The energy demand of the world's second-largest economy has been forecast to slow down by 1.8 per cent as China strives to tackle the cleaner, greener road.

The reduction will occur annually in the 10 years after 2020 based on a projected growth of 5.3 per cent for the Chinese economy, according to Yang Qing, executive vice president of the State Grid Corporation of China (SGCC) on Monday.

Speaking at the Singapore International Energy Week, Mr Yang said China's energy demand is growing over 4 per cent annually in the current decade and will "peak sometime between 2030 and 2040."

China, heavily smeared by smog and air pollution caused by decades-long use of coal to fuel its electricity needs, is working round the clock to veer away from this particular fossil fuel, focusing on other energy mixes such as nuclear energy as well as wind and solar power.

Century City and downtown Los Angeles are seen through the smog in this December 31, 2007 file photo. The air we breathe is laced with cancer-causing substances and should now be classified as carcinogenic to humans, the World Health Organization's cancer agency said on October 17, 2013. REUTERS/Lucy Nicholson/Files (UNITED STATES - Tags: ENVIRONMENT SOCIETY)

China's air pollution has reached an alarming level, proof of which is the more than one million premature deaths recorded in 2010 due to the environmental menace alone.

The dense smog being experienced in the Asian country has likewise forced some of its cities to shut down. Based on measurements taken on October 20, 2013 from Nasa's Suomi-NPP satellite, the air quality index (AQI) in Harbin city hit a devastating high 500. Levels above 300 are already considered dangerous to human health.

Read: Heavy Smog Pollution Shuts Down China's Harbin City, Flights Cancelled, Schools Close, Residents Scared

China targets to raise its wind power installed capacity to 100 gigawatts by end of 2015 from the existing 64 gigawatts. Solar power installed capacity will likewise jump to 35 gigawatts from the current 6.6 gigawatts. The same is also being worked out for nuclear energy installed capacity which it wants to improve to 40 gigawatts.

On Friday, China has issued a directive completely banning the use of coal and consequently coal burning in 2017, affecting more than 2,500 boilers and 300 industrial furnaces that use the commodity. Industries to be heavily affected include energy, industry, transportation, construction, agriculture, and social life.

"The frequency of heavy pollution will be significantly reduced by 2017. The air quality will better meet residents' expectations as well as the general qualifications of building an international metropolis," Wu Qizhou, deputy director of the Shanghai Environmental Protection Bureau, told portal China.org.cn.