• China Cleantech Update March 17, 2016

    News Summary:

    • NDRC sends reform number 413 on power reform and direct power trading
    • NDRC requires +/- 660kV Yindong DC line to send at least 30% renewables power
    • Transmission and distribution pilot projects expanded to 18 provincial power grids


     
    Policy: NDRC Sends Notification of Electric Power Operation Adjustment Work
    2016 is the first year of the 13th Five-Year plan and the NDRC sent out reform number 413 to begin new reforms in line with the new plan. Major interest areas include: actively promote direct power trading, increase pilot projects, energy conservation, and low carbon power dispatching. The low-carbon energy power dispatch program includes all carbon reduction technologies, such as ultra-low emission coal, energy power scheduling, and wastewater reuse. (SDPC CN)
     
    Direct power trading is a key topic that is of great interest, as it pushes the marketization of electricity trading in China. Participating generators may be able to maximize their utilization hours, and local industries have the opportunity to create better deals for their energy consumption.

  • Azure China Cleantech Update May 8, 2018

    News Summary: 

    • Shandong, renewables account for 20% of new installed capacity
    • 6.4 TWh nuclear power transmission in Fujian province
    • 1.52 GW offshore wind in Zhejiang Province
    • The world’s largest water, wind and solar multi-energy complementary project
    • Beijing is increasing inter-regional power tradings


    Shandong, renewables account for 20% of new installed capacity

    Shandong is speeding up the establishment of a clean energy supply system. On April 26th, State Grid Shandong Electric Power Co. announced that the province's renewable energy installed capacity has reached 26.04 GW, accounting for 20.7% of total installed capacity and, by the end of 2020, it is expected to reach 31 GW. Moreover, Shandong has recently actively promoted the construction of UHV transmission channels that,up to now, have guaranteed an incoming 400 GWhof energy,allowing to save the equivalent of 180 million tons of coal consumption. By 2019, the 1000 kV Shandong-Hebei UHV project will be completed and put into operation, andby 2020, Shandong’s grids expected to be more than 30 GW incoming power. (CEC)

    Shandong is actively incentivizing clean-energy and cross-regional market transactions. Renewables capacity is expected to increase by 16% in less than 2 years. The province is currently promoting non-coal energy sources.The premium localization between Beijing and Shanghai offers huge potentialities for energy tradings. The development of UHV transmissions channels will generate high opportunities also for the neighboring provinces.

     

    6.4 TWh nuclear power transmissions in Fujian province

    During the first quarter of this year, Fujian province consumed 10.8 TWh of energy. Nuclear power delivered 6.4 TWh, two times the production registered during the same period of 2017. The total installed power capacity reached a 55.97 GW value, with clean energy accounting for 54.5%, and nuclear energy accounting for 8.71 GW, 15.6% of total, ranking second in the country. Moreover, the 1000-kV UHV T&D project between northern Zhejiang and Fuzhou has been put into operation, increasing power grids exchange capacity from 1.7 GW to 4.5 GW. (BJX)

    Renewable energy is currently accounting for more than half of installed power capacity in Fujian. During the first quarter of 2018, nuclear power satisfied almost 60% of transactions in the province. Renewables are expected to represent a solution to support the continuous growth of demand in the area.Distribution networks development will support new power stations construction, offering the possibility to rely on other provinces demands and increasing power plants utilization hours.

  • China Cleantech Update April 07, 2016

    News Summary:

    • Grid-connected renewable energy projects now have power purchase guarantee
    • 2017 T&D grid price rules extended to all provinces
    • Urumqi CNY 180 million wind-to-heat project to be completed this year
    • NEA sets energy consumption guidance for 2016



    Renewables: Price Reform Mechanism Guarantees Sale of Renewable Energy Generation on Grid
    The NDRCissued a finalized draft on the guaranteed purchase of electricity generated from renewable energy resources. The reform policy affects both new and existing projects. The total purchase price is divided into a guaranteed minimum price and a floating market price, determined at time of purchase. Additionally, a priority purchase contract will be provided, where a feed-in tariff price will be agreed upon between the plant owner and grid company, along with the share of the price determined by the market. (SDPC CN)

    Haiyan Qin, the China Renewable Energy Society Wind branch secretary, stated that in wind resource level I areas, wind power utilization hours should reach 2180 hours annually in order to achieve 8% return on investment. 

    In our view, while the guiding legislation is an important first step, and while it does address some mechanics of compensation for curtailment, critical aspects still need to be clarified in order to effect the intended policy outcome. First and foremost, if after continued curtailment (or poor resource, or defunct equipment) utilization of a wind project is below the guaranteed level, how will the “curtailed amount” be fairly and transparently established? As far as compensation goes, the proposed reform stipulates using the “on grid tarriff.”This means that if it ever comes to a clear case where curtailment was caused because generation was prioritized instead to a low utilization thermal plant, and the plant pays, its loss is magnified as the total includes the cost of consumed coal as well as the on-grid sale tariff. But presumably the grid in this case will have been the one that made the dispatch decision in the first place. Related to this potential case however, we find it at least positive that the guiding legislation now expressedly forbids forcing renewable power generators to purchase generation rights from thermal producers as has happened in some regions. 

    Of additional concern is the stipulation that renewable enterprises shall share in costs for ancillary services. This seems to confirm that current policy thinking does not include creating a more open market for grid services and power market spot prices to ensure an efficient market for ancillary services. Given the single regional on-grid tarriff, we have seen pump storage for example operated as a cost center for the grid instead of as a profit center buying cheap power in times of high supply and low demand and selling during high demand peaks. We have seen in Europe that ancillary service costs for deepening penetration levels of renewables tend to shrink with power and T&D market liberalization and deeper regional integration. Further policy clarification on this point would do well to go much further eventually enabling renewable projects to actually earn money by providing ancillary services to the grid.

  • China Cleantech Update April 09, 2018

    News Summary:

    • Yunnan-Guangdong UHV nearing completion
    • Wind energy projects approved in March 2017
    • China Resources Power has reduced coal consumption
    • 2018, Market Supervision of the National Energy Administration
    • The introduction of new Renewable Energy Quotas
    • 300kW tidal power project has been developed

     

    ± 800 kV UHV line nearing completion in Yunnan-Guangdong

    The Yunnan-Guangdong connection is now 98% complete and is expected to be operative by mid-year. It will have a power transmission capacity of 5 GW and plan to deliver 20 TWh of electricity annually, equivalent to 1/4 of the annual electricity consumption in Shenzhen. (CHINA ELECTRICITY COUNCIL)
     
    This 3143 km infrastructure project built to carry excess hydro power in Yunnan to coastal load centers. Through this project, the Zhusanjiao region will be able to reduce its coal consumption by 6 million tons, carbon dioxide emissions by 16 million tons, and sulfur dioxide emissions by 123,000 tons per year.


    AzureChinaCleantechNewsApril9 2018 sourceAzureInternational

    Source: Azure International
     
     

  • China Cleantech Update April 11, 2016

    News Summary:

    • Qinghai power trading center opens 
    • Jilin Energy Board publishes 2016 power generation forecasts and goals
    • NEA releases notice on market supervision priorities for 2016
    • CWEA releases 2015  wind report

     
     
    Policy: Qinghai Power Trading Center Open for Business
    Qinghai, a sparsely populated province in the northwest, announced last week that State Grid’s Qinhai division built a power trading platform for electricity sales. The new company is known as Qinghai Electric Power Trading Center, and will be responsible for wholesale electricity trading, overseeing market allocation of power resources, and the sustainable development of the local energy industry. (SGCC CN)
     
    The shift toward a more flexible power trading model is in line with recent market reforms, and ideally will usher in fairer market pricing structures in electricity sales. 
     
     

    Policy: Jilin Energy Administration Publishes 2016 Generation Goals
    The Energy Administration of Jilin Province published its energy generation targets and statistics for 2016. The announcement plan includes priority dispatch of renewable energy resources, namely, wind, biomass, and hydropower. The key data points include:

    • 4.9 GW of power generation under management
    • 6.4 TWh generation
    • Wind average utilization hours: 1,313, compared to 1,430 i n 2015

    Lastly, they will shut down a 25 year-old, 200MW thermal power plant run by Datang, primarily due to the shift in policy supporting less-efficient thermal power plants. (Jilin Gov CN
     
    Energy administrations are, by law, required to publish year-ahead energy consumption and generation forecasts. 


     
    Policy: NEA Announces Market Supervision Policy
    The NEA released a notice on its market supervision policy for 2016, put forward to strengthen the supervision of both renewable energy utilization. The policy consists of 26 points. Some highlights include:

    • improve utilization hours of renewable energy,
    • price reform on oil, natural gas, and coal,
    • online access to apply for and be approved for special market permits,
    • improved power grid scheduling with open trading and regulation,
    • an increased emphasis on pipelines and natural gas specifically, and
    • develop an online database of best practices and expert white papers. (NEA CN)

    Due to a number of political and economic concerns, there is a growing importance being placed on the actual utilization of renewable energy resources. While developers continue to add wind and solar capacity at unprecedented rates,  grid connection and energy utilization are two pressing concerns that the NEA is beginning to address more aggressively. Azure is able to model and forecast curtailment levels of wind and solar projects at the provincial level.
     

  • China Cleantech Update April 16, 2018

    News Summary:

    • 7 GB UHV Wind Power Transmission Base will be built in the Xilin Gol League
    • Analysis of UHV energy transmission efficiency
    • Mingyang wins 300MW offshore wind order in Guangdong
    • 303.4 million RMB wind power production equipment purchasing
    • Apple supports renewable energy in China
    • UHV construction to support Smart Cities

     
     
    7 GB UHV Wind Power Transmission Base will be built in the Xilin Gol League

    On March 19, 2018, Xilin Gol DRC announced the construction of a new UHV Wind Power Transmission Base in the Xilin Gol League. The project is aimed at supporting export of power produced in the Xilin Gol League power base which will including 7 GW of wind power. (Xilin Gol League DRC)
     
    The line will connect via lower voltage lines to wind farms in 8 cities, guaranteeing grid offtake and tackling the high wind curtailment problem in North China. This will in turn enable new growth for Xinlin Gol league in which new large wind farms are planned.
     

    Source: North China Electric Power University, Beijing 102206, China

  • China Cleantech Update April 19, 2016

    News Summary:

    • NDRC approves new program to address renewable energy oversupply 
    • NEA increases promotion of  public-private partnership projects in energy industry
    • First quarter 2016 electricity consumption data released
    • Electric vehicle sales up 107% in first quarter of 2016

     
     
    Renewables: NDRC Approves New Program in IMAR, Gansu, Jilin Provinces to Address Renewable Energy Oversupply
    The NDRC announced and approved a new program to address the oversupply and underutilization of renewable energy in IMAR, Gansu, and Jilin provinces. Gansu province, with an annual electricity consumption rate of 110 TWh, has a 60 TWh oversupply of power generation. Inner Mogolia, with 104GW total installed capacity, has 10GW more thermal power generation than needed in the West, and 6GW excess thermal power generation in the East. Lastly, Jilin province, with 70.4TWh annual generation, produces 40 TWh excess capacity annually. 
     
    To address this oversupply, the NDRC is testing a pilot program that expands electricity demand, improve grid connection infrastructure, and also improves distribution grid policies to encourage renewable energy utilization. (NDRC CN)
     
    The excess capacity, poor grid connection, and a number of other factors all lead to high renewable energy curtailment rates in these provinces. Apparently, the NDRC is testing the waters with how an increasingly open power market will impact curtailment rates and other grid inefficiencies.
     

    Source: NDRC, Azure International
     

  • China Cleantech Update April 2, 2018

    News Summary:

    • Significant offshore wind investments in Guangdong Province
    • 50GW 2030 renewable energy target in Zhangjiakou City
    • New marine area usage fees for offshore wind farm developers
    • 1 GW offshore wind power project agreement in Tianjin

     
     
    Wind: Guangdong Province announces the investment of 16 offshore wind farms

    The Guangdong Provincial Development and Reform Commission has issued the "Guangdong Province Major Construction Project Plan for 2018" officially announcing 1,098 key projects, with a total investment of 5.67 trillion yuan including 600 billion yuan to be invested during 2018. The overall plan includes 16 offshore wind power projects with the first 99MW project already in operation. (GDDRC.GOV.CN)
     
    The plan includes 6 offshore wind farms currently under construction with capacity of 1,618MW and 10 new offshore wind farms with capacity of 3,650MW (see detailed breakdown of project owners from our database below). The total capacity of 5.27 GW is lower but more realistic than the 10 GW of offshore wind which was earlier announced as part of the "Thirteenth Five-Year Plan"(2016-2020) for the Development of Marine Economy in Guangdong Province by 2020. However we advise wind investors to correlate these provincial level plans with national level NEA targets over the same period in order to assess any potential grid connection and FIT risk.

    Source: Azure International

  • China Cleantech Update April 23, 2018

    News Summary:

    • NEA promotes distributed wind
    • 7 MW wind turbines in Putian
    • Three wind projects will expire in Guangxi Zhuang Autonomous Region
    • NDRC price reduction measures
    • 2018 Energy consumption analysis
    • Shandong Province 110 key projects

     
     
    The National Energy Administration promotes social capital investment in wind distribution
    National Energy Administration issued the “Interim Management Measures for the Development and Construction of Distributed Wind Power Projects”, valid for the next 5 years. In order to be elligile as "distributed", a wind project must satisfy the following requirements:

    1. Connect to grid at 110 kV or less;
    2. Distributed wind power plants with access voltages of 35 kV and below shall fully utilize existing substations and grid facilities;
    3. Distributed wind power plants with a voltage level of 110 kV (66 kV in the northeast region) can only have one grid connection point and a total capacity within 50 MW.

    All wind power projects that satisfy the requirements will have priority in securing subsidy payments. (NEA)
     
    Currently, centralized (non-distributed) wind projects have to wait in line to be included on the NEA subsidy list, sometimes for many years. The new policy which simplifies the development process and offers bettter guarantees to project owners was greatly awaited by the whole industry, with hopes that it will help boost the installations in coming years, which was greatly expected by small developpers as well.   
     
     
    The first 7 MW wind turbines will be installed in Putian

    On March 26, China Railway Fuchuan Co. won the bid for the installation of 10 sets of 7 MW wind turbines in the “Fujian Pingtan Offshore Wind Farm in Putian”, with a contract of 34 million RMB. (chinanews)
     
    The 7MW machines to be supplied by ShangHai Electric under a license with Siemens are the largest wind turbines in China so far.
     

     

    Source: Fujian Fuchuan Investment Co
     
     

  • China Cleantech Update April 27, 2016

    News Summary:

    • NEA publishes Q1 solar curtailment rates
    • Jiangsu province to add 900MW wind in 2016
    • NEA publishes Q1 power generation utilization hours 
    • NDRC and NEA release coal production capacity metrics
    • Chongqing government releases guidance on electricity price reform


     
    Solar: NEA Publishes Q1 2016 Solar Curtailment Rates
    First quarter solar installed capacity and curtailment figures were published last week, and levels are high for some provinces. Nationally, 7.2GW of new solar was installed, raising the total installed solar installed capacity to 50.3GW by the end of the quarter. In the first quarter, total solar power generated was 11.8 TWh, and 1.9TWh of solar power was curtailed, or about 14%. Provinces with the worst curtailments are:

    • Gansu, 0.84TWh curtailed, 39% of total
    • Xingjiang, 0.76TWh curtailed, 52% of total
    • Ningxia, 0.21 TWh curtailed, 20% of total. (NEA CN)

    Severe wind curtailment has been a known risk for years, but investors in solar were hoping that integration of PV would be easier, given lower penetration levels and a good match between resource and energy demand patterns. Last year, Azure started to warn that our models also predicted the emergence of PV curtailment in certain regions, which is now being confirmed on the ground. We advise investors to assess PV curtailment risk as part of normal due diligence, as curtailment is set to become the most significant factor in off-take risk for PV projects going forward.
     

    Source:Gansu PV
     
     

  • China Cleantech Update August 02, 2016

    News Summary:

    • First half 2016 generation utilization hours published
    • Coal reduction reforms announced 
    • First half 2016 Jilin energy utilization rates published
    • Gansu strikes 1 billion RMB deal to integrate wind and 400MW storage
    • NEA publishes Dongbei electricity 2020 roadmap 
    • IMAR renewable energy generation January to May 2016 data released
    • Q1 to Q2 China energy consumption data release



    Data: First Half 2016 Power Plant Utilization Hours Published
    The NEA published the first half of 2016 utilization hours for power plants at the 6MW and above installed capacity. Average utilization hours for all power plants was 1,797 hours, a decrease by 137 hours (about 7%) from 2015 levels in the same time period. The table below summarizes the total installed capacity and utilization hours for the first half of 2016 and change relative to 2015 levels. (NEA CN)
     
    While the average decreased, the utilization hours per province varies greatly. Yunnan and Sichuan provinces, for example, were at 1,441 and 1,377 hours, respectively. Due to the major difficulties integrated wind, lower user demand, and lack of sufficient transmission capacity, Xinjiang, Gansu, Jilin, and Ningxia provinces all had less than 680 utilization hours. Gansu is aware of this situation and, as discussed later, is attempting to increase utilization hours with a storage plant solution. 
     
    Table: First Half 2016 Utilization Hours for 6MW+ Power Plants

    Source: NEA 
     
     

  • China Cleantech Update August 08, 2016

    News Summary:

    • Shanxi Province publishes consumption data for H1 2016
    • Zhejiang Province announces 25% non-thermal energy generation sources
    • Fujian Province announces 2GW wind power installed capacity

     
     
     
    Statistics: Shanxi Province H1 2016 Energy Data Released
    Shanxi Province data has been published for H1 2016. The data includes: generation, consumption, operations, and business entities. Energy generation levels for 2016 are in line with 2015 data, meaning from the energy-side, there has been no major downward pressure from macroeconomic trends. (NEA CN)
     
    While generation levels remain healthy, underneath the surface we expect to see mid-term impacts from the lack of quality transmission lines in the region and demand growth. Azure is tracking the provincial markets for economic signals.
     
    Figure: Shanxi Province Monthly Generation Data in 100s of GWh: 2016 H1 vs 2015

    Source: NEA 
     

  • China Cleantech Update August 18, 2016

    News Summary:

    • State Grid forecasts 3.5% bump in consumption
    • Shaanxi solar cell manufacturing increases 85%
    • China Longyuan Power announces 11.2 billion CNY in 2016H1
    • China Shenhua announces 0.8 billion CNY in 2016H1

     

    Statistics: State Grid Forecasts 3.5% Rise in National Electricity Consumption
    State Grid announced a forecast increase of 3.5% in energy consumption levels for 2016 compared to the previous year. The first half of 2016 saw 2,780 TWh of demand, an increase of 2.7% over 2015. State Grid believes total consumption for 2016 will be up to 5,770 TWh. New installed capacity for 2016H1 include:

    • 27.1 GW thermal of 54 GW planned
    • 5.7 GW wind of 34 GW planned
    • 17.6 GW solar of 27 GW planned
    • 4.4 GW hydro of 11 GW planned
    • 2.2 GW nuclear of 4.9 GW planned

    The top contributors of new capacity growth are from the following regional grids:

    • 25% from Huabei
    • 23% from Xibei
    • 15% from Nanfang
    • 13% from Huadong
    • 10%, 8%, and 6% from Huazhong, Donbgei, and Xinan (SGCC CN)

    Typical growth is not typical in China — there have been consecutive growth years in the 10%+ range, followed by either a single digit contraction or flat growth. 3.5% is an aggressive growth number for an established energy base, however, for China, this is still a healthy level and we'll need a few more years of data to see if 3.5% represents the new normal. 
     
     
    Distribution of New Installed Capacity for 2016


    Source: SGCC, Azure International
     
     

     

    Source: SGCC, Azure International
     
     

     

    Source: SGCC, Azure International
     
     

  • China Cleantech Update August 24, 2016

    News Summary:

    • Shanxi government publishes electricity sales competition bulletin
    • NEA publishes July energy consumption data
    • China Electricity Council publishes January to June energy consumption data
    • Hunan publishes July energy consumption data

     
     
     
    Statistics: Shanxi government publishes electricity sales price reform bulletin
    The Shanxi government published its number 9 reformation document, focused on bringing in electricity competition to the regional market. Companies with over 20 million RMB registered capital can participate. The first payment rate will focus on providing capacity, as it is one of the easiest market transactions to provide, measure, and compensate for. (Shanxi Gov CN)
     
     
    Requirements for Companies to Join Shanxi Capacity Payments Market

     

    Source: Shanxi Government
     
     
     
    Statistics: NEA publishes July energy consumption data
    July saw an 8.2% month-on-month increase in energy consumption to 553 TWh, leading to a cumulative consumption of 3,329 TWh for the year to date. Year-on-year, January to July saw a 3.2% increase from 2015 levels.  Current installed capacity of energy generation is as follows:

    • Thermal: 1,021 GW
    • Hydro: 282 GW
    • Wind: 138 GW
    • PV: 44 GW
    • Nuclear: 31 GW

    Energy consumption in July is speculated to have increased greatly due to the record high temperatures, reaching a national average of 27.7 , 0.9 higher than last year. (NEA CN)
     
    Energy Consumption Data by Industry Segment, 2016 January to July

     

    Source: NEA
     

     

    Source: NEA 
     

  • China Cleantech Update August 31, 2016

    News Summary:

    • NEA publishes 2015 national renewable energy portfolio
    • Beijing imports 21 TWh of wind for March to July period
    • NDRC approves new UHV DC IMAR to Shandong line
    • Xi Jinping visits  State Power Investment Corporation

     

    Policy: NEA Publishes 2015 National Renewable Development Energy Portfolio
    The NEA released a report highlighting the end of year 2015 national renewable energy data. Total installed capacity of all renewable energy sources stood at 480 GW. The installed capacity and annual generation for each resource is shown below.

    • Hydro: 300 GW , 1,099 TWh 
    • Wind: 129 GW, 186 TWh
    • Solar: 43 GW, 39 TWh
    • Biomass: 10 GW, 52 TWh (NEA CN)

    Total generation figures stand at 1,363 TWh, approximately 24.5% of total power demand. Excluding hydro, however, paints a less rosy picture of 278 TWh and 5% of total power demand. 
     
     
    Power Generation (Outer Circle) and Installed Capacity (Inner Circle) Ratio by Generation Type, 2015 All of China

     

    Source: NEA, Azure International
     

  • China Cleantech Update December 02, 2016

    News Summary:

    • NEA Publishes Power Generation Utilization Hours for First Three Quarters of 2016  
    • Renewable Power Generation on the Northwest Grid Surpasses 70 TWh
    • Goldwind to Supply 82 MW Wind Farm in Chile




    Statistics: Utilization Hours for First Three Quarters of 2016 Published by the NEA 

    • The NEA recently published data on the average utilization hours for all power plants over 6,000 KW. During the first three quarters of 2016 average utilization hours declined to 2,818 hrs, which makes for a decrease of 179hrs when compared to the same time frame in 2015. The key findings as broken down by sector:
    • Total Hydro installed capacity: 280 GW; Utilization hours: 2,766 hrs; an increase of 127 hrs
    • Total Thermal installed capacity: 1,030 GW; Utilization hours: 3,071 hrs; a decrease of 213 hrs
    • Total Wind installed capacity: 140 GW; Utilization hours: 1,251 hrs; a decrease of 66 hrs


    National Utilization Hours for First Three Quarters of 2016

    (Source: Azure International)

    The top two provinces for wind utilization hours are southwestern provinces, with Yunnan at 1,712 hrs and Sichuan at 1,643 hrs. In the same time, Gansu, Xinjiang and Jilin utilization hours remain low, at 870, 946, 951, respectively. With regards to thermal generation, an average of 3,071 hrs is the lowest level since 2005. (NEA CN)

  • China Cleantech Update December 09, 2016

    News Summary:

    • NEA publishes Wind Power 13th Five Year Plan (十三五)
    • Hydro Power 13th Five Year Plan (十三五)  published by NEA
    • China's Sany Signs MoU with Indian State of Gujarat
    • CNBM of China Lands 212 Million USD Solar Project in Portugal




    Plan: Wind Development Plan of the 13th Five Year Plan “十三五”  Published by NEA 
    The NEA recently published the Wind Power Development Plan of the 13th Five Year Plan. The development plan lays out comprehensive onshore and offshore installation targets per province for 2020.  According to the document, by the end of 2015, total installed wind capacity was 129 GW, and total power generation from wind 186.3 TWh, which was 3.3% of national power consumption. By 2020, installed wind capacity will be 210 GW, with total power generation more than doubling to 420 TWh, 6% of national power consumption. The development plan also highlights cross provincial UHV transmission lines under construction or that have recently come online, aimed at delivering power from the north to east and central China. (NEA CN)

    Long Distance Cross-Provincial UHV Transmission Lines Highlighted in Wind Power Development Plan



    2015 Installed Capacity and 2020 Targets, by province

     


    Source: Azure International, NEA

    The wind development plan calls for continued capacity expansion by 2020, however, as seen in the chart above, 64% of new capacity additions, 64 GW, will be in southern provinces with less robust wind resources. This reflects central planners desire to ease high curtailment levels in the “three norths”, 三北, area of the Northwest, Northeast and North China grids. Provinces seeing the largest capacity increase to 2020 are Yunnan (7.9 GW, 191%); Hebei (7.8 GW, 76%); Jiangsu (5.4 GW, 131%); and Henan (5.1 GW, 559%). Provinces that saw the highest levels of curtailment in 2016, such as Gansu (1.48 GW, 12%) Xinjiang (1.09 GW, 6%) and Jilin (0.56 GW, 13%) are targeted for much smaller capacity increases. Offshore wind development is also emphasized, with Fujian set to build 3 GW, or 60% of total offshore wind, by 2020. 

  • China Cleantech Update December 13, 2016

    News Summary:

    • NEA publishes Biomass 13th Five Year Plan (十三五)
    • Guangdong DRC Publishes Guangdong Onshore Wind Development Plan (2016-2030)
    • Goldwind and Apple Announce Joint-Venture




    Plan: Biomass Development Plan of the 13th Five Year Plan “十三五”  Published by NEA
    The NEA recently published the Wind Power Development Plan, part of China's national 13th Five Year Plan. According to the document, by the end of 2015, total installed wind capacity was 10.3 GW, and total power generation from wind 52 TWh, approximately 0.92% of national power generation. By 2020, installed wind capacity will reach 15 GW, with total power generation nearly doubling to 90 TWh, 1.3% of national power generation. (NEA CN


    Biomass pipeline covering the period of the 13th Five Year Plan

    Source: Azure International

    During the 13th Five Year Plan,  total investment in the Biomass industry will reach 196 billion RMB. Of this 196 billion RMB, 40 billion RMB will go towards power generation, 120 billion RMB for biogas, 18 billion RMB for biomass briquette industries, and 18 billion RMB for investment into liquid biofuels.


  • China Cleantech Update February 02, 2016

    News Summary:

    • 152MW Jiangsu offshore windfarm gets partial grid connection
    • Chinese firm gets another EPC project in Africa
    • 2015 annual power plant utilization hours released
    • Inner Mongolia company signs 300MW wind farm development agreement

     
     
     
    Offshore: China General Nuclear Connects Part of 152MW Offshore Wind Farm
    China General Nuclear, the largest nuclear power operator in China, achieved grid connection for six of its 4MW offshore wind turbines. The Jiangsu Rudong 152MW offshore wind farm is 10km from shore, while water is at a maximum depth of 10-15 meters. (Xinhua CN)
     
    CGN plans to connect 38 4MW offshore wind turbines using simple monopile foundations.  The 152MW offshore farm is forecast to produce 400GWh of power annually, equivalent to a coal power plant using 131kt of standard coal which would emit 267kt of CO2.  
     

    Figure: A monopile offshore wind turbine.
    Source:Takungpao
     

  • China Cleantech Update February 14, 2017

    News Summary:

    • NEA publishes Solar 13th Five Year Plan (十三五)
    • NDRC publishes Renewable Energy 13th Five Year Plan 
    • NDRC issues tariff adjustments for utility solar and onshore wind
    • Offshore wind project approval authority handed down to provincial NEAs
    • Shandong starts Electricity Reform Pilot Program
    • Guangdong publishes Measures on Retail Electricity Reform




    Plan: Solar Development Plan of the 13th Five Year Plan “十三五”  Published by NEA
    In December the NEA  published the Solar Power Development Plan, part of China's national 13th Five Year Plan. According to the document, by the end of 2015, total installed solar capacity was 43 GW, and total power generation from solar sources was nearly 40 TWh , approximately 0.7% of national power generation. By 2020, installed solar capacity is targeted to reach 110 GW, with total power generation more than tripling to 150 TWh, 1.6% of national power generation. (NEA CN

     

    Source: Azure International

    While not specified in the Solar Power Development Plan, under the Electricity Development Plan, the Solar Power target for 2020 further calls for 60 GW of distributed solar and 5 GW of concentrated solar, with the remaining 45 GW assumed to be standard utility scale solar. 

    While the explosive buildout of utility scale solar projects in 2016 puts the current installation numbers at 77 GW at 2016 year end, the majority of this growth has been from utility scale projects rushing to completion before the large tariff cut in June. Currently distributed solar in China is hovering at around only 7 GW. Therefore while the 110 GW target will likely be surpassed, it is unlikely that distributed solar will be able to reach its sub-target of 60 GW.