• China Cleantech Update

     News Summary:

    • Yangjiang DRC approves 3-Gorges Yangjiang Xishapa III offshore wind project
    • China releases biomass electricity on-grid price research report
    • Jiangsu sets 2019 power trading target at 300TWh
    • Zhejiang gas on-grid price temporarily increases 0.2 CNY/kWh

     

     

    Yangjiang DRC approves 3-Gorges Yangjiang Xishapa III offshore wind project

    The Yangjiang Development and Reform Commission (DRC) has approved the Yangjiang Xishapa III offshore wind project, which plans to install 73 units of 5.5MW WTG. This project includes two zones: Zone A1 will hold 55 units of WTG connected to a newly installed offshore substation and Zone A2 will hold 18 units connected to the 3-Gorges Xishapa II offshore substation. (Yangjiang DRC)

     AzureChinaCleantechNews12Nov2018 01

     

     

    In the Xishapa area, 3-Gorges has five offshore wind projects in total:

    AzureChinaCleantechNews12Nov2018 02 

     

     

    China releases biomass electricity on-grid price research report

    According to the “Biomass Electricity Price Policy Research Report” jointly published by the National Renewable Energy Centre, the Energy Research Institute of the National Development and Reform Commission, and the Biomass Energy Branch of the China Association for the Promotion of Industrial Development, the gap between subsidy funds and installed capacity of China’s renewable energy has continued to widen. By the end of 2017, a total of 14.4 billion CNY, of which 6.41 billion CNY was agricultural and forestry biomass, and 1,228MW (about 8% of total installed capacity) were not included in the government subsidy list. The report outlines the challenges in biomass power generation—projects have high cost, weak profitability, long payback periods, subsidy arrears—alongside the important role biomass power generation plays in environmental protection, people’s livelihood and clean heating. (BJX)

    AzureChinaCleantechNews12Nov2018 03AzureChinaCleantechNews12Nov2018 04 

     

     

     

    Jiangsu sets 2019 power trading target at 300TWh

    The 2019 Jiangsu power market transaction notice states that the province’s power trading target is 300TWh based on a two-sided negotiation and bidding system. On the power demand side, power voltage levels of 10kV and above are required to participate in trading. On the power supply side, trading participation is open to thermal and nuclear power units. (JSPEC)

     

    Jiangsu’s total power consumption in 2017 was 580TWh, and total power consumption for 2019 is estimated to reach 630TWh, putting the 300TWh power market trading target at half of total power consumption.

     

     

    Zhejiang gas on-grid price temporarily increases 0.2 CNY/kWh

    From October 1, 2018 to December 31, 2018, Zhejiang will increase gas power generation on-grid price by 0.202CNY/kWh. During this period, 9F and 6F power generation units’ on-grid price will be 0.73CNY/kWh. 9E and 6B power generation units’ on-grid price will be 0.79 CNY/kWh. (Zhejiang DRC)

    In comparison, Zhejiang’s wind on-grid price sits at 0.57CNY/kWh based on resource type IV, and its PV on-grid price at 0.85CNY/kWh based on resource type III. This is encouraging evidence that wind and solar are competitive players in the region.

  • China Cleantech Update

    News Summary:

     

    • NEA revises RPS on quota system and policies
    • Mingyang Smart Energy Group approved for IPO
    • Zhejiang Daishan signs MOU with XEMC, CCCC Third Harbor and Ningbo Dongfang Cable
    • Beijing increases natural gas price during winter heating period
    • Yangjiang promotes investment activities in wind power industry
    • Hebei publishes 2018 Engineering Research Center Construction List proposal
    • MOEA reaffirms commitments to reach 5.5 GW of offshore wind by 2025
    • Jiangsu promotes PPP projects in revision of awards and supplemental funds

     

     

    NEA revises RPS on quota system and policies

    The National Energy Administration (NEA) has revised the Renewable Portfolio Standard (RPS) on the premise of keeping the quota system and policies basically the same. Previously, in March and September of this year, the NEA published two drafts for the RPS. In this notice, the methods for measuring provincial-level regional quotas, monitoring and evaluating the quotas and assessing the market entities that bear the quota obligations are as follows:

    1. The 2020 indicator is a guiding indicator, which is dynamically adjusted according to the situation of renewable energy resources and the transmission of renewable energy across provincial and inter-regional channels. When the indicators for 2020 are measured, the proportion of renewable energy in Jiuquan-Hunan, Zalute-Shandong, Ningxia-Shandong, Shanghai-Shandong, Ningdong-Zhejiang UHV transmission channels is considered to be no less than 30%.
      There has been some debate about whether UHV transmission lines were built to support renewables or just to move coal and pollution from the big cities to more remote areasThis policy inticates the answer is 'a bit of both', suggesting the need to continue building both renewables and new coal power plants in West China.
    2. The minimum renewable energy index that should be achieved for each provincial administrative region is a binding indicator, and the incentive index is determined by exceeding 10% of the binding index.
    3. For the provincial administrative areas where the quota of renewable energy power reaches 80%(including hydro [i.e., Sichuan and Yunnan), no binding monitoring and evaluation will be carried out.(NEA)

    Non-hydro RPS required

    AzureChinaCleantechNews19Nov2018 04

     (Note: The column on the right indicates the number of 100MW wind farms which would need to be built by 2020 to satisfy the increase in RPS requirement (assuming the whole gap is filled with wind, with utilization hours of 1800 hours, and also assuming average annual city power consumption growth of 5%).

      

  • China Cleantech Update June 06, 2018

    News Summary: 

    • Important: NEA announces competitive FIT for wind projects
    • Shandong: 2.4 GW wind power construction in 2018
    • Tianjin: 64.3 billion RMB in smart grid development
    • A new wind power R&D center in Guangdong
    • Siemens Gamesa supplies 640MW offshore project in Taiwan
    • Shanxi province, 400MW wind power to heat project
    • First commercial wind farm in Jiangsu with turbines > 6MW



    NEA issues newFIT guidelines for wind projects

    On May 18, 2018, NEA issued the “Circular on the 2018 Annual Requirements for Wind Power Construction Management”, listing a number of management guidelines for deployment of wind farms such as how implementing of national targets and avoiding wind curtailment. The most important item is the sudden announcement that, as of the date on which the policy was issued, for all the new onshore wind farms in provinces which have not yet issued their 2018 wind construction plans, and all new offshore wind farms for which an investment entity is not yet identified, the feed-in-tariff (FIT) shall be established via a competitive mechanism. Other projects that already built or do not fit in above categories can continue to enjoy the regular wind FIT. It is also suggested that the wind farms eligible under the distributed wind policy (less than 50MW, 110kV or less grid connection) can still benefit from the original tariffs. (NEA)

    There has been regular policy drafting and discussion around reduction of FIT for wind energy, but such a sudden change effective immediately was generally unexpected. Relying on historical events, one can imagine that FITs established via competitive bidding will be significantly lower than original FITs and might also create uncertainty on developer's capacity to retain their project. This can be very bad news for some investors, especially those with projects still in development and not yet announced in provincial plans.  Azure is currently performing further research to understand the details of the policy, such as to which projects it applies, the definition of "investment entity", which "competitive mechanisms" will be put in place to establish future tariffs, and the potential impact on market players.


    Shandong province announced 2.4 GW wind power projects in 2018

    On May 17th, Shandong Province issued the 2018 annual wind power development plan. The province informed that, in 2017, a total of 3.34 GW of wind power projects have been developed, and announced that a total of 51 power projects have been arranged for 2018, with a total construction scale of 2.4 GW.  (BJX)

    Shandong will promote more than 50 new wind energy plants. Considering the relatively average low capacity of wind farms, we expectthat several of them are decentralized projects, connecting at or below 110kV.The timing of the announcement is interesting, 1 day prior to the national FIT policy described above.

  • China Cleantech Update November 05, 2018

    News Summary:

    • Q3 2018 report shows China boosts grid-connected offshore capacity by 1,020MW
    • Fujian DRC approves Fujian Putian City offshore wind farm
    • SPIC Dafeng H3#300MW offshore wind farm first 6 WTG units connected to the grid
    • 2017 wind power generation average on-grid price decreases 0.43% YOY
    • CIP & Century Group sign 16.5 billion TWD offshore wind foundation contract
    • Baoxin Energy and CGN sign MoU for 1,400MW offshore wind project
    • NEA publishes letter promoting non-subsidized PV & Wind on-grid work
    • NEA data show national wind power utilization hours increase 167hrs by end of August

     

    Q3 2018 report shows China boosts grid-connected offshore capacity by 1,020MW

    By the end of Q3 2018, China’s yearly installedwind capacity reached 12,610MW, a 30% year-on-year (YOY) increase. Total wind generation capacity in China was 267.6TWh, a 26% YOY increase. For China’s grid-connected offshore wind, there was 1,020MW newly added capacity, mainly concentrated in Jiangsu (920MW) and Fujian (90MW) provinces. (NEA)

    AzureChinaCleantechNews15Oct2018 04

    AzureChinaCleantechNews15Oct2018 05

     

     

    Fujian DRC approves Fujian Putian City offshore wind farm

    Fujian Putian City offshore wind farm will be located in Xinghua Bay, with plans to set 40 units of 5.0MW WTG. Project details – distance from shore: 3km; depth range: 5 to 15m; total investment: 3.44 billion CNY.

     AzureChinaCleantechNews15Oct2018 06

     

     

     SPIC Dafeng H3#300MW offshore wind farm first 6 WTG units connected to the grid

    The 75-unit 4.0MW WTG SPIC Dafeng H3#300MW offshore wind power project has been successfully connected to the grid. The project is located in Yancheng City’s Binhai County in Jiangsu Province. Project details – distance from shore: 36km; depth range: 17.9 to 18.3m; sea area: 46km2; total investment: 4.96 billion CNY (excludes onshore investment)(CEC)

     AzureChinaCleantechNews15Oct2018 01

    Before this project, SPIC already had two offshore wind farms completed and in operation.

    SPIC Binhai North H1# - 25 units 4.0MW WTG operating in May 2015

    SPIC Binhai North H2# - 100 units 4.0MW WTG operating in June 2018

     

     

    2017 wind power generation average on-grid price decreases 0.43% YOY

    The 2017 national wind power generation average on-grid price was 0.5623CNY/kWh, a 0.43% YOY decrease. Shanghai’s average on-grid price, ranked the highest, was 0.7519CNY/kWh, whereas Yunnan’s was only 0.4238CNY/kWh. (Average on-grid price = power sale income / on-gird power * 1.17 including TAX) (NEA)

    AzureChinaCleantechNews15Oct2018 02

     

     

    CIP & Century Group sign 16.5 billion TWD offshore wind foundation contract

    The Copenhagen Infrastructure Fund (CIP) and Century Group (Century) signed an Offshore Wind Foundation Contract for 16.5 billion TWD on October 2. CIP Zhangfang and CIP Xidao, which have a total capacity of 600MW and more than 60 units of offshore wind foundations, will be handed over to Century Group, making it the highest single contract in the history of offshore wind power in Taiwan. (CIP tw)

    CIP Taiwan offshore projects

    AzureChinaCleantechNews15Oct2018 03

    The project is based on Taiwan’s goal to remove nuclear power plants by 2025. Taiwan wants to install a 520MW offshore wind farm in 2020 and a total of 3,000MW offshore wind farms by 2025. In phase I of CIP Zhangfang offshore wind farm, 100MW will be operating in 2021, and in phase II, 452MW will be operating in 2023. For CIP Xidao offshore wind farm, 48MW will be operating in 2024.

     

     

    Baoxin Energy and CGN sign MoU for 1,400MW offshore wind project

    Baoxin Energy has announced the signing of an MoU with CGN for a 1,400MW offshore wind project. The two sides will negotiate a cooperation agreement based on the letter of intent for cooperation. According to the letter, the two sides intend to jointly develop the Shanwei Jiazi Offshore Wind Farm (900MW) and the Shanwei Houhu Offshore Wind Farm (500MW). After the Shanwei Houhu (500MW) Offshore Wind Farm project is approved, Baoxin Energy and CGN will establish a JV in which CNG will hold 80% and Baoxin 20%. (Sina Finance)

    Shanwei Houhu 500MW project sea area diagram.

    AzureChinaCleantechNews17Sep2018 02

     

    CGN is a large clean energy group. By the end of 2017, CGN had 21,470MW of nuclear plants in operation, 10,270MW under construction, more than 11GW of wind installed, and more than 2GW of PV installed.

     

     

    NEA publishes letter promoting non-subsidized PV & Wind on-grid work

    In the context ofon goingPhotovoltaic (PV) & Wind technology advancement and costreductions, the National Energy Administration (NEA) announced that it will further promote the acceleration of renewable energy development and competitiveness, and eliminate subsidy dependence as soon as possible. Non-subsidized PV & Wind projects will be approved by local governments and should sign long-term contracts with local power grid companies with curtailment levels below 5%. In this notice, NEA also announced plans to promote direct trading in PV & Wind. In direct trading, PV & Wind developers and customersnegotiateanon-grid price and payaT&D (Transmission and Distribution) price to the power grid company. (BJX)

    Non-subsidized renewable energy direct trading.

    AzureChinaCleantechNews17Sep2018 05

    For illustration, wind farms connected in type I wind resource areas (mostly in North, NE and NW China) can currently receive a subsidized on-grid tariff of0.4CNY/kWh, whereas thermalpower plants in the same region receive between0.25and 0.30 CNY/kWh. However these same wind farms often face severe curtailment, with up to 30% of possible production lost because of grid off-take challenges. .

     

     

    NEA data show national wind power utilization hours increase 167hrs by end of August

    The National Energy Administration (NEA) has released statistics on the national electricity industry for January to August. Between January and August, national power consumption was 4,529.6TWh, a 9% YOY increase. During this period, there was also 10.26GWofnewly installed wind capacity with 1,412 utilization hours. (NEA)

    Azure has summarized some of the key data in the graph below:

    AzureChinaCleantechNews17Sep2018 03

    AzureChinaCleantechNews17Sep2018 04

     

  • China Cleantech Update September 12, 2018

    News Summary:

    • Zhejiang province to limit coal production and energy consumption
    • NEA publishes national coal power ultra-low emission and energy saving targets
    • Wind production accounts for more than 5% of national total in 1H2018
    • Fujian and Shandong cancel subsidies for distributed PV projects
    • China's first flexible high-voltage direct current (VSC HVDC) offshore wind farm
    • NDRC requires power trading companies to carry out shareholding reforms

     

     

    Zhejiang province to limit coal production and energy consumption

    According to this notice, Zhejiang will control the proportion of coal production, limit the development of high energy-consuming industries and promote development of new energy such as wind, PV and biomass. ( ZJDRC)

    Azure has summarized some of the key data in the graph below:

     AzureChinaCleantechNews01Sep2018 01

    Despite the notice announcing more support for new energy, we are in fact surprised by how small the numbers are for new wind installations. The projections are reasonable in light of historical installations, with average annual installations of 160MW over the past 7 years, but they are not in line with the target of reaching 4GW by 2020 according to the province's 13th 5 year plan, starting from 1.3GW in 1H2018.  We therefore assume that wind targets listed above are not including distributed wind projects nor offshore wind. Zhejiang currently has 252MW of offshore wind under construction and more than 1.2GW already approved.

     

     

    NEA publishes national coal power ultra-low emission and energy saving targets

    2018 National coal power ultra-low emission target: 48,680MW.

    Energy saving transformation target: 53,905MW. (NEA)

    Energy saving target map below:

     AzureChinaCleantechNews01Sep2018 02

     

     

    Wind production accounts for more than 5% of national total in 1H2018

    A total of82.9TWh of wind power was produced in China during1H2018 ,accounting for 5.4% of total on-grid power. Wind power trading reached 19.8TWh inluding 9TWh of cross-provincial trading. (CEC)

    1H2018 Wind power market trading diagram

    AzureChinaCleantechNews01Sep2018 03

    Large power generation groupshave participated in wind power transactions in 16 provinces,with the three provinces of Yunnan, Xinjiang and Gansu accounting for more than half. The average transaction pricein these provinces(including production as well ascross-provincialand / or cross-regionaltransmission price s) ranged between 0.37and 0.44 CNY/ kWh.

     

     

    Fujian and Shandong cancel subsidies for distributed PV projects

    Following the“531” < 国家发展改革委财政部国家能源局关于2018年光伏发电有关事项的通知> ( NDRC)policyrealised earlier this year, Shandong & Fujianprovinces are officially cancelling subsidies for newly connected PV project. The final subsidy amount or power tariff depends on the timing of both registration and connection of the project (BJX)

    Fujian distributed PV subsidy breakdown 

    AzureChinaCleantechNews01Sep2018 04

     

     

    China's first flexible high-voltage direct current (VSC HVDC) offshore wind farm

    ChinaHuadong Design Instituteis planning to open a groundbreaking 1.1 GW offshore wind farm 90 kilometres from the coast of Jiangsu Province in eastern China.DNV GL announced that it will provide technical support for the feasibility study of China's first flexible high-voltage direct current (VSC HVDC) offshore wind farm converter station.  ( BJX)

    Compared with traditional submarine high voltageAC power transmission(HVAC), VSC HVDC canminimizepowerlossesand is suitable for long distance and large capacity project.

     

     

    NDRC requires power trading companies to carry out shareholding reforms

    According to NDRC document #9 <中共中央国务院关于进一步深化电力体制改革的若干意见> and as part of the power market reform, many new power trading companies have been setup over the past two years. The result however is that most power trading companies are still wholly-owned subsidiaries of the grid company. In this new policy, NDRC now requires that preferably 50% and at least 20% of power trading companies stock be owned by enterprises independent of state grid.  ( NDRC

  • Week of April 15, 2019

    News Summary:

    • CWEA releases 2018 China wind power installed capacity report
    • NEA releases subsidy-free wind and PV projects development plan
    • China’s largest and heaviest offshore wind turbine jacket foundation completes lifting
    • Shanghai DRC releases FITs for third batch of 2018 projects
    • Xiong'an’s first UHV line project to be completed by end of April

     

     

    CWEA releases 2018 China wind power installed capacity report

    In 2018, China’s total installed capacity reached 209.53GW, of which 21.14GW were newly installed wind power, a 7.5% year-on-year (YOY) increase. Of more than 4GW of offshore wind total installed capacity, 1,655MW were newly installed, a 42.7% YOY increase. On the wind turbine manufacturer side, Goldwind’s newly installed capacity reached 6,707MW, constituting 31.7% of the total installed capacity. Followingpositions are held byEnvision, Mingyang, United Power and Shanghai Electric, the five making up 75% of the sector’s newly installed capacity. (CWEA)

     AzureChinaCleantechNews15Apr2019 01

    AzureChinaCleantechNews15Apr2019 02

    AzureChinaCleantechNews15Apr2019 03

     

     

    NEA releases subsidy-free wind and PV projects development plan

    The National Energy Administration (NEA) has released a development plan for subsidy-free wind and PV projects. The plan highlights:

    1. Prioritizing development of subsidy-free projects
    2. Prioritizing consumption of power generated by subsidy-free projects
    3. Encouraging approval of inactive projects converted to subsidy-free projects

    (NEA)

     AzureChinaCleantechNews15Apr2019 04

     

     

    China’s largest and heaviest offshore wind turbine jacket foundation completes lifting

    Contracted to deliver jacket foundations for the Yangjiang Nanpeng Island Offshore Wind Farm Project developed by China General Nuclear (CGN), CCCC Third Harbor Engineering has completed the lifting of the project’s first set of wind turbine jacket foundations last week. With a total weight of over 900 tons, it is the largest and heaviest offshore wind turbine jacket foundation in China so far. (BJX)

     AzureChinaCleantechNews15Apr2019 05

     

     

    Shanghai DRC releases FITs for third batch of 2018 projects

    49 PV projects (including two full-scale PV power plants and 47 distributed PV projects, with a total of ~28MW) and 1,250 household PV projects ( with a total of ~9.5 MW) are eligible to receive feed-in tariffs (FITs) from the city’s Renewable Energy and New Energy Development Project Funds for five years. The FIT for PV projects has been raised from 0.25CNY/kWh to 0.55CNY/kWh, while the FIT for household PVs is 0.4CNY/kWh. (Shanghai DRC)

     

     

    Xiong'an’s first UHV line project to be completed by end of April

    The Beijing West-Shijiazhuang 1000kV UHV transmission line is the fourth UHV line in the southern power grid of Hebei Province and the first UHV line to serve Xiong'an. With a total length of 2 × 224km, this project will be of great significance to improving the security and stability of the Beijing-Tianjin-Hebei region and the northern China power grids, meeting the needs of Xiong'an New District's load growth and alleviating the power shortage in southern Hebei. (Xiong’an GOV)

    AzureChinaCleantechNews15Apr2019 06

     

  • Week of July 09, 2019

    News Summary:

    • NDRC, NEA, MOST and MIIT release 2019-2020 energy storage action plan
    • Shandong DRC releases new renewables FIT
    • Shaanxi DRC oversees competitive bidding for 1.33GW of solar projects
    • CNOOC makes a return to offshore wind with new subsidiary
    • Jilin announces Baicheng “Northern Hydrogen Valley” Project

     

     

    NDRC, NEA, MOST and MIIT release 2019-2020 energy storage action plan

    The National Development and Reform Commission (NDRC), National Energy Administration (NEA), Ministry of Science and Technology (MOST) and Ministry of Industry and Information Technology (MIIT) jointly released the 2019-2020 energy storage action plan last Tuesday. As part of the plan, the "Guiding Opinions on Promoting Energy Storage Technology and Industrial Development" will be used to further promote the proper development of China's energy storage technology and industry, and to support the construction of clean, low-carbon, safe and efficient energy systems as well as high-quality energy development. (GOV)

    AzureChinaCleantechNews09July2019 03

    Picture source: (jxjykj)

     

     

    Shandong DRC releases new renewables FIT

    The Shandong DRC and Shandong State Grid have released a notice on improving policy regarding photovoltaic (PV) and wind on-grid prices. The notice stipulates the new FIT rates for subsidized projects for centralized and distributed PV, onshore and offshore wind, as shown in the chart below:

    (Shandong DRC)

    AzureChinaCleantechNews09July2019 01

     

     

    Shaanxi DRC oversees competitive bidding for 1.33GW of solar projects

    The Shaanxi DRC has determined that the total capacity of the 75 solar projects participating in the 2019 solar power generation national subsidy competition will be 1.33GW. (Shaanxi DRC)

    AzureChinaCleantechNews09July2019 02

     

     

    CNOOC makes a return to offshore wind with new subsidiary

    Rongfeng Wind Energy Company, a wholly owned subsidiary of China National Offshore Oil Corporation (CNOOC), was officially established in Shanghai’s Lingang Ocean High-tech Park on July 2, signaling CNOOC’s return to the offshore wind power sector. According to information released during the unveiling ceremony, the company’s first offshore project was officially launched on April 30 and is planned to realize full-scale grid-connected power generation next year with an installed capacity of 300MW. (Thepaper)

    AzureChinaCleantechNews09July2019 04

     

     

    Jilin announces Baicheng “Northern Hydrogen Valley” Project

    Jilin Province recently released the "Baicheng New Energy and Hydrogen Energy Industry Development Plan," which lays out the goals of reaching 20GW of wind power installed capacity and 15GW of PV power installed capacity by 2035. The plan also states that the annual production capacity of hydrogen will reach one million tons with an output of nearly 200 billion CNY, as the province works toward forming a regional new energy and hydrogen energy industrial cluster with international prowess. (JJRB)

    AzureChinaCleantechNews09July2019 05

    Picture source:UNIST

  • Week of July 15, 2019

    News Summary:

    • NEA releases 2019 solar subsidy competition results
    • Zhejiang reduces on-grid price of thermal power
    • Shenergy Shanghai Lingang Offshore Wind Farm Phase I begins operating
    • Yunnan sends hydropower to Hainan for first time in history
    • World's first low-pressure hydrogen refueling station begins operating in Huludao, Liaoning

     

     

    NEA releases 2019 solar subsidy competition results

    In a notice released by the National Energy Administration (NEA) it was revealed that a total of 3,921 projects were included in the 2019 nationwide subsidy bidding. This year, the aggregate installed capacity of the projects reaches 22.79GW, which includes 366 centralized solar power plants with installed capacity of 18.12GW, and 3,555 industrial and commercial distributed solar power generation projects with total installed capacity of 4.7GW. (NEA)

    Distribution of solar projects participating in 2019 subsidy competitive bidding

    AzureChinaCleantechNews15July2019 05

     

     

     

    Zhejiang reduces on-grid price of thermal power

    After review by the National Development and Reform Commission (NDRC), a reduction of the VAT rate to 13% for the power industry has been reported to and approved by the Zhejiang provincial government. Corresponding adjustments to the on-grid tariffs of some power plants in the province are as follows:

    1. The on-grid price for coal-fired units will be reduced by 0.0107CNY/kWh
    2. The on-grid price for the Three Gorges hydro plant will be reduced to 0.2783 CNY/kWh and the on-grid price for the Xiluodu hydro plant will be reduced to 0.3005 CNY/kWh
      (
      ZJDPC)

     AzureChinaCleantechNews15July2019 01

     

    Shenergy Shanghai Lingang Offshore Wind Farm Phase I begins operating

    Earlier this week, Phase I of the Shenergy Shanghai Lingang offshore wind farm had begun operating with a total installed capacity of 112MW, composed of 25 4MW wind turbines and two 6MW test prototypes. The total static investment of this project amounts to 1.72 billion CNY, and it is estimated that the annual on-grid power output will be approximately 267.2GWh. (Epaper)

    AzureChinaCleantechNews15July2019 02

     

     

    Yunnan sends hydropower to Hainan for first time in history

    In June, for the first time in history, electricity was transmitted through alternating current submarine cables from Yunnan Province to Hainan Province, enabling power transmission from the mainland to the island. Called "Hainan Networking 500kV II,” it is China’s second 500kV ultra-high voltage, long-distance, large-capacity underwater grid project. Spanning from the 500kV Gangcheng Substation in Zhanjiang to the 500kV Fushan Substation in Chengmai, 172GWh of power was transmitted between the two regions.(Ifeng)

    AzureChinaCleantechNews15July2019 03

     

     

    World's first low-pressure hydrogen refueling station begins operating in Huludao, Liaoning

    The world's first bus equipped with a low-pressure alloy hydrogen storage system was unveiled in Huludao, Liaoning last Monday, along with the world's first low-pressure hydrogen refueling station, which has been completed and officially put into demonstration in Huludao’s Hsingcheng Economic Development Zone. Experts claim that this technology can meet the needs of today's cars with its capability to charge 15.4kg of hydrogen in 20 minutes with a charging pressure of only 5.0Mpa and a battery life of more than 300km. (btnxm)

    AzureChinaCleantechNews15July2019 04

  • Week of June 03, 2019

    News Summary:

    • NEA releases notice on 2019 wind and solar power generation construction
    • NDRC releases revised T&D price cost supervision and examination methods
    • Xiong'an New District battery storage station research has been tendered
    • Zhejiang lauches power spot market simulation test run

     

     

    NEA releases notice on 2019 wind and solar power generation construction

    The notice puts forward four general intentions regarding the construction of wind power and photovoltaic power generation projects in 2019:

    1. Promote the construction and development of subsidy-free projects.
    2. Strictly regulate the competitive allocation of project subsidies. Projects that require state subsidies must be selected through strict and standardized competitive allocation methods.
    3. Fully implement the conditions for power transmission and consumption, giving priority to the supply and consumption of electricity from subsidy-free projects.
    4. Optimize investment, build a comprehensive business environment and implement non-technical cost reductions such as land use.

    (NEA)

    In addition, according to the requirements of this notice, there must be a subsidy capacity for onshore wind projects in 2019.

    AzureChinaCleantechNews03June2019 01

     

    The document also describes that for offshore wind projects to benefit from FIT subsidies, they must connect to the grid before the end of 2021 and therefore must be included in provincial construction plans by 2020.

     

     

    NDRC releases revised T&D price cost supervision and examination methods

    The new measures have been revised on the basis of combining the reform of the power system, drawing on and absorbing the experience of foreign transmission and distribution supervision, and summarizing the results from the pilot of the first round of transmission and distribution cost supervision and examination. The measures have the following main characteristics:

    1. Strengthening cost supervision and examination constraints and incentives, and implementing cost cap control on part of the transmission and distribution cost projects of grid companies.
    2. Refining the cost supervision and examination method by identifying items that are not included in the cost of transmission and distribution.
    3. Standardizing the requirements for cost supervision procedures.

    (NDRC)

    AzureChinaCleantechNews03June2019 02

     

     

    Xiong'an New District battery storage station research has been tendered

    Each district, county and small town in the region will be equipped with one battery storage power station, each with a scale of about 10MW/40MWh to reach an overall scale of about 500MW/2000MWh. The battery energy storage stations will be mainly used as for peak-adjusting and frequency regulation. The centralized plants will use decommissioned batteries from local and Beijing-Tianjin-Hebei region electric vehicles. During the off-peak period, surplus wind power from Inner Mongolia and Zhangbei areas are utilized. While power generation peaks are used to generate electricity, the battery storage power station will provide emergency backup and other services. (BJX)

    AzureChinaCleantechNews03June2019 03

     

     

    Zhejiang begins power spot market simulation test run

    A simulation and testing of the Zhejiang Electric Power Spot Market has just been launched. The initial stage was mainly between power plants of 110kV and above in Zhejiang (the province with the largest energy import within the State Grid Corporation area) and electricity sales company. In the spot market simulation, every half hour the price of electricity will change according to supply and demand, which means that 48 different electricity prices will be generated 24 hours a day. (CEC)

    AzureChinaCleantechNews03June2019 04

     

    Picture Source:ifeng

  • Week of May 06, 2019

    News Summary:

    • NEA releases Q1 2019 wind power generation report
    • Changes to PV FIT pricing mechanism
    • Henan DRC releases data on first batch of subsidy-free wind and PV projects in 2019
    • Fujian DRC releases 2019 major project construction plan

     

     

    NEA releases Q1 2019 wind power generation report

    From January to March 2019:

    1. Installed capacity of new wind power in the country was 4.78GW, of which 120MW was offshore wind power;
    2. Cumulative installed capacity of grid-connected power reached 189GW;
    3. National wind power generation capacity was 104.1TWh, a 6.3% year-on-year (YOY) increase;
    4. National average wind power utilization hours was 556 hours, a YOY decrease of 37 hours;
    5. National wind curtailment was 4.3TWh, a YOY decrease of 4.8TWh;
    6. National average curtailment rate was 4.0%, a 4.5% YOY decrease.
      (
      NEA)

     AzureChinaCleantechNews06May2019 04

     

    During this quarter, the provinces with higher average utilization hours included Yunnan (1078 hours) and Sichuan (1048 hours). The regions that experienced severe wind curtailment included Xinjiang (wind curtailment rate of 15.2%, wind power curtailment of 1.37TWh), Gansu (wind curtailment rate of 9.5%, wind power curtailment of 550TWh) and IMAR (wind curtailment rate of 7.4%, wind power curtailment of 1.30TWh). However curtailment has continued to decrease noticeably compared to previous years.

     

     

    Changes to PV FIT pricing mechanism

    The National Development and Reform Commission (NDRC) has released a notice on improving the current on-grid pricing mechanism for centralized PV power generation. The notice states that the PV FITs for new centralized PV power plantsshall follow"guiding prices" of 0.40CNY/kWh, 0.45CNY/kWh and 0.55CNY/kWh (tax included) for resource typeI, II andIII areas respectively. In principle, the on-grid tariff of new centralized PV power plants should be determined through market competition, and should not exceed the guiding price of the resource area, which therefore serve as a ceiling.This will apply to Centralized PV power plantsconnected to the grid on or after July 1st 2019. Projects connected prior to this date may enjoy the prices from the "531" policy.(NDRC)

    AzureChinaCleantechNews06May2019 02

     

     

    Henan DRC releases data on first batch of subsidy-free wind and PV projects in 2019

    According to the report released by the Henan DRC, the 28 projects in the first batch of subsidy-free wind and PV projects have met national requirements. The projects include 11 subsidy-free wind projects with a total of 1.1GW, four subsidy-free PV projects with a total of 274MW and 13 market-oriented distributed power generation pilot projects with a total of 362MW. (Xueqiu)

    AzureChinaCleantechNews06May2019 03

     

     

    Fujian DRC releases 2019 major project construction plan

    Focusing on the objectives, tasks and overall requirements for accelerating the construction of a strong marine province as determined by the provincial party committee and the provincial government, the Fujian DRC vows to coordinate services such as project construction approval guidance, factor guarantee and implementation management, and to comprehensively support the 148 major projects that are under construction and the 91 that are in the pre-construction phases. The major project construction plan has already made great strides in achieving the completion or partial completion of more than 36 projects, the construction of more than 30 projects and the further planning of a number of major projects. (Fujian DRC)

  • Week of May 13, 2019

    News Summary:

    • Kick-start of competitive FIT for onshore and offshore wind may be delayed
    • NDRC releases documents on overcapacity resolution in key areas
    • IMAR DRC approves CGN 3GW subsidy-free onshore wind project
    • Jiangsu wind installed capacity predicted to exceed 10GW by 2020
    • Jiangsu to accelerate 5G development and technological breakthroughs
    • Azure presents in GWEC Webcast: Doing Business In China’s Offshore Wind Market

     

     

    Kick-start of competitive FIT for onshore and offshore wind may be delayed

    Last week, the National Energy Administration (NEA) held a symposium to solicit opinions on the 2019 wind power construction management measures (NEA) and to discuss previous consultations. According to the information disclosed at the meeting, the wind power construction management measures in 2019 have been intentionally adjusted to balance various factors such as corporate demands, industry development and subsidy gaps. Specifically, the meeting intended to adjust measures for onshore and offshore wind power management, resulting in drafts for comments regarding the following measures:

    1. Approved onshore wind power projects that have not been put into operation within the two-year validity period are subject to re-participate in on-grid price bidding
    2. Loosen access control for offshore wind power projects that have been approved in 2018 and provide a guaranteed price of 0.85CNY/kWh for projects completed by the end of 2020
      (BJX)

    AzureChinaCleantechNews13May2019 06

     

    In the past weeks and months we have seen increasing debate in the industry, between key players and government regulators, trying to reach a common ground for implementation of competitive FIT mechanisms. So far there has been some uncertainty around the exact interpretation of various policies issued over the past year, in the background of which local governments and industry players are pushing to secure as much "tariff pipeline" as possible, whereas the government is trying to limit the subsidy burden. While the final management notice still has to be seen, it is worth noting that we are seeing a key change in eligibility criteria, from "approval date" or "start of construction date" towards "grid connection date", putting even stronger pressure on developers to build their projects as fast as possible.

     

     

    NDRC releases documents on overcapacity resolution in key areas

    NDRC released an official document announcing results of overcapacity control in key areas over the past 2-3 years, mainly focused on steel production, coal mining and thermal power. So far the following capacity reductions have been achieved:

    • more than 150 million tons of compressed steel manufacturing capacity
    • more than 810 million tons of coal mining capacity
    • over 20 GW of coal-fired power units that were not up to standard have been shut down

    The document then lists out directions for pursuing overcapacity control, including for example closing down of small coal mines (less than 300 tons annual capacity), cleansing of "zombie companies", etc.   (NDRC)

    AzureChinaCleantechNews13May2019 01

     

    In terms of thermal power, there has been a lot of focus on eliminating outdated coal-fired power units that are not up to standard (including coal-fired self-supply units). The National Development and Reform Commission (NDRC) announced that it would clean up and rectify the illegal construction of coal power projects in accordance with the law and strictly control new production capacity of coal power in various regions. In the map above, areas in red and orange illustrate provinces in which new “self-use” coal-fired power projects will not be put into operation.

     

     

    IMAR DRC approves CGN 3GW subsidy-free onshore wind project

    The Inner Mongolia Autonomous Region (IMAR) Xing'an League 3GW Old Revolutionary Base Area Wind Power Poverty Alleviation Project is located in Horqin Right Front Banner and Kerqin Zuoyi Zhong Qi. The total planned capacity is 3GW, of which 1GW will be allocated to Horqin Right Front Banner and 2GW to Horqin Right Middle Banner. (BJX)

    AzureChinaCleantechNews13May2019 02

     

    With the continuous commissioning of UHV lines, grid offtake in the Sanbei area ("Three North" including Northeast China, North China and Northwest China) has significantly improved, and low-cost large scale wind power projects regions are being launched one after another—we expect to see incremental growth in wind power construction in these regions in the future.

     

     

    Jiangsu wind installed capacity predicted to exceed 10GW by 2020

    Jiangsu Government has released a 3 year construction plan showing key objectives for the province, including the following:

    • total coal consumption is estimated to decrease by 32 million tons between 2016 and 2020
    • in 2020, the province’s installed wind power capacity will exceed 10GW
    • by 2020, non-fossil energy power generation should reach 26GW, accounting for about 20% of the total power capacity in the province (non-fossil energy will then account for 11% of primary energy consumption in Jiangsu).

    (Jiangsu GOV)

     AzureChinaCleantechNews13May2019 03

     

    It is clear that the Jiangsu Government recognizes renewable energy as an increasingly important component to ensure energy supply and has already started to adjust its power mix structure.

     

     

    Jiangsu to accelerate 5G development and technological breakthroughs

    The Jiangsu Government has announced efforts to further implement provincial strategy for strengthening networks, accelerating the development of fifth generation (5G) mobile communication networks and enhancing construction and application of the new generation of information infrastructure in the province. Doing so will include accelerating the pace of commercial deployment and breakthroughs in the fields of In-vehicle Networking, Industrial Internet, Internet of Things, Smart Grids and converged media. (Jiangsu GOV)

     AzureChinaCleantechNews13May2019 04

     

     

    Azure presents in GWEC Webcast: Doing Business In China’s Offshore Wind Market

    Join the Global Wind Energy Council’s (GWEC) Webcast next Monday, May 20 at 10:00 AM CET as industry experts share insights into the current situation of the Chinese offshore wind market, the barriers that new entrants should be aware of and how foreign investors can play a role. Azure CEO Hubert Beaumont will share insights on the market and opportunities at this occasion.Register for the event here: (GWEC)

    AzureChinaCleantechNews13May2019 05

  • Week of May 27, 2019

    News Summary:

    • NDRC releases competitive FIT results for onshore and offshore wind
    • NEA releases first batch of subsidy-free projects for 2019
    • Heilongjiang DRC releases plan for 627MW of distributed wind projects
    • 2018 non-fossil energy power generation consumption reaches over 50%

     

     

    NDRC releases competitive FIT results for onshore and offshore wind

    The National Development and Reform Commission (NDRC) has announced a change to FIT benchmark pricing for onshore wind power. The FITs for newly approved centralized onshore wind power projects will all be determined by competitive bidding and should not exceed the guiding price of the resource area where the projects are located. Meanwhile, offshore wind power projects approved before the end of 2018 and operating before the end of 2021 can still receive the 0.85 CNY FIT, but projects approved in 2019 and 2020 should have FITs lower than the newly announced ceiling of 0.8 CNY/kWh and 0.75 CNY/kWh respectively. (NDRC)

    AzureChinaCleantechNews27May2019 07

    Note: If resulting competitive FITs are below local thermal on-grid prices, local thermal on-grid prices will be applied.

     

     

    NEA releases first batch of subsidy-free projects for 2019

    The National Energy Administration (NEA) has released a development plan for subsidy-free wind and PV projects, in which it is determined that the first batch of projects will span 16 provinces with a total installed capacity of 20.76GW. The plan highlights:

    1. Prioritizing development of subsidy-free projects
    2. Prioritizing consumption of power generated by subsidy-free projects
    3. Encouraging approval of inactive projects converted to subsidy-free projects

    (NEA)

    AzureChinaCleantechNews27May2019 01

     

    2019 first batch subsidy-free wind projects distribution

    AzureChinaCleantechNews27May2019 02

     

    2019 first batch subsidy-free solar projects distribution

    AzureChinaCleantechNews27May2019 03

     

     

     

    Heilongjiang DRC releases plan for 627MW of distributed wind projects

    The Heilongjiang DRC has released a plan for distributed wind power development, revealing a total of 98 distributed projects with an aggregate capacity of 626.9MW, with individual project capacity ranging from 1.5MW to 36MW. The announcement also stipulates that:

    1. If a single enterprise in a single county area constructs multiple distributed wind power projects, the projects should be bundled into one so that preliminary work can be carried out in a unified manner, such as the handling of relevant supporting documents and the approval of projects.
    2. Distributed wind power projects included in this plan should be built and connected to the grid by the end of 2020, otherwise the project will be automatically abolished.
    3. The power sector should actively cooperate with grid access and grid-connected operation services for distributed wind power projects to ensure safe and reliable grid access for distributed wind power projects. (Heilongjiang DRC)

    AzureChinaCleantechNews27May2019 04

     

     

    Non-fossil energy exceeds 50% of total power generation on China Southern Grid in 2018

    Southern Power Grid has released the 2018 Social Responsibility Report. Highlights of the report include:

    a)        51.5% of 2018 power generation consumption was non-fossil energy

    b)        217.5TWh of power was transported from West to East

    c)        The entire power grid had a comprehensive line loss rate of 6.31%

    d)        Electric power substitution (or Re-Electrification) reached 22.4TWh

  • (Southern grid)

    AzureChinaCleantechNews27May2019 06