other environmental benefits.

Overall, ETI networks are gradually developing in similar directions and becoming

increasingly interconnected, and the number of integrated smart energy and intelligent

transportation applications is growing, increasing the visibility of the value of their

integration. As a key driver and promoter of increased resource utilization and factor

allocation efficiency, ETI Integration serves the practical need of promoting the innovative,

green, efficient and coordinated development of network infrastructure, as well as fulfilling

the objective requirements of, and complying with the inevitable trend of, faster global

energy transition and sustainable socio-economic development.

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Theory and Models of ETI Integration

3.2 Theoretical Foundations of ETI Integration

Since they are all forms of network infrastructure, ETI networks are similar in structure. ETI

Integration mainly involves layer-wise integration, with integration models that vary from

layer to layer, finally forming a network which deeply couples the services and functions of

its three subnetworks in a way which promotes their overall and coordinated development.

3.2.1ꢀ DeﬁnitionꢀofꢀETIꢀIntegration

Integration refers to interleaving, overlapping and interconnection of the form and

functions of two or more systems. The extent of integration may vary from system to

system, with some functionality fully integrated, while some remains only partially so.

The term “ETI Integration” refers to the transition from relatively independent

development to the integrated, shared and coordinated development of the ETI networks,

thereby assisting the realization of in-depth coupling in term of form and functions, in

order to form a new comprehensive infrastructure system that is widely interconnected,

intelligent & efficient, clean & low-carbon, and open & shared. In turn, it will bring about

effective coordination and value enhancement among energy, personnel/material, and

information flows. ETI Integration is a development model with stronger capabilities in

allocating resource, driving industries, and creating value, and represents an advanced

form of infrastructure development.

Transporta-

Energy

Information

tion

Information

Transportation

+

Information

Energy

+

Information

Energy

+

Transportation

+

Information

Energy

+

Transportation

Energy

Figureꢀ3-2ꢀ DeﬁnitionꢀofꢀETIꢀIntegration

143

ETI Integration

ETI networks are the pillars of energy, personnel/material and information flows, each

with its own functionality. ETI Integration therefore does not imply the creation of a

single system, but rather of a super-interdependent and harmonious set of systems,

exemplifying “harmonious coexistence”, and achieving integration of form and function,

while supporting overall and coordinated development.

3.2.2 Main ETI Network Structures

Network infrastructure structure

1

Network infrastructure includes five layers, the power, physical, data, application and

paradigm layers, as shown in Figure 3-3.

Paradigm

layer

Application layer

Data layer

Physical layer

Power layer

Figure 3-3 Five Layers of Network Infrastructure

These five layers coordinate and interact with one another, together permitting the

network’s effective operation. The power layer comprises the energy system that

drives the network infrastructure. The physical layer comprises the collection of

devices and terminals that form the network infrastructure. The data layer comprises

the network infrastructure’s information and data. The application layer includes the

various operations and services performed by the network infrastructure. The paradigm

layer includes the stakeholders, cooperation models, and mechanisms of the network

infrastructure.

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Theory and Models of ETI Integration

ꢀꢀMainꢀcomponentsꢀofꢀETIꢀnetworks’ꢀﬁveꢀlayersꢀ

2

ETI networks serve as network infrastructure, with their five layers mainly comprised of

components such as those shown in Figure 3-4.

Business

model

Integrated

energy service

Demand

response

Internet of

Vehicles

Online

ride-hailing

...

E-commerce

Power

markets

Trading

mechanisms

Policies and

regulations

Technical

standards

Security

mechanisms

Market

Paradigm

Application

Data

...

mechanisms

Service

providers

Suppliers

Manufacturers

Regulators

Customers

Stakeholders

Value creation

Operations

Services

Planning and

construction

Dispatch

and operation

Marketing

Supply

support

...

Energy supply

Transportation

Electric vehicle

Customer

services

...

Operation and

management

...

Information &

charging/discharging

data services

...

Operation support

Network data

Device

status

Enterprise data

Performance

Business

operation management

User data

Power

consumption

Operational

monitoring

Credit

...

Control and Maintenance

Business

services

...

Statistical

analysis

...

Behavior

and habits

...

User Profiles

...

dispatch

and repair

...

Digital mapping

Power

transmission lines

substation/

Optical cables/mobile

base stations

Roads/shipping routes

Transportation hubs

Storage devices

Physical

converter stations

Vehicles

...

Switching device

...

Oil & gas pipelines

...

Energy guarantee

Large grid power

supply

Oil

Fossil fuels

Clean energy

Natural gas

Energy storage

Power

Emergency

power supply

...

Electricity

...

Electricity

...

Figure 3-4 Main Components of ETI Networks’ Five Layers

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ETI Integration

The power layer drives the operation of ETI networks. Transportation

networks are currently powered by oil, gas and electricity, with

hydrogen-powered transportation under rapid development.

Information network equipment is mainly powered by large grids.

Energy networks provide power for transportation and information

networks in addition to their own energy usage. For example, power

plants’ generation equipment has requirements for auxiliary power,

as do some devices which operate the grid.

Power Layer

The physical layer includes various types of equipment for transmitting

energy, people/materials and information. In energy networks, this

includes power transmission lines, transformer substations, converter

stations, oil and gas pipelines and other auxiliary equipment. In

transportation networks this includes roads, air/sea routes, hubs and

vehicles. And in information networks, it includes optical cables,

mobile base stations, and exchange and storage equipment.

Physical Layer

The data layer includes network, enterprise, user and other data. Network

data refers to ETI network operational data of all kinds. Enterprise data

is all data related to enterprises’ management and operations. User

data is data generated during interactions between users and an ETI

network, and during service provision. Digitalized, informationalized

O&M of ETI networks has basically been achieved, with each

network possessing numerous servers and data centers in order to

collect, store and manage data and information of various types.

Data Layer

The application layer involves the various operations and services

performed by an ETI network. The former includes planning and

construction, dispatch & scheduling and operation, marketing,

M&O and supply guarantees. The latter includes energy

consumption, charging, mobility, navigation, and information.

Application

Layer

The paradigm layer encompasses all forms of industry associated

with the ETI network. It serves as a platform for value creation.

In terms of composition, stakeholders include mainly suppliers,

manufacturers, service providers, governments and users;

market mechanisms mainly include electricity markets, trading

mechanisms, policies and regulations, etc.; business models

mainly include comprehensive energy supply, ride-hailing, and

e-commerce, etc. For instance, power suppliers, grid utilities,

and power companies provide electricity services to users using

electricity market mechanisms, and according to electricity market

regulations. The production, distribution and utilization of electricity

simultaneously represent flows of energy and value.

Paradigm

Layer

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Theory and Models of ETI Integration

3.2.3 Five-layer Integrated Model

The ETI networks, each with its own functionality, are interlinked and converged at each

one of the five major layers, which bring out the integration of energy, infrastructure,

data, operation and industry, thus maximizing their advantages, improving the efficiency, and

inceasing the benefits they generated. The five-layer integrated model is shown in Figure 3-5.

Energy +

transportation +

information

Energy +

transportation

Information +

transportation

Energy +

information

Industry

integration

Planning Construction Dispatch Operation Marketing Management Services

Energy

Operation

integration

Transportation

Information

Unified data platform

Data

integration

System data

Enterprise data

User data

Other data

Utilities

Towers

Hubs

Devices

Terminals

Smart street

lighting

Smart meters

Substations

Infrastructure

integration

Electro-

optical fiber

Vehicle-mounted

terminals

Charging

stations

Channels

Tunnels

PLC

Mobile phones

Data centers

Fossil fuels supply system

Clean energy supply system

Hydropower Wind power PV power

Energy

Natural gas

...

Oil

integration

...

Coal

Figure 3-5 Five-layer Integrated ETI Network Model

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ETI Integration

The coordinated development of ETI networks in energy

supply systems involving coal, oil, gas and electricity should

be promoted, improving the efficiency of their energy

supply and utilization. As clean replacement and electricity

replacement advance, clean electricity will come to dominate

the power supply of ETI networks, with the power layer

become more closely connected as full energy integration is

achieved.

Energy

integration

in power

layer

Co-building and sharing of utilities, hub facilities, devices

and terminals should be promoted, thereby permitting more

intensive development, and greatly improving the efficiency of

utilization of resources including land, corridors and space, to

enhance ETI networks’ quality of development, and benefits

delivered.

Infrastructure

integration in

physical layer

Establishment of a unified cross-domain, cross-operation data

platform should be promoted, assisting realization of vertical

connectivity and horizontal coordination of ETI network data,

promoting comprehensive sharing of ETI data, fully mining big

data for value, and rendering ETI networks more intelligent.

Data

integration

in data layer

The efficient coordination of planning, building, dispatching

& scheduling, operation, marketing, management and

services should be promoted, driving the effective integration

of services such as energy consumption, mobility and

information, and increasing the efficiency of business

management and the quality of customer and user services.

Operation

integration in

application

layer

Taking operation integration as a basis, efforts should be made

to promote the effective coordination of ETI network-related

industrial chains in order to realize cross-border integration,

promote the continuous emergence of new business models,

formats and industries, create an industrial ETI Integration

ecosystem, and continuously extend ETI networks’ value

chains, expanding their potential value.

Industry

integration

in paradigm

layer

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Theory and Models of ETI Integration

3.3 Models of ETI Integration

The ﬁveꢀmajorꢀETIꢀnetworkꢀmodels involve energy, infrastructure, data, operation and

industry, as shown in Figure 3-6, below.

Coordinated energy

supply and demand

Energy

integration

Optimized energy

structure

Energy network +

Shared corridors

Joint hubs

transportation network

Energy network +

information network

Infrastructure

integration

Industry

integration

Information

Network

Transportation network

+ information network

Shared devices

Energy network +

transportation network

+ information network

Terminal

integration

Energy

Network

Transportation

Network

Planning and

construction

System data

Technology R&D

Operation

integration

Data

integration

Enterprise data

User data

Marketing services

Operations

management

Figure 3-6 Models of ETI Integration

3.3.1 Energy Integration

Energy integration will be realized, through the in-depth coupling at the power layer,

including the coordination of the energy supply and demand systems, and the

optimization of energy structure. It thereby enables safe and efficient access to clean

energy. The focus should be on coordinating energy network’s supply system with

transportation and information networks’ consumption system, and replacing coal, oil, and

natural gas with clean electricity to improve the energy system efficiency and promote the

transition towards clean energy.

Coordinated energy supply and demand

1

Energy networks are part of the energy supply sector, while transportation and information

networks are important energy consuming sectors. Therefore, efforts should be made

in effective coordination and interaction of energy networks’ supply system with

transportation and information networks’ consumption system, enhancing the demand

response capability of transportation and information networks. This will help to optimize ETI

networks’ energy efficiency and operations, lowering their investment and operational costs.

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ETI Integration

Optimized energy structure

2

ETI networks’ end-use energy mainly comprises coal, oil, natural gas and electricity,

with the transition to green, low-carbon, and clean energy. Efficient utilization and wide

distribution of clean energy can be achieved only if it is converted to electricity. Clean

electricity will replace coal, oil and gas to dominate the ETI networks’ energy supply. In the

future, energy network will become increasingly electricity-based, and the transportation

network will be electrified, while the share of electricity consumed by information network

increases significantly.

3.3.2 Infrastructure Integration

Infrastructure integration can be realized, through the coordinated development at the

physical layer, including the sharing of utilities, hubs, devices and terminals, thus sparing

land and space resources, and increasing returns on investment. Infrastructure integration

involves shared utilities such as elevated corridors, ground conduits, underground

tunnels, and submarine cables, joint hubs in ETI networks, multi-function devices such as

electro-optical fiber and smart street lights, as well as integrated hardware and software

terminals such as smart meters, vehicle-mounted terminals, and smartphones.

Shared utilities

1

●

ꢀ Air corridors. The energy network requires the construction of transmission towers

with overhead cables, while the information network requires communication towers

containing fiber-optic cables and base stations. Power and communication towers are

important nodes in both the energy and information networks. Promotion of a “two towers

in one”, concept, representing integration of power and communication towers, could

be highly significant, as communications devices could be mounted in a large portion

of power towers. This increases the efficiency of construction of communication cables

and base stations, lowering construction costs, and reducing land occupied by new

communications towers and base stations, thus realizing more green and coordinated

development. For example, China operates 940,000 kilometers of overhead transmission

lines, 2.91 million towers and nearly 2.5 million communication base stations. More than

20,000 towers could be eliminated, with a massive saving in terms of investment, if 1% of

the power and communication towers can be dual-use. Further, the number of 5G base

stations will be several times that of 4G base stations, creating extensive prospects for “two

in one towers”.

●

ꢀ Ground Channels. ETI network backbones are often constructed along the shortest

routes between two points. For example, the conduits below the highway verges, below,

are suitable for laying copper and fiber optic cables. This laying method makes for the

shortest possible cables routes along optimal pathways. It can facilitate construction,

lower laying and O&M costs, and reduce data latency and transmission losses, while

improving cost effectiveness.

●

ꢀ Underground/ submarine tunnels. Under special landforms such as mountains, rivers

and oceans, or in urban areas where land is scarce, ETI networks require construction

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Theory and Models of ETI Integration

of underground conduits, pipelines and tunnels. Examples include energy networks’

underground and submarine cables, transportation networks’ rail transit and subsea

tunnels, and information networks’ underground and submarine optical cables. Because

these corridors share similar functions, they can be planned, designed and operated in an

integrated manner, thereby sharing their resources, improving space utilization, lowering

construction and operation costs, avoiding repeated excavation, and promoting intensive,

efficient urban development.

Joint hubs

2

All network infrastructures require a large number of hubs and nodes. The energy network

covers energy production and conversion hubs such as energy bases, substations/

converter stations. The transportation network includes passenger and freight transport

hubs such as human and cargo flows and logistics centers, as well as a myriad of

energy supply nodes such as gas stations, charging and battery-swapping stations.

The information network brings together a slew of information transmission nodes like

communication base stations, as well as information storage and exchange hubs such

as servers and data centers. The hubs and nodes of ETI networks occupy a large

amount of land and space, and are functionally complementary to some extent. For

example, substations provide power supply for charging and battery-swapping stations,

communication base stations, data centers, etc., while base stations and data centers

provide data transmission and storage services for substations, charging and battery-

swapping stations. The joint hubs and nodes in the combainations of “substations +

charging and battery-swapping stations + data centers”, “distribution centers + charging

and battery-swapping stations”, “energy bases + data centers”, can not only improve

the utilization efficiency of land and space resources, reduce construction costs, but also

greatly enhance the system function, improve the operation, and yield great benefits.

Shared devices

3

The large coverage of ETI networks and huge number of devices they include imply that

their functional integration has potential to deliver enormous economic and environmental

benefit. Integration of smart street lamps, electro-optical fiber, PLC and sensor will be

critical. Smart street lamps, which can provide integrated lighting, base station, monitoring

and charging functionality, represent the basic “smart unit” of smart cities. Electro-optical

fiber and PLC permit integration of power and information transmission, making for more

efficient equipment utilization. Sharing sensors can also promote information sharing

between devices, improving operational efficiency.

Terminal integration

4

Terminals provide significant business value. For information networks, terminals are

mostly computers, smartphones, etc. For energy networks, they include both electric

devices, such as smart home appliances, and information collection devices, such as

smart meters. For transportation networks, they include various vehicles, and their vehicle-

mounted systems. ETI networks’ integration of terminals relies mainly on hardware and

software integration. Hardware integration refers to the integration of multiple hardware

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ETI Integration

device functions in one terminal based on chip and physical technology. For example,

smart meters which permit both measurement of electrical energy usage and information

routing. Software integration refers to the integration of multiple functions into one piece

of software. For example, an integrated smartphone application might handle services

related to energy, transportation and information. Software and hardware integration

often occur at the same time. For example, a charging pile only becomes an important

terminal of an energy network through integration of both it hardware and software, and,

meanwhile, may also integrate functionality which formerly belonged to transportation

network terminals (acting for example, as a parking meter, parking space status sensor or

guidance terminal) and or information network terminals (acting for example, as a display

terminal, or security monitor). This expands the business value of charging terminals and

improves the efficiency of end-user service provision.

3.3.3 Data Integration

Data integration will be achieved, through the efficient integration at the data layer,

including the sharing of cross-platform data and forming a big data platform for ETI

networks, thus eliminating isolated information islands, magnifying the value of data, and

creating greater benefits. The focus should go to the integration of system data, enterprise

data, and user data, as shown in Figure 3-7.

Data platform

Power

generation

data

Enterprise

data

Charging

data

User

data

Electricity

consumption

data

Transportation

data

Figure 3-7 Data Integration

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3

Theory and Models of ETI Integration

System data

1

System data integration is key to achieving coordinated operation of ETI networks and

raising their efficiency as systems. With their numerous data collection points, high data

collection frequency, large data volumes and high data integrity, ETI networks operations

data provides a basis for comprehensive and systematic analysis of their operational

status and promotion of their coordinated operation. For example, the integration of

operations data from power distribution networks with electric vehicle (EV) charging data

better enables EVs to participate in grid demand-side responses, improving power grid

network flexibility and reducing charging costs. Meanwhile, ETI network cross-platform

data integration provides a basis for a comprehensive, powerful and complete urban

big data platform, capable of comprehensively optimizing energy, transportation and

information systems, enhancing regional capacity to optimize energy distribution, alleviate

urban traffic congestion, and improve urban communication coverage and reducing

network latency, promoting the development of smart cities.

Enterprise data

2

Enterprise data integration is the foundation for improving the efficiency of enterprise

management and promoting business integration. Network infrastructure generally

involves large volumes of data regarding a large number of enterprises. Instituting data

management by area or sector can even result in enterprises whose data is allocated

across several different levels and departments. Horizontal data collaboration among

enterprise departments and businesses can shorten management chains and business

processes, increasing enterprises’ operational efficiency. At the same time, full data

sharing between enterprises enables them to formulate better development strategies,

and promotes the interactive development of up and downstream sections of the industrial

chain, benefiting the industrial chain as a whole.

User data

3

User data is a comprehensive record of user attributes, intentions and behaviors, and

offers a foundation for developing business services and for business model innovation.

User big data has become one of enterprises’ most important strategic resources. Since

ETI networks are a form of infrastructure, they impinge upon many basic necessities of

life, and cover almost all groups of users. ETI network user data integration, by gathering

scattered user data into unified user data files, can therefore form the basis for user big

data. Accurate “user profiles” based on analysis of this big data can permit analysis of

users’ preferences, behavioral habits and potential needs, allowing provision of more

suitable and efficient services to users.

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3.3.4 Operation Integration

Operation integration will be realized, through the in-depth integration at the application

layer, including promoting the optimized operation and innovated services of ETI networks,

thereby improving the efficiency of enterprise operation and user services. Specifically,

operation integration involves planning and construction, technological research and

development, marketing services and operations management of ETI networks.

Planning and construction

1

ETI networks are significant for the overall development of national economies; the

promotion of overall planning and coordinated construction of ETI networks can therefore

play an important role in making national economic planning more scientific and

coordinated, and improving the efficiency and quality of economic development.

ETI networks have traditionally been planned relatively independently,

giving little consideration to their coordination. Therefore, it is

necessary to strengthen comprehensive planning and establish

systems for planning overall development, in conjunction with

planning development at area and region specific levels. This will

Overall

planning

promote effective coordination and alignment of ETI planning, driving

overall development.

ETI networks require large amounts of land, finance and manpower.

In projects’ early stages, many parties should be organized to

conduct project feasibility research, thereby attracting market players

from multiple fields and levels to take part in project investment and

construction, on the basis of a reasonable distribution of costs and

benefits. During construction, all parties should make coordinated

efforts to expedite completion and enhance construction quality and

efficiency. Cross-discipline teams should also be established to take

charge of shared ETI facility O&M, economizing on labor costs and

improving efficiency.

Coordinated

construction

Technological research and development

2

ETI Integration’s continuous creation of new technological needs can promote

development of scientific and technological innovation ecosystems. Firstly, it promotes

cross-discipline technological research. Advances in smart energy and intelligent

transportation are driving integrated innovation in information technologies (including

big data, cloud computing, IoT and mobile internet) and power and transportation

technologies, in a way which is promoting joint cross-discipline research and coordinated

innovation. Secondly, it promotes the combination of needs with applications. As ETI

Integration leads to rapidly changing user needs, the rapid iterative product innovation

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approach required to fulfill these will become mainstream, further shortening the

technological R&D/application chain and increasing its efficiency. Thirdly, it helps to build

an innovation ecosystem. The Internet economy is facilitating the flow of talent, finance

and other resources for innovation regardless of industrial/regional limitations, promoting

construction of an open, win-win ETI network innovation ecosystem.

Marketing services

3

In terms of marketing, integration mainly concerns channels and services. Channel

integration: various marketing channels under ETI networks should be integrated,

promoting the combination of online and offline channels. Specifically, physical

showrooms should be seamlessly combined with internet service platforms, smart

terminals and mobile phone applications, improving marketing and service efficiency.

Service integration: services should be expanded to integrate energy services such

as business expansion, electricity fee payment, ride-hailing, and travel services such

as navigation and other relevant information services, providing users with a variety of

services. Unified customer service centers can also be established to provide business

consulting and after-sales services, improving the efficiency of service provision and end-

users’ convenience and satisfaction.

Operations management

4

ETI Integration will improve the level of coordination and informationalization of enterprise

management. Management coordination: increased flexibility and diversity of business

models makes it necessary to flatten enterprise management, shorten management

chains, optimize the ETI networks’ cross-operation processes, and better coordinate

operations. Management efficiency: data integration will promote informationalized

enterprise management and mobile office services. Establishing enterprise information

management platforms (as shown in Figure 3-8) will support functionality including

telecommuting, information sharing and video conferences, upgrading and reforming

energy and transportation enterprise information management systems, improving their

management efficiency.

Enterprise information

platform

SAP

Mail

ERP

OA

Space

Meeting

Figure 3-8 Enterprise Information Management Platform

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ETI Integration

3.3.5 Industry Integration

Industry integration will be realized, through the collaborative innovation at the paradigm

layer, including eliminating industry barriers, thereby creating new business models,

new modes and new industries to build an industrial ecosphere of ETI Integration. The

emphasis is placed on promoting industrial forms such as “energy + transportation”,

“energy + information”, “transportation + information”, and “energy + transportation +

information”, and boosting emerging industries such as smart energy, smart transportation

and big data.

“Energy + transportation” industry

1

The integration of the energy and transportation networks will promote the transitioning

of transportation energy consumption towards electricity and hydrogen. Broad adoption

of electric and hydrogen-powered transportation will bring about profound changes in

the development of automobile, train, ship and aircraft manufacturing, as well as the

electric motor, energy storage, vehicle control and other up and downstream industries.

Meanwhile, the construction of facilities, including highway PV power generation stations

and wireless charging stations for vehicles, will promote the development of the PV and

wireless charging industries.

“Energy + information” industry

2

The integration of energy and information networks will accelerate the deep integration

of the information and energy and electricity production industries, prompting the

emergence of major new business models including energy big data, virtual power

plants, demand-side management and integrated energy services. Meanwhile, it will also

drive the digital and intelligent development of energy network-related devices, advance

innovation in smart substations, meters, home appliances and other smart devices, and

promote major changes in the traditional electrical equipment manufacturing industry.

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“Transportation + information” industry

3

The integration of transportation and information networks will transition both vehicles and

road networks in the direction of informationalization and intelligence. As technologies

such as automatic navigation, driverless technology and IoV have matured, new business

models, including smart logistics, unmanned delivery, intelligent warehousing, ride-

hailing and car sharing have constantly emerged, expanding markets and promoting the

intelligent development of the traditional transportation and logistics industries.

“Energy + transportation + information” industry

4

ETI Integration will promote efficient industrial coordination and cross-sector integration.

Large-scale construction of new equipment and facilities such as smart street lamps,

charging piles, integrated multi-stations, and urban utility tunnels will transform the

structures of the ETI networks and traditional models of industrial development, forming an

integrated industrial ecosystem centered around clean electricity, electric transportation

and information.

Multi-flow efficient coordination will maximize the ETI networks’ value creation.

The efficiency of the flows of power, personnel/materials and information determines the

efficiency of an ETI networks’ value creation. The integration of energy, infrastructure,

data, operations and industries at the power, physical, data, application and paradigm

layers will drive the integration of flows of energy, personnel/materials and information

(see Figure 3-9), improving factor distribution and resources utilization, promoting the

efficient coordination of ETI network operations and cross-sector integration, driving ETI

networks’ cross-border value flows, thereby forming value networks featuring coordinated

innovation, openness and sharing, and win-win cooperation. This will greatly expand ETI

networks’ value creation, maximizing their potential.

Information

ﬂow

Information

ﬂow

Information

ﬂow

Information

ﬂow

Value ﬂow

Personnel/

materials ﬂow

Energy ﬂow

Personnel/

materials ﬂow

Figure 3-9 Coordination of Energy, People/Materials, Information and Value Flows

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ETI Integration

3.4 Driving Forces of ETI Integration

ETI Integration is an irresistible socio-economic development trend driven by reform,

innovation, efficiency and policy, as shown in Figure 3-10.

Technical

innovation

Energy reform

Innovation

Model innovation

Reform

Financial

Economic transition

innovation

Information

network

Energy

network

Transportation

network

Input-output

efficiency

Economic

environmental policies

Efficiency

Policy

Systems’

Industry

operational efficiency

integration policy

Figure 3-10 Driving Forces of ETI Integration

3.4.1 Reform

Network infrastructure is substantially affected by major changes. Specifically, the

transition to clean energy and digital economy requires better development of the ETI

networks. Viewed objectively, in order to achieve clean replacement in energy production

and electricity replacement in energy consumption, a deeper integration of ETI networks

in energy use is necessary. Digital reform will promote ETI networks’ data sharing and

industry integration, expediting their trend towards digitalization, and boosting the

development of the digital economy and the network economy.

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Energy reform

1

The world is witnessing an accelerating new round of energy reform, in which the energy

system shifts from one dominated by fossil fuels to one dominated by clean energy. It

is an objective fact that green and low-carbon energy reform requires the integrated

development of ETI networks.

Clean energy, as represented by solar power, wind power and

hydropower, is predicted to account for 74% of primary energy

consumption by 2050. The development and utilization of clean

energy in a safe, efficient and cost-effective manner will necessitate

the large-scale application of advanced information technologies

including big data, cloud computing and artificial intelligence in

energy systems. In this sense, deeper integration of information

and energy networks strongly supports energy reform.

Energy

production

Accelerated electricity replacement in the transportation sector will

facilitate the on-going electrification of transportation. The world

fleet of electric vehicles is expected to number 250 million by

2030^A. Since they combine the attributes of energy, information and

transportation, the development of electric vehicles will inevitably

promote ETI Integration.

Energy

consumption

Economic transition

2

Mankind is steering towards a digital age. During this process, the global economy is

rapidly transforming and upgrading into digital economy. ETI networks, an important part

of network infrastructure, are fundamental to the digital economy. As the digital economy

increasingly replaces the traditional economy, ETI networks will face new opportunities

in cross-sector development, creating new business models and paradigms including

smart energy, smart travel, IoV, and unmanned driving. This will catalyze the cross-sector

development of ETI networks, foster a digital industrial ecosystem, and enable great scale

effect, network effect and spillover effect, thus creating a new pattern of “1+1>2” economic

development, and furthering the high-quality development of the global economy.

Source: IEA.

A

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ETI Integration

3.4.2 Innovation

Innovation is the core driving force of ETI Integration, mainly reflecting in technology,

business models and finance. The first of these is ETI Integration’s major driving force. The

second speeds up operation integration under ETI networks. The third provides financial

support for the development of ETI Integration.

Technological innovation

1

Technological innovation is the driving force for the development of productivity and

social progress. Energy, transportation and information are pillars of the economy and the

frontiers of technological innovation. The trend towards ETI Integration which has emerged

has been driven by technological advances. Cutting-edge and crossover technologies

of ETI networks, such as energy storage, power router, unmanned driving, IoV, big data,

cloud computing, IoT, mobile Internet, AI, and block chain, continue to advance and

innovate, providing important support for the continued development of ETI Integration.

For example, energy storage technology accelerates the development of electrified

transportation, and contributes to reducing the impact of clean energy and electric

vehicles on power grids, and accelerating the coupling of energy and transportation

networks at the power layer. Power routing technology, which integrates information and

power electronics, provides plug-and-play intelligent interfaces for distributed power

supplies, energy storage devices and loads, enabling multi-directional power flow and

active control, and promoting the integration of energy and information networks in

the physical layer. IoV and unmanned driving technologies, which integrate IoT and

vehicle control technologies, permit the coordination of people, vehicles and roads,

hugely improving the level of intelligence in transportation, and promoting the integration

of transportation and information networks in the application layer. The application of

information technology such as big data and cloud computing creates a wide-coverage

big data platform with various functions, promoting the integration of the ETI networks in

the data layer.

Model innovation

2

Innovation in internet business models such as platform models, community models,

cross-sector models and sharing models can promote the integrated development

of energy and transportation in products, channels and services, etc. For example,

a platform model involves the energy service platform, the electric vehicle charging

platform, the IoV platform and online ride-hailing platform. The community model

involves the distributed power user community, the demand response user community,

the electric vehicle user community and the information network’s community. The cross-

sector model involves comprehensive energy service providers, and electric vehicle

Vehicle-to-Grid (V2G) services. The sharing model involves shared energy and shared

cars. Integrated innovation in operations will also accelerate the integration of energy and

transportation infrastructure and data, creating novel integrated industries.

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Financial innovation

3

ETI networks are characterized by large-scale investment and long construction periods.

Innovation in investment and financing such as industry chain finance, internet finance

and green finance have attracted increased social capital into ETI network development,

providing financial support for the integrated development of ETI networks.

Industry chain finance connects up and downstream enterprises,

helping to reduce financing costs, and promote the coordinated

development of energy, transportation and information industries.

For example, establishment of a joint ETI network investment

fund can establish a community of shared interests, effectively

promoting the coordinated and interactive development of ETI

networks and sharing the benefits between all parties.

Industry

chain

ﬁnance

Internet finance will contribute to expanding the investment and

financing channels of ETI networks. In particular, the application

of digital currency and blockchain technology will help build more

open and transparent financial systems, reducing investment

and financing costs and risks, facilitating global investment and

cross-border trade, and playing a significant role in accelerating

the transnational and trans-continental interconnection of ETI

networks.

Internet

ﬁnance

Green finance provides financial services for investment

and financing in such fields as energy conservation and

environmental protection, clean energy, green transportation

and green construction. Since the beginning of this century,

innovative financial products such as green credit, green

bonds and green funds have been continuously emerging. For

example, China’s green credit accounts for 10% of the country’s

loan balances, making it the world’s largest green bond market,

with ETI Integration under green financial support. The innovative

development of global green finance will provide sufficient

financial support for ETI Integration.

Green

ﬁnance

3.4.3ꢀ Efﬁciency

The ETI networks have a key bearing on the socio-economic development. The

improvements in the efficiency of economic development requiring accelerated ETI

Integration, will permit generation of greater economic benefit with fewer factor inputs

such as labor, finance, land and resources, and lower operating costs.

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ETI Integration

ꢀꢀInput-outputꢀefﬁciency

1

ETI networks, as critical infrastructure, require large amounts of land, space, conduits,

manpower and finance for construction and operation. Their development also tends

to feature low efficiency and duplicated construction. Therefore, ETI networks must be

integrated and planned and operated on an overall basis, increasing their benefit, and

making for efficient and better development that spares labor, finance, land input and

other resources. For example, due to the lack of unified planning and management,

improper pipeline arrangement, and duplicated construction and excavation occur

during the construction of urban underground gas, heat distribution pipelines, power

pipelines and telecommunication lines. In such cases, efforts are necessary to promote

the coordinated planning and comprehensive utilization of infrastructure including utility

tunnels, so as to maximize the benefits of resource integration.

ꢀꢀSystemꢀoperationalꢀefﬁciency

2

The long-term independent development of ETI networks has led to resource wastage,

redundant construction, and low returns on investment. Therefore, with its merits in

promoting the sharing of facilities and resources, improving the efficiency of energy

utilization and flows of personnel/materials and information, as well as expanding the

scale and speed of factor distribution, ETI Integration is an objective need for high-quality

socio-economic development.

Firstly,ꢀitꢀimprovesꢀtheꢀefﬁciencyꢀofꢀenergyꢀutilization. In this regard, big data analysis

can improve predictions of clean power generation. Artificial intelligence and cloud

computing can improve power grid networks’ dispatching & scheduling, and operation.

The efficiency of electric vehicles is three times that of traditional gasoline vehicles.

Electrified transportation greatly improved the efficiency of end-use energy consumption,

significantly reducing energy consumption in the transportation and industrial sectors.

Secondly,ꢀitꢀimprovesꢀtheꢀefﬁciencyꢀofꢀtransportation. The extensive application of

information technology will promote improvements in the efficiency of transportation by

permitting comprehensive awareness, real-time dispatching & scheduling and optimal

coordination across the transportation network. For example, intermodal dispatching

& scheduling transportation platforms can promote the development of “three-

dimensional” transportation networks permitting multi-modal transportation. Intelligent

navigation technology will make urban traffic operation more efficient. Online ride-

hailing can make full use of idle vehicles, to achieve rational resource utilization.

Thirdly, it improves the efficiency of information processes. Through sharing

power lines and towers, information networks’ coverage can be expanded, and their

transmission improved in terms of strength and efficiency. Meanwhile, the massive

servers and smart terminals used in the energy and transportation networks can also

be used for cloud computing and storage, improve those capabilities.

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3.4.4 Policy

The ETI networks, an important part of national infrastructure, are susceptible to

adjustments in strategies, plans, and policies. Countries around the world have introduced

plans and policies to promote carbon emission reduction and digital economy, and

accelerate industry integration, which provide guidance and guarantees for all parties

to participate in promoting ETI Integration, and will bolster the development of ETI

Integration.

Economic and environmental policies

1

In order to address global challenges such as climate change and environmental

pollution, and to promote the world economy’s high-quality and sustainable development,

the United Nations and other governments have introduced a series of plans and policies.

Carbon emission reduction policies

The United Nations has actively urged all countries to jointly tackle climate change.

By now, 197 countries have ratified the Paris Agreement, ushering in a new era

of global cooperation towards this end. Some countries have also set their own

emission reduction targets. The EU has set the goal of reducing emissions to less

than half of 1990 levels by 2030, and of achieving “carbon neutrality” by 2050. All

major countries, with the exception of Poland and Greece, have promised not to

build new coal-fired power plants after 2020. Spain, France and the UK also plan

to close down their coal-fired power plants in 2020, 2021 and 2025, respectively.

China has succeeded earlier than planned in achieving its goal of reducing carbon

emissions by 40-45% in 2020 compared to 2005. The Chinese government also

recently proposed to scale up its NDC, aiming to have CO₂emissions peak by 2030

and achieve carbon neutrality by 2060. In its Intended Nationally Determined

Contribution (INDC) document, Japan set a target of reducing greenhouse gas

emissions by 26% compared to 2013 before 2030, clarifying that it would accelerate

this process using energy-saving technologies, renewable energy, and through

improved energy efficiency in thermal power production.

Digital economy development strategies

Countries attach great importance to the digital economy and many have issued

relevant strategic plans. In 2018, the US issued the Strategic Plan for Data Science,

U.S. National Cyber Strategy and Strategy for American Leadership in Advanced

Manufacturing, clearly signaling support for the development of digital infrastructure

in order to advance intelligent manufacturing and the digital economy. The EU has

released several strategies, including the i2010 Strategy and the AI Strategy, since

2010, emphasizing the deep economic integration of digital technology, in order

to promote the development of the digital economy in the EU. Japan released the

i-Japan Strategy 2015 in 2009, and the White Paper on Manufacturing Industries,

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ETI Integration

Comprehensive Innovation Strategy and Integrated Innovation Strategy in 2018,

detailing action plans for advancing the digital economy, and Japan’s development

goals and strategic measures for the construction of information infrastructure.

In 2015, China released the Guiding Opinions of the State Council on Actively

Promoting the Internet Plus Action Plan, aiming to speed up the Internet’s innovative

development and deep integration with other sectors, in order to establish a new,

broader pattern of socio-economic development featuring adoption of the Internet

as both infrastructure and a factor in innovation.

Industry integration policy

2

Countries around the world have introduced smart energy, intelligent transportation,

electric vehicle, hydrogen-powered transportation and digital infrastructure plans and

policies in order to accelerate the integration of the energy, transportation and information

industries.

Policies concerning integration of energy and information

The US Department of Energy released plans including A Vision for the Smart

Grid and Grid 2030 to advance smart grids. In the EU, the UK has developed the

Smart Grid Roadmap 2050 to support research into and demonstrate smart grid

technologies. The Federal Ministry for Economic Affairs and Energy, Germany, is

supporting research for a major “E-Energy” project to strengthen the application

of information and communication technologies (ICT) in energy networks. The

Japanese government released plans such as the Next Generation Energy and

Community System Development Plan and the Medium- and Long-term Plan for

Japan’s Smart Grid to promote the research and development and application of

technologies such as smart electricity, power routing and energy storage. China

issued the Guiding Opinions on “Internet+” Smart Energy Development to promote

the deep integration of the Internet with the energy industry, advance smart energy

and pursue a green, low-carbon, and smart energy development path.

Policies concerning integration of transportation and information

In 2020, the US Department of Transportation issued the Intelligent Transportation

System Strategic Plan 2020-2025, defining goals for accelerating the application

of intelligent transportation systems and transforming social functioning, and

proposing a development strategy for moving from isolated breakthroughs, such

as self-driving vehicles and intelligent networks, to more comprehensive emerging

technology innovation. The EU adopted the European Strategy on Cooperative

Intelligent Transport Systems (ITS) in 2016, aiming to develop ITS in EU countries

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to achieve “smart communication” between vehicles, and between vehicles and

roads. In 2019, Japan issued the Declaration to be [sic] the World’s Most Advanced

IT Nation, prioritizing digital and intelligent transportation. The White Paper on

Transport, issued in 2020, proposed a specific direction for the development of

intelligent transportation.

Policies concerning integration of energy and transportation

Hydrogen energy development program. The US has long included hydrogen

energy in its energy strategy and has consistently supported its development. The

Bush administration released a blueprint for the hydrogen economy, the Obama

administration’s Comprehensive Energy Strategy identified the leading role of hydrogen

in transportation transformation, and the Trump administration has identified hydrogen

energy as a strategic priority for the US. TheEU Hydrogen Strategy, released by the EU

in July 2020, includes plans to invest 575 billion Euros in the hydrogen energy industry

over the next decade, funds mainly earmarked for construction of hydrogen energy

infrastructure, and tax incentives and financial subsidies for related enterprises. The

Japanese government’s Basic Hydrogen Strategy issued in 2017 includes the goal of

commercializing hydrogen power generation by 2030. In the Strategy for Developing

Hydrogen and Fuel-Cell Technologies, released October 2019, support for 10 projects

in three technical fields (fuel cells, the hydrogen supply chain and electrolysis) was

prioritized. The Chinese government is also actively promoting hydrogen energy, and

intends to formulate a national strategic plan for the development of the hydrogen

energy industry exploring a new model for the deep integration of new energy vehicles

with energy, transportation and information, in 2020.

Subsidies for NEVs. The US launched the “Freedom CAR” program in 2002,

offering a 7,000 US dollar tax credit for purchases of electric vehicles. In 2005, the

National Energy Policy Act was revised to encourage use of clean energy among

automakers, via tax breaks and other incentives. In 2009, the American Recovery

and Reinvestment Act authorized 14 billion US dollars of spending in support of

electric vehicles. EU countries too have introduced policies to support electric

vehicles. Germany released an action plan providing two billion Euros of research

and development subsidies for electric vehicles in May 2011. The Department

for Transport of the UK has provided 250 million British pounds in subsidies to

promote electric vehicles, while the French government has spent 400 million Euros

to this end. The Japanese government has included technological development

of new energy vehicles as a core module in its 2030 National Energy Plan and

other documents. Since 2009, China has gradually established a policy system

for the demonstration and promotion of new energy vehicles, and has issued nine

policy documents with important milestones. In particular, in 2009, the Chinese

government established a system of subsidies for model new energy vehicles and

for their promotion. In 2012, the State Council issued the China Energy-Saving and

New Energy Vehicles Industry Development Program (2012-2020).

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ETI Integration

Supporting policies for charging facilities. The US set out tax rebates for

the installation of charging facilities in its Economic Stimulus Act of 2008, and

included a 30% subsidy in 2013. The UK government provided 30 million pounds’

subsidies for charging stations to be built in eight cities. The Japanese government

has mainly provided subsidies, at rates of up to 50%, for public fast charging

facilities. The Chinese government attaches great importance to the charging pile

industry, and issued the Guidance on Accelerating the Construction of Electric

Vehicle Charging Infrastructure in September 2015 to establish a top-level design

framework for China’s charging infrastructure. The 2020 Chinese government work

report classified charging stations as “new infrastructure”, moving charging station

development up a gear.

Policies concerning ETI Integration

In 2018, the EU published its Strategic Energy Technology Plan, which focused

research and innovation priorities on four core areas: renewable energy, intelligent

energy systems, energy efficiency and sustainable transport. In 2020, China’s

Ministry of Transport issued the Guidance Opinions on Promoting the Construction

of New Infrastructure in the Transport Sector, which aimed to promote the integrated

development of transport infrastructure, transport service, energy and information

networks, in order to realize the digital transformation and intelligent upgrading of

transport infrastructure, and to build a new convenient, cost-effective and efficient

transport infrastructure that is green and intensive, intelligent and advanced, and

safe and reliable.

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3.5 Summary

●

ꢀ ETI networks have undergone rapid development, which has profoundly

changed their form and function, constantly increasing their level of connection

and deepening the connections between them, with continuous improvements in

their efficiency and quality. They are progressing towards broad interconnectivity,

overall coordination, high intelligence, greenness and low-carbon, and economical

efficiency, and are delivering increasingly visible overall economic, social and

environmental benefits.

●

ꢀ The term “ETI Integration” refers to the transition from relatively independent

development to the integrated, shared and coordinated development of the ETI

networks, thereby assisting the realization of in-depth coupling in term of form and

functions, in order to form a new comprehensive infrastructure system that is widely

interconnected, intelligent, efficient, clean, low-carbon, open and shared, which will

bring about effective coordination and value enhancement of energy, personnel/

material, and information flows. ETI Integration is a development model with

stronger capabilities in allocating resource, driving industries, and creating value,

and represents an advanced form of infrastructure development.

●

ꢀ This book proposes a theoretical framework for ETI Integration including four

major driving forces, a five-layer structure and five major models of integration, thus

providing a theoretical basis for the development of ETI Integration.

Multi-ﬂow efﬁcient

coordination to multiply value

Five major models

of integration

Five-layer structure

Power

Physical

Data

Application Paradigm

Innovation

Four major driving forces

Reform

Policy

Efﬁciency

Figure 3-11 Theoretical Framework for ETI Integration

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ETI Integration

●

ꢀ Four major driving forces: Reform. The economic and social transition requires

reform on infrastructures, such as transition towards clean energy and digital

economy, which require accelerated ETI Integration. Innovation. Innovation

provides the fundamental driving force for the ETI Integration, and the focus is to

provide support for ETI Integration through technological, financial and business

model innovation. Efficiency. Efficiency is essential for high-quality economic

development. It requires the accelerated ETI Integration to generate greater

benefits with less investment and lower costs. Policy. Policy is necessary for

developing infrastructure at the national level. For example, national policies on

carbon emission reduction, digital economy, and industry integration will accelerate

the ETI Integration.

●

ꢀ Five-layer structure. Power layer: an energy system that keeps ETI networks

running, using energy sources including coal, oil, gas, electricity and hydrogen.

Physical layer: the collection of devices and facilities of all types used in ETI

networks, including power devices, oil and gas pipelines, transportation facilities,

fiber optic cables, base stations and storage and exchange devices. Data layer:

the collection of information and data related to an ETI network, including system,

enterprise, and user data. Application layer: the various operations and services

related to ETI networks, such as planning, construction, operation, marketing, and

management, as well as services including energy consumption, transport, and

information. Paradigm layer: the collection of ETI networks’ stakeholders (such

as government, enterprises and users), cooperation models (such as business

models), and mechanisms (such as market transactions).

●

ꢀ Fiveꢀmajorꢀmodelsꢀofꢀintegration:ꢀEnergy integration will be realized, through

the in-depth coupling at the power layer, including the coordination of the energy

supply and demand systems, and the optimization of energy structure. It thereby

enables safe and efficient access to clean energy. Infrastructure integration can be

realized, through the coordinated development at the physical layer, including the

sharing of utilities, hubs, devices and terminals, thus sparing land and space use,

and increasing returns on investment. Data integration will be achieved, through

the efficient integration at the data layer, including promoting cross-platform

data sharing and building a big data platform for ETI networks, thus eliminating

isolated information islands, magnifying the value of data, and creating greater

benefits. Operation integration will be realized, through the in-depth integration at

the application layer, including promoting the optimized operation and innovated

services of ETI networks, thereby improving the efficiency of enterprise operation

and user services. Industry integration will be realized, through the collaborative

innovation at the paradigm layer, including breaking industry barriers, thereby

creating new business models, new modes and new industries to build an industrial

ecosphere of ETI Integration.

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Paradigms and Development

Paths of ETI Integration

4

ETI Integration

ETI Integration is a cross-industry and cross-field system, covering land,

sea, air and space, forming a multidimensional, efficient, interconnected,

intelligent and interactive infrastructure network. ETI Integration may unfold

by a variety of forms. Under each of its forms exist diversified scenarios

and practical applications in integration; and as new stages of development

open up, even more scenarios and applications are springing up. This

diversity has great value for the sharing of infrastructure resources and

overall levels of economic and social development. ETI Integration can be

developed along three tracks—i.e. the urban, national and transnational—to

greatly promote sustainable socio-economic development and enhance the

well-being of human beings.

4.1ꢀ MajorꢀParadigmsꢀofꢀETIꢀIntegration

The four major paradigms of ETI Integration are: “energy network + transportation network +

information network”; “energy network + transportation network”; “energy network +

information network”; and “transportation network + information network”. Figure 4-1 and

Table 4-1 each present the existing, emerging, and conceived scenarios and applications

under each of the four paradigms.

The “energy network + transportation network + information network” paradigm consists

of “power +” integrated service platforms, ETI Integration sea-air hubs, integrated urban

utility tunnels, multi-station integration, and shared posts and towers. Among these, sea-

air hubs and shared posts and towers respectively include smart islands and smart space

stations, and smart street lighting and shared transmission towers. The abovementioned

integration scenarios and applications will greatly expand ETI Integration’s development

space and promote the overall progress of human society.

The “energy network + information network” paradigm consists of scenarios including

smart grids, PLC, electro-optical fiber, and green energy data centers. Smart grids also

include applications like virtual power plants, smart substations, and smart meters. These

scenarios and applications reflect a deeply integrated information technology and energy

system, which will greatly improve the overall efficiency of each system while making

energy smarter, safer, friendlier, and more economical.

The “energy network + transportation network” paradigm consists of such scenarios

as electric transportation, hydrogen-powered transportation, and PV highways. Electric

transportation and hydrogen-powered transportation respectively include applications like

EVs, electrified railways, electric ships, electric aircraft, and electrified spaceflight as well

as hydrogen-powered trucks, hydrogen-powered trains, and hydrogen-powered ships.

These scenarios and applications are not only the objective requirements of green, low-

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Paradigms and Development Paths of ETI Integration

carbon development; they are also necessities of the imminent transportation revolution

and energy transition.

The “transportation network + information network” paradigm primarily consists of

scenarios and applications for smart transportation—including the Internet of Vehicles,

unmanned driving, and smart logistics. The deep integration of information technology

and the transportation system will profoundly change how people move from place to

place while making such movement safer, smarter, and more efficient.

ETI Integration Applications &

Paradigms

Information

Network

“Power +”

Integrated Service

Platform

Hydrogen-powered

Transportation

Electric

Transportation

Smart Space

Station

Smart Grid

Electro-Optical Fiber

Smart Transportation Internet of Vehicles

Smart Island

Urban integrated

utility tunnel

Multi-station

Integration

Smart

Street Lighting

Green energy

data center

PV Highways

PLC

Smart Logistics

Unmanned Driving

Figure 4-1 Applications and Typical Cases of ETI Integration

Table 4-1 Scenarios, Practices and paradigms of ETI Integration

Integration

paradigms

Major integration

Integration scenarios

Urban integrated utility tunnel

Multi-station integration

Smart street lighting

Integration practices

paradigms

Energy integration

+

Infrastructure integration

Shared posts & towers

Energy network

+

Shared transmission

towers

Transportation

network

+

Information

network

“Power +” integrated service platform

Energy integration

+

Infrastructure integration

Smart island

+

Data integration

Sea-air hub

+

Operation integration

+

Smart space station

Sector integration

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ETI Integration

continued

Major integration

Integration

paradigms

Integration scenarios

Smart grid

Integration practices

paradigms

Data integration

Virtual power plant

Smart substation

Smart meter

PLC

+

Operation integration

+

Sector integration

Energy network

+

Information

network

Infrastructure integration

+

Power information fusion

Data integration

+

VLC

Electro-optical fiber

Sector integration

Green energy data center

Infrastructure integration

Electric vehicles

Electrified railways

Electric ships

Electric transportation

Energy integration

Electric aircraft

Energy network

+

Transportation

network

+

Infrastructure integration

+

Electrified spaceflight

Hydrogen-powered trucks

Hydrogen-powered trains

Hydrogen-powered ships

Sector integration

Hydrogen-powered

transportation

PV highways

Infrastructure integration

Internet of Vehicles

Unmanned driving

Transportation

network

+

Data integration

Smart transportation

+

Information

network

Operation integration

+

Sector integration

Smart logistics

4.2 Application Scenarios of ETI Integration

A great variety of ETI Integration scenarios are currently developing at rapid pace, with

new scenarios and applications emerging along the way. The sheer richness of scenarios

and applications being generated will advance human society into a new era of ETI

Integration development.

4.2.1 Integrated Urban Utility Tunnel

The integrated urban utility tunnel makes for a centralized pipeline layout covering

transportation, electricity, communication, heating, refrigeration, water and gas supply,

guaranteeing more efficient urban operation, as shown in Figure 4-2.

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Paradigms and Development Paths of ETI Integration

Figure 4-2 Integrated Utility Tunnel

The integrated or “common” urban utility tunnel originated in the European cities of

Hamburg, London and Paris. In the 19th century, France began to build utility tunnels

combined for heating pipes, tap water pipes, power cables, telecommunication cables

and gas pipes. London has built 22 such utility tunnels, and Paris has built common

utility tunnels stretching over 100 kilometers. After continuous exploration, China has

successively built numerous projects since the beginning of the 21st century. By the end

of 2015, China had completed or was constructing integrated utility tunnels totaling 1600

kilometers in length.

Integrated urban utility tunnels have significant value to urban construction in general.

Reducing urban land use. Containing compact and rationally arranged pipelines, utility

tunnels effectively utilize space under roadways to conserve urban space. Reducing

projectꢀcosts.ꢀUtility tunnels significantly reduce the cost of road surface construction.

By maintaining the integrity of the road surface and the durability of various pipelines,

they also reduce the need for (and thus cost of) road work and pipeline maintenance.

Beautifying the urban landscape. Utility tunnels help get around the inconveniences that

traditional pipeline installation or repair by excavation brings, such as traffic interference

and constraints on local travel. At the same time, they help maintain the integrity and

aesthetic of urban roads, even reducing the number of utility posts and inspection wells

for a truly beautiful urban landscape.

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ETI Integration

4.2.2 Multi-station Integration

Multi-station integration means the integrated construction, operation and maintenance

of energy network hub substations, transportation network hub charging stations, and

information network hub data stations, etc. Multi-station integration is about building

energy, information, and transportation-related infrastructure and system platforms—

including substations, 5G base stations, communication satellite foundation enhancement

stations and electric vehicle charging stations, as well as distributed new energy power

generation stations and environmental monitoring stations, as shown in Figure 4-3.

Stock station

container data center

Internal data hub

Edge nodes such as box

Communications

5G base station

transformers and courts satellite ground-based

augmentation station

Enclosure

Energy storage

container

Uninterruptible Power Supply (UPS)

Charging pile

Figure 4-3 Overview of Multi-Station Integration

The current stage of multi-station integration is being guided by the intensive construction

and operation of substations and 5G base stations. Starting with the deployment of 5G,

edge data center construction will gradually be introduced to promote the development

of the entire industry chain in energy and information communications, including chip

development, equipment manufacturing, operation and maintenance. In addition, the

5G base stations and edge data centers’ wide coverage, low latency, high bandwidth

communication network with instant-response edge computing capabilities will support

the application requirements of emerging intelligent services. With the development

and perfection of the core basic business system, a variety of stations—environmental

monitoring stations, BDS ground-based augmentation stations, energy storage stations,

distributed new energy power stations, and more—can be introduced to steadily embody

intensive, shared, innovative and integrated development capacities at both the regional

and urban level.

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4

Paradigms and Development Paths of ETI Integration

As shown in Figure 4-4, the integrated development and targeted operation of multiple

stations are conducted based on cloud computing, big data, the IoT, AI, blockchain and

other latest-generation information technology. These include substations, charging/

energy storage stations, edge data centers, 5G base stations, communications satellite

ground-based augmentation stations, distributed new energy power stations, and

environmental monitoring stations. Together they will provide diversified, interactive, and

customized services for energy users, communication users, power grid enterprises,

government, and other market entities.

IoT

Edge

An intelligent, networked, and data-intensive

new generation of information/communication

technologies

Blockchain

computing

AI

Big data

Unified planning, unified design

and characteristic construction

Unified planning, unified design

and characteristic construction

Substation

Charging

(energy

storage)

station

Distributed

new energy

station

d

Charging

Initial

Operation

Stage

Edge data hub

Substation

5G base

station

(energy

storage)

station

BDS

5G base

station

ground-based

augmentation

station

Edge

data hub

Mature operation

Initial Operation Stage

Figure 4-4 Mode of Operation for Multi-Station Integration

Combining facilities used for power, communication and other purposes, multi-station

integration will realize the optimal allocation of resources; multi-station services will then

create considerable value through crossover applications. Inꢀtheꢀﬁeldꢀofꢀenergy,ꢀmulti-

station integration advances the smart construction of distributed new energy power

stations and energy storage stations, which effectively reduces the rate of wind and

light curtailment. It will promote the consumption of new energy, increase revenue for

power generation enterprises, and reduce costs both for enterprises (in transforming and

expanding transmission and distribution networks) and for users (in power consumption)

for win-win results. Inꢀtheꢀinformationꢀﬁeld, the opening and sharing of power stations,

posts, towers and channels effectively coincides with the construction and distribution

needs of 5G base stations, communications satellite ground-based augmentation stations,

edge data centers, and other projects. Communication operator, tower company, and

other involved parties’ investments in information and communication infrastructure are all

effectively reduced by integration. Inꢀtheꢀﬁeldꢀofꢀtransportation, multi-station integration

175

ETI Integration

can add real momentum to the construction of EV charging piles and charging stations,

further promoting the traffic electrification. In addition, multi-station integration can reduce

costs for and increase the efficiency of government services by opening up a wide range

of stations, posts, towers and channels, as well as high-speed power communication

and data responses, as resources for meteorological, environmental protection, public

security, urban management and other public services.

Column 4-1 Multi-Station Integration in Hefei, China

In May 2020, Hefei Power Supply Company of the State Grid Corporation of

China, relying on existing substation and power grid resources, completed a multi-

station integration project combining stations for PV power, energy storage, 5G, EV

charging, data (see Figure 4-5), and battery-swapping stations, which generated

significant benefits in the efficient use of land resources, efficient operation of

energy systems, and reduced charging costs.

Figure 4-5 Data Center of Multi-Station Integration

In consideration of comprehensive green energy applications, the Hefei multi-

station integration project instituted a “microgrid system” consisting of a rooftop PV

power station, energy storage station and EV station—to name a few elements. The

88 kW PV power station, with an annual generation capacity of about 84 MWh, is

capable of powering the data center, 5G base, and other equipment in the power

station. Meanwhile, the station’s 1.34 MW energy storage capacity guarantees

a balanced, stable supply of power, effecting “peak-load shifting” by charging

overnight and supplying power during the day.

As for green transportation, Hefei’s multi-station integration project includes a pilot

station for “5G + orderly EV charging”. In Phase I of construction, 12 fast-charging

DC piles and eight AC charging piles were built, realizing intelligent “human-car-

pile-grid” connectivity via 5G network. Auto owners can directly identify idle charging

piles by mobile app. The system will intelligently analyze each situation to and provide

the best charging time and scheme, reducing charging costs by over 33%.

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Paradigms and Development Paths of ETI Integration

4.2.3 Shared Posts and Towers

Smart Street Lighting

1

Smart street lighting integrates smart lighting, network base stations, information

transmission, video surveillance, emergency calls, EV charging and other functions (as

shown in Figure 4-6). It is an important node in the development of ETI Integration.

Wind power module

Free software and app

Wireless network

Solar power module and

accumulator (switchable)

Built-in public WiFi hotspot

(for public network access)

Sensor

Wireless Bridge

Multi-purpose atmospheric reader

(temperature, humidity, wind

strength/direction, sunlight, air

quality, etc.)

Smart lighting

Information

release

Switching, dimming and

toning according to

sunlight/other conditions

Supports various multimedia

advertising or AR display

Video surveillance

RFID/Bluetooth

Third-party video surveillance

interfaces provided

Near-field communication

(RFID, Bluetooth, etc.)

Charging pile

Emergency calls

Charger for vehicles/

other equipment

Emergency calls and identifier

Electricity

Accurate electricity

consumption meter

Optical cable

Figure 4-6 Smart Street Lighting

Smart lighting: Smart street lighting realizes intelligent lighting control and functions. Its

principle of operation is depicted in Figure 4-7. First, time deviation values are calculated

for sunrise and sunset time according to the date and position (latitude and longitude).

Smart street lighting uses smart switches to provide lighting service according to real-time

traffic monitoring. In post-sunset rush hours, street lamps are adjusted to a brightness of

100% in consideration of the heavy traffic. As the flow of night traffic subsides, and there

are few vehicles or pedestrians about, street lamps adjust to 50% brightness and non-

continuous lighting, thereby reducing energy consumption.

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ETI Integration

On-off/dimming control

After sunset with heavy traffic:

100% brightness

Ȕ

Date/Time

Ȕ

Time deviation values for sunrise

and sunset time based on

longitude and latitude

Control/dimming plan

Data acquisition plan

Night, light traffic:

50% brightness

After midnight: 50% brightness,

non-continuous lighting

Figure 4-7 Smart Lighting System Operating Principle

EV charging: By integrating its functions with those of an AC/DC EV charging pile, smart

street lighting can also provide smart charging services for electric vehicles, while its

backstage management system can monitor each charging pile’s operation status and

find faults in real time for smarter energy services.

Network base stations: With the advent of 5G communication, 5G base stations

worldwide are seeing rapid accelerations in construction. Smart street lights are optimal

agents of 5G base construction, as they greatly reduce the cost and shorten the time

required for laying the 5G network. Smart street lights can also serve as WIFI bases to

provide urban residents with convenient high-speed Internet service.

Information release: Smart street lighting can incorporate a wide range of sensors

to read temperature, humidity, air quality, urban noise and other parameters, promptly

releasing these data on the urban platform and providing basic data for the meteorological

and the environmental bureaus to facilitate residential living.

Video surveillance: By installing equipment like CCTV cameras, smart street lights

contribute to omni-dimensional urban video surveillance coverage. This greatly improves

the scope and quality of surveillance without the foundational construction and investment

burdens of installing a new surveillance system, effectively protecting citizen’s personal

safety and property.

Emergency calls: Integrating the emergency alarm and call system, smart street

lighting is linked with the alarm platform 24 hours a day. With their built-in surveillance

functionality, smart street lights can efficiently identify the severity of an emergency as well

as the caller’s information, thereby improving police response times along with the overall

efficiency and quality of urban services.

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4

Paradigms and Development Paths of ETI Integration

More than 23 Chinese provinces and cities, including Beijing, Tianjin, Shanghai, Chengdu

and Changsha, have established pilot smart street lighting projects (as shown in Figure

4-8). The number of smart street lights purchased for each project ranges, however, from

several dozen to several hundred; by quantity alone, these projects are small in scale. The

current number of urban lampposts in China is approximately 29.35 million—nearly ten

times the number of national communication towers, so the market for smart street lighting

in China should expand rapidly in the future. From 2015 to 2019, China’s smart street

lighting market grew from 140 million to 1.96 billion yuan—at an average annual growth

rate of 93.4% (as shown in Figure 4-9). This figure is estimated to be 46% for 2020-2024,

for a 10 billion yuan market in 2024.^A

Figure 4-8 Status of Smart Street Lighting Construction in China

140

131.5

120

100

89.7

80

63.3

43.2

40

24.9

19.6

20

11.5

6.4

4.0

1.4

0

Year

Figure 4-9 Growth of China’s Smart Street Lighting Market

Source: LeadLeo Research Institute, Overview of China’s Smart Street Lighting Industry 2020.

A

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ETI Integration

Shared Transmission Towers

2

Sharing towers refers to installing communication equipment on existing power

transmission towers. By attaching optical cables, communication base stations and

mobile antennae to power transmission towers, construction costs can be reduced

greatly, the construction period for information/communication stations shortened, and the

expansion of network applications like 5G propelled forward, as shown in Figure 4-10.

Figure 4-10 An Integrated Electric Tower/5G Base Station

On April 2, 2018, China Tower signed separate strategic cooperation agreements with

State Grid Corporation of China (the State Grid) and China Southern Power Grid to

commence cooperation on shared transmission towers and promote facility sharing

between the power and communication industries. As of now, China Tower has

cooperated on shared transmission towers with 24 provincial branches of the State Grid

or China Southern Power Grid in Fujian, Hubei, Chongqing, Beijing, Jiangsu, Hebei,

Guangdong, Hainan, Yunnan and Guizhou.

The integration of electric towers and 5G communication base stations is currently one

of the most intuitive and economical modes of energy-information network integration.

The average construction cost of a communication tower is about 200,000 yuan per

base station. The total cost of a shared tower, on the other hand, including survey and

design, accessory/tower materials and processing and transportation, installation of

communication antenna on tower, is only 37,000 yuan per base station. Thus when

utilizing a shared tower, installing a 5G base station can save 163,000 yuan per base

station, more than 80% of the total construction costs. In addition, while the construction

period for a new communication tower is usually more than 50 days, it takes less than

three days to install a 5G communication base station on a shared tower, a shortening of

the installation period by more than 90%.

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Paradigms and Development Paths of ETI Integration

4.2.4 Smart Grid

The smart grid integrates modern sensing, information, communication, control and other

technologies with the grid, promotes efficient access to clean energy and compatible

interactions among power source-grid-load-storage-consumption, realizes smart,

automated grid operation, and greatly improves energy system efficiency and the

safety of supply, as shown in Figure 4-11. Typical applications of the smart grid include

virtual power plants, smart substations and smart meter terminals, which can effectively

reduce pollutants and greenhouse gas emissions, reduce energy use costs and improve

investment efficiency. China has built a strong smart grid network with UHV grid as the

backbone and featuring coordinated development of power grids at all levels, including

more than 5,000 smart substations and more than 500 million smart meters.

Smart Grid

Figure 4-11 The Structure of Smart Grid

Virtual Power Plant

1

A virtual power plant is essentially an intelligent power source management system.

As shown in Figure 4-12, through advanced information communication technology,

virtual power plants (VPP) can aggregate a variety of energy systems such as distributed

generation, energy storage, controllable load, and electric vehicles, while also serving as

special power plants in the power market and power grid operation. Virtual power plants

can amass all kinds of energies without reforming the power grid and provide quick-

response auxiliary services. They have become an effective way for distributed energy

sources to join the power market, and to effectively reduce the market risks that island

mode operation faces for distributed energy sources like wind and PV. At the same time,

VPPs’ coordinated control optimization and the visual management of distributed energy

take full advantage of peak-load shift functionality, effectively mitigating the difficulty of

dispatching clean power and improving the overall operation stability of the power system.

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ETI Integration

Biomass power plant

Hydropower plant

Wind farm

Solar power plant

Power grid

Control centre

Wind farm

Demand

forecast

Production

forecast

Power price

forecast

Figure 4-12 Virtual Power Plant

A number of countries have already demonstrated or applied virtual power plants. In

Japan’s 2015 “Japan Revitalization Strategy”, plans to promote virtual power plants were

announced for the first time; in April 2016, Japan further proposed a demonstration project

(2016-2020) in its “Innovative Energy Strategy” to promote the technological development

of virtual power plants. Government subsidies for the plan have been increased from 2.65

billion yen (2016) to 7 billion yen (2020). Germany updated operating requirements for

its power transmission system in 2018, enabling small distributed energy systems of 25

kW (e.g. domestic batteries, heat pumps, EV charging piles) to connect to the Sonnen

virtual power plant platform via a virtual private network (VPN) for the improved efficiency

and effectiveness of the distributed energy system. China’s first VPP demonstration

project (North Hebei VPP demonstration project) was put into operation in December

2019. This plant realizes the aggregation and optimization of available resources as

“power-grid-load-storage-sale-service” and realizes flexible power grid interactions by

control technology and communication technology support. This has effectively improved

northern Hebei Province’s load control and clean energy absorption capacities.

Columnꢀ4-2ꢀ NorthꢀHebeiꢀVPPꢀDemonstrationꢀProject,ꢀChina

In December 2019, the State Grid’s North Hebei virtual power plant demonstration

project was operationalized (as shown in Figure 4-13). The project makes

coordinated and optimized operation possible for distributed energy sources and

is able to respond to valley load regulation demands in real time, quickly adjusting

valley load to promote new energy consumption, increase user benefits and reduce

investments in construction.

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Paradigms and Development Paths of ETI Integration

Centralized power sources

(thermal, hydro and nuclear

power, fuel gas and centralized

renewable energy)

Electricity

retailer

The VPP participates in

power market process

Š Electricity

retailers participate

in market quotes

Ť The VPP participates

in wholesale market

settlement

VPP agglomeration

šTransaction

clearing

Wholesale

market

Trade Center

Š The VPP

Participation in

market quotation

Ţ The VPP receives

market orders

participates in

market quotes

Market clearing

VPP Operator

ţ VPP aggregates internal ť VPP settles

A market order

is given

ş VPP aggregates

distributed energy

resources

Retail

market

resources and follows

market orders

accounts with internal

resources

The VPP acts

accordingly

Distributed energy sources such

as energy storage, distributed

generation and industrial load

Participation in

market clearing

Figureꢀ4-13ꢀ NorthꢀHebeiꢀVPPꢀDemonstrationꢀProject

Northern Hebei Province is rich in clean energy resources. As of December 2019,

the clean energy-based installed capacity of the northern Hebei power grid reached

20.14 GW, for which clean energy consumption had become a key component.

The demonstration virtual power plant opened a new door for clean energy

consumption in northern Hebei. With wind power, for example, on winter nights, the

power grid is at low-load, though it is the peak period for wind power generation. By

aggregating various types of distributed resources in a virtual power plant, tracking

peak regulation demand, and dispatching instructions in real time, the valley load

of the power grid can be effectively enhanced to make “load changes according to

wind and source”. This function effectively reduces wind curtailment and generation

limits resulting from peak regulation issues and overall improves wind power

generation. At the same time, the virtual power plant gathers available ubiquitous

resources for real-time response to valley load regulation demand, resolving tough

issues like grid peak-shaving contradictions during the heating supply season.

By utilizing VPP technology, the air conditioning load on the North Hebei Power Grid in

2020 will reach 6 GW in summer; 10% of that load will be met with real-time response

through the virtual power plant, which is equivalent to the work of a 600 MW traditional

power plant; the maximum “coal to electricity” load will be 2 GW. Later in the year, the

electric heating load will be likewise be answered to in real time through the virtual

power plant. An expected additional output of 0.72 TWh of clean electricity will reduce

CO₂emissions by 636,500 tonnes. Clearly, the social benefits of the VPP are significant.

Smart Substation

2

A smart substation is an advanced management mode of electrical substation operation.

With the benefits of information communication and automatic control technology, on-duty

operators can obtain relevant information and conduct intelligent equipment operations &

management all from a distance. The smart substation has three main traits: intelligence,

interconnection, and automation.

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ETI Integration

“Intelligence” refers to the intelligence of primary equipment. Primary equipment—

transformers, circuit breakers, disconnectors, grounding switches, and reactive power

compensation from signal relay to control loop—are have microprocessor (intelligent

switch) and photoelectric technology (passive optical CT) designs, and traditional wire

connections are replaced by a digital signal transmission network. In other words, the

substation’s secondary circuit’s conventional relays (including logic loops), as well as

the conventional strong current analog signals and control cables, are all replaced by a

digital photic/electric network to realize digital measurement, networked control, status

visualization, information interaction and functional integration.

“Interconnection” refers to the networking of secondary equipment. In order to realize

such functions as relay protection, misoperation-preventive locking, measurement control,

fault recording, voltage quality control, and simultaneous operation, traditional substations’

secondary equipment has to establish a one-to-one cable or network connection to

link functional devices. In a smart substation, however, almost all secondary device

connections are via high-speed network. That is, traditional substation cable connections

are replaced by network links. This is more than a mere change in transmission medium

or form, however. Unlike the cable loop mode’s point-to-point device connection, in the

smart substation there is no direct physical connection between smart electronic devices;

instead, exchangers are used to realize intensive data collection and transmission. That is,

the data sent by each connected device is transmitted to the entire network via exchanger,

and vice versa, the data from other networked devices is received via exchanger.

“Automation” refers to the automation of monitoring equipment. The substation

monitoring system is composed of a monitoring host, an operator station, a data

communication gateway and an integrated application server. As shown in Figure 4-14,

the power grid’s operation information and secondary equipment’s status information

are acquired directly in the station, after which it communicates with transmission and

transformation equipment through standardized interfaces on state monitoring, auxiliary

applications, metering, and so on. Thus are substation functions such as panoramic data

acquisition, processing, monitoring, control and operation management realized.

Other master

station systems

Dispatch/Control Center

Dispatch end

Vertical encryption authenticated device

Station end

Zone III/IV Data

Communication

Gateway

Zone II Data

Zone I Data

Communication Gateway

Plan

Management application

Terminal server

Integrated

Time

synchronization Network Engineer

device printer Workstation Workstation

Operato Monitoring

host

PMU data

concentrator

Data server

Secure Files

Gateway

Positive and reverse

isolators

Firewall

To the video

master station

To the metering

master station

Fault

Recording

Control/PMU Protection Stability control

Online

Video

Power Measurement

supplies

Fire protection/

security/lighting

environment

monitoring

monitoring, etc.

Sensor

Camera

Merging unit

Smart terminal

Safety

Area I

Safety

Area II

Figure 4-14 Network Architecture of Substation Automated Monitoring Equipment

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4

Paradigms and Development Paths of ETI Integration

Smart substations offer significant advantages over traditional electrical substations.

Green and efficient. Smart substations replace traditional cable connections and oil-

filled mutual inductors with optical fiber cable and electronic mutual inductors, conserving

energy and other resources. Statistics show that smart substations’ indoor floor areas

are 15%-25% less than those of a routine substation, their outdoor areas 45%-64%

less. Construction periods, meanwhile, are shortened by 25%. Inside, electromagnetic

and radiation pollution are much lower. Smart substations thus facilitate coordinated

development along with the surrounding environment. Highly interactive. Responsible

for processing the data of the power grid operation, the smart substation returns safe,

reliable, accurate, detailed and effective information to the power grid in real time. Beyond

information collection, analysis, and internal sharing, a smart substation also intelligently

exchanges data with more complex and advanced systems in the grid. Highly reliable.

A substation is a complex system. And if a fault in any single link is not handled in time,

systemic failures are easily triggered. In a smart substation, both the station itself and

its subsidiary facilities are highly reliable. They are able to intelligently detect, effectively

prevent, and quickly deal with all manner of faults for continued optimal substation

performance.

Column 4-3 Intelligent Patrol Robots for Substations

Intelligent patrol robots are an important component of smart substations. In

traditional substations, monitoring and inspection are simple judgments arrived

upon by the human senses (vision, touch, hearing, smell). But as power grids

continue to grow in scale and complexity, these traditional inspection methods have

faced serious challenges. In addition, in harsh conditions and environments like

high altitude, depleted oxygen, or extreme cold, manual inspection poses major

safety risks. Thus substations are in urgent need of a “successor” to their traditional

inspection mode.

As shown in Figure 4-15, assisted by the positioning/navigation system and various

sensors (infrared, visible light, etc.), intelligent patrol robots can automatically

measure the operating status or temperature of substation equipment automatically

and exchange data with the substation’s information system in real time. The robots

can detect abnormal phenomena like equipment defects and hanging foreign

objects before issuing an automatic alarm or preset fault response. Moreover,

the intelligent patrol robot’s independent work tasks are not inhibited by harsh

weather or complex environments, effectively reducing manual workloads while

comprehensively improving the quality of inspections.

In 2015, the State Grid Zhejiang Electric Power Company deployed 49 intelligent

patrol robots in its substations, which not only reduced workload for staff; it also

increased the frequency of equipment inspections. Before the robots, a 500 kV

substation required one operations and one maintenance personnel to conduct

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ETI Integration

Figure 4-15 Intelligent Patrol Robot in Substations

10 monthly patrols each (20 total inspections in person-times per month). After

the robots’ arrival, these personnel only need to do patrols once a week, reducing

person-times per month to just eight and cutting the workload by more than 60%.

In late 2019, a new generation of intelligent patrol robots was jointly developed by

China Southern Power Grid and Huawei; they system was then put into operation in

the Shenzhen Power Supply Bureau. Implementing a new working model of “system

intelligent analysis supplemented by manual judgment”, on-site patrol inspections

originally taking 20 days can now be completed in two hours, and inspection

efficiency has increased by a factor of 80. As equipment/instrument recognition

accuracy has surpassed 90%, the manual inspection workload has been reduced

by 90%, simultaneously raising inspection reliability and bringing down operations

and maintenance costs.

Smart Electricity Meters

3

Smart meters are the “nerve endings” of the smart grid. The smart meter is composed

of multiple units including for measurement, data processing, and communication.

In addition to tasks like collection, measurement, and electricity data transmission, smart

meters can also realize intelligent bidirectional power consumption interactions. Smart

meters have various functional advantages over traditional meters, including two-way multi-

rate metering, terminal control, two-way data communication with multiple modes of data

transmission and anti-theft mechanisms. They also support automatic data collection, stepped

electricity pricing, time-based electricity pricing, freezes, control, monitoring, and more. The

development of smart homes and proliferation of smart meters on the market will do much

to address demands coming from commercial and industrial customers, remote building

control, smart home management, and the popularization of energy digital retail services.

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Smart meter demand and market capacity are increasing year by year. In 2017, global

smart meter shipments exceeded 100 million for the first time, the annual total reaching

170 million unit. Smart meter output has continued to grow steadily since then; in 2020,

global shipments are expected to reach approximately 2 billion^A. Global investment in

smart meters, meanwhile, is also growing year by year. In 2017, total global smart meter

investment reached 20.8 billion US dollars. The 2020 estimated figure is approximately 35

billion US dollars, and 50 billion US dollars by 2025.

4.2.5 Power Information Fusion

PLC

1

The Power Line Communication (PLC) technology uses transmission lines as a medium for

the high-speed transmission of analog or digital signals by carrier wave. While transmitting

power frequency currents, PLC can also cost-effectively transmit carrier information.

PLC does not require the laying of signal cables, therefore reducing investments for

construction. Communication-power line integration also cuts down on maintenance work

and the costs of operation and maintenance.

The main advantages of PLC are: Low investment. With minimal equipment—primarily

a set of wave traps—communication and remote transmission functionality are effectively

realized. The investment cost of a PLC project is much lower than for the separate laying

of power and communication lines. Plug and Play. Without needing to specially set up

communication lines, high-speed ethernet connection can be realized on the power

line. Wide Application. Electricity is indispensable to modern society and production.

Equipped with extensive power networks and PLC, electricity communication services can

easily reach every family and enterprise. Stable Signal. Relying on power lines rather than

radio frequencies (as with wifi), signals will not be severely restricted by physical barriers

like walls. Health and Environmental Protection. PLC lacks the health and environmental

effects of wireless electromagnetic waves, thus relieving users’ health concerns. There are

particular advantages for use in hospitals or places with radio interference.

The main disadvantages of PLC are: Limited transmission distance. The distribution

transformer blocks power line carrier signals such that they can only be transmitted within

the area of a distribution transformer. Power load heavily influences the signal. When

the power line has a heavy load, line impedance is about 1 ohm, which severely weakens

the carrier signal. In practice, the point-to-point carrier signal can be transmitted up to

several kilometers under no load conditions, but once the power line is heavily loaded,

it can only be transmitted in the tens of meters range. Only be transmitted on single-

phase power lines. There is significant signal loss (10-30 dB) between the three-phase

power lines, so at very close communication distances, the different phases may receive

interference signals.

Source: AskCI Consulting Co., Ltd., Research Report on Market Prospect of China’s Smart Meter 2019.

A

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PLC has great application potential for smart homes. Although wired communication is

faster, more stable, and more secure than its wireless counterpart, the traditional wired

network layout is too complicated and costly to use for connecting smart home products.

PLC technology can not only connect smart home products to the network safely and

stably; it also bypasses the tedious re-laying of network cables. It is a cost-effective and

efficient smart home solution. As shown in Figure 4-16, the use of PLC in a smart lighting

control system can effectively reduce installation and wiring costs while connecting all

lighting equipment to the network.

LED

light

LED

light

LED

light

Industrial

control panel

Output

Input

Output

RS-485 communication

NC28

Light sensor

……

NC28

Loop 1

ADC

Input

RJ45

220V AC PLC

Input

Switch

Input

Server

Universal

controller

……

Ethernet

Loop 2

Wireless

transmission

(GPRS/4G)

NC28

Output

NC28

Output

4G/WiFi

LED

light

LED

light

LED

light

Loop 6

Tablet PC

Figure 4-16 PLC Smart Lighting System

VLC

2

Visible light communication (VLC) is a wireless transmission technology that transmits

data via visible light spectrum. It permits seamless connection with PLC via the power

grid and other facilities. VLC is to add a tiny chip to the LED lamp (as shown in Figure

4-17), which can quickly modulate and encode information into a high-speed flicker signal

that is imperceptible to the naked eye to transmit information. The receiving end, via the

photoelectric converter, receives the visible light containing information and converts

it into an electrical signal, and then demodulates the corresponding information from it

after filtering, shaping and amplifying. The lighting system, VLC and PLC are combined

together to transmit the signal via power cables. It is especially suitable for street lighting

systems, which can enable road lighting and information services at a lower cost.

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Figure 4-17 VLC LED Bulb

ꢀꢀElectro-opticalꢀﬁber

3

Unlike PLC that directly uses power lines as the medium of transmission, electro-optical

fiber technology adds optical fibers onto electrical cabling to enable long-distance

information transmission and build a backbone communication network. The fiber

structure is as shown in Figure 4-18. At present, there are mainly three types of optical

cables used in electro-optical fiber networks: ordinary non-metallic optical cables, self-

supporting optical cables, and overhead ground wire composite optical cables. Although

the overhead ground wire composite optical cable is relatively costly, it becomes relatively

low-cost in proportion to the total line cost for use in high voltage class, double-circuit,

and multi-circuit lines on the same pole; this cable can also be used as a relay protection

channel. As the price of optical cables drops, overhead ground wire composite optical

cables will see wide use in electro-optical fiber networks.

Figure 4-18 Electro-Optical Fiber Structure

There is an in-home electro-optical fiber demonstration project currently in operation at the

“Eastern Palace” in Shanghai, China. As shown in Figure 4-19, the in-home electro-optical

fiber facilitates an entire home network that users interact with directly. While supplying

power, it simultaneously provides users with comprehensive information services like IPTV,

broadband access, smart home functions, community services, energy use management

and online medical services. It can meet users’ access needs for diverse information

services, providing a more convenient and modern lifestyle. It avoids the repeated wiring

of multiple cables, improves resource utilization, and reduces production costs to both

conserve energy and reduce emissions.

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Main electricity

information collection

station

Security

isolation

device

Property

management

center

Internet

Telecommunica-

tions network

Broadcast

network

Two-way

smart meter

PV power

generation

EPON

OLT

EPON

ONU

10 L7

Distribution

transformer

Inverter

OPLC

Security

protection services

EPON

ONU

433 MHz

EPON

ONU

User home

Digital video Webcam

recorder

EV

Smoke Infrared

detector detector detector calling

433 MHz

Gas Emergency

Smart interactive

terminal

Water and gas

meter reading

Smart socket

Smart switch

Temperature Water Gas

Water Refrigerator Washing

sensor

meter meter

heater

machine

PIR

sensor

switch

Table Ceiling

lamp lamp

LED

energy-

saving

lamp

Rice

cooker

Background

Air

music

conditioner

Figure 4-19 Electro-Optical Fiber Structure Diagram

Kansai Electric Power, the second-largest power transmission and distribution company

in Japan, has built an open electro-optical fiber network platform with electro-optical

fiber cables and is making good profits in the fiber optics business. Specifically, Kansai

Electric Power takes advantage of its 90% power network coverage in the Kansai region

to actively develop services like fiber-optic broadband. In addition to its self-operated

broadband, Kansai Electric Power also provides fiber-optic leasing through its network

platform. The profit margin for its fiber-optic network businesses can reach 20%, which

over 10 times the profit margin of the power transmission and distribution businesses.

Furthermore, by increasing the utilization rate of cable and optical fiber, the utilization rate

of the overall power backbone network has increased significantly—from 40% to the 80-

90% range. This goes to show that building an open network platform with electro-optical

fiber cable expands energy and communication companies’ industrial and business

chains while generating huge value.

4.2.6 Green Energy Data Centers

Green energy data centers are clean energy production bases achieving integrated

and coordinated development of clean energy power generation and data storage and

processing. Data centers are currently developing in the direction of high density and

intensity. Power consumption ranges from several kW to tens of thousands of kW (a data

center with 3,000 racks can achieve a 9,000 kW load) for typical centers, or into the

several or tens of megawatts for super data centers. Energy costs are collectively one

of the highest costs in data center operation. The cooling system alone accounts for

approximately 40% of the center’s total energy consumption costs. Therefore, much can

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be saved with the integrated construction of clean energy production base data centers in

areas with low temperatures and abundant clean energy resources.

The Arctic has a cold climate, abundant land, and high-quality wind energy resources.

This region is an excellent choice for the future large-scale development of green energy

data centers. Moreover, the dense clustering of data centers in energy production bases

around the Arctic Circle will complement the promotion of wind resource development

in the same area. Global IT companies such as Google have built their large-scale data

centers in Iceland, Sweden, Finland, and other countries in the Arctic Circle. Facebook’s

Node Pole data center, entering operations in 2013, was built in northern Sweden. One of

the largest data centers in Europe, it uses local clean electricity as an energy supply and

keeps operating temperatures low with the cold outdoor air resources.

4.2.7 Electric Transportation

At present, transportation is the world’s second-largest sector in terms of energy

consumption, accounting for 29% of the final total. In 2017, 96% of the energy used in

global transportation was fossil fuels. Renewable energy accounted for 3%, and electricity

for just 1%. The transportation industry is now the main source of carbon dioxide and

urban pollutant emissions. Electric transportation (or “e-mobility”) replaces traditional fossil

fuels with electricity in motor vehicles, and is the development trend for transportation

energy conservation and emissions reduction. E-mobility is where the energy and

transportation networks meet and integrate. For the energy network, e-mobility

constitutes an energy terminal that interacts with and influences the power system; as for

the transportation network, e-mobility serves as a new type of tool for transport. This

summarizes the basic development trend of the transportation system today.

Electric Vehicles

1

Global sales of electric vehicles have increased sharply. As shown in Figure 4-20^A,

in 2019, the sales of the global EVs reached 2.1 million (accounting for 2.6% of global

automobile sales), and global EV inventory reached 7.2 million (accounting for 1% of

global vehicle inventory)—an increase of 40% from 2018.

Electric vehicles’ endurance mileage has greatly improved. With policy support

from a number of governments, EVs have entered a new stage of rapid development,

making great technological progress. Taking China as an example, in 2017 the average

endurance mileage of fully electric passenger vehicles in the first batch of promotional

catalogues was up to 202 kilometers; when the seventh batch of promotional catalogues

was released in 2019—that is, two and half years later—endurance mileage had

increased by 71%. In the same period, the average energy density of pure EVs’ power

battery systems had climbed from 100.1 wh/kg to 150.7 wh/kg, showing an increase of

51% in two years^B.

Source: IEA, Global EV Outlook 2020.

A

B

Source: Evergrande Research Institute, China New Energy Vehicle Development Report 2019.

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ETI Integration

8

7

6

5

4

3

2

Other PHEV

Other BEV

US PHEV

US BEV

Europe PHEV

Europe BEV

China PHEV

China BEV

World BEV

1

0

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Year

Figure 4-20 Global Electric Vehicle Inventory

Electric vehicles play an important role in reducing carbon emissions. It is estimated

that by 2030, EV inventory worldwide will have reached 250 million (accounting for about

30% of total vehicle inventory), exhibiting an annual growth rate of 36%; meanwhile, the

demand for electricity for electric vehicles is anticipated to reach 1000 TWh, an eleven-

fold increase from 2019. The proportion of total global electricity consumption will have

increased from 0.3% in 2019 to 4%; oil consumption will have been significantly curtailed.

By 2030, EV substitution will have reduced oil consumption by 4.2 million barrels per day

and carbon dioxide emissions by about 5 billion tons (as shown in Figure 4-21).

2019

2030 STEPS

2030 SDS

60

400

300

200

100

0

40

20

0

-100

-200

-300

-400

-500

-600

-700

-800

-20

-40

-60

-80

-100

-120

Electric LDVs

Avoided GHG emissions

Equivalent ICE trucks

Electric buses

Electric trucks

Equivalent ICE LDVs

Electric two/three-wheelers

Equivalent ICE buses

Equivalent ICE two/three-

wheelers

Figure 4-21 CO₂Emission Reduction from EV Use (SDS)

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Paradigms and Development Paths of ETI Integration

ꢀꢀElectriﬁedꢀRailways

2

Economical railway technology. Electrified railways provide sufficient, green, and

reliable power guarantees for electric locomotives by installing electrified equipment

along the railway. Compared with traditional diesel locomotives and track, electric rail

systems offer a far larger transportation capacity, reliability, and other benefits. Large

transportation capacity. Electric locomotives are powered by external electricity sources

and do not need their own power plant, which makes them more lightweight. At the

same time, they have much more power than diesel locomotives. The maximum power

of current electric locomotives is 7200 kW, while that of diesel locomotives is just 500

kW. With greater traction and higher speeds, the electric locomotive offers an overall

greater transportation capacity. Low transport costs. Electric traction is highly efficient;

compared to other traction methods, its energy consumption about one-third less and

its transportation cost about one-fourth less per 10,000-ton kilometer. Environmental

friendliness. Electric locomotives do not emit exhaust gas, smoke and dust. Their zero-

pollution air emissions and low noise levels reduce pollution levels through all the spaces

the railway passes through, while effectively improving conductor working conditions and

passenger comfort. The electrified railways in Russia as shown in Figure 4-22.

Figureꢀ4-22ꢀ TheꢀElectriﬁedꢀRailwaysꢀinꢀRussia

China leads the world in electrified railway development. In September 1958, the

Baoji-Chengdu Railway, the first electrified railway in China, was put into operation.

By 1998, the travel mileage of China’s electrified railway system had reached 10,000

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ETI Integration

kilometers. At the start of the 21st century, China’s electrified railway industry ushered in

a new and rapid phase of development. By the end of 2005, electrified railway mileage

had reached 20,000 kilometers—that is, the system doubled in length in just eight years.

By 2009, mileage had exceeded 30,000 kilometers, ranking China second in the world

for track mileage. After that milestone, it took less than four years to build another 10,000

kilometers. By the end of 2012, the total electrified railway mileage had exceeded 48,000

kilometers, making China the country with the most electrified railway mileage, followed

by Russia. As of the end of 2017, China’s electrified railway mileage had reached 87,000

kilometers, with an electrification rate of 68.2 %, ranking first in the world. CRH train as

shown in Figure 4-23.

Figure 4-23 CRH Train

Electric Ships

3

Today’s electric ships primarily include lithium battery + supercapacitor electric ships,

lead-acid battery electric ships, and nickel-hydrogen battery-electric ships. As electric

ship technology continuously matures and battery costs gradually decrease, electric

ships are seeing rapid development.

Electric ships are quickly developing larger capacities. In May 2020, the first fully

electric thousand-ton cargo vessel to sail the Yangtze River, “Zhongtian Dianyun 001”,

successfully completed its trial voyage. The vessel is powered by lithium batteries and

super capacitors and has a capacity of 1,458 kWh, equivalent to 40 EVs. When recharged

by shore power over 2.5 hours, it has a range of 50 km. If making 150 voyages a year, the

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Paradigms and Development Paths of ETI Integration

ship will consume around 450 MWh, effectively saving more than 20 tons of fuel. Shortly

after Zhongtian Dianyun 001’s debut, the fully electric Yangtze River cruiser “Junlv” (as

shown in Figure 4-24) was completed in June of 2020. At 53.2 meters long and 14.3

meters wide, the lithium battery-powered vessel has a double-deck and 300-passenger

capacity. Compared with a fuel-powered ship of the same size, it can save nearly 100 tons

of fuel each year. Without emitting carbon, sulfur, or other waste pollutants, it operates

at just 50 decibels and can run for eight hours on a full six-hour charge. Electric ships in

China will usher in tremendous development opportunities. It’s expected that by 2024,

the market size for domestic electric vessels such as cruise ships, ferries, public service

ships, harbor tugs and short-haul cargo ships will reach 45.3 billion yuan.

Figure 4-24 Maiden Voyage of the All-Electric “Junlv” on the Yangtze River

Electric tankers represent the new frontier of electric vessels. In Japan, leading

shipping companies (Asahi Tanker, Mitsui O.S.K. Lines and Mitsubishi Corporation),

brokerage firms (Exeno-Yamamizu Corporation and Tokyo Electric Power Company

Holdings), and the nation’s second-largest petroleum company Idemitsu Kosan Co.,

Ltd.—as well as Tokio Marine & Nichido Fire Insurance Co., Ltd.—have jointly established

the “e5 Consortium” to develop and promote zero-emissions all-electric vessels. Asahi

Tanker is currently building the world’s first zero-emissions, all-electric tanker, expected

to be completed in 2022. The tanker will mainly serve as a fuel ship in Tokyo Bay, with a

length of 62 meters, width of 10.3 meters, draft of 4.15 meters, gross tonnage of about

499 tons, speed of 11 knots, oil hold capacity of about 1300 m³, and battery capacity of

3.5 MWh.

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ETI Integration

EV Charging Network

4

With such functions as vehicle guidance and parking, the EV charging network can be

intelligently connected to EVs like passenger cars to achieve vehicle-network interaction

as well as to platforms like the Internet of Vehicles to obtain various information services.

As a leading field incorporating the ETI networks, the EV charging network exemplifies ETI

integrated development.

With the rapid growth of global EV inventory, construction of the EV charging network is

also stepping up its pace. In 2019, the US built 23,800 charging stations (a 19% year-

on-year increase), and 70,000 charging ports (a 22% year-on-year increase). As of April

2020, the State Grid Corporation of China had built a total of 11,600 battery charging and

swapping stations and 95,800 EV charging piles. Among them, 2,022 are fast charging

stations and 8,270 are charging piles situated along expressways to form a fast charging

network of ten vertical lines, ten horizontal lines and two rings. This network covers 26

provinces and 273 cities, with an average distance between stations less than 50 km, as

shown in Figure 4-25.

Shenyang

Chengde

Beijing

Datong

Tianjin

Dalian

Taiyuan

Shijiazhuang

Yantai

Jinan

Qingdao

Lianyungang

Zhengzhou

Xi'an

Nanjing

Hefei

Shanghai

Wuhan

Hangzhou

Chengdu

Chongqing

Ningbo

Nanchang

Changsha

Huaihua

Chenzhou

Fuzhou

Zhangzhou

Figure 4-25 State Grid’s EV Charging Network on Expressways

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Paradigms and Development Paths of ETI Integration

The EV charging network will play a key role in saving costs, increasing flexibility, and

promoting clean energy consumption. The overlapping of EV charging periods or

charging during peak hours increases burdens on the power distribution network, leading

to local power shortages. However, modern information technology can be used to realize

intelligent two-way auto-grid interaction to not only reduce the impact of EV charging on

the power grid, but also the end user price. The EV charging network thus generates

economic benefits for both grid companies and EV users. Taking the power distribution

facilities of a two-thousand-household community with a distribution capacity of about

4000 kVA for example, building an orderly EV charging network would promote load

optimization (see Figure 4-26), and bring a number of benefits as follows: Lower grid

construction costs. In the disorderly charging mode, a 4000 kVA capacity transformer

and corresponding ring main unit would need to be installed, costing a total of 500,000

yuan. The orderly charging mode, however, only needs a 1000 kVA capacity transformer

and corresponding ring main unit—a total cost of 150,000 yuan. Orderly charging can

save 350,000 yuan in grid construction and 75% of the investment in power distribution

network construction. A more flexible and reliable power grid. In the event of external

grid failure, EVs can operate in vehicle-network interaction mode to supply power and

reduce downtime. The maximum discharge capacity of the community is 4.2 MW, the

maximum base load is 3.5 MW, and the ratio between the maximum discharge capacity

and base load is 1:2. In the event of grid malfunction, EVs can be used as power

sources for the community to ensure an uninterrupted supply of power. Cleaner energy

consumption. Under the vehicle-network interaction mode, the power distribution network

can adjust EV charging/discharging power in an orderly manner and participate in the

electricity market as a whole load. The community can purchase 47,667 kWh of curtailed

wind power at night (8 PM to 6 AM), to make up half of the electricity used by EVs.

9000

8000

7000

6000

5000

4000

3000

2000

1000

0

5

10

15

20

25

Time (hour)

Base load

Disorderly charging

Orderly charging

Figure 4-26 A typical Community Load Curve

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ETI Integration

Column 4–4 EV Charging Network at Expressway Service Areas

EV charging network coverage at expressway services areas is supported by large

power grids. Taking advantage of the service areas’ roofs and parking lots and

the expressways’ revetments or other supporting structures, the charging network

provides energy for the service areas via distributed PV, forming a complete energy

service system of “large power grids + distributed energy + charging stations +

gas stations”. The interconnection of facilities and equipment such as distributed

PV, charging piles, large power grids and EVs significantly improves the efficiency

of energy utilization, satisfying the energy needs of different types of vehicles and

expanding the categories of energy service. A typical Road charging station is

shown in Figure 4-27.

Figure 4-27 Road Charging Station

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Paradigms and Development Paths of ETI Integration

4.2.8 Hydrogen-powered Transportation

Hydrogen-powered transportation, as a complement to electric transportation, will

help decarbonize the transportation sector. The specific energy of hydrogen—the fuel

containing the most energy per unit mass—is as high as 120 MJ/kg, which is more than

20 times that of a lithium battery. Thus hydrogen power can effectively compensate for

the short range and long charging times of purely electric cars and ships. Hydrogen fuel

cell vehicles have a long range and a short charging time; thus they are suitable for more

application scenarios, including long-distance and medium heavy-haul transportation.

They offer significant advantages in the fields of long-distance public transportation,

double-shift rental, urban logistics and long-distance transportation.

At present, hydrogen is mainly derived from fossil fuels, like natural gas and coal. In

the future, when clean electricity becomes the energy network’s basic energy source,

hydrogen derived from clean electricity will become the main energy source in hydrogen-

powered transportation. As shown in Figure 4-28, electricity from clean energies like

wind or PV is directly transmitted to the energy center via a widely interconnected energy

network. A hydrogen production factory based on the electrolysis of water is built near

the energy center, and heavy-duty trucks, trains, ships and other long-distance, large-

capacity transport vehicles are powered by green hydrogen.

Figure 4-28 Green Hydrogen-powered Transportation

Currently there are a number of national governments that have taken hydrogen-

powered transportation as an important development direction for the green, low-carbon

energy/transportation revolution^A. In February 2019, the Fuel Cells and Hydrogen Joint

Source: Deloitte, White Paper on Hydrogen Energy and Fuel Cell Transportation Solutions.

A

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ETI Integration

Undertaking (FCH JU) published Hydrogen Roadmap Europe: A sustainable pathway

for the European Energy Transition (see Figure 4-29). This study presents a roadmap

for hydrogen development that would see 3.7 million hydrogen-powered passenger cars,

500,000 hydrogen-powered light commercial vehicles, and 45,000 hydrogen-powered heavy

trucks and buses by the year 2030. In addition, it anticipates the replacement of 570 trains

with hydrogen-powered ones. As many countries including Japan, China and the US are also

actively developing hydrogen-powered transportation, it is projected that by 2030 there will

be more than 10 million hydrogen-powered passenger cars, over 60,000 hydrogen-powered

buses and coaches, and more than 10,000 hydrogen refueling stations worldwide, for the

initial completion of the global hydrogen-powered transportation network.

Hydrogen Roadmap

Target for 2030

Europe

One-third of the total hydrogen is

Vast stores of untapped new energy can be

used to produce hydrogen

expected to be produced with

extremely low carbon emissions by

2030, for use in various fields

including synthetic ammonia

production and hydrogenation in

petroleum refining.

Hydrogen production

and transmission

Build hydrogen-based power generation

demonstration plants

Build renewable hydrogen production plants

Hydrogen refueling

station

3,700 large hydrogen refueling stations

Passenger vehicle

support

Hydrogen-fueled passenger vehicle inventory reaches 370 million

500,000 hydrogen-fueled

light commercial

vehicles

45,000 hydrogen-fueled

heavy trucks and

buses

570 hydrogen-fueled

trains

Commercial vehicle

support

Figure 4-29 EU Hydrogen Roadmap 2030

Hydrogen-powered Trucks

1

Hydrogen-powered trucks offer significant advantages to long-distance, heavy-

haul transportation. There are two types of hydrogen-powered trucks—those powered

by internal combustion engine, and those powered by fuel cell. Internal combustion

engines burn hydrogen to generate power, while in a fuel cell, hydrogen or hydrogenous

substances react with oxygen in the air to produce electricity and drive an electric motor.

Compared with traditional fuel trucks, hydrogen-powered trucks have such outstanding

advantages as zero emissions and zero pollution. They also boast a larger carrying

capacity, longer driving range and higher transportation intensity than all-electric trucks.

Hydrogen-powered trucks are developing rapidly. In April 2017, Japan’s Toyota

unveiled Alpha, its first generation of hydrogen fuel cell-powered heavy truck. Then in

August 2018, Toyota unveiled Beta, its second-generation hydrogen-powered heavy truck,

at the Center for Automotive Research (CAR) in Northern Michigan. Beta has a range

of 300 miles (about 480 km), an improvement of 200 miles (about 321 km) over the first

generation. In April 2019, Toyota launched FCET, which is based on Alpha and Beta, as

the mass-production version of its zero-emission fuel cell powered heavy electric truck.

Also, in July 2020, Korea’s Hyundai Motor Company began formal commercialization

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and exported a number of its hydrogen fuel cell powered heavy trucks, known as XCIENT,

to Europe. These vehicles can travel approximately 400 km after 8-20 minutes of refueling.

Figure 4-30 Hydrogen-powered Truck

The future looks bright for hydrogen-powered trucks. In China, heavy trucks’ yearly

sales volume exceeds 1.2 million, but as of now the annual production of hydrogen

fuel cell powered trucks is only over a thousand (as shown in Figure 4-31). As the

transportation sector quickens its pace toward cleaner development, hydrogen fuel cell

technology will be applied to many more heavy trucks in the future. Academician Gan Yong

of the Chinese Academy of Sciences predicts that by 2050, over 50% of China’s heavy trucks

will be powered by hydrogen fuel cell, for a hydrogen truck market size of one trillion.

140

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1200

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600

400

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0

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2005 2007 2009 2011 2013 2015 2017 2019

Year

2014 2015 2016 2017 2018 2019H1

Year

Figure 4-31 Sales Volume of Heavy Trucks and Production of Fuel Cell-Powered Trucks in China

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Hydrogen-powered Trains

2

Hydrogen-powered trains have remarkable advantages. Compared with electrified

railways, hydrogen-powered trains are cheaper and easier to retrofit; they are suitable

for routes with relatively small passenger flows as well as for alpine and other special

geographic settings. The configuration of a hydrogen-powered train is shown in Figure

4-32. The hydrogen storage tank is usually located at the bottom or top of the train.

Hydrogen and oxygen react in the fuel cell to produce electricity and water, and

generated electricity is stored in the lithium battery. Unlike traditional trains powered

by fossil fuels, hydrogen-powered trains emit no CO₂or other pollutants and make

little noise.

1

2

Hydrogen is stored in four Fuel cells convert hydrogen and

sealed fuel tanks at the

bottom of the train

oxygen into water and electricity

3

4

Electricity generated is Electric motors move

stored in two lithium

batteries

the train

Figure 4-32 Operating Principle of a Hydrogen-powered Train

Many countries are promoting hydrogen-powered trains. The German hydrogen-

powered train Coradia iLint went into service in Lower Saxony in September 2018. It

normally commutes around 100 km and seats up to 300. While the old green leather

trains travel at 40 km/h, the Coradia iLint reaches speeds of 140 km/h, 2.5 times faster.

Two Coradia iLint prototype locomotives have already run over 140,000 km, and 14 trains

are scheduled for 2021 delivery in Germany. The UK launched its “Breeze” project in

January 2019 which plans to convert diesel locomotives and dual-powered trains

into vehicles powered by hydrogen. With the same speed of 140 km/h and single-

trip distances of 1000 km, the new trains will begin to be put into operation in 2022.

Japan’s JR Corporation is planning to invest four billion yen in the development of

a new type of train powered by both hydrogen and battery. The test train, consisting

of two carriages and reaching a maximum speed of 100 km/h can travel 140 km after

refueling.

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Hydrogen-powered Ships

3

Green, high energy density hydrogen can help drive ocean-going vessels, which presents

broad market prospects.

The European Union (EU), Japan, and other regions and countries are actively promoting

the development of hydrogen-driven ships. In 2007, the first EU-funded commercial

hydrogen-driven passenger ship, made by ZEMships, went into service. Powered by two

hydrogen fuel cells with the maximum power of 48 kW and 560-V lead batteries, it is able

to accommodate 100 passengers.

The Energy Observer project was born in 2013. As shown in Figure 4-33, Energy Observer

is a catamaran, which is also a laboratory for ecological transition designed to push back

the limits of zero-emission technologies. Hydrogen, solar, wind and water power, all the

solutions are experimented with, tested and optimized here with a view to making clean

energies a practical reality that is accessible to all.Energy Observer has a length of 31

meters, width of 13 meters, height of 12.85 meters, draft of 2.2 meters, and weight of 34

tons; it is staffed by a crew of eight (on average).

Energy Observer began its round-the-world voyage in 2017 and has sailed approximately

30,000 nautical miles, with 61 stopovers in 28 countries/regions.Its success verifies the

effectiveness and reliability of hydrogen-powered ships.

Figure 4-33 Energy Observer^A

Source: https://www.energy-observer.org/about/vessel.

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Column 4–5 Operating Principle of the Energy Observer

The power system of Energy Observer primarily consists of wind power generation,

PV power generation, seawater desalination, electrolysis bath, compressor,

hydrogen storage, fuel cells, and energy management system (as shown in Figure

4-34). Equipped with both solar PV panels and two Oceanwings®, it can use its

own generated green PV and wind power to electrolyze seawater for the production

and storage of hydrogen, then, in the case of insufficient PV or wind, it can power

the ship by releasing the energy stored in the hydrogen through two fuel cells (a

CEA-liten fuel cell and the REXH2® developed by EODev in collaboration with

Toyota). Energy Observer has three different power modes: 1) Under normal

sailing conditions, it is powered by PV or wind-generated electricity; 2) when clean

electricity is insufficient, the ship is powered by lithium battery pack; 3) when the

ship is moored for an extended period, its fuel cells consume hydrogen to generate

and store electricity.

Figureꢀ4-34ꢀ ConﬁgurationꢀofꢀEnergyꢀObserver^A

Source: https://www.energy-observer.org/about/vessel.

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4.2.9 PV Highways

Laying PV solar panels and wireless charging coils on/in highways helps realize the

integrated development concept of “PV power generation on highways and wireless

charging for vehicles on the move”, as shown in Figure 4-35. Compared with traditional

PV power generation and EV charging facilities, PV highways occupy less additional land,

emit no pollutants, enable the automatic generation and consumption of electricity, and

can balance supply and demand in various weather conditions by energy storage and

power grid interconnection, thus providing a new paradigm for the green revolution and

the development of energy and transportation.

Figure 4-35 PV and Wireless Charging Highways

PV highways have broad development prospects. Within the comprehensive

transportation network, highway and railway corridors possess a large amount of

resources, including available land, that are conducive to the development of solar PV

power generation. In China, for example, the mileage of expressways exceeds 130,000

km, covering an area of more than 4,000 km², and a potential installed capacity of 640 GW

for PV power generation. Meanwhile, the mileage of railways exceeds 120,000 km, with a

potential installed capacity of 280 GW^Afor PV power generation along railway corridors.

Taking advantage of these resources would strongly promote the shift to green energy.

Source: Energy Internet Research Institute of Tsinghua University, Research Report on National

Photovoltaic Development 2035.

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PV highway demonstrations are making fast progress. In 2017, the world’s first PV

highway was put into operation in Jinan, China, with a total length of 1.08 km and a

three-layer structure of “light-transmitting concrete + PV modules + insulation protection

construction”. With a total installed capacity of 817 kW and a planned service life

expectancy of 25 years, the highway is expected to generate about 1 GWh/year—the

equivalent of saving an annual 124 tce and reducing annual emissions by 970 tons of

CO₂, 24 tons of SO₂, 3.2 tons of nitrides and 5.6 tons of dust. Although damage and

operation and maintenance issues essentially decommissioned the highway two years into

its operation, the Jinan project was a useful exploration that gathered valuable experience

for the future development of PV highways. The schematic diagram of photovoltaic

expressway is shown in Figure 4-36.

Figure 4-36 Photovoltaic expressway

In 2018, a “super PV highway” combining three technologies—pavement PV power

generation, dynamic wireless charging, and autonomous driving—was built in Tongli,

Suzhou Province, China. About 500 meters long and 3.5 meters wide, the highway has

charging sections supplying two different frequencies (85 kHz and 40 kHz) and functions

for melting snow and ice. The highway has a 90%-plus wireless charging efficiency, which

is comparable to wired charging. Moreover, the electromagnetic radiation inside and

outside of vehicles is controlled within 0.07% of the international standard limit of 27 μT,

which is harmless to the occupants.

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4.2.10 Smart Transportation

Smart transportation enables the integrated application of multiple technologies into the

transportation system—including sensor measurement, automatic control, and cloud

computing, big data, the Internet of Things, mobile Internet, and AI—to establish a

wide-range, omnidirectional, real-time, intelligent and efficient transportation system (as

shown in Figure 4-37). High-tech integration can effectively solve pressing problems

like congestion and pollution emissions while offering passengers more comfortable,

convenient and efficient services. The smart transportation system includes specific

applications such as the Internet of Vehicles, unmanned driving, and smart logistics.

Figure 4-37 Smart Transportation System

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ETI Integration

The Internet of Vehicles

1

The IoV harnesses the power of a new generation of information communications

technology to realize network connection among vehicles, between vehicles and people,

between vehicles and roads, as well as with service platforms, as shown in Figure 4-38.

It is an important agent of integration for facilities of the transportation and information

networks. The IoV enhances the overall level of intelligence in driving, provides drivers

with safe, comfortable, and efficient driving experiences and smart transportation

services, and improves the overall efficiency of traffic and intelligence of social

transportation services.^A

Figure 4-38 IoV Network Connection

The Internet of Vehicles will play a pivotal role in the construction of smart

transportation. It enables early warnings for speeding, wrong way turns, red lights and

pedestrians; it also reduces the incidence of traffic accidents by measures like emergency

braking and prohibiting fatigued driving. The IoV thus ensures the safety of both vehicles

and their occupants. Meanwhile, it enables timely uploads of vehicle-end and traffic

information to the cloud for real-time broadcasting of traffic conditions and accidents to

ease traffic jams and improve road utilization rates. Other IoV information services include

high-precision electronic maps and accurate navigation. Both businesses and individuals

can benefit from the convenience and speed of the Internet of Vehicles. Automotive

companies can use it to collect and analyze vehicles’ driving data to better understand

vehicle usage and potential safety issues. In terms of smart city development, using the

Internet of Vehicles as a communication management platform can realize the intelligent

management of traffic lights, parking, parking lots, traffic accidents, and bus dispatch,

thereby effectively expediting smart city development.

Source: XINHUANET, Report on the Development of Internet of Vehicles Industry.

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IoV development has entered an accelerated stage. Driven by informatization and

intelligentization, global demand for IoV services is steadily increasing. At present, more

than 70% of newly assembled vehicles in countries and regions such as China, Russia,

Western Europe and North America have Internet connection functionality. Worldwide the

most recent figure is about 90 million, but that number is expected to increase to about

300 million by 2020 and to over 1 billion by 2025. Hundreds of large-scale manufacturers

have emerged in the sector of vehicle-mounted information services, hundreds of large-

scale manufacturers have sprung up. In 2017, the number of IoV users in China came to

17.8 million, making the country the most important market in the world for the IoV.

Unmanned Driving

2

Unmanned driving is a product of in-depth integration between the transportation and

information networks in the fields of data and business. Unlike traditional driving that

depends fully on the driver, unmanned driving uses cameras, radar, ultrasonic and

other sensors to perceive the surrounding environment, make decisions based on the

information obtained, and predict the movement of the vehicle, other vehicles, and

pedestrians over time. This then serves as a basis for path planning and control measures

to avoid collision.

There are six levels of autonomous driving^A. As shown in Figure 4-39, Level 0: The

driver has full control over the main functions of the vehicle (braking, steering, acceleration

and power). Level 1: Driver assistance is available. One or more of the main devices

for vehicle control are automated, but cannot be linked to the system. Level 2: Partial

autonomous driving. At least two automatic control systems are operating in conjunction.

Level 3: Conditional autonomous driving. The driver can hand over the control of safety-

related functions, and the autonomous driving system is authorized to occasionally take

control of the vehicle. Level 4: High-level autonomous driving. For certain roads within

limitation, the system completes all driving operations without any intervention from a

human driver. Level 5: Fully automated driving. The system can complete all driving

operations, even for those roads and environments with which human drivers can easily

cope.

Level 4 autonomous vehicles are already in the initial stages of development. In

2015, Google put its autonomous prototype vehicle on the road for a test drive (see Figure

4-40). The vehicle has no steering wheel, accelerator pedal, brake pedal, or rearview

mirror. With just two buttons—start and stop—the vehicle is controlled by vehicle-mounted

computer in conjunction with numerous sensors. As of 2018, this autonomous vehicle had

completed 8 million miles of autonomous driving tests on public roads, and had reduced

the number of human interventions required per thousand miles to less than 0.1 (by

comparison, Tesla’s unmanned driving technology requires up to 330 human interventions

per thousand miles).

Standards from SAE International.

A

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ETI Integration

L0 L1 L2 L3 L4 L5

Full

Partial

autonomous

driving

High-level

autonomous

driving

Conditional

autonomous

driving

autonomous

driving

No automation

Driver

assistance

No driver is required and

the steering wheel is

optional. Everyone sitting

in an L5 autonomous

vehicle is a passenger

The driver is

responsible for all

driving tasks, but in

certain cases can be

assisted by the system

The system takes on

certain basic driving

tasks, but the driver

must be ready to take

control at any time

In case of system failure,

the driver will receive

notification and must

take over the vehicle

When necessary, the

driver must take over

the vehicle

The driver is

responsible for all

driving tasks

The system can provide

basic auxiliary functions

for emergencies such

as automatic braking or

lane departure

The system relies fully

on driver instructions to

act, but can provide

warnings about the

driving environment

Under certain

conditions, the system

can steer, accelerate,

and brake

Under certain

conditions, the system

takes full control over

steering, acceleration,

and braking

The system can handle

all driving tasks in all

situations without driver

intervention

In most cases, the

system can complete all

tasks without driver

intervention

correction

Figure 4-39 Six Levels of Autonomous Driving

Figure 4-40 Google Driverless Car Prototype

Level 2+ autonomous vehicles are already available on the market. Tesla’s Autopilot

system is a commercially successful L2+ autonomous driving system. This system, using

relatively inexpensive cameras rather than LiDAR, realizes “supervised autonomous

driving” by its strong computing and processing capabilities. The Tesla vehicle features

eight cameras positioned around the body for a 360-degree field of view and an

environmental monitoring distance of 250 meters. Its machine vision system features 12

ultrasonic sensors, allowing it to detect soft or hard objects and improve the performance

of its automated driving.

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Figure 4-41 Schematic Diagram of Self-driving

Unmannedꢀdrivingꢀbringsꢀgreatꢀbeneﬁtsꢀtoꢀhumanꢀsociety.ꢀFirst,ꢀitꢀimprovesꢀtrafﬁcꢀ

safety. The majority of traffic accidents arise from driver negligence. Unlike human

beings, who are subject to psychological and emotional disturbances, autonomous

vehicles consistently and completely comply with traffic laws and follow routes as

planned, effectively reducing traffic accidents that would be caused by distraction or

negligence. Second, unmanned driving catalyzes energy conservation and emissions

reductions. Rational dispatch and ride-sharing reduces the number of private vehicles.

Meanwhile, intelligent control improves vehicles’ operating efficiency to dramatically

reduce greenhouse gas emissions. Third,ꢀunmannedꢀdrivingꢀeliminatesꢀtrafficꢀjams.ꢀ

By increasing speeds, narrowing the distance between vehicles, and optimizing routes,

unmanned vehicles can cut down on travel times. Relevant data shows that autonomous

vehicles should increase traffic efficiency by 273%. Fourth, unmanned driving makes

life more convenient. Autonomous driving can resolve such headaches as insufficient

parking spots and high parking fees, overall enhancing individuals’ mobility. Fifth,

unmanned driving promotes economic upgrades. Autonomous driving technology

will bolster the coordinated development of automobiles, electronics, communications,

services, and social management to prompt industrial transformation and upgrades

across multiple fields.

Smart Logistics

3

Intelligent logistics is a modern comprehensive IT system comprising system perception,

comprehensive analysis, timely processing and self-adjustment functions. It involves all

aspects of logistics—transportation, warehousing, packaging, and information services (as

shown in Figure 4-42). Its most prominent advantages are as follows.

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ETI Integration

Intelligent

operation

Warehousing

Transport

trunk lines

Last-mile services

Terminal

Robotics and Wearable

Driverless truck

Drone

Smart delivery

locker

automation

devices

Identification Driverless

3D printing

of goods

forklift

IoT

Big data technology

AI

+

Whole-course traceability

Cold chain control

Efficiency optimization

Safe transport

Demand forecasting

Maintenance forecasting

Supply chain forecasting

Network planning

Intelligent operation

Intelligent production

scheduling

Image recognition

Decision-making aids

Intelligent

data basis

Figure 4-42 A Panoramic View of Smart Logistics^A

In terms of resource planning, smart logistics integrates relevant resources such as

warehouses, vehicles, and distribution personnel, maximizing resource benefits through

the analysis of warehouse leasing demand, human resource demand, financing demand

trends, and device usage statistics.

In terms of smart warehousing, smart logistics develops fully automatic warehousing

systems and designs AI robots to carry out operations such as shelving, picking,

packaging, and labeling, greatly improving the level of warehouse efficiency and

management. Through the integration, mining, tracking and sharing of warehousing

information, it realizes automatic pickup, seamlessly connected stocking and shipping,

and accurate order processing. It can also intelligently predict replenishment, realize

inventory coordination, speed up inventory turnover, and increase spot stocks to improve

the efficiency of the entire supply chain.

Inꢀtermsꢀofꢀefﬁcientꢀtransportationꢀandꢀdistribution,ꢀsmart logistics builds an Internet

platform that enables the online, real-time sharing of supply and demand information,

optimizes methods of organizing transport, and improves transport efficiency. Building and

pooling capacities for urban distribution, advanced modes of smart logistics encompass

joint distribution, centralized distribution, and intelligent distribution for convenience and

clarity throughout the entire course of a product’s shipment.

In terms of smart terminals, smart logistics integrates terminal human resource, service

networks, and smart terminals according to the needs of local life services, to realize

a distributed layout and the shared utilization of resources, improve the efficiency of

resource use, and enhance overall user experience. With high-speed networked mobile-

Source: Deloitte, China Smart Logistics Development Report.

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end smart devices, the work of logistics personnel is more efficient and convenient, and

human-computer interactions are more user-friendly.

Smart logistics will come into its full potential with the development and gradual

commercialization of technologies such as AI robots, drones, smart express cabinets,

wearable devices, and big data analysis. It is estimated that by 2025, the global market

for intelligent logistics will top one trillion yuan.

Column 4-6 AI Robot and Drone Applications in Smart Logistics

Amazon’s noteworthy use of warehousing robots. In 2012, Amazon acquired

Kiva Robotics, a start-up engaged in developing intelligent warehousing robots.

Kiva robots are mainly used for handling and sorting the goods on warehouse

shelves. From 2013 to 2014, Amazon launched an initial 15,000 robots across 10

Amazon logistics centers in the USA (as shown in Figure 4-43), then expanded to

its transshipment centers worldwide. As of 2016, Amazon had launched more than

30,000 Kiva robots in its 13 logistics centers across the globe. With the robots’ help,

Amazon saves one hour per each order completed, reduces the time between

picking and delivering from 90 to 15 minutes, and saves about 900 million US

dollars in labor costs every year.

JD.com’s smart distribution by drone. JD.com has invested heavily in the drone

distribution business since 2015, developing a number of novel drone-related

products and putting them into commercial use. In 2016, JD.com successfully

completed the first delivery by its self-developed drones in Suqian, China (as shown

in Figure 4-44); in 2017, it set up the world’s first drone operation and dispatch

center. For the June 18 shopping holiday that same year, JD.com completed over

a thousand orders by drone, successfully demonstrating the capacity for regular

drone delivery operations in many provinces and municipalities. JD.com is planning

to build another 300 drone-ports in China’s Sichuan and Shaanxi Provinces. After

their completion, it will be possible to deliver goods to any city in China within 24

hours, and drones will be used to deliver goods to 400,000 villages every day.

Figure 4-43 Smart Warehouse

Figure 4-44 Delivery by Drone

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ETI Integration

4.2.11 “Power +” Integrated Service Platform

Making use of developments in the Internet and information technology, e-commerce

platforms such as Amazon, Taobao, and JD have efficiently put more producers and

consumers in closer relation to achieve network effects as well as scale efficiency, and

greatly enhance resource allocation, reshaping the paradigms of consumer industry.

In future, terminal energy consumption will mainly rely on electricity. Building “power +”

integrated service platforms based on ETI Integration can further connect energy

producers and consumers, link various service providers and users, and foster integrated

platform of production and consumption encompassing energy, transportation, and

information services. In this way, we can ensure more diversified, inclusive and high

quality public services, and make clean electricity accessible to all, thus meeting the

needs of human development in a green and sustainable manner.

Column 4-7 “Power +” green manufacturing

“Power +” green manufacturing is a key part of “power +” integrated service

platform. According to user needs, it can convert water and CO₂into diversified

end products via electricity and manufacture consumer goods in an environmentally

friendly and sustainable way. The platform integrates clean energy development,

user demand analysis, end product manufacturing and distribution. Figure 4-45

shows the operating principle of “power +” green manufacturing in detail. Driven by

solar and wind power, brine electrolysis generates hydrogen; then hydrogen and

CO₂react to obtain—following purification—fuels like methane and industrial basic

raw materials such as methanol, polyethylene (the main component of plastics),

and polyurethane polymers. The final result is clean energy supply and a variety of

green end products tailormade for users.

A “power +” green manufacturing’s operations are divisible into four main parts,

to be described as follows. Clean energy-based power generation and power

supply. Each link—including CO₂extraction from air, hydrogen production by brine

electrolysis, fuel and raw material genesis via hydrogen-CO₂reaction, purification of

fuels and raw materials, and end product manufacture—is powered by an energy

system using 100% clean power generation. Green hydrogen production and CO₂

extraction. An air collection module adsorbs and separates CO₂from the air, then

produces high-purity hydrogen through a process of proton exchange membrane

water electrolysis. Generation of fuels and industrial basic raw materials by

chemical reaction. Adopting Fischer-Tropsch synthesis technology, hydrogen and

CO₂will react to different catalysts to generate fuels like methane and diesel as well

as basic raw materials like polyethylene (PE) and polyurethane (PU). Raw material

purification and end product manufacture. The raw material produced by

Fischer-Tropsch synthesis is a mixture of various hydrocarbons, including gaseous

methane, liquid petroleum gas (under high pressure) and solid polyethylene and

polyurethane. These different products can be separated through purification.

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Methane, liquefied petroleum gas and other products can be used as fuels for all

kinds of machinery or to supply heat. Meanwhile, PE, PU and other industrial raw

materials can be further processed into consumer goods like clothing and shoes,

especially with advanced technologies like 3D printing in precise accordance with

consumer needs. These end products will then be efficiently delivered to users via

a smart logistics system to effectively satisfy the diversified consumer market.

Clean Power Generation

Energy Supply

H₂O

H₂

Fuel and Raw

Material Preparation

Hydrogen

Production by

Water Electrolysis

Information

Transfer

C_XH_Y

CO₂Extraction

co₂

Product

Purification

End Product Manufacture

GAS

Oil

Intermediate

Refinery Chemicals

Meeting Diverse User Needs

Figure 4-45 “Power +” Green Manufacturing

4.2.12 Sea-air Hubs of ETI Integration

Smart Islands

1

A smart island is an offshore hub of ETI Integration. Smart islands integrate clean

energy development, mobile ports, and information base stations. They can be built

through the renovation of an existing island or mega-ship, or be original smart city

constructions floating on the sea, as shown in Figure 4-46.

A smart island meets its own power and fresh water demands

through on-island wave, solar and wind power generation

capacities; in addition, a large number of offshore wind

turbines are installed around the island and green hydrogen

is generated through the electrolysis of water. The use of this

green hydrogen is flexible and diverse; it can directly replenish

passing ships’ energy stores; it can also be transported by ship

to onshore load centers.

Clean energy

development

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ETI Integration

Smart islands float with autonomous control at the intersection

of ship routes. They provide multiple services for passing ships

such as docking and the supply of green hydrogen energy,

fresh water or materials. At the same time, smart islands can move

in a designated direction and location, powered by clean energy.

Mobile ports

Smart islands can connect with other islands and landmasses

by submarine optical cable to further offer passing ships with

fast, stable and inexpensive data communication services. This

will significantly transform offshore communication, which due

to the complex and changeable sea environment and difficulty

of offshore construction, currently lags far behind onshore

communication. Smart islands can circumvent the existing

problems of offshore communication such as high costs, low

connection rates, and numerous dead zones.

Information base

stations

Figure 4-46 Smart Island

Smart islands present a broad development prospect in electrolysis-based green

hydrogen production. The global ocean area exceeds 360 million km², accounting for

more than 70% of the earth’s surface area. With abundant clean energy resources and

the advantage of marine location, smart islands are to be major offshore bases for clean

energy. Hypothetically, a smart island covering a 10 km²area can comfortably carry about

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Paradigms and Development Paths of ETI Integration

20,000 people; such an island would itself have an installed wind, solar and wave power

capacity up to 100 MW, able to generate more than 300 GWh of power and desalinate

about 100 million tons of seawater in a year. Thus the island is completely self-sufficient,

able to guarantee the production and living activities of all its residents by its own clean

power. In addition, offshore wind turbines will be installed in a 50 km radius surrounding

the island. According to the wind power density per unit area offshore of northern

Europe^A, wind power has an installed capacity of about 24 GWh for an annual power

generation of about 100 TWh. Thus, a smart island can generate 2 million tonnes of green

hydrogen every year^B, which is about 3.2% of the world’s current annual hydrogen output.

In the future, a wide-ranging complex of smart islands scattered throughout the ocean

system will significantly increase the global output of green hydrogen.

Smart Space Stations

2

A smart space station is a space hub of ETI Integration. Smart space stations offer the

combined functions of space-based solar power generation, space travel hub, material

distribution, information base, and more. They are pivotal nexuses for the integration of

the ETI networks and for their extension into space, as shown in Figure 4-47.

As energy bases, smart space stations can use subsatellite groups to collect solar

energy (as shown in Figure 4-48), then transmit it to the ground via intensive radiation;

once on the ground, the energy can be used as a source of power for humans.

As transportation hubs, smart space stations will serve as important forts and

frontier travel hubs for the continued human exploration of space.

As information base stations, smart space stations will work together as a massive

unit supported by ancillary communications satellites (as shown in Figure 4-49)

to establish a ubiquitous high-speed Internet in space. The space-based Internet

does not only provide omnibearing information and communication services to

ground users but also helps guarantee human space exploration by promoting the

development of space broadband and deep space communication.

The UK’s offshore wind farm Norfolk Vanguard occupies an area of 592 square kilometers, with a

planned installed capacity of 1.8 GW and an installed density of 3 GW per square kilometer.

The current advanced water electrolysis devices have a hydrogen conversion efficiency of 75%, that

is, 50 kWh of electricity can produce 1 kg of hydrogen.

A

B

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ETI Integration

Figure 4-47 The Schematic Diagram of Smart Space Station—A Space Hub of ETI Integration

Figure 4-48 Schematic Diagram of Solar Power Generation

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Paradigms and Development Paths of ETI Integration

Figure 4-49 Smart Space Station-Based Space Internet

The development potential for smart space stations is immense. Smart space stations

will become important providers of green energy, service centers for space travel, and

transmitters for global communication, thus realizing integrated development as energy

production bases, transportation hubs and information bases in space. Green energy

providers. Without cloud shielding effect, solar radiation intensity in space is 5-10 times

that on the earth’s surface. With the calculated wireless transmission efficiency of 53%, the

required solar array for a Gigawatt(GW)-level space power station would only occupy 6

km², saving a significant amount of Earth’s land surface. Space travel services. As smart

space stations proliferate and inter-network, the comfort and safety of space travel will be

greatly improved. Space travel can become as common as air travel at today, with even

large-scale space travel becoming a feasible option. A nexus of global communication.

With smart space stations and their auxiliary satellite groups serving as communication

stations, universal Internet access can become a reality. In the future, smart space

stations will work in concert with signal base stations on land (and smart island) to realize

global coverage via integrated “land-sea-air” information services.

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ETI Integration

4.3 The Development Path of ETI Integration

With its many applications and explorations, ETI Integration demonstrates promising

development prospects. Accelerating ETI Integration at the urban, national, and

transnational scales will give rise to a new development pattern of highly electrified,

intelligent, and human-oriented network infrastructure, will facilitate the large-scale

allocation of energy, materials, information, and efficient use of resources (including land

and space), and will promote high-quality and sustainable economic development.

4.3.1 Urban ETI Integration

Development Needs

1

The city, a key symbol of the progress of human civilization, is a consolidation of

economic, political, cultural and social activities. Globally, they account for just 3% of the

world’s total land area, yet urban populations and GDPs respectively account for 55% and

75% of the global totals. As the urbanization continues to intensify, urban development has run

into a number of challenges—resource shortages, environmental pollution, traffic congestion,

and disease prevention and control. Rapid ETI Integration is a large-scale, intensive,

intelligent and fundamental means of meeting sustainable urban development needs.

Large-scale urban development. From 1950 to 2018, the global urban population

increased from 751 million to 4.2 billion, and from 30% to 55% of the total global

population. By 2050, it is estimated that the global urban population will see an increase

of 2.5 billion and come to account for 68% of the total worldwide^A. The large-scale

concentration of human populations will only make cities more definitively into centers

of energy, transportation, and information (as shown in Figure 4-50). In 2018, China’s

urbanization rate reached 60%, urban energy consumption accounted for more than 80%

of the country’s total, and urban transportation and communications accounted for more than

90%. Advancing ETI Integration is an ideal way to meet cities’ huge demands for energy,

materials and information while also injecting strong impetus into urban development.

Intensive urban development. The rampant growth of the human population has

overwhelmed urban resources and environments, inflicting cities with unprecedented

resource shortages and severe “urban diseases”. From 1950 to 2000, the total population

and urban population of the United States increased by 86% and 116%, respectively,

while its urban land area increased from 59,000 km²to 239,000 km²—a threefold increase,

significantly exceeding the rate of population growth and thus bypassing more spatially

efficient solutions. Mexico City is the most densely populated city in the world, where

many areas lack access to hygienic drinking water and garbage disposal facilities, and

over 3 million vehicles emit 200,000 tons of pollutants every day. Due to the relatively

independent mode of construction and operation under the currently existent ETI

networks worldwide, cities require a large amount of space and public service resources.

Source: UN Department of Economic and Social Affairs, World Urbanization Prospects (The 2018

Revision).

A

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Paradigms and Development Paths of ETI Integration

Accelerating ETI Integration can enable intensive spatial planning and integrated

technological development, improve the efficiency of urban land use and infrastructure

construction, effectively relieve the pressure on public service resources and enhance

urban capacities for development.

Information

center

Distributed

Smart

distribution

network

energy generation

Energy

consumption

center

Traffic power

center

EV

Smart factory

Smart building

Power plant

automation

Figure 4-50 The City: Hub and Center of the ETI Networks

Intelligent urban development. At the global scale, urban populations are continuing

to grow. There are now over 30 cities in the world with a population exceeding 10

million. Such a concentration puts heavy burdens on city operations and management.

Accelerating ETI Integration will also advance the application of technologies like big

data, the Internet of Things and AI to realize the real-time, comprehensive perception

of urban infrastructure, the real-time monitoring and optimized operation of sectors like

energy and transportation, and create “city brains” for better, smarter urban management.

Cities are the focal points of ETI Integration. Cities are the core areas of infrastructure

development, with large investment scales and wide coverage. As industrialization gains

ground, a solid foundation is already laid for the construction of urban power distribution,

transportation and information networks. In terms of power distribution, many of the world’s

large cities have already built strong, rational and flexible distribution networks with unified

standards and a power supply reliability rate over 99%. As for transportation, the systems

in many large cities are predominantly constituted by subways and buses, supplemented

by automobiles, tramcars, and trolley buses. Urban vehicle inventory is growing rapidly

at a rate of over 2% per year. As for communications, many large cities’ mobile networks

have over 90% coverage, with regularly increasing network operation speeds. With the

rapid development of big data, the Internet of Things, cloud computing, smart distribution

networks, smart buildings, and smart transportation, urban ETI networks will expand in

step. The city, the focal point of ETI Integration, will be the site of coordination and in-

depth interaction between flows of logistics, people, information, and energy, facilitating

efficient urban operation.

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ETI Integration

Development Strategies

2

In promoting urban ETI Integration, urban development’s pressing needs to be intensive,

green and intelligent must be taken into account. The five separate development models

of energy, infrastructure, data, operation, and industry integration models must be

combined to define the content and methods of construction for urban ETI Integration and

promote sustainable urban development.

The overall strategy of urban ETI Integration. First, to realize coordinated

development, efforts should be put into strengthening top-level design for coordinated

progress in the planning, construction, operation and management of network

infrastructure. Second, to realize intensive development, relevant policy mechanisms

must be established to promote resource sharing, the co-construction of facilities,

integrated functions, and the industrial agglomeration of ETI networks for better and

more efficient utilization of urban infrastructure. Third, to realize shared development,

the cross-sector, cross-system, cross-business, cross-level, and cross-regional sharing

of ETI networks needs to be advanced. Fourth, to realize green development, urban

resources, sustainability, and environmental carrying capacities need to be taken into

account in urban infrastructure planning and construction. The development strategies for

urban ETI Integration are shown in Figure 4-51.

Basic goal

Build sustainable cities

Green

development

Coordinated

development

Shared

development

Intensive

development

Overall strategy

Power layer

Physical layer

Application layer

Paradigm layer

• Smart power grid

• Charging facilities

• Intelligent transportation

• Integrated utility tunnel

• Smart street lighting

• Electricity transaction

• Energy management

• Unmanned driving

• Intelligent navigation

• Intelligent life

• Technological

innovation

• Industrial innovation

• Business model

innovation

Key areas

Data layer

• Intelligent services

• Digital twins of ETI networks

• City brain

Figure 4-51 Development Strategies for Urban ETI Integration

The development path of urban ETI Integration. Efforts need to target coordinated

progress in ETI networks at energy, infrastructure, database, application, and paradigm

layers. In power layer, construction of smart grids and charging facilities, roll-out

of electrified transportation, and the efficient urban use of clean energy need to be

promoted. In physical layer, the construction of smart transportation systems, integrated

urban utility tunnels, and smart street lights must be accelerated for the coordinated

development of ETI networks. In data layer, efforts should focus on supporting the “digital

twins” of ETI networks and city brain, realize data sharing, and further mine data value. In

application layer, infrastructure should be fully exploited to promote applications such

as power trading, energy management, unmanned driving, smart navigation, and smart

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Paradigms and Development Paths of ETI Integration

living. In paradigm layer, the driving force of ETI Integration must be exploited to create

an ecosystem of innovation for ETI integration encouraging technological, industrial and

business innovations, and to achieve horizontal crossover with and vertical integration of

related industrial chains for overall greater momentum in urban development.

To advance ETI Integration in practice, different modes of old city renovation and new

city construction need to be explored—the former in old cities with a certain foundation

of infrastructure construction, and the latter in new cities still lacking in infrastructure.

For older cities with relatively mature ETI networks, it is first of all necessary to shore

up existing networks by transformation and upgrades. Second, overall planning and

coordination need to be strengthened to provide guarantees for new integration projects.

As for newer cities, the objective laws of infrastructure development are to be followed

according to the actual needs of socioeconomic development, but particular efforts

need to be made at high-level coordination. There need to be well-defined objectives

of urban construction supported by strong top-level designs that clarify objectives layer

by layer from top to bottom. In the initial planning, design and construction of a new

city, new integrated forms of resource sharing and optimized facility layouts require full

consideration that a solid foundation may be laid for future development.

The urban ETI Integration constitutes a modern infrastructure integrating energy,

transportation and information, with the focus on promoting the construction of city brain,

integrated utility tunnels, smart transportation, and smart energy systems. City brain

makes use of cutting-edge technologies like the Internet of Things, 5G, cloud computing,

big data, and AI to build a unified data platform and coordinated control center, reduce

industry barriers, and ensure efficient operation of urban infrastructure. By the efforts

of the city brain, residents will have access to comprehensive services and the needs

of urban development will be better met, as shown in Figure 4-52. An unified data

platform should be realized to gather information on population distribution, geographic

conditions and infrastructure, as well as to connect various data platforms. There should

be a coordinated control center so that the city brain can offer all-encompassing energy

and transportation network management, and thus coordinated operation among the

two networks. The city brain should be thus promoted to realize the comprehensive

application of data across various industries.

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ETI Integration

Sound

acquisition

People

Ultrasonic

detection

AI

Brain-machine

interface

People

Laptop

Video

monitoring

Remote

sensing

detection

Big data

Government

agencies

Cloud machine

intelligence

Brainlike visual system

Brainlike sensory system

Cloud swarm

intelligence

AI

PS

AI

Radio

telescope

PS PS

AI

PS

giant neuron

PS

AI

PS

Military

institutions

Gas-sensitive

sensor

PS

AI

PS

Desktop

AI

PS

Brainlike neuroid (Big SNS)

People

Force-sensitive

sensor

Heat-sensitive

sensor

Internet operating system

Mobile

phone

Office

facilities

AI

People

Business

organizations

Internet core

server

People

AI

Transportation

Personal space

facilities

Household

devices

Cloud

robotics equipment

Production

Figure 4-52 City Brain

Column 4-8 Construction of the City Brain in Hangzhou, China

ETI Integration in Hangzhou, China began with the development of its city brain.

Hangzhou’s traffic system now has 3400 monitors checking traffic conditions

throughout the city every two minutes. Through the integration and analysis of

information from the Internet and the alarm system, traffic accident and traffic

jam locations can be identified in the monitor images. The city brain can

identify more than 30,000 events per day of 110 different types to an accuracy

of over 95%. Armed with information from the system, traffic police quickly

arrive at the site of detected incidents, improving emergency response times

by 50%. In addition, eight systems have been established involving video

surveillance, intelligent access control, personnel access management, vehicle

access management, intruder alarms, electronic patrol, facial snapshots and

intelligent firefighting—all based on Hangzhou’s deep integration of the city

brain with intelligent communities. Accidents in Hangzhou’s Xiangshu Huayuan

Community, for example, have dropped by 28% year on year since these eight

intelligent systems were installed.

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Paradigms and Development Paths of ETI Integration

The system of integrated urban utility tunnels will best be advanced by adhering to local

conditions and by being appropriate, rational, and flexible in planning. The development

and use of underground space, underground pipelines, and road traffic all need to be

considered as the new system’s layout, integration, planimetric position and vertical

control are determined and the scale and duration of development are defined. Moreover,

considering urban development in the long-term, it will be necessary to leave some

underground space unoccupied, and build underground utility tunnels in an orderly way,

as shown in Figure 4-53.

Figure 4-53 Integrated Urban Utility Tunnel System

Column 4-9 The Integrated Urban Utility Tunnel System in Shenzhen, China

The first practical application of ETI Integration in Shenzhen (in southeastern China)

was its integrated urban utility tunnel system. Project planning was hierarchical,

consisting of comprehensive planning and detailed planning at the district and

sub-district levels. In 2005, construction on the Dameisha-Yantian’ao utility tunnel

was completed. Then in 2008, an 8.6-kilometer-long integrated utility tunnel was

built in Guangming New Area, making it Shenzhen’s first integrated utility tunnel

with complete monitoring facilities. In 2012, Shenzhen’s first utility tunnel mainly

functioning as a high-voltage cable corridor was built in the Qianhai Shenzhen-Hong

Kong Modern Service Industry Cooperation Zone. By the end of 2017, Shenzhen

had built more than 60 kilometers of integrated utility tunnels in total. These have

already played an important role in the city’s intensive and efficient development.

Furthermore, Shenzhen is actively promoting its integrated urban utility tunnel

systems in Guangming-Baoan, Longhua-Futian, Longgang-Pingshan, and Nanshan

(Qianhai)-Luohu, creating crucial links for the city’s future development.

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ETI Integration

The key to developing cities’ smart transportation systems is to speed up the

informatization and transformation of roadway infrastructure. Specifically, a comprehensive

database should be established for multi-dimensional monitoring; traffic signs and

markings should be electrified; charging piles, cameras, and traffic radar should be

connected to the network; and monitoring facilities, roadway sensors, bridges and tunnels

should be erected. Meanwhile, R&D, testing and demonstration for driverless technology

should be stepped up to correspond with the features of highly autonomous vehicles.

Finally, there should be a collaborative network for collaboration between people,

vehicles, roads and cloud, linking road infrastructure, automobiles, travelers and service

providers for a complete smart transportation system, thus enabling real-time optimization

and control of the flows of people, materials, and vehicles, and addressing urban traffic

congestion.

To bolster the development of urban smart energy systems, the key is to enable

flexible interaction and efficient energy use between both supply and demand sides, and

enhance the efficiency of urban energy systems, via building smart power distribution

networks, smart buildings, smart homes, etc.

In terms of the system of power distribution

It is needed to be strengthened in terms of coordination control and operations

and maintenance management for increased reliability and operations efficiency,

and higher-quality electricity delivery. This will enable grid connection with optimal

distribution, energy storage and microgrids for the efficient and interactive

management of demand.

In terms of electricity consumption

Electricity information and multi-source data need to be collected and analyzed; two-

way interactive intelligent service platforms and technical support platforms need to be

built and improved to integrate energy, information, and power consumption operations.

In terms of information and communications

An information network system supporting all links and operations should be

established, as well as an information sharing platform for business collaboration and

interoperation, all to strengthen energy operation and management.

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Paradigms and Development Paths of ETI Integration

4.3.2 National ETI Integration

Development Needs

1

ETI networks are major public service projects supporting social production and

residential living, and setting in place the necessary conditions for the pursuit of

prosperity and happiness. Considering various countries’ development situations, national

ETI Integration is a strategic move to meet the demand for the large-scale allocation of

energy, materials and information, enhance connectivity and stimulate economic growth.

National integration has numerous strategic and practical advantages.

It supports the large-scale exchange of materials and information. As countries

continue to experience population growth, economic growth, and growth in trade, the

transmission of energy, materials and information among provinces and regions scales up

in turn. ETI networks serve as a support for trade. Their integration therefore contributes

to higher efficiency in the allocation of energy, materials and information as well as to

economic and social prosperity.

National integration facilitates resource allocation to remote areas. Modern industries

are concentrated around cities, creating large urban clusters of manufacturing, finance

and other services. However, basic raw materials such as energy and mineral resources

tend to be located far from urban centers. Thus the energy network and transportation

network are needed for long-distance transport. In 2019, the transport of basic raw

materials in China accounted for 58.4% of all road traffic^A. As countries develop, there will

only be higher demands on the resource allocation capacity of ETI network infrastructure.

National ETI Integration makes land use more efficient. Infrastructure development

is closely related to the long-term interests of the national economy, with direct effects

on production and life. There is a huge demand for land in terms of development and

utilization, and current ETI networks occupy a vast amount of land resources. In 2016,

China’s transportation facilities occupied 3.71 million hectares of land^B, equivalent to 2.2

times the area of Beijing. ETI Integration, with the sharing of transportation channels, can

save significant space and make land use much more efficient.

It drives high-quality economic development. Investment, consumption and exports

are the driving forces behind economic growth. Investment in infrastructure in particular

has a significant impact on national economic growth, with one yuan of investment in

highways generating close to three yuan in total social output. In this sense, speeding

up infrastructure construction— particularly through ETI Integration—can drive economic

growth and bring related benefits of important practical and strategic value.

Source: Ministry of Transport of the People’s Republic of China, Special Investigation Bulletin on Road

Cargo Traffic 2019.

A

B

Source: Ministry of Natural Resources of the People’s Republic of China, Statistical Bulletin of China's

Land, mineral and Marine Resources.

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ETI Integration

Development Strategies

2

To implement ETI integration, the current status and future needs of each country’s energy,

transportation, and information infrastructures should be taken into account. Targeting

urban ETI Integration as the priority and national ETI Integration channels as essential

linkage, particular focus should go to the joint hubs, shared channels, and integrated

networks, creating an efficiently interconnected national infrastructure network with

extensive coverage.

The general domestic principles of national ETI Integration are divisible by three

aspects. First is overall planning. To allocate resources most appropriately, national ETI

Integration plans should be scientifically based on development foundation, development

status, resource endowment, history and culture. Secondꢀisꢀjointꢀconstruction.ꢀExisting

and newly built network infrastructure should be leveraged to promote the sharing of ETI

networks. Construction and maintenance should make full use of space to reduce costs

and improve overall integration efficiency. Third is collaborative dispatch. A unified

national dispatch platform can promote system operation efficiency via the integrated

development of data centers, energy centers, transportation centers and information

centers. The path of development for national ETI Integration is shown in Figure 4-54.

Promote integrated development of infrastructure

Overall objective

networks and stimulate economic development

Collaborative

scheduling

Basic principle

Key areas

Overall planning

Hub co-building

Joint building

Network integration

Channel sharing

• Green energy

data center

• Electrified railways

• PV Roads

• Highway network + EV charging network

• Waterway transportation network +

port shore power

• Tower sharing

• 1PXFSꢀPQUJDBMꢀGJCFS

• Multi-station

integration

• High-speed rail network + railway power

distribution network + communication network

Speed up the development of network infrastructure

in a digital, internet-based and intelligent manner

Figure 4-54 Path of Development for Domestic ETI Integration

The path of development for national ETI Integration is approached from the following

three aspects. In terms of co-constructing hubs, it should build green energy data

centers, shared transmission towers and promote multi-station integration. Building

a green energy data center will require large multinational enterprises to set up their

data management headquarters, as well as the government to set up their national

information service centers in resource-rich areas. In this way, energy production and

information services can coordinate and share benefits. For example, power enterprises

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4

Paradigms and Development Paths of ETI Integration

and communication enterprises should be encouraged to build shared towers together.

In terms of sharing channels, the focus should go to the construction of electrified

railways, PV highways, and electro-optical fiber networks. PV highways can be the new

carrier of solar PV power generation, perfecting the efficient integration of PV power

generation, transportation, energy conservation, emissions reduction, safety traffic,

road maintenance and cultivated land protection. In terms of network integration,

the three combined networks of “expressways + EV charging”, “water transport +

shore power”, and “high-speed railway + railway distribution + communication”. In

the mid-to-long term, national ETI Integration should be digital, Internet-based and

highly intelligent. National smart transportation and smart power grid need to step up

development and gather momentum to make traditional infrastructure networks more

efficient, functional, and advantageous.

4.3.3 Transnational ETI Integration

Development Needs

1

Critical to infrastructure connectivity, transnational ETI Integration is an objective

requirement and an inevitability of economic globalization. It will significantly promote the

sustainable development of all countries, as evident in the following four aspects.

Transnational resource allocation. Globally, the uneven distribution of resources

leads to large discrepancies in countries’ development. At the same time, this creates

conditions for complementarity in energy, information and materials. It is not only desirable

but necessary to rely on the infrastructure network to implement transnational resource

allocation. Take energy as an example. Eighty-five percent of the clean energy resources

in Asia, Europe and Africa are concentrated in the energy belt running through North

Africa, Central Asia and the Russian Far East at an angle of approximately 45 degrees

to the equator. Fossil fuel resources, meanwhile, are mainly distributed in the energy

belt between 20 and 70 degrees north latitude. As these resource sites are hundreds to

thousands of kilometers away from the major centers of energy consumption. Therefore,

local power generation and long-distance transmission are necessary solutions for the

global distribution of resources.

Efﬁcientꢀchannelꢀutilization.ꢀChannel sharing is urgent in light of the overlapping layout

of ETI networks’ backbone channels. Transnational ETI Integration can promote the

collaborative planning and integrated development of ETI networks to achieve the efficient

use of space, land and routes, to lower construction and operation/maintenance costs,

and to reap more benefits from infrastructure.

Requirement of globalization. The acceleration of globalization has deepened countries’

economic and trade cooperation and regional integration. Transnational ETI integration

can take infrastructure connectivity as an opportunity to develop transnational resources

and establish cooperation in economy, trade, finance, culture, ecological protection

and key development projects, and stimulate the development of ETI-related industries.

Moreover, transnational ETI Integration sets down strategic roads for transnational

cooperation and regional integration.

229

ETI Integration

Coordinated regional development. All countries are faced with such difficulties as

sluggish economic growth, insufficient economic momentum and growing development

gaps. Energy, information and transportation-related infrastructure serve as important links

between regions and countries. ETI Integration therefore contributes to the founding and

strengthening of transnational “connectivity partnerships”, promotes coordinated, shared,

and interactive development between regions, and helps achieve common prosperity.

Development Strategies

2

The general strategy of transnational ETI Integration should adhere to the principles of

clean and green, efficient and coordinated, joint construction and joint use. A transnational

ETI Integration corridor should be built according to the current status and future

development plans of ETI networks. It should connect various countries’ major economic

centers, energy bases and information centers, build a global infrastructure system, and

enhance transnational resource allocation. The roadmap for transnational ETI Integration

is shown in Figure 4-55.

Clean and green, efficient and coordinated, joint

construction and joint use

Transnational ETI

Integration hub

Transnational ETI

Integration corridor

• Economic center

• Energy base

• Transportation hub

• Information center

• Electrical wire and cable,

oil and gas pipelines

• Highways and railways

• Communication optical

cables

Optimized transnational allocation of energy, people/materials,

and information flows

Figure 4-55 Roadmap for Transnational ETI Integration

In pursuit of ETI Integration, all countries should strengthen connectivity in their plans for

infrastructure construction and technical standards to jointly promote the construction of

backbone corridors involving energy, information and transportation. In terms of energy

networks, all countries should build large clean energy bases, transnational transmission

channels, and should jointly upgrade regional power grids. In terms of transportation

networks, emphasis should be placed on the major passages, key nodes and key

projects of transportation infrastructure, giving priority to missing and blocked sections.

Facilities for road safety and traffic management should be upgraded to improve road

access. Port infrastructure should be built to smooth connections between land and water

transport routes. Maritime logistics informatization should strengthen port cooperation and

create additional sea and air routes. In terms of information networks, efforts should

be made to establish backbone communication networks including cross-border optical

cable; this will improve communication connectivity at the international level. Cross-border

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4

Paradigms and Development Paths of ETI Integration

optical cables should be developed along with intercontinental submarine cable projects.

Finally, air (satellite) information corridors should be created to expand information

exchanges and overall cooperation. In terms of integrated development, focus should

be on top-level design for the coordinated planning and construction of ETI networks,

which will enable all countries to share corridors, facilities, terminals and functions.

Column 4-10 The China-Pakistan Economic Corridor and ETI Integration

Chinese Premier Li Keqiang proposed the building of the China-Pakistan Economic

Corridor (CPEC) during his visit to Pakistan in May 2013. Starting from Kashgar

and ending at Gwadar Port, with a total length of 3000 kilometers, the CPEC is the

key hub connecting two Silk Roads—the Silk Road Economic Belt in the north, and

the 21st Century Maritime Silk Road in the south. It also entails the comprehensive

integration of ETI network resources, facilities, data and operations.

Based on the CPEC’s highway and railway transportation, optical cable corridors,

and oil and natural gas pipelines, the China-Pakistan Energy Transport Corridor

takes advantage of southwest China’s rich clean energy resources to make the

CPEC an integrated corridor of highways, railways, oil and natural gas pipelines,

optical cables and power grids, promoting the all-around cooperation between both

sides.

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ETI Integration

4.4 Summary

●

ꢀ ETI Integration features four paradigms including “energy network +

transportation network + information network”, “energy network + transportation

network”, “energy network + information network”, and “transportation network +

information network”.

●

ꢀ Existing practices abound under ETI Integration scenarios, such as integrated

utility tunnels, multi-station integration, shared power towers, smart grids, green

energy data centers, electric and hydrogen transportation, PV highways, and

Internet of Vehicles. More and more scenarios and applications will emerge as ETI

Integration progresses. In the future, a “power +” integrated service platform and

ETI Integration sea-air hubs, such as smart islands and smart space stations, will

create a widely interconnected infrastructure network covering land, sea, air and

space, with intelligent interaction and high-quality services, and generate novel

possibilities for the development of human society.

●

ꢀ In general, ETI Integration can be promoted at the city, national and transnational

levels. The urban ETI Integration constitutes a modern infrastructure that integrates

energy, transportation and information. The focus is to promote the construction

of city brain, integrated utility tunnels, smart transportation, and smart energy

systems. Based on urban ETI Integration, and supported by large channels, the

national ETI Integration permits an efficiently interconnected national infrastructure

network with extensive coverage. The particular focus goes to the joint hubs such

as green energy data centers and multi-station integration, shared channels such

as electrified railways and PV highways, and integrated networks like “highway

network + EV charging network”. Supported by each country’s ETI Integration,

transnational ETI Integration permits transnational ETI Integration corridors, which

connect the world’s major economic centers, energy bases and information centers,

thus bringing forth a global infrastructure system and enhancing transnational

resource allocation.

232

ETI Integration Technology

and Mechanism Innovation

5

ETI Integration

ETI Integration constitutes a major innovation in global infrastructure. ETI

Integration requires technological innovation to take the leading role, with

the support of innovated mechanisms that adapt to ETI Integration, for

improving the cost-effectiveness, efficiency and adaptability of ETI networks,

and promoting communication, cooperation and joint action among all

parties.

5.1 Innovation

In the context of technological advancements and evolving social needs, energy,

transportation and information networks are diverging from their previously independent

development into deeply integrated development, thus heightening the need for innovated

technology and mechanisms. Identifying direction of Technology and mechanism

innovation will hasten technological breakthroughs, eliminate mechanistic obstacles and

better support ETI Integration.

5.1.1 Technological Innovation

Energy Integration. Whether it is the construction, operation and maintenance of

transportation facilities (roads, railways, ports, airports, etc.), vehicles (automobiles,

airplanes, ships, etc.), or all communication devices and facilities (ranging from mobile

terminals, routers and network servers to large data centers)—all require a safe, reliable

supply of power. As technology progresses and wind/solar clean power generation

costs are reduced, ETI networks will share a single clean power system. Moving forward,

efforts should be concentrated on key technologies including energy storage, electric

transportation, hydrogen-powered transportation, maglev transportation, wireless

charging, and power routers. Efforts to innovate R&D should be ramped up to promote the

energy integration in ETI networks and increase supply-demand synergy and alliances

among ETI networks for development that is cleaner, safer, more economical, and more

efficient.

Data Integration. The energy, transportation and information fields are rich in data

resources. Nevertheless, a truly massive scale of data is required if large-scale power

grid operations, vehicle management, and Internet and market transactions are to

make decisions and allocate resources in the most rational manner. Big data, AI, cloud

computing, the IoT and blockchain are all necessary to conserve resources, diversify

functionality, intensify management and maximize benefits in ETI networks. Their

application will drive advanced socio-economic development by promoting the in-depth

data integration of ETI networks, building a comprehensive, powerful big data platform,

harnessing the full potential of data, and upgrading intelligence.

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5

ETI Integration Technology and Mechanism Innovation

Application Integration. ETI Integration will require the deep integration of multiple

technologies in terms of application. Technological integration will also expand the range

of areas and functions requiring integration as well. Unmanned driving provides a good

example. This technology applies a host of new technologies—IoT, cloud computing,

AI, big data, blockchain, Vehicle to Grid (V2G), and more. IoT-empowered sensing and

recognition technology identifies road conditions in real time; cloud computing’s quick

processing enables prediction of surrounding vehicles’ behavior and plans a driving

path accordingly; AI offers anthropomorphic driving, steers the vehicle, and controls

the speed; big data’s efficient analysis can manage the driving paths of hundreds of

millions of vehicles for optimal management of the overall transportation system; tamper-

proof blockchain technology ensures the safety and credibility of massive-volume

vehicle information; finally, V2G technology achieves coordinated operation of electric

transportation with the power grid.

5.1.2 Mechanism Innovation

Horizontal Collaboration. A mechanism is needed for the cross-industry coordination

of socio-economic development along with the needs of major public service market

entities (such as for energy supply, transportation, and communications), and to generally

coordinate ETI networks (such as in industrial development, policy guarantees, financial

investment and international cooperation).

Vertical Penetration. All major market entities require a mechanism for whole-process,

top-down coordination and alignment regarding ETI Integration’s overall planning, project

construction, operation coordination, market development and supervision, thereby

providing comprehensive support and guarantees.

Adaptation to New Demands. The emerging development needs of novel ETI Integration

scenarios, models and types will require meticulous coordination. A suitable mechanism

compatible with ETI development should be established, and comprehensive innovation

should be promoted in planning methods, design concepts, operating rules, business

models and technical standards concerning ETI Integration.

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ETI Integration

5.2 Key ETI Integration Technologies

To advance ETI Integration, it is necessary to push for breakthroughs in such key areas

as energy storage, electric transportation, hydrogen-powered transportation, maglev

transportation, wireless charging, energy routers, AI, big data, the Internet of Vehicles

and unmanned driving based on technological development in the respective fields of

ETI networks. ETI Integration will also entail the thorough integration of equipment and

facilities, digital resources, functionality and business types within its networks.

5.2.1 Energy Storage Technology

Energy storage technology is where energy, transportation and information technologies

converge in energy layer. Energy storage technology can not only ensure a reliable supply

of power for communication equipment and electric transportation, but also facilitate the

two-way flow of electricity between vehicles and power grid. Energy storage technology

also advances the large-scale development of clean energy. In particular, it can reduce

the power grid volatility upon large-scale clean power access, improving the safety,

economy and flexibility of power grid operation. There are three major categories of

energy storage technology: mechanical energy storage (pumped storage, compressed-

air energy storage, flywheel energy storage), electrochemical energy storage (lithium-ion

batteries, lead-acid batteries, flow batteries, sodium-sulfur batteries) and electromagnetic

energy storage (supercapacitor and superconducting electromagnetic).

Technological Progress

1

In the category of mechanical energy storage, pumped storage technology is quite

mature, with a long service life (over 50 years) and high conversion efficiency (about

75%). Installed capacity can reach the gigawatt level, and the continuous discharge

time is generally 6-12 hours. On the other hand, pumped storage has very particular

requirements for site selection and a long construction cycle. The power cost is 700-

900 USD/kW. Traditional compressed-air energy storage technology is also mature.

It has a long service life (30 years), but its conversion efficiency is low (about 50%). The

power cost is 900-1500 USD/kW. Utilizing natural underground caves for gas storage, the

energy stored can last tens of hours, but site selection is again highly particular. A new

compressed-air energy storage technology is available involving the use of storage tanks.

This makes the location factor more flexible, but the technology is still in the experimental

stage. Flywheel energy storage, meanwhile, is characterized by high energy density

(5 kW/kg), small equipment size and high conversion efficiency (over 90%), but the

continuous discharge time is short (at the level of minutes). It is a typical power-type

energy storage technology, with an cost of 15,000-18,000 USD/kWh. As mechanical

energy storage is simple and reliable in theory, many institutions have begun to explore

concrete blocks and other methods in recent years,such as new solid mass gravity

energy storage.

In the category of electrochemical energy storage, lithium-ion batteries have a high

energy density and conversion efficiency (90%-95%), but their cycle life (about 4,000

times) has yet to improve and they also pose potential fire safety hazards. The energy

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cost is 300-400 USD/kWh. Lead-acid batteries are safe and reliable, but their energy

density is low and their life cycle (1000-2000 times) and service life span (3-5 years)

are more limited. Their energy cost is 100-250 USD/kWh. Flow batteries are quite safe

and reliable in principle. Their cycle life can reach nearly 10,000 times, with a recyclable

electrolyte. However, the equipment requires a large land area, and their energy density

and conversion efficiency are low (about 70%). Their energy cost is 500-550 USD/kWh.

Meanwhile, the performance of sodium-sulfur batteries is similar to that of lithium-ion

batteries, and the raw materials are widely available. However, their production entails

extremely sophisticated technology and operating temperatures that must reach 300°C,

posing safety risks. Thecost is about 400-450 USD/kWh.

In the category of electromagnetic energy storage, supercapacitors have a high

energy density (7-10 kW/kg) and a long cycle life (100,000 times), but unit capacity

is small and the continuous discharge is short (at the level of the seconds). It is a

typical power-based energy storage technology, with a power cost of 7-10 USD/kW.

Superconducting magnetic energy storage (SMES), on the other hand, has an

extremely high energy density and response speed, but its continuous discharge time

is also very short (at the level of the seconds). It sets stringent requirements for auxiliary

equipment and is still in the experimental/pilot stage, with a power cost exceeding 1,000

USD/kW.

Development Directions

2

Longer battery service life. The novel lithium-sulfur battery consists of a metal lithium

anode and a vacuum-filtration carbon fiber paper cathode. It can effectively curb the

growth of sulfuric substances on the carbon fiber surface to quadruple its service life and

achieve a charge-discharge life cycle of over 2000.^AThe lithium-sulfur battery is a solid,

high energy density battery, which is easy and suitable for miniaturization application.

The organic quinone compound flow battery, meanwhile, is water-based. It has passed

5000-8000 charge-discharge cycle tests; the aging rate in each charge-discharge cycle

is less than 0.001%^B, and the service life is expected to reach up to 20 years.

Higher energy densities. The energy density of lithium-ion batteries widely available on

the market is about 120-150 Wh/kg. In contrast, the energy density of the novel solid-

state lithium-ion battery is twice that, at 300-350 Wh/kg (theoretical maximum energy

density: 900 Wh/kg). This value is expected to reach 500 Wh/kg^Cby 2030, when the

battery will be commercialized. The molten-salt air battery is another novel battery.

Depending on a molten-salt air battery’s respective chemical characteristics—either

ferric iron, carbonate ion, or vanadium boride-based—energy densities can reach 10, 19

and 27 kWh/kg respectively in laboratory experiments, far higher than that of lithium-air

batteries (6.2 kWh/kg). Molten-salt air batteries have a more superior storage capacity at

a lower cost.

Source: https://www.sohu.eom/a/196203991_472924.

Source: http://www.zzrajx.eom/hyzx/105027.html.

Source: https://www.geeknev.eom/teeh/263/2638375.html.

A

B

C

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Short charging times. It usually takes three to four hours to fully charge a vehicle-

mounted lithium-ion battery in our daily lives now. But the graphene lithium-ion battery

is characterized by fast charging and long life. The fast charging technology is affected

by a large number of lithium ions moving on the surface of its graphene cathode. In 2016,

it took just eight minutes^Afor an electric vehicle powered by graphene batteries produced

by Spanish company Grabat to get a full charge.

5.2.2 Electric Transportation

Electric transportation (or “e-transportation”) is where transportation and energy

technology converge in energy layer. Unlike traditional transportation, e-transportation

has “three power technologies” at its core: battery technology, driving motor technology

and motor control technology, as shown in Figure 5-1. E-transportation is powered by

batteries. Battery performance is crucial to e-transportation’s endurance mileage and

economic costs. The driving motor is a device that converts electricity from the battery

into mechanical energy, which then drives the vehicle via the transmission. The motor

control system, meanwhile, is the “brain” of e-transportation. It receives instructions

from the driver and ensures the safe, reliable operation of the driving motor and battery

management system.

Motor Control

Drive Motor

Power Battery

Figure 5-1 The “Three Power Technologies” of Electric Vehicles

Technological Progress

1

Electric transportation technology already has a development history of over 100 years.

In the past, however, electric vehicles were no match for those powered by fossil fuels in

Source: https://zhuanlan.zhihu.Com/p/36484702.

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terms of endurance mileage, running speed, and sale price. Therefore its applications

were limited, not widely popularized even by the end of the 20th century. But in the 21st

century, under increasing pressure from environmental pollution and the energy crises,

countries worldwide have ramped up R&D for electric vehicles (also known as “e-vehicles”

or “EV”). The world currently has 7.2 million electric vehicles and EVs have attained

mileages of up to 600-1000 km. Meanwhile, the total global operating mileage of

electrified high-speed railways has exceeded 50,000 km, with maximum commercial

operation speeds of 350 km/h and maximum testing speeds of 605 km/h. As for air

transportation, Israeli company Eviation created an all-electric aircraft in 2019 with

a cruising speed of up to 407 km/h, a maximum voyage of 1,046 km, and a take-off

weight of up to 8.7 tons. In marine transportation, there are currently more than 50 all-

electric in commercial operation around the world; these have a maximum battery

capacity of 2400 kWh and can make voyages of 80 km when fully loaded with 2000

tons of cargo.

Development Directions

2

High energy density power battery technology. The power battery is currently a

key restrictor of e-transportation’s industrialization. Its low specific power, high cost,

long charging time and short service life manifest as e-transportation’s low endurance

mileages, inconvenience and unreliability. Thus the technological path for power

batteries needs to be changed. Developments can be made in high-performance

lithium-ion batteries and graphene lithium batteries to achieve crucial breakthroughs in

energy density and battery safety while reducing costs. As for charging facilities, R&D

investments must be increased for high-efficiency wireless charging and battery swapping

technologies.

High-performance driving motor technology. E-vehicles’ acceleration performance,

maximum speed, gradeability, comfort, safety and energy consumption are all determined

by the quality of the driving motor. Those currently available on the market—specifically,

DC motors, permanent magnet brushless DC motors, switched reluctance motors, and

AC induction motors—are hampered by low overload capacities, high motor temperatures

and permanent magnets’ demagnetization. In consideration of the driving motor’s overall

control performance, motor technology should concentrate on developing high-efficiency,

high power density permanent magnet synchronous motors. This goal will require major

breakthroughs in motor topology design, motor magnetic materials, and processing

technology.

Motor control technology. Motor control directly affects the operating state of an

e-vehicle. E-transportation has varying requirements for motor operation according to

conditions. At present, motor control is generally divided into frequency control, slip

frequency control, vector control, direct torque control, and space vector pulse width

modulation. However, motor control is overall still in its infancy, far from being able to

adapt to complex operating conditions. With the extension and application of intelligent

control technologies such as adaptive control, fuzzy control, neural networks and genetic

algorithms, motor control can become increasingly smarter.

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5.2.3 Hydrogen-powered Transportation

Hydrogen-powered transportation is where transportation and energy technology integrate

in energy layer. Depending on the functional qualities of the power source, hydrogen-

powered transportation can be divided into two categories: transportation by hydrogen

internal combustion engine and transportation by hydrogen fuel cell. In the former, hydrogen

is injected into the engine cylinder and burned, and chemical energy is converted into

mechanical energy to drive the vehicle. The working principle is similar to that of traditional

internal combustion engines. In the latter, then, hydrogen or hydrogenous mixtures in the

fuel cells react with oxygen and convert chemical energy into electricity to drive the vehicle.

Hydrogen fuel cell technology is more mature, more advanced and more efficient than other

hydrogen-energy technologies. Thus it is currently the main direction of development in this field.

Technological Progress

1

Since the 1960s, Europe and countries like the United States, Japan and South Korea

have stepped up the research and application of hydrogen-powered transportation

technology in order to address energy shortages and serious environmental pollution. Now

hydrogen-energy vehicles are used widely in the world, while hydrogen-energy aircraft

and ships are still in trial stages. By the end of 2019, there were 24,000 hydrogen fuel cell

vehicles worldwide, with an endurance mileage of 700 km and potential refueling time

of just three minutes. In 2016, a German-developed hydrogen-energy aircraftcompleted

a test flight, reaching a flight speed of 165 km/h and a cruising radius up to 1500 km. In

2017, Japan’s Toyota launched its “Energy Observer” hydrogen-energy ship, which is

currently on a planned six-year voyage around the world.

Development Directions

2

Lower costs. The enormous cost of hydrogen fuel cells has seriously hampered the

development of the hydrogen-powered transportation industry. The hydrogen fuel cell

primarily consists of electrodes, proton exchange membranes and bipolar plates. It is

crucial that each component’s cost need be reduced. Research into electrodes needs

to focus on reducing the amount of platinum catalyst, searching for alternative catalysts

that are effective and cheap, optimizing the electrode structure, and so on. Technological

innovations in recent years have already reduced the platinum catalyst by 75%, which has

in turn greatly reduced the battery cost. Research into proton exchange membranes,

then, should seek to reduce their cost while improving chemical and mechanical stability.

Ballard Power System in Canada has just developed a new fluorinated sulfonic acid

membrane whose performance is equivalent to that of the widely used Nafion membrane

but with a much lower cost and simplified production process. Finally, research into

bipolar plates should focus on developing an ideal substitute for expensive graphite bipolar

plates. The ideal substitute would be highly conductive, affordable, and easy to manufacture.

At present, metal bipolar plates are the most competitive candidate owing to their high

conductivity, remarkable mechanical strength and suitability for mass production.

Longer service life. Hydrogen fuel cells’ service life and durability are key conditions

for the successful wide application of hydrogen-powered transportation. Significant

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breakthroughs have already been made in extending the service life of hydrogen fuel cells

used in special vehicles. Buses and forklifts, in particular, are mounted with hydrogen fuel

cells with respective service lives of 12,000 and 19,000 hours. In contrast, but the service

life of hydrogen fuel cells used in commercial cars, airplanes and ships is less than 5000

hours. Therefore, extending the service life and durability of vehicular hydrogen fuel cells

in vehicles—especially in those commercial categories—is key to the development of

hydrogen-powered transportation. New breakthroughs should be pursued specifically in

electrode materials, electric pile structures, fuel cells and power systems.

Hydrogen refueling support. Hydrogen refueling stations may be classified into two

types: those with an external hydrogen supply and those with their own capacity for

producing hydrogen. There are more than 440 hydrogen refueling stations in operation

worldwide. Furthermore, most of hydrogen refueling stations are external hydrogen

supply refueling stations and the cost is very high. The investment needed for a hydrogen

refueling station with a daily refueling capacity of 500 kg can amount to 2-3 million

US dollars. Moving forward, with the large-scale application of hydrogen-powered

transportation, improvements to hydrogen refueling technology will be of the utmost

importance. At the same time, the development of higher-performance, more economical

air storage tanks, compressors, and refuelers should be accelerated. As hydrogen

production by in-station water electrolysis becomes more economical, refueling stations

with their own hydrogen-producing capacities will become a key means of reducing

investments and improving operating efficiency.

5.2.4 Maglev Transportation

Maglev transportation is a new type of transportation that harnesses electromagnetic force

to realize the contactless suspension of vehicles above tracks. It is where transportation

and energy technology integrate in energy layer. Maglev transportation involves

electromagnetic suspension (EMS), electrodynamic suspension (EDS) and permanent

magnetic suspension (PMS), as shown in Figure 5-2.

Train

electromagnet

Permanent

magnet

Rail

electromagnet

Rail

electromagnet

Train

electromagnet

aꢀꢁelectromagnetic suspension

bꢀꢁelectrodynamic suspension

cꢀꢁpermanent magnetic suspension

Figure 5-2 Maglev by Suspension Mechanism

Technological Progress

1

Research on maglev transportation technology began back in the 1920s, but particularly

in the past decade, remarkable breakthroughs have been made all around the world. In

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ETI Integration

2003, the demonstration maglev line project in Shanghai, China became the first EMS line

in the world to go into commercial operation, with a maximum running speed of 430 km/h.

In 2013, Elon Musk, CEO of US company Tesla, put forward the “Hyperloop” ^Asuper-high-

speed railway concept that should achieve speeds of 1,220 km/h. In 2017, “Hyperloop

1” was tested for the first time in a vacuum environment at a speed of 310 km/h. In 2015,

Japan’s L0 maglev train set a new world record at a speed of 603 km/h on a test track in

Yamanashi. Finally, in 2019, the Chinese-developed 600km/h EDS prototype rolled off the

assembly line in Qingdao. Maglev transportation is positioned as an important direction

for the development of at least 400 km/h high-speed transportation.

Figure 5-3 Schematic diagram of Maglev Super High Speed Rail

Development Directions

2

Superior suspension stability. EMS maglev trains can dynamically maintain an

approximate ten-millimeter suspension gap by controlling the electromagnet current, but

the magnetic suspension is not very stable. A mismatch between the kinetic parameters of

the train, track, and suspension control system can induce coupling resonance between

the train and rail. Shanghai maglev line has encountered issues of instability when the

train resonates with the beams of the railway during the rise and fall of its suspension.

Moving forward with EMS will require close studies of the dynamic interaction between the

running train and the tracks, and the adaptation of maglev control technology to different

working conditions so as to fundamentally improve the stability of the suspension control

system.

Maglev turnout technology. In operation, EMS trains levitate while still hugging the

track, which avoids the derailment but poses challenges for the structural design of

As a matter of fact, super high-speed rail transportation adopts “EDS+rough vacuum” and reduces

air resistance by using the rough vacuum environment and supersonic shape. It reduces friction

resistance and enables supersonic operation through magnetic suspension.

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maglev turnouts (junction switches). Maglev turnouts have a different structure than high-

speed railway turnouts. Influenced by the small damping of the steel structure beam

and abundant middle and low frequency modes, maglev trains might experience static

suspension instability in the turnout area and coupling resonance during low-speed

turnout crossings. These are still unsolved engineering problems. Future research in

maglev turnouts should focus on the coupling resonance mechanism, load and stress-

strain characteristics of the turnout beam under various working conditions, new

technology for controlling train-turnout coupling resonance on this basis, new low-vibration

maglev turnout structure designs, and improving turnout life spans.

High-speed vacuum pipeline maglev transportation. The high-speed vacuum pipeline

maglev transportation system is comprised of a vacuum pipeline, entry/exit stations, and

maglev cabins. The cabins run within an entirely vacuumized pipeline that can be built

at ground-level, underground, or on the seabed. EDS technology is used to suspend the

cabins in the vacuum pipeline. Frictionless driving is achieved at speeds that can reach

4000 km/h in theory. Development breakthroughs should be pursued in durable air/water-

proof pipeline materials, pipeline installation technologies, passenger safety technologies

for traveling through rough vacuum, and technology for cabin controls of the magnetic

force and direction.

5.2.5 Wireless Charging

Wireless charging technology refers to cable-free EV charging by electromagnetic

induction, magnetic coupling resonance, and other methods relying on power supply

coils buried within roads or parking spaces. It is where transportation and energy

technology converge in energy layer. Wireless charging technology is generally classified

as either static or dynamic. Static wireless charging applies to stationary e-vehicles—

such as in parking lots, shopping malls, or residential areas (See Figure 5-4). Dynamic

wireless charging instead targets vehicles as they are running; this technology can

effectively extend an EV’s endurance mileage and reduce vehicle-mounted battery

capacity requirements. Compared to wired charging technology, both types of wireless

charging technology have such advantages as smaller occupied area, better safety,

more convenience and flexibility, more time saved, lower maintenance costs, and the

capacity for dynamic power grid interaction. The maturation of wireless charging related

technologies will further popularize and promote e-vehicle usage.

Technological Progress

1

Since the 1990s, many research institutions and high-tech enterprises around the world

have been involved in wireless charging technology R&D and applications. In 2018, BMW

launched the world’s first wireless charging car, the BMW 530e iPerformance. It has a

charging power of 3.6 kW and a charging time of about 3.5 hours, as shown in Figure 5-4.

Meanwhile, US company Evatran’s Pluggless wireless charging system transmits 7.2 kW

of power to charge Tesla’s Model S, BMW’s i3, Nissan’s LEAF, and Chevrolet’s Volt. The

research strength of wireless charging research institutions and enterprises is shown in

Table 5-1.

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(a) Static wireless charging

High-frequency

Compensation

rectification filter

network

circuit

Battery

load

Receiving coil

Power grid

50/60Hz

嗣

Transmitting

coil

Power electronic Compensation

converter

network

(b) Basic principles of wireless charging

Figure 5-4 Schematic Diagram of Wireless Charging for Electric Vehicles

Table 5-1 Wireless EV Charging Technology by Major Global Enterprises

Frequency

(kHz)

Transmission

distance (cm)

Efficiency ratio

(%)

Power

(kW)

Institutions

Year

2011

2014

University of Auckland

20

15

-

2

Korea Advanced Institute

of Science and Technology

100

95.6

6.6

Chongqing University

ZXNE Corporation

2015

-

20

75

90

30

60

45

Zonecharge Wireless Power

Technology Co.,Ltd.

2017

-

19

90

30

Oak Ridge National Laboratory

Qualcomm Halo

2018

-

22

85

12.7

22

97

>90

95

120

20

Momentum Dynamics

2018

30.5

200

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Development Directions

2

Offset resistance. In practice, according to the EV driving or parking position, wireless

charging systems’ primary and secondary coils will exhibit a certain range of angle

offset and distance offset, which affects the charging efficiency of coupling system. Thus

the wireless charging system needs to have a high offset resistance. At present, offset

resistance is mainly improved through the design of the magnetic coupling mechanism or

by closed-loop system control, but the actual effect is limited. Therefore, it is necessary

to analyze the spatial power density distribution and transmission mechanism, which can

improve the system’s transmission efficiency. The wireless power transmission technology

based on Parity-Time Symmetry (PTS) proposed in recent years can achieve a constant

efficiency and output of power within a certain range. PTS technology is expected to

improve system offset resistance.

Electromagnetic safety. Electromagnetic exposure may influnce human health. At

present, two major safety standards (ICNIRP-2010 Guidelines for Limiting Exposure to

Time-Varying Electric Fields, Magnetic Fields and Electromagnetic Fields and GB8702-

2014 Electromagnetic Environment Control Limits) formulated by the International

Commission on Non-Ionizing Radiation Protection (ICNIRP), are adopted around the world,

as shown in Table 5-2. With the expansion of wireless EV charging, safety is bound to

become the focus of public attention. Future efforts must be made to reasonably restrain

the area of the electromagnetic field, reduce radiation leakage, research and apply new

materials, and achieve electromagnetic shielding and efficient system protections with

minimum impact on performance.

Table 5-2 Electromagnetic Exposure Safety Limits

Electric field

intensity (kV/m)

Magnetic field

strength (A/m)

Magnetic induction

intensity (μT)

Standard

Frequency range

400Hz-3kHz

3kHz-10MHz

250/f

0.083

64000/f

21

80000/f

27

ICNIRP-2010

2.9-57kHz

57-100kHz

0.1-3MHz

70

4000000/f

40

10000/f

0.1

12000/f

0.12

GB8702-2014

China

（

）

Note: f is the frequency of the electromagnetic field

Bidirectional V2G power flow. According to the International Energy Agency (IEA), the

total number of e-vehicles is expected to reach 220 million by 2030, forming a massive-

scale energy storage infrastructure of approximately 10TWh.^AWireless charging offers

such technical advantages, however, as dynamic power grid interaction and freedom

from the limitations of time and space. Connected to the power grid, e-vehicles can

serve as mobile, distributed units of energy storage to stabilize load peaks and valleys,

improving the power grid’s overall safety, stability, reliability and efficiency of clean energy

Source: https://baijiahao.baidu.com/s?id=1601961776889308499&wfr=spider&for=pc.

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use. Future research should focus on realizing bidirectional wireless charging technology

in Vehicle to Grid (V2G) scenarios, two-way (vehicle-network) smart chargers, the barrier-

free two-way flow of electricity, and the overall coordination of e-vehicles with the

power grid.

5.2.6 Power Routers

Power routers provide intelligent interfaces, which have plug-and-play functionality for

distributed power supply, energy storage equipment and load. Power Routers help to

realize the multi-directional flow and active control of electricity based on user and control

center instructions and the network operation status. It is where energy and information

technology integrate in energy layer. Their basic modules cover a comprehensive

application, operation control, communication and physical infrastructure, as shown

in Figure 5-5. In the future, with the rapid and large-scale development of clean power

generation, high-penetration distributed generation, e-vehicles and energy storage

systems, the power system will gradually shift from its current “one-to-many” form to

a “many-to-many” form. This will require the comprehensive control and coordinated

management of complex power grids via power routers.

Power Router

Human-computer

Fault handling

interaction

Comprehensive

application

Energy trading

Big data services

module

Condition

Information

processing

monitoring

Operation

control module

System

management

Energy management

center

Energy routing

Other power routers

Information flow

Wide

area

Local

area

Local

area

Communication

module

Information flow

Protection

Physical

module

Field controller

drive module

HVDC

AC

LVDC

Distribution

network

Draught fan

Wind power

Hydropower

DC

AC

DC

Water turbine

HVAC

LVAC

DC load

Combustion

power

(high voltage)

generation

equipment/gas-

ifier/cogenera-

tion

Biomass energy

Natural gas

Photovoltaic

(PV) cell

Solar power

Power storage

equipment

Gas turbine/

cogeneration

DC load

(low voltage)

Power electronic module

AC load

Figure 5-5 Basic Architecture of Power Router

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Technological Progress

1

In 2008, the National Science Foundation project of the United States Future Renewable

Electric Energy Delivery and Management (FREEDM) System, following the example

of information routers in network technology, first proposed developing power routers

that would meet the requirements of multi-directional power flow and proactive control.

Subsequently, the European Union, Japan and China gradually integrated the power

router into their energy interconnection frameworks and conducted relevant demonstration

projects. In 2019, Tsinghua University and Wuxi Qingsheng Power Electronics Co., Ltd.

jointly developed China’s first multi-port, multi-cascade, multi-flow and multi-form AC/DC

hybrid multi-port 10kV/1MW power router, which can be widely applicable in renewable

power generation, charging and discharging for energy storage, e-vehicle charging, and

AC/DC hybrid microgrids. The router is currently a pilot project in the verification stage. Its

topological structure is shown in Figure 5-6.

AC

DC

power port

High voltage

AC bus

AC

DC

AC

DC

AC

DC

AC

DC

AC

DC

bus

Low voltage

AC bus

AC

DC

load port

Figure 5-6 AC/DC Hybrid Multi-Port Power Router

Development Directions

2

Energy optimization technology. Power routers essentially rely on energy management

technology to control the flow of power via a flow of information. The future power system

will be connected to various energy sources such as solar, wind and biomass energy,

as well as fuel cells and various types of energy storage equipment. A complex multi-

directional flow of currents will replace a simple radial flow of currents, which will cause

larger uncertainty and variations across time. Therefore, it is necessary to study the

energy optimization technology for complex grid power routers to achieve the active

control and rational distribution of power, the optimization of microgrid operations and

improvement of power system stability.

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Port plug-and-play technology. Similar to information routers with universal plug-and-

play data ports, power routers also need standardized plug-and-play ports with rational

plug-in structures and start-up measures. Plug-and-play technology allows routers

to exchange information in line with communication protocol, quickly identify access

devices’ electrical characteristics, and achieve quick access or removal. In light of the

future energy interconnection, a slew of complex requirements will come to bear upon

routers. Therefore, to ensure the flexibility and instantaneity of the power supply and load

access, communication interfaces need to be unified along with power interface designs

for different voltage levels and types, while efficient quality controls are put in place over

various types of grid-connected equipment.

Real-time communication technology. To achieve the accurate dispatch of power,

routers not only require a superior capacity for power conversion; they also require the

capacity to communicate in real time. Communication networks need to be distributed

to all levels of power routers along with various network nodes and terminal devices.

Network communication architecture that is suitable for routers should be constructed on

the basis of the power system’s existing communication networks. In the future, however,

communication infrastructure and energy management protocol standards must be

unified for distribution network management, distributed electrical connection, network

operation and maintenance, and so on, to ensure that various energy resources are being

efficiently and comprehensively utilized. Another key application for real-time technology

lies in the improvement of communication security—specifically, defense against network

attacks. Real-time technology is a must if the malicious control of power routers and theft

or tampering of data are to be prevented.

5.2.7ꢀ ArtiﬁcialꢀIntelligence

Artificial intelligence (or AI) is a novel engineering science that explores the use of machines

to perform formerly human-specific functions such as cognition, recognition, analysis and

decision-making. AI will drive intelligent development in the fields of energy and transportation,

and is where information, transportation and energy technologies converge in database

layer. Like the steam engine in the age of steam, the generator in the age of electricity, and

the computer or internet in the age of information, artificial intelligence is pushing humanity

forward into an age of its own making. The United States, China, Germany, Britain, France,

and Japan have all incorporated the development of AI into their national strategies.

Technological Progress

1

Artificial intelligence was born in 1956, when a team at Dartmouth College lead by

McCarthy and Minsky first put forward the concept. In the 21st century, artificial neural

networks are developing rapidly. Important breakthroughs have been made in speech

synthesis and recognition, image recognition, machine translation, automated customer

service, human-machine dialogue, and unmanned driving. AI already provides services

to hundreds of millions of people around the world every day. Generally speaking, while

AI has made remarkable progress in “shallow intelligence” functions such as information

perception and machine learning, its “deep intelligence” for conceptual abstraction and

decision-making remains inadequate. Thus AI still falls far short of human intelligence.

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Development Directions

2

From specialized to general intelligence. Specialized intelligence can be understood as

intelligence geared toward specific scenarios. Lacking what we would consider wisdom or

an EQ, artificial specialized intelligence applications are limited to certain areas. Artificial

general intelligence, on the other hand, has qualities more comparable to those of

human consciousness, sensibility and knowledge. It can perform a wide variety of tasks,

correct errors independently and even deal with unexpected situations. The evolution from

specialized to general intelligence is the inevitable development trend of next-generation AI. It

is also a major challenge for research and application. A more generalized AI will have much

broader prospects for such transportation and energy applications as unmanned driving,

smart logistics, smart grids, intelligent dispatching and intelligent inspection.

Fromꢀartiﬁcialꢀintelligenceꢀtoꢀhybridꢀintelligence.ꢀHybrid intelligence (HI) refers to the

combination of human and machine intelligence, or, to put it another way, AI that combines

brain science with cognitive science, and is an important direction in the development of

future technologies. Introducing the human (or cognitive model) into AI systems makes

artificial intelligence into a more “natural” extension and expansion of human intelligence,

effectively improving AI systems’ performance, and solving complex problems with more

efficiency than AI alone. In both China’s Plan for the Development of New Generation

Artificial Intelligence and America’s “BRAIN Initiative”, HI is an important R&D direction.

From “manpower+intelligence” to autonomous intelligence. Much of the current

research in artificial intelligence focuses on deep learning. The limitation of deep learning is that

it still requires significant human intervention, such as the manual design of deep neural network

models, manual programming of application scenarios, manual collecting and tagging of vast

training data, and users’ manual adaptation to intelligent systems. These steps are all laborious

and time-consuming. Autonomous methods need to be found to lessen the need for human

intervention and improve AI’s ability to learn autonomously from the environment. For example,

through intensified self-learning, Alpha Zero (the successor of Alpha Go), has become the

most powerful “general chess artificial intelligence” in Weiqi (Go), Chess and Japanese Chess.

5.2.8 Big Data

Big data refers to the technology that can quickly obtain valuable information from

massive data. It is where information, energy and transportation technologies converge in

database layer. Big data will be used to tap into the rich potential of huge data resources

in the energy, power and transportation fields, as well as to improve operation and

management, optimize user services, and support the development of related industries.

There are five stages involved in the generation and application of data: preparation,

storage, processing, analysis and presentation. The technical framework is shown in

Figure 5-7. The International Data Corporation (IDC) predicts that global data volume is

expected to exceed 50ZB this year, and continue doubling at a rate of every three years.

This resource and its steady growth constitute the fundamental driving force behind the

research and application of big data technology. ^A

ZB, or 10 trillion gigabytes, is equivalent to 2⁴⁰GB.

A

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ETI Integration

User

(5)Knowledge presentation

(4)Data analysis

Data visualization

Data mining (data warehouse, OLAP, business

intelligence and so on)

Batch processing

Interaction analysis Stream processing

(3)Computing and processing

(2)Storage management

(1)Data preparation

Data storage (SQL and NOSQL)

Data import (ETL, extraction, transformation, loading)

Data sources (Internet, IoT, enterprise data, etc.)

Figure 5-7 Overall Framework of Big Data Technology

Technological Progress

1

Big data was born in 1980, when American futurist Alvin Toffler put forward the concept

in his book The Third Wave. Now in the 21st century, with the rapid development of the

Internet, the Internet of Things, cloud computing and other information and communication

technologies, the sheer massiveness of data from all areas of life all around the world is

more or less forcing changes to existing data processing systems. Under this pressure,

many countries are beginning to study and apply big data. Technologies, regulations,

standards and applications related to big data are already beginning to mature. The

digital economy and data industry—both based on the sharing, coordination, and analysis

of data—are booming, creating an enormous data industry chain covering data collection,

analysis and application.

Development Directions

2

Big data storage technology. Big data is most prominently characterized by the massive

amount and diverse format of files. To this end, Google’s Big Query, Amazon’s AWS

Redshift, Alibaba’s PolarDB and Tencent’s Sparkling all adopt the Hadoop Distributed

File System (HDFS) for distributed data set storage at the petabyte level.^AHDFS also

improves the performance of random access and massive file access and efficiently

manages unstructured data. In the future, big data storage technology will only need to be

more flexible and have larger storage capacities.

Parallel computing. Big data analysis and mining require immense computing power.

As opposed to traditional high-performance computing characterized by “simple

data, complex algorithms”, big data computing is data-intensive, requiring computer

architecture to have extremely high data throughput, especially in domain storage. In

1PB is equivalent to 2²⁰GB, mainly used in big data storage devices such as servers.

A

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ETI Integration Technology and Mechanism Innovation

2004, Google released MapReduce, a distributed parallel computing technology, which

expands system processing capacity by adding server nodes. MapReduce has since

become the most widely used big data computing platform. In the future, computing

technology must develop a general architecture that is adaptable to different scenarios

and suitable for various computing models, as well as improve capacities for data

computing and analysis over all.

Big data analysis technology. Among all digitized data, only a small amount of

numerical data has been satisfactorily analyzed and mined thus far. Meanwhile,

unstructured data such as voice, pictures and videos, which account for nearly 60% of

the total, remain difficult to analyze. To this end, innovation in big data analysis technology

should attempt to resolve two problems. First, it should efficiently and thoroughly analyze

mass structured/semi-structured data, mining it for information of value—thereby coming

to understand and recognize the semantics, emotions and intentions of texts composed in

natural language. Second, it should also analyze unstructured data, transforming complex

mass data from multiple sources such as voice, image and video into semantically clear,

machine-recognizable data, ultimately for the extraction of useful information.

5.2.9 The Internet of Vehicles

The IoV is an important application of the Internet of Things in the field of transportation,

and is where information technology and transportation technology converge in

application layer. It specifically refers to a huge interaction network made up of such

information as vehicle locations, driving speeds and driving routes. It is predicted that

the popularization and application of IoV technologies will improve existing road capacity

by 2-3 times, reduce traffic congestion by 60%, improve short-distance transportation

efficiency by 70%, reduce traffic accidents by 50%-80%, shorten travel times by 13%-

45%, lower gasoline consumption by 30%, and at the same time significantly reduce

vehicle residence times, automobile exhaust and greenhouse gas emissions (by 25%-

30%). Diagram of the Internet of Vehicles is shown as Figure 5-8.

Technological Progress

1

As an important information and communication technology applied to the field of

transportation, the Internet of Vehicles began to flourish worldwide at the end of the 20th

century, gradually attracting attention from various countries’ governments, enterprises

and research institutions. Through years of research, many key technologies have

achieved great progress. In terms of customized wireless communication technology,

the United States, the European Union and China have each introduced short- and long-

term evolution IoV communication technology based on the IEEE802.11P protocol and

have standardized communication protocols for vehicle-to-vehicle and vehicle-to-road

communication. For the spectrum of special-purpose communication in the global IoV,

see Figure 5-9. In terms of non-customized wireless communication technology,

radio frequency identification technology is being used to collect traffic information from

long distances in environments where vehicles move at speeds exceeding 300 km/h. The

data transmission rate is now up to 300 kbps. Global satellite positioning technology

has an accuracy better than 10 meters, while its accuracy in speed measurement is

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ETI Integration

within 0.2 meters per second. In China, more than 7 million operating vehicles are using

the Beidou satellite System (BDS system) for navigation and positioning. In terms of big

data analysis technology, propelled by the development of computing and networks,

big data processing technologies such as information management systems, distributed

databases, data mining and cluster analysis are now widely used in the Internet of

Vehicles.

T-CORE

T-CARE

T-LINK

T-SOA

T-CALL

the Internet of

Vehicles

T-MARKETING

T-DATA

T-CAR

Figure 5-8 Platform of the Internet of Vehicles

LTE-V

1st generation

International

Telecommuni-

cation Union

(ITU)

DSRC

5.725GHz

5.875GHz

2nd

generation

DSRC

5.795GHz

5.815GHz

Europe

United

States

0.902GHz 0.928GHz

5.83GHz 5.85GHz

5.81GHz

Japan

5.79GHz

5.905GHz

5.925GHz

China

Frequency

5.8GHz

5.9GHz

Figure 5-9 Global Communication Spectrum for IoV

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ETI Integration Technology and Mechanism Innovation

Development Directions

2

Automotive chips. Automotive chips are the central nervous system of the Internet

of Vehicles. Micro-control chips mounted in vehicles are used primarily for car body

electronics, chassis electronics, and driving safety control. Considering the future

demands of IoV application scenarios, automotive chips will need to be multi-thread, high-

security, high-concurrency, and work in real time. They should support various active

safety systems such as millimeter-wave radar, infrared night vision, 360-degree imaging,

and advanced driver assistance, possessing the ability to sense objects accurately.

Moreover, they should have powerful computing capabilities, ready to complete

calculations and output system instructions in the tens of milliseconds to meet the

demands of more complex driving environments.

Server-side computing and service integration. In the future Internet of Vehicles, the

massive amount of sensor-relayed information, communications, and vehicle-mounted

terminal services will all need to rely on server-side and cloud computing. Data operations

involved in analyzing road conditions, preparing transportation schedules, planning

vehicle routes, and tracking vehicle information, will need to be allocated widely among a

large number of distributed computers. Nevertheless, to enhance the overall computation

capability of the IoV system, all the information should be managed by unified server,

which can improve computation efficiency to more than 10 trillion times per second.

Server-side computing and service integration will provide users with safer, more efficient,

higher-performance services.

Security and privacy protection. The Internet of Vehicles does not only involve the user

information security, but also traffic safety. If the network management system were to be

hacked or destroyed, it would likely result in traffic accidents—even the paralysis of the

entire traffic system. That is, however, only if no corresponding measures are taken for

protection. Network security is the absolute core of the IoV system. Innovation must be

intensified in security and privacy protection technologies; R&D must be advanced for

identity authentication, user information protection, information encryption, and security

transport protocols to ensure the overall safe operation of the Internet of Vehicles.

5.2.10 Unmanned Driving

Unmanned driving is an autonomous driving technology that solely relies on the car’s

intelligent system. It is where information technology and transportation technology

converge in application layer. The unmanned driving system can be subdivided into the

sensing, decision-making, and execution systems. The sensing system makes accurate

vehicle positioning possible, as well as the identification and tracking of surrounding

objects via on-board sensors such as lidar and camera. The decision-making system uses

this information about positioning and obstacles to predict the behavior of surrounding

vehicles and plan local driving paths in real time. Then the execution system controls the

vehicle’s steering and speed to ensure on-road safety and reliability. A schematic diagram

for the unmanned driving system is given in Figure 5-10.

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ETI Integration

Video camera

Laser rangefinder

quickly and accurately draws

3D topographies of areas

within a 200-metre radius and

uploads the maps to the

vehicle’s computer

quickly and accurately draws

3D topographies of areas within

a 200-metre radius and

uploads the maps to the

vehicle’s computer

4 standard

automotive radars

Automotive

radar

3 in the front and 1 in the

rear; detects fixed

roadblocks from a long

distance

Microsensor

Computer database

detects whether the

accurately records speed

limits and the location of

entrances and exits on

each highway

vehicle has deviated from

the route set by the GPS

navigation system

Figure 5-10 Unmanned Driving System

Technological Progress

1

Since the 1970s, the United States, along with many European countries, have plunged

into unmanned driving research. In the 21st century, major global automakers and

IT giants such as Google and Baidu are rushing to launch unmanned test models. In

2015, Tesla introduced “Tesla Autopilot”, a semi-automatic driving system and the first

unmanned driving system to be put to commercial use. Then Google launched a Level

4 driverless car in 2018. The same year, Baidu cooperated with King Long in Xiamen to

mass-produce China’s first Level 4 self-driving bus. A timeline for the global development

of driverless cars is given in Figure 5-11.

Development Directions

2

Environmental perception. Environmental perception technology is the “eyes” of

an unmanned vehicle, therefore crucial to road safety. Although unmanned vehicles

developed by Google and Baidu have successfully passed driving tests on actual urban

roads, these tests were still conducted under special circumstances. At their current level,

environmental perception technologies like lidar and machine vision are still incapable

of adapting to daily situations. Unmanned vehicles not only need to be able to detect

surrounding vehicles, but also accurately identify pedestrians, lanes, stop lines, traffic

signs and traffic lights, even in rain and snow. Existing sensors, however, can’t see

through solid obstacles or respond in time to the sudden appearance of pedestrians. The

future popularization and application of driverless vehicles will depend on breakthroughs

in environmental perception technology.

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ETI Integration Technology and Mechanism Innovation

DARPA cooperates with the U. S.

Army to launch the ALV program

NavLabl, the world’s first

computer-driven car

ARGO conducts

long-distance road tests

1984

1986

1998

Traditional automakers (e.g. Audi,

Ford, Volvo, Nissan, BMW) rush to

roll out driverless cars

Google announces a team led by

Sebastian Thrun (former director of

Stanford Artificial Intelligence

Laboratory and co-inventor of

Google Street View) is developing

driverless technology

2004-2007

The third DARPA

Grand Challenge

Startups like

nuTonomy and Zoox

enter the field of

unmanned driving

2009

2013

Tesla introduces Tesla

Autopilot, a semi-automatic

driving system and the first

commercial unmanned

system

Uber’s driverless cars

are officially tested at

Uber Advanced

General Motors acquires

Cruise Automation,

officially entering the field

of unmanned driving

2015

Technologies Center

2016

(a) Development history of driverless vehicles in the world

The Hongqi HQ3 driverless car

(jointly developed by FAW

Group and the National

University of Defense

Technology) completes a 286

km high-speed full-course

driverless test

“Military Lion III”

travels 114 km in an

unmanned state

The National University of

Defense Technology

successfully develops

China’s first truly

driverless car

1992

2011

2012

Baidu’s driverless cars

conduct automatic driving

tests in Beijing

Yutong bus completes automatic

driving tests in open road

environments

2015

2017

Baidu, in cooperation with Xiamen’s

King Long, begin mass-producing

Apollo, the world’s first Level 4

self-driving bus

Baidu unveils a demonstration model with

enhanced auxiliary functions for road

conditions (developed in cooperation

with Bosch)

2018

(b) The History of Driverless Vehicles in China

Figure 5-11 The General Development of Driverless Vehicles

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ETI Integration

Decision-making. If environmental perception technology is the eyes, decision-making

technology is the “brain” of an unmanned vehicle. It is the automotive application of

electronics technology to simulate human driving, predict human driving behavior, and

control speed and direction. When an unmanned vehicle passes by the scene of an accident

or encounters a gesturing traffic director for example, its anticipation of pedestrians’ and

other vehicles’ next moves needs to be highly accurate. Predictions made according to such

real-time circumstances by neural network and fuzzy decision algorithms will continuously

generate a safe driving path and feed it back to the control system. The entire “thought”

process conforms to that of a human driver, enabling similarly “human-like” decision-making.

Therefore, strengthening decision-making technology to improve the adaptability in harsh

driving environments is crucial for the application of unmanned vehicle.

High-precision electronic mapping. Electronic maps serving unmanned systems need

to reach the centimeter level of precision to ensure driving safety. Traditional GPS and

BDS satellite maps are only accurate to about five meters. But by combining traditional

satellite maps with data from on-board sensors, a vehicle’s mapping accuracy can

be improved to 5-10 cm. Except accuracy, real-time mapping performance is another

area for improvement. Road networks are changing every day, such as path repair, the

weathering or repainting of road markings, or changes to traffic signs. Electronic maps

need to be able to respond to these in real-time. As more sensors like gyroscopes and

wheel rangefinders see wide application, the results will be more effective. As soon as one

or more unmanned vehicles detect a change in road conditions, the updated conditions

can be transmitted to all unmanned vehicles via cloud to ensure driving safety.

5.3 Innovation of Mechanisms for ETI Integration

To support and guarantee the development of ETI Integration, multiple mechanisms will

need to be innovated: for overall planning, for construction and operation, for financial

investment, for the alignment of standards, for policy guarantees, and for international

cooperation, together forming a perfect system of implementation. These six innovation

areas for ETI Integration mechanisms are shown in Figure 5-12.

Planning

and

coordination

Construction

and

operation

International

cooperation

Innovation

of Mechanisms

Financial

investment

Policy

guarantees

Standardization

Figure 5-12 ETI Integration Mechanisms for Innovation

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ETI Integration Technology and Mechanism Innovation

5.3.1 Planning and Coordination

Since network infrastructure is a complex systematic project crossing multiple fields and

industries, a high-standard planning is required and needs to be prioritized. To strengthen

top-level design, coordination must be stepped up between the ETI networks; adaptations

must be made to accommodate ETI Integration’s development needs. The overall focus of

the ETI Integration planning mechanism is to innovate new planning methods, coordinate

market demand, and improve planning alignment. The imperatives for each of these are

given below.

Innovating planning methods, strengthen overall planning coordination in cross-border

and cross-industry development, reduce the comprehensive economic, social, and

environmental costs, devise systematic planning methods, project cost-benefit analysis

models, and standardized planning processes to adapt to ETI Integration, transform

the independent development model from the source; innovate concepts in planning

and design, and integrate new development concepts like innovation, coordination,

environmental protection, openness, and sharing into all aspects of ETI Integration

projects, making ETI Integration a low-carbon, environmentally friendly and efficient

endeavor.

Coordinating market demand, coordinate socio-economic development and the

actual needs of various market entities involved in public services such as energy

supply, transportation, and information/communication, analyze the overall needs of ETI

Integration and rationally determine its planning boundaries; analyze the input-output

relationship between resources, capital, and labor, and formulate an ETI Integration

development plan that is in line with market demand according to the principles of

integration, sharing, and high efficiency.

improveplanning alignment, establish a mechanism for coordination and alignment

in ETI networks’ planning, promote the alignment of development planning in the ETI

networks, and conform ETI Integration planning to regional and national socio-economic

development planning; coordinate global top-level design and independent national

planning, promote the integration of global/regional ETI Integration planning with national

planning, and advance the ETI Integration to a higher level.

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ETI Integration

column 5-1 The African Union Launches Integrated Infrastructure

Planning for Africa

In 2012, the African Union integrated its existing cross-border and cross-

regional 2012-2040 Africa development plans for the four major areas of energy,

transportation, information and water resources, issuing the “Program for

Infrastructure Development in Africa (PIDA)”. PIDA provides a project plan and

overall implementation framework for infrastructure development in Africa. See

Figure 5-13 for PIDA’s energy, transportation and information interconnection

development programs.

(a) PIDA Program for Energy Interconnection Development

(c) PIDA Program for Information

Interconnection Development

(b) PIDA Program for Transportation

Interconnection Development

Figure 5-13 PIDA Programs for the Energy, Transportation and

Information Interconnection Development^A

Programme for infrastructure development in Africa, PIDA.

A

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ETI Integration Technology and Mechanism Innovation

5.3.2 Construction and Operation

ETI Integration is the next-generation comprehensive infrastructure system. Due to the

current lack of mature business models and platforms for project cooperation—as well

as a lack of rules for cooperative cross-border and cross-industry operation or means

of sharing information—it is difficult for various market entities involved to synergize and

integrate resources in projects’ early stages as well as in construction and in operation.

Furthermore, the market space has yet to really be opened up. The keys to innovate ETI

Integration’s construction and operation mechanism are to promote project construction,

facilitate collaboration, and expand market development.

Promoteꢀprojectꢀimplementation.ꢀSet up a development cooperation platform for ETI

Integration projects, and organize all parties to jointly promote various preliminary work

such as project mining, feasibility study, project pool building, path exploring, and fund

raising; build a suitable business model, establish a reasonable cost sharing and benefit

distribution model, and attract diverse market players to participate in project investment

and construction; strengthen coordination among all parties, accelerate project

implementation, and improve construction quality and efficiency.

Facilitate collaborative operation. Set rules for the collaborative operation of the ETI

networks, fully utilize the marketization means to give full play to the regulatory role of

transportation and information networks in “shaving peaks and filling valleys” of the energy

network, likewise to the guarantee role of the energy and information networks in the smooth

operation of the transportation network; establish a cross-industry mechanism for information

sharing and jointly publishing information on ETI network operation, promote the orderly flow

and efficient use of information, and improve the safety and cost-effectiveness of operation.

Develop market space. Based on ETI networks’ coordinated operation and information

sharing, promote the rapid development of the global and regional energy, logistics,

passenger transportation and communication markets; strengthen cross-border

cooperation among all kinds of network operators, accelerate the overall development

of the energy, transportation and information markets, build a comprehensive public

service system, create new scenarios, new models and new business paradigms for the

coordinated operation of ETI networks, and produce the synergistic effect of “1+1>2”.

column 5-2 Collaborative Power Grid and Optical Network Interconnection

Construction by Six Central American Countries

In 1998, Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and Panama

concluded the Regulatory Framework of the Central American Electricity Market

to jointly build the System of Electrical Interconnection for the Central American

Regional Wholesale Market (SIEPAC). To gain the most comprehensive economic,

social and environmental benefits from the project, the six countries’ major telecom

companies used SIEPAC’s channels, towers and other resources to simultaneously

construct the optical network interconnection system( REDCA).

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ETI Integration

The first phase of the SIEPAC and REDCA projects was completed in 2006 and

they were put into operation in 2014. The total length of the system is about 1800

km; the voltage level is 230 kV; the transmission capacity is 300 MW; and the

communication bandwidth is 100 GBps per second. Phase I of the project is shown

in Figure 5-14. Phase II is currently in the planning stage. It is projected to increase

transmission capacity to 600 MW and connect to the power grids and optical fiber

networks of Mexico and Colombia.

Figure 5-14 Map of the Central American Power Grid/Optical Network

Interconnection System

5.3.3 Financial Investment

The scale of investment for network infrastructure is considerable, and the recovery

period is long; thus guaranteed financial resources and high-quality financial services

are required. The business models and investment and financing channels currently in

existence are inadequate to fully mobilize the power of different kinds of capital and to

meet ETI Integration’s huge capital demand. Types and methods of financial services

also need to be enriched and innovated to adapt to the new situations and requirements

brought about by ETI Integration. Innovation of ETI Integration’s financial investment

mechanism therefore focuses on innovating business models, strengthening financial

security, and diversifying financial services.

Innovate business models. Actively innovate new business models and financing

models, tap into projects’ commercial value, diversify the fields and methods of

cooperation between public and social capital, reduce financing costs and investment

risks, and strive to improve returns on project investments; encourage financial institutions to

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ETI Integration Technology and Mechanism Innovation

achieve breakthroughs in the fields of supply-chain finance, Internet finance, green finance

and real estate investment trust (REITs), and fully stimulate the vitality of the financial market.

Strengthen financial security. Vigorously expand financing channels, actively seek

financial and policy support from international financial institutions, and attract various types of

public and social capital to increase and diversify ETI Integration’s financial support; establish

ETI Integration investment and financing platforms, and flexibly carry out equity investment,

debt investment, financial leasing and other businesses to provide financial guarantees for ETI

Integration projects, research and development, and industrial development.

Diversify financial services. Encourage insurance companies and other financial

institutions to offer a variety of insurance products and risk management tools that will

help investors hedge investment risks and protect investment rights and interests; guide

financial service institutions such as consulting companies and credit rating agencies to

actively participate in ETI Integration projects and industrial development, and provide

high-quality financial services such as consultation, risk assessment and credit rating for

various market entities.

column 5-3 The New “Electricity-Mining-Metallurgy-Industry-Trade”

Joint Development Model

Many countries in Africa, Southeast Asia and South America are rich in clean energy

and mineral resources, but cannot take full advantage of these resources due to a lack

of funds, markets, and/or technology. Thus these areas experience power shortages

regardless of their wealth in resources. They may also lack the power to intensively

smelt or process mined materials, and can only export them as primary products.

The Global Energy Interconnection Development and Cooperation Organization

(GEIDCO) has pioneered a joint development model integrating electricity, mining,

metallurgy, manufacturing, and trade. By promoting large-scale clean energy bases

and regional energy interconnection, the model will bring together the advantages

of renewable and mining resources to create a coordinated supply chain spanning

electricity, mining, metallurgy, and trade. Inexpensive and plentiful renewable energy

will further support the construction of mines, metallurgy plants, and industrial parks

while sustaining production activities. The model will also move exports up the value

chain to create a virtuous circle facilitating investment, development, production,

exports and reinvestment. This model will lead to faster, more efficient, and overall

better quality economic growth. Based on positive returns from projects, the model

allows power generation and transmission companies and electricity consumers to

enter into multi-party agreements, forming “communities of interest” that support one

another, sharing both risks and benefits. Financing is obtained from banks, consortia

and private investors according to projects’ intrinsic value and companies’ financial

and credit standings. This approach ensures successful project implementation by

mitigating risks and overcoming major financial challenges related to market conditions

and sovereign guarantees. Figure 5-15 offers an illustration of the model.

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ETI Integration

Enterprise clusterr

African countries

Financial

1PXFS

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institutions

Mineral

resources

#FOFGJUꢀTIBSJOH

3JTLꢀTIBSJOH

4ZOEJDBUFT

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Multi-party

contracts

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Figure 5-15 The “Electricity-Mining-Metallurgy-Industry-Trade” Joint Development Model

This line of thought has found ways to use clean energy development to solve

problems in financing and in the electricity market as well as ways to use mining

and smelting to solve problems in electricity supply, removing the shackles that

once restricted economic development. At the industrial level, joint development

has overridden former development models that lacked overall planning with an

industry chain for collaborative development, achieving clustered development

and accelerating the process of industrialization. Then at the national level, joint

development has given full play to different countries’ complementary advantages

in terms of resource endowment, geographical location and economic structure,

has promoted the integration of transnational resources, and has cultivated large

markets for the benefit of all countries.

5.3.4 Alignment of Standards

Standardization is absolutely crucial for the technological advancement of ETI Integration,

covering cost reduction, project efficiency, as well as the overall efficiency, safety and

reliability of integration. Thus far, ETI Integration does not have a technical standard

system; thus the ETI networks encounter many issues of incompatibility—whether

between countries or between industries—as well as unregulated data standards, none of

which are conducive to ETI Integration. Innovation of ETI Integration’s standard alignment

mechanism therefore aims to establish standardized systems, formulate interface

standards, and standardize data specifications.

Establish standardized systems. Using the International Standards Organization as a

platform, coordinate the various stakeholders in ETI Integration-related fields, make an overall

plan for technical standards coordinating ETI Integration project implementation, industrial

development and the actual needs of market entities, establish and enhance the technical

standard system architecture for ETI Integration, identify priority professional and technical

fields, and promote ETI Integration’s coordinated technological and industrial development.

Establish interface standards. Work together with international standards organizations

and market entities in ETI Integration-related fields, formulate interface standards in the

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ETI Integration Technology and Mechanism Innovation

ETI networks for engineering construction, equipment manufacturing, operation and

maintenance, market transactions and other areas, and establish working mechanisms

such as regular releases and consecutive revisions to improve the coordination and

compatibility of technical standards between networks.

Standardize data specifications. In pursuit of information sharing and coordinated

operation between networks, cooperate with relevant international standards organizations

and various market entities, study and formulate globally recognized data standard

protocols and management processes, and enhance data compatibility between

industries; unify terminal devices’ digital identity authentication standards, and establish

mechanisms for quality control and traceability covering equipment’s entire life cycle.

5.3.5 Policy Guarantees

The rapid development of ETI Integration depends on policy fulfilling roles as leader and

guarantor. Still in its infancy, ETI Integration needs policy support and guarantees in terms

of top-level design, industrial collaboration and innovative ecosystems. Currently, because

ETI Integration lacks a mechanism for policy coordination, it cannot achieve the full

synergistic potential of cross-border and cross-industry policies. The existing regulatory

model also urgently needs to develop that it can adapt to the new scenarios, paradigms

and formats that ETI Integration will bring. Innovation of ETI Integration’s mechanism of

policy guarantees will therefore aim to promote industrial development, strengthen policy

coordination, and promote changes in regulation.

Promote industrial development. While considering the development needs of ETI

Integration, strengthen the overall design of related industries, promote the coordinated

development of industries across fields, achieve cross-border and cross-region resource

integration and advantage complementarity, and promote cross-sector integration and

innovation; put the strengths of the main industries into full play, promote innovation in ETI

Integration technology and models; create new industries and business paradigms, and

create an ecosystem of industrial innovation.

Strengthen policy coordination. Establish a system for international policy coordination,

encourage countries’ strengthened coordination on integration policies, eliminate policy

obstacles, and provide a foundation and support for the alignment of all levels of policies

regarding ETI Integration; establish a cross-industry policy coordination mechanism,

coordinate the policy needs of various sectors for industrial development, engineering

construction, capital guarantees, technological innovation, etc., and fully utilize policy

synergy for coordinated development across industries.

Promote regulatory changes. Coordinate the actual needs of new ETI Integration

models and new business paradigms for government services and supervision, promote

innovation in management methods and concepts, establish a collaborative supervision

mechanism featuring “horizontal coordination and vertical integration”, strengthen

coordination and collaboration between regulatory authorities, formulate plans and

supporting measures for policy implementation according to local conditions, and

generally improve government services and regulation capacities.

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ETI Integration

column 5-4 China’s First Industrial Policy on “New Infrastructure” ^A

On March 29, 2020, the Chinese city of Guangzhou issued the Ten Articles on

Accelerating New Infrastructure to Help the Development of the Digital Economy,

which is the first industrial policy on “New Infrastructure” in China. It includes the

following provisions:

(1) Enterprise support. Up to 15% of the total fixed asset investment completed

will be awarded in stages to newly introduced leading global enterprises, with the

maximum reward for a single project set at RMB 500 million.

(2) Technical support. RMB 100 million will be invested over three years to

cultivate a number of leading enterprises in the fields of operating systems,

databases, chips, network security, etc., and to build a complete ecosystem for

innovation in information technology applications.

(3) Business model innovation. The digitalization of the manufacturing industry

will be accelerated, and its vitality restored. The development of new business

paradigms and models will be encouraged. Some examples are e-sports,

Telemedicine, Space-based Internet and digital agriculture.

(4) Institutional guarantees. Standardization of the digital economy will be

encouraged, with a maximum reward of RMB 1 million and RMB 500,000 to

enterprises that lead (or participate in) the formulation and revision of international

standards.

“New Infrastructure” covers the focal points of ETI Integration—5G, UHV and intercity high-speed

railway, as well as intercity rail transit, charging piles for new energy vehicles, big data centers,

artificial intelligence and the Industrial Internet.

A

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5.3.6 International Cooperation

International cooperation is both the foundation and the safeguard of ETI Integration

development. ETI Integration requires the continuous expansion of market participants

and cross-border cooperation. Existing platforms for international cooperation built around

individual industries cannot satisfy its diverse development needs. Many developing

countries have relatively poor infrastructure, their development potential yet to be fully

unleashed. It is difficult for them to achieve rapid development by their own strength

alone; more international assistance is required. ETI Integration’s mechanism for global

governance remains unperfected; the formulation of governance rules and improvement

of governance capacity are both urgently needed. The focuses of innovation for ETI

Integration’s international cooperation mechanism are to establish a cooperation platform,

strengthen international assistance, and improve global governance.

Establish cooperation platform. Work together with relevant enterprises, organizations

and institutions in the fields of energy, transportation and information to jointly build

an international cooperation platform for ETI Integration, urging all parties to actively

participate in ETI Integration; coordinate all parties in planning research, project

alignment, fundraising and other work via the platform, and promote resource sharing,

advantage complementarity, and win-win cooperation.

Strengthen international assistance. Strengthen the overall coordination of aid,

formulate comprehensive assistance plans, attract the involvement of social organizations,

integrate resources from all parties, promote non-governmental communications, and

enhance the effectiveness of aid. Establish special assistance funds, increase capital,

materials and capacity-building assistance, advance major projects in underdeveloped

areas, and unleash the development potential of recipient countries.

Improve global governance. Adhere to the spirit of openness, inclusiveness, sharing

and joint construction, organize countries to jointly formulate rules of governance for

ETI Integration, take full advantage of both developed countries’ strengths in capital

and technology and developing countries’ strengths in resources, promote development of

ETI Integration in individual country through the pursuit of development for all, continuously

expand areas of common interests, and build a community with a shared future for mankind.

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5.4 Summary

●

ꢀ ETI Integration, representing a tremendously innovative cross-sector and cross-

cutting project, is led and driven by technological innovation. It calls for accelerated

integration at energy, database and application layers, and requires strengthened

cooperation among governments, enterprises, and societies through innovative

planning, operation, investment, standards, policies, and cooperation mechanisms.

●

ꢀ Technological innovation is most crucial to expedite ETI Integration. Key areas

of technological innovation include energy storage, electric and hydrogen-powered

transportation, maglev, wireless charging, power routers, artificial intelligence, big

data, the Internet of Vehicles, and unmanned driving. Energy storage technology is

developing in the direction of high energy density, long service life and low costs.

Meanwhile, research in electric transportation is working to extend endurance

mileage, reduce charging times and improve motor control; in hydrogen-powered

transportation, research goals are to reduce the cost of hydrogen fuel cells and

improve their service life. In maglev transportation, technological areas of focus are

for stability control and turnout as well as on vacuum pipeline high-speed maglev

systems. Innovation in wireless charging is aimed at improving reliability and safety

while supporting the bidirectional flow of electricity between automobile and power

grid. Power routers are becoming more manageable, flexible, and intelligent. AI

technology research covers general, hybrid (human-machine), and autonomous

intelligence. Research in big data technologymainly focuses on massive data

storage, parallel computing, and analysis. IoV technology is concentrating on

safety improvements, energy conservation, and environmental protection. Finally,

unmanned driving focuses on the technologies of environmental perception,

decision-making, and high-precision electronic mapping, in order to guide

development in a safer, smarter, and more convenient direction.

●

ꢀ As for innovation in the mechanisms of ETI Integration, that for planning and

coordinating primarily aims to innovate new planning methods, coordinate

market demand, and improve planning alignment. For the construction and

operation mechanism, innovation aims to promote project implementation, facilitate

coordinated operations, and develop market development. For the financial

investment mechanism, innovation aims to innovate new business models,

strengthen financial security, and diversify financial services. For the standardization

mechanism, innovation aims to establish standardized systems, establish interface

standards, and standardize data specifications. For the guarantee mechanism,

innovation aims to promote industrial development, strengthen policy coordination

and promote regulatory changes. For the international cooperation mechanism,

innovation focus is on establishing cooperation platform, increasing international

assistance, and improving global governance.

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ETI Integration

As a huge, systematic project covering the fields of energy, transportation

and information, ETI Integration will transcend national and cultural borders

to have a universal, deep and lasting impact on human society. It will foster

a new pattern of industrial development, vitalize economic growth, promote

a beautiful environment, create more intelligent and improved lifestyles,

and foster more prosperous and harmonious homes, while fundamentally

resolving long-standing problems of development including those relating

to resource shortages, climate change, environmental pollution, economic

crisis, and regional conflicts, creating a bright as well as sustainable future

for the development of humankind as a whole.

6.1 A Seismic Shift in Industrial Development

ETI Integration, a systematic and cross-sectoral project, will promote convergence in

industrial technology, changes in business paradigms and mobilization of industrial

factors, expediting the integrated, innovative development of emerging industries and

fostering a new industrial revolution.

ETI Integration will advance industrial and technical innovation. Technology will be

the driving force behind ETI Integration’s development, in turn making ETI Integration

a powerful engine of technological progress. The accelerated development and deep

integration of global ETI networks will provide an important medium and a broad market,

for scientific & technological innovation, transfer and application across various industrial

sectors. It will promote the improvement and application of cutting-edge technologies

in the fields of energy, transportation, and information, and drive the development of

technologies in related fields for clustering innovation. In particular, innovative ETI

Integration practices, such as “power +” integrated service platform, smart islands and

integrated corridors, will open up new space, and create new demand for disruptive

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technologies, triggering a new wave of technological innovation.

ETI Integration will facilitate changes in industires. ETI Integration will fully leverage

large-scale network infrastructure’s economies of scale and complementarities, promoting

the accelerated development of modern industries in a green, environmentally friendly,

innovation-driven, coordinated and open direction. Green and environmentally friendly

development will necessitate establishing new patterns of clean energy-led, electricity-

centered energy development, expediting the formation of green production modalities

featuring low resource consumption, reduced environmental pollution and zero CO₂

emissions, and promoting the transformation and transition from fossil fuel-centered

industrial clusters to a clean energy-led industrial ecology. Innovation-driven development

refers to “Internet+”, which will intelligently empower traditional manufacturing industry,

supporting modern manufacturing enterprises that have achieved smart production

and personalization/customization, and bringing high and new technology’s role as an

industrial driver to the fore. Coordinated and open development means abandoning

the fragmented, mode of independent development in disparate fields and industries,

to facilitate the construction of networked industrial, supply and value chains featuring

organic on/offline integration, synergistic up/downstream linkages, and production

capacity shared among small/medium/large enterprises, spurring the formation of a

coordinated, open and efficient industrial structure.

ETI Integration will promote industrial efficiency. Integrated, efficiently interacting

ETI networks on a global scale will lead to a great mobilization of factors of production,

including energy, materials, and information, expediting the transformation of the pattern

of industrial development from domination by traditional factors such as energy, finance,

labor and raw materials, to one driven by advanced innovative technologies, significantly

improving labor productivity and benefits of industrial development. Representing a

new model for optimization of the allocation of global resources, ETI Integration will

drive sector integration and consolidation from an overall perspective, helping to realize

complementarity, coordinated development with mutually-beneficial win-win outcomes,

and improving production efficiency, reducing transaction and information costs, while

significantly enhancing the per unit benefits of production factor input, and achieving

“resource sharing, value co-creation and multiplication of benefits”.

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6.2 Rapid Global Economic Development

ETI Integration, featuring the involvement of various fields, extensive coverage, high

technological and capital intensity, and prominent network effects, will comprehensively

advance the development of the green, digital and sharing economies, spurring

sustained, inclusive and high-quality economic growth.

ETI Integration will create a new driving force for economic growth. The energy,

transportation, and information technology industries all play crucial roles in national

economies. The construction of global ETI networks, involving total investments of over

100 trillion US dollars, will vigorously drive the upgrading of traditional infrastructure

in areas such as energy & power, transportation, and information & communications,

while boosting emerging industries such as new energy, new materials, electric

vehicles, self-driving vehicles, big data, cloud computing, blockchain and AI, to

create a new engine of economic growth. Based on large-scale user coverage, and

oriented towards creating and meeting user needs, ETI Integration will establish

a comprehensive interactive platform for free negotiation between suppliers and

consumers, promoting separation of the ownership and usage rights of factors of

production, and giving rise to new business models and new modes of production

including the platform economy, sharing economy and digital economy, thereby

endowing economic development with renewed vitality.

ETI Integration will drive high-quality economic development. Development of ETI

Integration will achieve whole life-cycle ETI network collaboration, involving coordination

at all stages including network planning, construction, operation, and maintenance, and

promoting the sharing of facilities and resources through the construction of integrated

energy, transportation and information corridors, thereby significantly cutting the costs

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to society as a whole, and creating the same or more output using fewer inputs in terms

of manpower, capital, resources and other factors, generating remarkable improvements

in the efficiency and effectiveness of economic development. Through the integrated

ETI network, clean energy-led, electricity-centered global energy interconnection will

provide a transportation and information network with green, low-carbon, intelligent and

friendly energy services, enabling the replacement of fossil fuels with clean energy as the

dominant energy source for economic growth, and accelerating the transformation from an

extensive model of economic development, featuring “high consumption, high emissions,

high pollution and low output” to a sustainable model of economic development with “low

consumption, zero emissions, no pollution and high output”. Global energy consumption

will drop from 160 gce per US dollar of GDP in 2018, to 80 gce per US dollar by 2050,

representing an increase in energy efficiency of over 50%.

ETI Integration will improve the coordination of economic development. Based on the

worldwide connectivity and comprehensive integration of the ETI network, ETI Integration

will reduce the spatial and temporal distance between countries, breaking down the

trade, financial and technical barriers restricting the progress of economic globalization,

driving growth in global trade in goods, promoting the sharing and application of

advanced technologies on a global scale, and liberalizing trade and internationalizing

production, thus advancing economic globalization. ETI Integration will establish a unified,

open market system, permitting full exploitation and mobilization of complementarities

between different countries’ resources, locations and markets, thus promoting the efficient

coordination and organic integration of the finance, technology and human capital of

developed countries with the resources, markets and labor of developing countries,

narrowing global north-south and east-west disparities to form a new pattern of economic

development marked by cooperation and mutual assistance of all countries, for the sake

of their common prosperity.

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6.3 Notable Ecological/Environmental Improvements

ETI Integration represents a green fusion of “energy, materials and information flows”,

which will promote clean resource recycling, reduce natural resource consumption, and

accelerate the formation of clean energy-based energy development patterns, and green,

low-carbon as well as sustainable systems of industrial development, thereby resolving

problems including climate change and environmental pollution, and fundamentally

improving the environment.

ETI Integration will resolve resource shortages. According to a World Wide Fund for

Nature (WWF) study, were current extensive development, featuring high consumption

and low output, to continue, in order to meet the needs of humanity in 2050, 2.9 times the

earth’s resources would be needed. If ETI Integration is promoted, humanity will be able

use electricity mainly generated by renewable energy sources such as solar, wind and

hydro power to meet the needs of production and living, thus achieving green energy

supply. Numerous raw materials required for industrial production will be synthesized

and manufactured using electricity and hydrogen energy rather than being obtained

from nature, thus achieving sustainability in the supply of raw materials. Fresh water,

upon which humans are reliant for survival, will be available through clean electricity-

driven desalination, solving the water crisis at its root, and protecting water sources and

foliage, thus achieving the sustainable utilization of natural resources. Global resource

and facilities sharing, and the integration of ETI network functionality, will also shorten

infrastructure construction cycles, and reduce consumption and utilization of resources

such as land, space and materials, significantly improving resource utilization efficiency

and promoting intensive development.

ETI Integration will essentially halt climate change. Currently, fossil fuel produces

annual CO₂emissions amounting to 33.9 billion tons, of which the transport sector

accounts for 8.1 billion tons, or about 24%, and the information and communications

sector accounts for 600 million tons, or about 2%. ETI Integration will hasten the “linear”

transformation from fossil fuel to clean energy, creating a green fossil fuel-free future. By

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2025 or so, both global fossil fuel consumption and CO₂emissions will have peaked, with

all new demands for energy being met by clean energy. By around 2035, total fossil fuel

consumption will have been reduced to two-thirds of its current level, with clean energy

replacing fossil fuel as the major energy source. By 2050 or so, net zero global CO₂

emissions will have been achieved, marking the beginning of a zero-carbon society, and

the Paris Agreement’s temperature control target will have been achieved. Arctic sea ice,

Antarctic ice sheets, and glaciers on Greenland and mainland plateaus will cease to melt,

and the sea level will stabilize, protecting small island countries and over 70% of coastal

cities from ingress and inundation by sea water, avoiding the displacement of billions of

people, and essentially resolving the global climate conundrum.

ETI Integration will promote environmental protection. ETI Integration will promote the

usage of clean energy and the electrification of the energy, transportation and information

technology fields, expediting the clean energy and electricity replacement processes,

and offering a fundamental solution to problems such as air, water, and soil pollution.

Increasing the pace at which fossil fuels and fuel-powered vehicles are eliminated

will significantly reduce air pollution from these sources. From 2050, annual emissions

reductions of 68 million tons of SO₂, 120 million tons of nitrogen oxides and 15.6 million

tons of fine particulate matter will be possible, rendering the sky clean and blue once

again. Water consumption and pollution problems caused by fossil fuel usage will also be

addressed, with annual savings of about 110 billion m³of water, currently used in fossil

fuel extraction, processing and thermal-based electricity generation, which is equivalent

to the annual water needs of half the world’s population. Supported by an adequate

and economical supply of green electricity, and by leveraging advanced technologies

such as ion exchange and magnetic separation for efficient large-scale treatment of

industrial, domestic and agricultural sewage, the problem of water pollution will essentially

be solved. The totally clean energy supply provided by the ETI networks will speed up

the development of the green circular economy, facilitating the recycling of electronic

components and waste from industrial and agricultural production into raw materials, fuels

and consumer goods, permitting recycling of solid waste, significantly reducing soil and

water resource degradation, and finally allowing man and nature to coexist harmoniously.

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6.4 Appreciable Improvements in Standards of Living

As a ubiquitously interconnected, intelligent and efficient modern infrastructure network,

the integrated ETI networks will profoundly change humanity’s way of life, creating

intelligent and convenient lifestyles, offering inclusive and convenient public services,

permitting flexible and comprehensive development opportunities, and delivering great

overall improvements in standards of living.

ETIꢀIntegrationꢀwillꢀallowꢀeveryoneꢀtoꢀenjoyꢀaꢀlifeꢀofꢀintelligenceꢀandꢀconvenience.ꢀ

On the basis of abundant energy, efficient logistics, free flow of people and ubiquitous

flow of information, ETI Integration will endow human society with considerably greater

intelligence and convenience, revolutionizing our way of living. As smart home appliances

and intelligent nanny robots enter thousands of households, smart homes will offer a

brand-new living experience. Automatic driving, intelligent connected vehicles, smart

parking and vehicle management systems will be widely adopted, with intelligent

transportation making for safer, more efficient and more comfortable travel experience.

Intelligent methods of medical care, such as remote-consultation based intelligent

diagnosis and remote surgery, will allow people to enjoy high quality medical services

without needing to venture out, potentially resolving problems such as lack of medical

resources, uneven medical skills and unbalanced regional medical development. VR

virtual classrooms, educational cloud platforms, smart classrooms and smart campuses

will greatly enrich access to education, and promote sharing of quality education

resources, facilitating educational upgrading and narrowing inter-regional educational

disparities. In short, ETI Integration will deliver unprecedented convenience and benefits

for the enjoyment of the world’s population.

ETI Integration will make the universal availability of public services possible. ETI

Integration entails construction of infrastructure networks of a new, globally interconnected,

intelligent and interactive kind, which will deliver the fruits of development to all continents,

countries, nations and peoples worldwide. Through its promotion of a safe and reliable

supply of electricity, efficient operation of traffic facilities and full coverage of information

networks in underdeveloped regions in Africa, South Asia and Latin America, ETI

Integration will deliver significant improvements in the living, educational, medical and

sanitary standards of their inhabitants, bringing modern infrastructure services within

reach worldwide. Through expediting the construction of digital and networking platforms,

ETI Integration will drive the transformation of government from “administration-orientated”

to “service-oriented”, accelerating the construction of a people-oriented social services/

security system that makes efficient, convenient public services universally available.

ETI Integration will offer everyone all-round development opportunities. ETI

Integration’s promotion of new technological and industrial revolutions will significantly

raise levels of social productivity, profoundly changing production methods and lifestyles

in ways encouraging fuller satisfaction of personal and developmental needs. Dull,

repetitive work will be done by machines and intelligent networks. Fully-automated

production lines, intelligent unmanned factories, self-driving, and smart home robots will

become reality, with holographic projection interaction, augmented reality (AR) and virtual

reality (VR) technologies finding large-scale application. The working masses will be freed

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from repetitive manual labor, enabling them to devote more time and energy to working

creatively and remotely from home, etc. Everyone will have a greater opportunity to

explore personalized, diversified development and greater choice over their occupational

areas, living place and direction of development, based on talents and interests,

permitting free all-round human development.

6.5 An Astonishing Step for Human Civilization

ETI Integration, representing a tremendously innovative cross-sectoral project, will drive

social changes building an efficient social structure, disrupting established geopolitical

patterns to promote world peace and harmony, and broadening the horizons of human

thinking to create a leapfrog advance in civilizational development.

ETI Integration will facilitate efficient social functioning. ETI Integration will break

down barriers to flows of talent, finance, knowledge and information in various industries

and fields, creating a new form of social development featuring cross-industry fusion,

multidisciplinary collaboration and sharing, and automated multi-threaded intelligence,

thus increasing the level of coordination of production, and rendering the social operating

system more intelligent. Under the impetus of this social structure, traditional hierarchical

organizational structures will be replaced by a more flexible, efficient and creative

flat structures, permitting freer interpersonal communication, smoother exchange of

information and knowledge, more frequent multilateral contact and cooperation, notably

faster conversion of new knowledge, technology and ideas into new products, services

and applications, significantly lower costs for such conversion, and more efficient social

organization.

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ETI Integration will promote worldwide peace and harmony. Although the world’s

physical space is finite, its digital space has no bounds. Through thousands of years of

human history, great power rivalries and regional conflicts have all reflected contention for

physical space and resources. ETI Integration will help provide adequate and sustainable

supplies of energy and materials, removing the significance of resources, such as energy,

food, fresh water and land, as a focus of fierce international competition. By creating a

digital virtual world, it will also propel human society into a new digital era with infinite

space for human development. Through connectivity, co-building and energy-sharing,

transportation, information technology and other infrastructure, ETI Integration will promote

multi-tiered cross-sectoral all-round cooperation between governments, enterprises and

institutions, establishing an open, inclusive and mutually beneficial platform for win-win

cooperation on a global scale, promoting idea exchange, infrastructure connectivity, and

unimpeded trade, financing flows and person-to-person connections, thus accelerating

the establishment of an interdependent, mutually beneficial community for the shared

future of mankind. Through ETI Integration, the political, cultural and ideological

boundaries dividing human society will fade away, and clashes of civilizations, ethnic

misunderstanding and political confrontations will be essentially eliminated, creating an

environment of lasting security and stability, and converting the world into a peaceful and

harmonious “global village”.

ETI Integration will allow humanity to develop sustainably. ETI Integration will dissolve

industrial, technological, financial and cultural barriers, promoting the development of

emerging and interdisciplinary technologies and advanced culture, and the updating

of knowledge systems in the human, social, natural and applied sciences and other

fields. It will promote the continuous broadening and deepening of human knowledge,

facilitating the transition of the foundation of world development from exploitation of

material resources to the transformation and application of knowledge resources,

significantly improving the ability of human beings to shape our environment. In the era

of ETI Integration, spiritual satisfaction and sense of identity will become the main goals

of human beings’ self-realization, and increasing numbers of individuals will be able

to devote themselves to the grand causes crucial to the happiness or humanity as a

whole, such as combating climate change, environmental management, health and

poverty alleviation. People from different regions, countries and nations will maintain

mutual respect while retaining their special characteristics, communicating with one

another for purposes of mutual learning, while diverse cultures and civilizations are

continued and develop. Moreover, as the interpersonal exchange of ideas becomes

more frequent, the resulting collisions of inspiration and wisdom will ignite the engines

of innovation and creativity, leading human civilization to a higher stage of sustainable

development.

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6.6 Summary

●

ꢀ ETI Integration will trigger changes in the mode of global industrial development,

acceleration of scientific and technological innovation, shifts in business

paradigms, and enhance industrial efficiency, thereby facilitating the formation of a

green, intelligent, coordinated and open mode of production, and creating a new,

innovative driver of industrial development.

●

ꢀ ETI Integration will change the mode of economic development, expediting the

transformation and upgrading of infrastructure, and accelerating the development

of green industries such as smart energy, smart transportation, and Internet

economy while promoting the transformation of the current model of economic

development into one featuring “low consumption, zero emissions, no pollution and

high output”, thereby providing new impetus to the world economy and making

high-quality, sustainable economic growth possible.

●

ꢀ ETI Integration will significantly improve the environment, promote the intensive

recycling of resources, reduce the consumption of natural resources, and resolve

the resource dilemma. It will accelerate the clean energy transformation, help

achieve net-zero carbon emissions, and expedite peaking of emissions, helping

to curb climate change at the source. ETI Integration will also reduce emissions

of pollution, promote global environmental governance and permit humanity and

nature to coexist harmoniously.

●

ꢀ ETI Integration will lead to profound changes in social lifestyles, making social

life more intelligent and convenient, public services more inclusive and efficient,

development freer, and opportunities more diverse, in a new and better lifestyle for

humanity. ETI Integration will make modern infrastructure services available around

the world, bring about a generalized and systemic impact on economic, social and

environmental development, enable access to clean and green energy in a smarter

and more sustainable way, and provide convenient and efficient information and

transportation services as well as more diverse development opportunities, thereby

ushering in a new era of sustainable development of all mankind.

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