China has set up a national energy leading group headed by Premier Wen Jiabao.

The group convened its first meeting Thursday.

Vice Premiers Huang Ju and Zeng Peiyan are serving as deputy directors of the group.

Wen said at Thursday's meeting that the group is mainly in charge of energy strategy and major policies, the development and conservation of energy resources, energy security and emergency responses as well as energy cooperation with foreign parties.

Energy is an important strategic issue concerning China's economic growth, social stability and national security, said Wen at the meeting, adding that the central government attaches great importance to the issue.

The meeting required the full understanding of the significance and urgency of energy work in China.

It was agreed at the meeting that the strategic importance of energy must be emphasized. In recent years, China has suffered serious energy supply shortages, a key factor restricting the country's economic and social progress. With its gradual industrialization, urbanization and modernization, the nation has greater demand for energy.

The group has decided to make a mid- and long term national plan for energy development to adjust the country's energy structure.

Priority will go to coal mining and power supply projects. Particular effort will be spent in building large coal production bases, enhancing coal mining technologies and improving coal transport.

It was agreed that work needs to be done in power supply projects, power grid construction and the development of key equipment in the power industry.

Meanwhile, new types of energy should be developed, including nuclear power supply, wind power and solar energy.

The meeting also stressed the importance of energy conservation, calling for tight control over industries with high energy consumption.

To improve the efficiency of China's energy industry, further reform is to be conducted in energy companies as well as the price forming mechanisms concerning coal, power, gas and petroleum.

Since China dissolved the Ministry of Energy in 1993, there has been a need for an authoritative institution to make energy policy for the country, observers said.

The move to establish a leading group office for energy should strengthen China's ability to make a uniform plan in the energy field, said an analyst in the industry.

With the rapid development of the economy, China has become the second largest consumer of energy in the world.

Source: Xinhua