• 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.

  • Week of August 20, 2019

    News Summary:

    • Zhejiang DRC releases methods for competitive bidding of offshore wind projects
    • Liaoning strives to reach PV installed capacity of 5GW in 2021
    • Heilongjiang promotes nuclear, wind, hydrogen and smart grid development
    • South Hebei power grid power trading to include all commercial users
    • Mingyang’s offshore wind turbine orders exceed 4GW



    Zhejiang DRC releases methods for competitive bidding of offshore wind projects

    According to the notice, all projects that will undergo competition must be listed in the Zhejiang Offshore Wind Farm Project Planning Report, which has yet to be released. Projects subject to competition include two types:

    1. Projects with undetermined developer: project developer, on-grid price and construction sequence will be determined by competition
    2. Projects with determined developer but not approved before the end of 2018:

    For both types of projetson grid price accounts for a score of40 pointsout of a total of100. (Zhejiang DRC)

    AzureChinaCleantechNews19August2019 01



     Liaoning strives to reach PV installed capacity of 5GW in 2021

    In the Liaoning PV Construction Plan Notice (2019-2021) released by the provincial DRC, it has been revealed that the 2021 target for PV installed capacity is 5.1GW. This reflects the province’s desire to take advantage of the lack of any serious PV curtailment problem in the region and therefore fully exploit PV capacity. The notice also emphasizes promoting investment in PV poverty alleviation projects in Northwest Liaoning. (PVNEWS)

     AzureChinaCleantechNews19August2019 02



    Heilongjiang promotes nuclear, wind, hydrogen and smart grid development

    The Heilongjiang Government has released the Strong Industrial Provinces Construction Plan (2019-2025). In regards to energy, the plan aims to strengthen the construction efforts of new energy service platforms, as well as encourage the development of production support services such as R&D and design, inspection and testing, and management consulting within the new energy industry. Specifically, emphasis was placed on promoting the R&D and application of nuclear energy, wind power, hydrogen energy and smart grids. (Heilongjiang GOV)

     AzureChinaCleantechNews19August2019 03



    South Hebei power grid power trading to include all commercial users

    The power trade on the South Hebei power grid is now fully open to commercial users. Prior to the opening of the power trade, only users with voltage levels above 10kV and annual power consumption above 10MWh were able to participate in direct trading, while those below 10MWh were required to entrust a trading company to act as their agent. Now, commercial users—which are power users in industries other than residential, agriculture, utilities and public welfare services—are no longer subject to such voltage level, power usage and general industry restrictions. (Hebei DRC)

     AzureChinaCleantechNews19August2019 04



    Mingyang’s offshore wind turbine orders exceed 4GW

    Mingyang has released its semi-annual performance forecast, declaring a half-year net profit of 290-350 million CNY, an increase of 99.19-140.4% year-on-year. The company also reported that its offshore wind turbine orders reached 4.18GW, and that its contract amount was about 26.949 billion CNY. Its offshore wind power orders were mostly concentrated in Guangdong and Fujian Provinces. It was also revealed that Mingyang has deployed three sea blade production bases in Guangdong and that by 2020, the production capacity of the MySE5.5MW series and above will reach 3.5GW. (Sina)

    MySE6.0MW product line basic parameter

    AzureChinaCleantechNews19August2019 05

  • Week of September 09, 2019

    News Summary:

    • First city-level IoE project completed in Haining, Zhejiang province
    • Mitsubishi sets up JV with State Grid for integrated energy services
    • Yunnan Energy Investment’s operating income increases 9.3% YoY in 1H2019
    • Xiangyang builds 500MW non-subsidized solar project
    • Hebei promotes distributed rooftop solar poverty alleviation projects



    First city-level IoE project completed in Haining, Zhejiang province

    The first city-level Internet of Energy (IoE) demonstration project was completed in Haining of Zhejiang province on August 29. The project, also known as the IoE Pilot Demonstration of Jiaxing City (which used to be a part of Haining city), is jointly led by State Grid Zhejiang Electric Power Company and the Haining government. The demonstration project was successfully selected as one of the first batches of the National Energy Administration’s (NEA) smart energy projects.

    The project is located in Haining, a city of 700 square meters with a population of 0.8 million. The IoE structure is based on Active Distribution Networks (ADNs) and builds an urban integrated energy service platform that integrates and consumes 100% renewable energy and provides services such as building energy efficiency management, supply and demand mediation, smart energy and green transportation. It aims to successfully build an intelligent, open, shared, diverse and comprehensive urban IoE engineering model. Zhejiang Electric Power hopes to be the pioneer to realize State Grid’s vision to build and operate “a STRONG smart grid” and “Ubiquitous Power Internet of Things,” and to become a world-class IoE enterprise.

    In addition to high integration of DE (distributed energy), the ADN also achieves high quality and reliability of power operation through actively planning, managing and controlling loads, storage and power generation response and participation. (JX PEOPLE)

     AzureChinaCleantechNews09Sepetmer2019 06

    Photo source:hqew



    Mitsubishi sets up JV with State Grid for integrated energy services

    State Grid Energy Saving and Mitsubishi Heavy Industries have jointly set up a company to provide integrated energy services.

    On September 4, Grid Energy Mitsubishi Heavy Integrated Energy Engineering Technology Services Co., Ltd. was inaugurated in Beijing. The company is jointly funded by State Grid Energy Saving Co., Ltd. and Mitsubishi Heavy Industries Co., Ltd. State Grid Energy Saving holds 55% of the company shares and Mitsubishi Heavy Industries 45%. The company is committed to building the largest and the most advanced integrated energy engineering and technology services company and key energy equipment supplier in China.

    Ren Weili, Chairman of State Grid Energy Saving and Party Secretary, said at the unveiling ceremony that the establishment of the JV is to implement State Grid’s company vision in becoming a world-class energy enterprise. The integrated energy service industry involves a wide range of missions, including a strong collaboration with professional institutions, as well as international and multi-dimensional cooperation. State Grid Energy Saving sees the establishment of the JV as an opportunity to actively comply with the new trend of the energy production and consumption revolution, stating that it will continue to promote cooperation in exploring world-class integrated energy services and other aspects, so as to achieve "complementary advantages, resource sharing, win-win cooperation and common development." (baijiahao)

    AzureChinaCleantechNews09Sepetmer2019 07



    Yunnan Energy Investment’s operating income increases 9.3% YoY in 1H2019

    In the first half of 2019, Yunnan Energy's operating income was 967 million CNY, up 9.37% year-on-year (YoY). The company’s net profit was 210 million CNY, a 37.98% YoY increase. Yunnan Energy has investments in four wind power companies with an operating income of 310 million CNY, an increase of 74 million CNY over the same period last year, and total profit of 192 million CNY, an increase of 86 million CNY. (Sina)

    AzureChinaCleantechNews09Sepetmer2019 08

    According to the NEA 2018 Operating Wind Power Status, Yunnan had an average wind utilization hours of 2,654 last year, making it the number one ranked province in China. From publicly released information, Yunnan Energy Investment’s four wind farms in Qujing and Honghe averaged 2,782 hours, which is 128 hours above Yunnan’s usual average.



    Xiangyang builds 500MW non-subsidized solar project

    Powerchina Zhongnan Engineering and the Xiangyang government have signed a contract stipulating the terms by which Powerchina will invest 4 billion CNY to build a 500MW non-subsidized solar project in Xiangyang, Hubei province. The project is set to be operating in September 2021 with an estimated annual power generation of about 900GWh. (Xiangyang GOV)

    AzureChinaCleantechNews09Sepetmer2019 09



    Hebei promotes distributed rooftop solar poverty alleviation projects

    The Hebei government has announced plans to promote the construction of about 406 distributed rooftop solar power systems as part of its housing resettlement service for the province’s impoverished population. With a construction period from November 2019 to March 2020, the projects will be under the unified organization of the government and will report to the management of the village-level poverty alleviation solar power stations. (Hebei DRC)

    AzureChinaCleantechNews09Sepetmer2019 10

  • Week of September 16, 2019

    News Summary:

    • Under the categorization of agricultural land, will pig farming be a new application for distributed solar?
    • Yunnan Power Grid and Huawei sign a strategic cooperation agreement for smart grid development
    • Sinopec steps into the hydrogen business in China
    • Siemens and SPIC kick off hydrogen cooperation in China



    Under the categorization of agricultural land, will pig farming be a new application for distributed solar?

    The Ministry of Natural Resources (MNR) has just released a new policy that classifies pig-breeding land as agricultural land, which in effect would enable investors to invest in distributed solar as well as other energy projects on such lands. (MNR)

    AzureChinaCleantechNews16Sepetmer2019 03


    This policy doesn’t seem to have any direct relation to renewable energy and is rather directed at controlling the impact of inflation on pig meat prices. However, under this new categorization, it will also be possible to construct distributed solar projects on pig farms which may become a new application.



    Yunnan Power Grid and Huawei sign a strategic cooperation agreement for smart grid development

    Through this new agreement, the two sides will strengthen joint innovation to improve the intelligence level of power grid equipment and therefore accelerate the transformation of Yunnan Power Grid into a smart grid operator, a key link in the value chain of the power industry and a growingly important player as service provider to the energy ecosystem. (Yunnan CN)

    AzureChinaCleantechNews16Sepetmer2019 01




    Sinopec steps into the hydrogen business in China

    At its mid-year business review press conference, Sinopec has revealed that it currently has a hydrogen production capacity of about 3 million tons/year, includingboth thermochemical and electrolytic processes,making the companyone of the leaders intheChinese market.

    On July 1 this year, in the southwest region of Foshan City, Guangdong Province, located in the 5A-scenic area near Xiyishan, Sinopec Foshan Zhangkeng Oil and Hydrogen Station, the country's first tri-fuel station for vehicles fueled by gasoline/diesel, electricity and fuel cell, was completed. The station has a daily hydrogenation capacity of 500kg, which is used mainly to fuel buses and transport trucks. It takes only four minutes to fill up one hydrogen-fueled bus, which canthenrun for 300 kilometers.

    The hydrogen energy industry chainand infrastructure development processissimilar tothat ofthe traditional natural gasindustry, providingSinopecwith an innate advantage in the development of the hydrogen energy industry. The company is starting constructionof five hydrogen refueling stations (HRS)similar to that in Foshan. Yunfu HRS is scheduled to launch sometime this year, and three to five others are being constructed in Guangdong this year. Other HRSs are also being prepared in Chengdu, Beijing and Zhangjiakou. (Xinhua)

    AzureChinaCleantechNews16Sepetmer2019 04



    Siemens and SPIC kick off hydrogen cooperation in China

    On September 6, under the joint witness of the leaders of China and Germany, Joe Kaeser, the President and CEO of Siemens AG, and Qian Zhimin, Chairman of the State Power Investment Group Co., Ltd. (SPIC), signed a MoU on cooperation in the development and comprehensive utilization of hydrogen energy, to expand the existing strategic cooperation to green hydrogen energy and Power-to-X (energy conversion with clean energy).

    According to the memorandum, Siemens and SPIC will further cooperate in the technical and commercial development of hydrogen energy projects, and explore joint innovations in hydrogen energy-related fields to jointly promote the development of the hydrogen energy industry. The two sides will also jointly build a demonstration project on green hydrogen energy science and technology innovation, and use the project as the basis for the construction of a verification and testing center for the development of hydrogen energy-related standards. (NEA)

    AzureChinaCleantechNews16Sepetmer2019 05