• China Cleantech Update

    News Summary:

    • Yangjiang DRC approves two Mingyang offshore wind projects
    • Jieyang DRC approves SPIC  Jieyang Shenquan II 350MW project
    • Data shows national wind total installed capacity reached 177GW by end of October
    • Imports less than or equal to 6MW now required to pay duties and value-added taxes
    • Reports show rapid development in grid side power storage

     

     

    Yangjiang DRC approves two Mingyang offshore wind projects

    The Development and Reform Commission (DRC) of Yangjiang, a city in China’s southern Guangdong Province, has approved two offshore wind projectsto be owned and developped by one of the country’s largest private wind turbine manufacturer Mingyang.

    1. Mingyang Yangjiang Qingchuan VI offshore wind project: 500MW with 72 units of 7.0MW WTG each and total investment projected to be above 9 billion CNY.
    2. Mingyang Yangjiang Shaba 300MW offshore wind project: 300MW with 55 units of 5.5MW WTG each and total investment projected to be above 5.9 billion CNY (Yangjiang DRC)

    Mingyang Yangjiang Shaba 300MW Wind Farm

    AzureChinaCleantechNews03Dec2018 01

    Mingyang MySE5.5-7.0MW Installation at Xinghua Bay

    AzureChinaCleantechNews03Dec2018 02

     

     

    The Mingyang MySE5.5-7.0MW platform is already being tested at the Three Gorges Xinghua Bay offshore demonstration project in Fujian. The technology is based on the same platform as the Mingyang 5.5MW turbine, and will be deployed in large volume in the Yangjian projects. Interestingly, these projects are being developed by Mingyang which is both private and a turbine manufacturer, which changes from the usual large state owned utilities which dominate most of the pipeline. Mingyang is also setting up a blade manufacturing base in Yangjiang’s High Tech Development Zone with a capacity of 230 blade set per year (with each set being made of 3 blades).

     

     

    Jieyang DRC approves SPIC  Jieyang Shenquan II 350MW project

    The Jieyang DRC has reviewed and approved phase two of SPIC’s Jieyang offshore project application. The project will have a total installed capacity of 750MW, divided into two phases, Shenquan I with 400MW and Shenquan II with 350MW. Shenquan I was approved in August earlier this year with plans to install 73 units of 5.5MW WTG. Shenquan II has plans to use 64 units of 5.5MW WTG. (Jieyang DRC)

    AzureChinaCleantechNews03Dec2018 03

     

    A large number of big wind farms are being approved in Guangdong this week. This is driven by a strong will from local governments to boost the local offshore wind industry, as well as by a rush to get projects approved this year in order to benefit from the 0.85 CNY/kWh tariff.

     

     

    Data shows national wind total installed capacity reached 177GW by end of October

    The National Energy Administration (NEA) has released data on the national power industry from January to October 2018. The numbers revealed that by the end of October, the national wind total installed capacity was 177.57MW. From January to October, wind utilization hours totaled 1,724 hrs, an increase of 172 hrs from the same period last year. (NEA)

    AzureChinaCleantechNews03Dec2018 08

     

     

    Imports less than or equal to 6MW now required to pay duties and value-added taxes

    The Ministry of Finance has decided to revise relevant catalogues of import tax policies for major technical equipment according to the development of the domestic equipment manufacturing industry and its supporting industries in recent years. Among the revisions, it is now stated that imports of technical equipment of less than or equal to 6MW should pay an import duty and an import value-added tax. (MOF)

    Imports of major technical equipment and catalogues not exempt from taxes:

    AzureChinaCleantechNews03Dec2018 06

     

    What is also suggested by the policy is that whole wind turbine systems of more than 6MW would not be subject to import duty and import VAT (which sum to more than 20%). Maybe an opportunity for foreign suppliers to sell large turbines in China ?

     

     

    Reports show rapid development in grid side power storage

    Since the beginning of this year, China's grid side energy storage has developed rapidly. At present, local governments and power grid enterprises in Jiangsu, Henan, Qinghai, Gansu and other regions are actively deploying grid side energy storage projects. According to statistics from the CNESA global energy storage project library, from January to September 2018, the installed capacity of electrochemical energy storage connected to China's power grid reached 150MW, of which 140MW was newly installed. (People)

    AzureChinaCleantechNews03Dec2018 07

  • China Cleantech Update

    News Summary:

    • Local DRC releases Guangdong new bidding mechanisms for offshore wind farms
    • Yangjiang DRC approves China’s largest offshore wind farm
    • 6,000MW unsubsidized onshore wind project FSR passes review
    • Taiwan 2025 “non-nuclear home” target fails
    • China State Grid and Portugal REN sign MOU for cooperation in energy

     

     

    Local DRC releases Guangdong new bidding mechanisms for offshore wind farms

    The Guangdong Development and Reform Commission (DRC) has drafted new measures for competitive bidding of offshore wind power projects within the province in an attempt to promote efficient development of offshore wind power and technology, industrial upgrading, as well as market-oriented development. The measures are currently being implemented in a trial period and apply to select projects as detailed below.

    Scope of application:

    1. Projects approved before 2019 – FIT (0.85CNY/kWh)

    2. Projects with determined investment entities and approved after 2018 will be subject to competitive on-grid tariffs and development rankings

    3. Projects that have not yet determined investment entities before May 18, 2018 will be required to determine the investment entities and will be subject to competitive on-grid tariffs and development rankings (Guangdong DRC)

    Guangdong Zhuhai Guishan 102MW offshore wind farm (Operating)

    AzureChinaCleantechNews10Dec2018 01

    AzureChinaCleantechNews10Dec2018 02 2

     

    According to the scope of application of this policy, Azure thinks that multiple offshore projects in Guangdong will be approved within this month. The Guangdong DRC has previously published an opinion on this policy in August earlier this year (Azure news). The policy has not changed much since the draft, and still favors local developers as only references in Guangdong province and China are taken in account. However based on discussions with local governments and players in Guangdong we believe this is an omission rather than a deliberate intention to exclude foreign investors from Guangdong.

     

     

    Yangjiang DRC approves China’s largest offshore wind farm

    CGN’s Yangjiang Fanshi I 1,000MW offshore wind farm has been approved for construction by the Yangjiang DRC. The 1,000MW offshore wind farm surpasses what used to be the largest wind farm in China, the Zhenjiang Xuwen 600MW offshore wind farm, by 400MW, making it now number one. CGN’s Yangjiang Fanshi I 1,000MW offshore wind farm is located south of Yangjiang’s Nanpeng Island in Guangdong Province. The project plans to deploy 5.5MW WTG and feature three 220kV offshore substations. The turbines will be installed in depths of 38m to 50m, and the wind farm will be  constructed between 2020 and 2025 with a total investment above 18.8 billion CNY. (Yangjiang DRC)

    AzureChinaCleantechNews10Dec2018 03

     

    CGN’s Yangjiang Fanshi I project belongs to the Yangjiang deep-water offshore wind zone II (as outlined in the Guangdong offshore wind development plan). With increases in water depth, floating foundations may have more advantage than the traditional WTG foundations and some of the developpers are interested to test floating technologies. Since November 2018, Yangjiang City has approved 3,300MW offshore wind projects but has more than 5,000MW of pipeline is still under review by the local government. Azure thinks that some of the remaining pipeline will be approved within this month.

     

     

    6,000MW unsubsidized onshore wind project FSR passes review

    The Feasibility Study Report (FSR) for the first phase of SPIC’s IMAR Ulanqab 6,000MW onshore wind project has passed review. The project will be listed in the National 2018 Wind Development Plan and will not be receiving national electricity price subsidies. (SPIC)

    AzureChinaCleantechNews10Dec2018 04 

     

    Ulanqab has access to Type I wind resources and belongs to the West IMAR power grid. The aim is for the project to sell electricity at the local on-grid price of 0.28CNY/kWh instead of 0.4CNY/kWh like other nearby wind farms that benefit from a feed-in-tariff. However in counterpart, UHV power lines are being build specifically for this wind base which should enable to guarantee close to 100% energy offtake, whereas other nearby projects that suffer from severe curtailment  

     

     

    Taiwan 2025 “non-nuclear home” target fails

    A November 30 referendum on abolishing Taiwan’s 2025 non-nuclear target has resulted in the failure of the ruling. Previously, the Taiwanese government proclaimed that Taiwan would stop all operations of nuclear power generation plants before 2025 and replace them with clean energy. On December 2, the act has been declared ineffective. (MOEA)

    Taiwan 2025 installed capacity by technology [resource]

    AzureChinaCleantechNews10Dec2018 05

     

    Earlier this year, Taiwan approved 5,500MW of offshore wind projects and aimed to have all the projects operating by 2025. The 5,500MW of offshore projects were divided into 3,836MW selected projects and 1,664MW auctioned projects.

     

     

    China State Grid and Portugal REN sign MOU for cooperation in energy

    On December 5 (Portugal local time), under the joint witness of Chinese President Xi Jinping and Portuguese Prime Minister Antonio Costa, China State Grid and Portugal’s national energy network REN signed an MOU at the Cruz Palace in Lisbon to deepen cooperation and development in the energy field. With this framework, the two sides agree to utilize their respective advantages in South America, Africa and Europe, as well as other regions, to explore energy infrastructure cooperation. China and Portugal are to strengthen joint R&D of new energy technology and the exchange of business best practices via specialized personnel visits between the two countries. (CEC)

     AzureChinaCleantechNews10Dec2018 06

     

    In 2012, China State Grid acquired 25% of REN’s stock for 387 million EUR and became the company’s largest shareholder.

  • Week of December 17, 2018

    News Summary:

    • Local DRC approves 3,000MW of offshore wind capacity for 3 Gorges
    • Power trading companies can now take seats on South Hebei Power Grid Electricity Market Management Committee
    • CGN 1,200t jackup vessel launched in Guangdong
    • China’s first turn-key EPCI offshore wind project begins installation
    • November report shows 3.6% YOY industry-wide power generation increase

     

     

    Local DRC approves 3,000MW of offshore wind capacity for 3 Gorges

    As Azure predicted in last week’s (December 10) news report, the Yangjiang government will be approving a series of offshore wind projects before the end of this month. 3-Gorges’ Qingzhou V, VI and VII offshore wind projects with a cumulative capacity of 3,000 MW have been approved by the Yangjiang Development and Reform Commission (DRC) earlier this month. The three projects all plan to deploy 5.5MW and above offshore WTGs. The total investment for all three projects is said to be above 55.3 billion CNY, of which 30% shall be invested as equity by 3-Gorges and 70% as bank financing. (Yangjiang DRC)

    AzureChinaCleantechNews17Dec2018 02

     

    Yangjiang City’s Qingzhou offshore area has 7 projects with a total installed capacity of 5,000MW. Of these projects, 60% is led by 3-Gorges, followed by 20% from Yuedian and 10% from Huadian and Mingyang. The Yangjiang City projects closely follow the approval of 7 other offshore projects in Jieyang City, also in Southern China’s Guangdong Province, undertaken by Mingyang, CGN and SPIC. Azure sees the timing of these approvals as Guangdong’s last-minute attempt to  help the industry make the best of the existing 0.85 CNY/kWh offshore wind tariff.

     

     

    Power trading companies can now take seats on South Hebei Power Grid Electricity Market Management Committee

    The Hebei DRC has released a notice outlining the composition of South Hebei’s new Power Grid Electricity Market Management Committee. The committee will consist of 26 members who represent market entities such as power grid enterprises, power generation enterprises, power users, power trading companies, trading centers and third-party institutions (including research institutions and independent experts). (Hebei DRC)

     AzureChinaCleantechNews17Dec2018 03

     

    The Electricity Market Management Committee is established to ensure the fairness and openness of the electricity market and protect the legitimate rights and interests of market participants. With a more diverse mix of players being represented, Azure believes that China will be pushing power sector liberalization more aggressively. As a result, electricity prices may expected to drop and barriers to inter-provincial electricity trading reduced, which among other benefits can help ease curtailment issues.

     

     

    CGN 1,200t jackup vessel launched in Guangdong

    On December 8, China State Shipbuilding Corporation (CSSC) Guangzhou Huangpu Shipbuilding Co. and China General Nuclear (CGN) launched a 1,200t jackup offshore wind installation vessel which will start operation in early 2019. The platform has a total length of 94.5m, a width of 43.3m, a maximum working depth of 60m and and will be used for installation of offshore wind turbines up to 7MW. (BJX)

     AzureChinaCleantechNews17Dec2018 04

    AzureChinaCleantechNews17Dec2018 05

     

     

    China’s first turn-key EPCI offshore wind project begins installation

    The Guangdong Yudean Wailuo offshore project is currently undergoing installation and is set to be operating in 2019. The project plans to deploy 36 units of 5.5MW offshore wind turbines with a total capacity of 198MW. The project developer, Yudean, signed a  a full turn-key EPCI contract with China Energy Engineering Group Guangdong Electric Power Design Institute Co., Ltd (GEDI), making it the first domestic offshore wind project for which design, construction and commissioning  is contracted to one single company, therefore allowing to significantly reduce risk and work load for the project owner. (CEEC)

    AzureChinaCleantechNews17Dec2018 06

    AzureChinaCleantechNews17Dec2018 07

     

     

    November report shows 3.6% YOY industry-wide power generation increase

    The National Bureau of Statistics has released data on China’s energy production for November 2018. In November, industry-wide power generation was 554.3TWh, an increase of 3.6% year-on-year (YOY). Among this statistic, thermal power generation increased 3.9%, hydropower generation increased 1.5%, nuclear power generation increased 24.7%, wind power generation decreased 9.5% and solar power generation increased 2.5%. The fall in wind power production can be attributed to unfavorable wind conditions in Hebei, Shanxi and IMAR. (Stats)

    AzureChinaCleantechNews17Dec2018 08

  • Week of December 24, 2018

    News Summary:

    • Jiangsu DRC approves Zhugensha H2# 300MW offshore wind project
    • Baolihua & CGN establish company to co-develop offshore wind project
    • China publishes first bidding mechanism results for onshore wind project
    • SPIC’s CNY 22 billion project starts construction in Jieyang City
    • China’s biggest offshore WTG shipped to project site

     

     

    Jiangsu DRC approves Zhugensha H2# 300MW offshore wind project

    According to the Jiangsu Development and Reform Commission (DRC), the Zhugensha H2# 300MW offshore wind project has been approved. The project has a special sea area located between the Guohua Dongtai IV 300MW and Guohua Zhugensha H1# 200MW. The project’s distance from shore is 39km, making it a part of the intertidal zone offshore project. The project plans to deploy 50 units of 4.0MW and 17 units of 6.0MW offshore wind turbines. The project’s total investment is about 5.2 billion CNY and project capital is 1.04 billion CNY. (Jiangsu DRC)

     AzureChinaCleantechNews24Dec2018 01

    AzureChinaCleantechNews24Dec2018 02

     

    While most offshore wind projects in China are developed and operated by large state-owned companies, this project’s developer, Dongtai Shuangchuang New Energy, is a private company. However, it is interesting to note that this project’s legal representative, Mr. Rong Leng, also works for CHN Energy Longyuan, which belongs to state-owned China Guodian Corporation.Last week, another project developped by a private owner was approved in Jiangsu, the GCL Rudong H15 200MW project.

     

     

    Baolihua & CGN establish company toco-develop offshore wind project

    Guangdong Baolihua New Energy Stock (000690.SZ) and China General Nuclear Power Group (CGN) have agreed to jointly invest in the establishment of a project company to develop the CGN Shanwei Jiazi offshore wind project (900MW) and the CGN Shanwei Houhu offshore wind project (500MW). The registered capital of the project company is 521 million CNY, of which80% million CNYis contributed in cash by CGN, and the remaining 20% held by Baolihua. (Finance sina)

     AzureChinaCleantechNews24Dec2018 03

     

     

    China publishes first bidding mechanism results for onshore wind project

    The Ningxia 2018 wind bidding mechanism results have been published. A total of 32 projects joined the bidding, of which 20 successfully received the Ningxia DRC’s approval fora total 1,928 MW capacity. On-grid price bidding ranges from 0.37 to 0.49 CNY/kWh. (Ningxia DRC)

     AzureChinaCleantechNews24Dec2018 04

     

    Ningxia belongs toaType IV wind resourcearea; prior projects wouldreceivea fixedFIT of 0.49 CNY/kWh. Following the new policy issued in May this year, projects now need to bid for approval with a ranking score partly based on the proposed tariff.  

     

     

    SPIC’sCNY22 billionproject starts construction in Jieyang City

    The SPIC Jieyang 900MW offshore wind project, phase one of the Qianzhan general offshore terminal and the Jieyang gas power generation project have started construction. The three projects’ total investment is above 22 billion CNY. After a construction period of 4-5 years, the Jieyang offshore wind project isexpectedtosupply 2.7TWh of clean energy to Jieyang city annually. The Jieyang gas power generation project is designed with an annual power generation of 1.3TWh andisplanned tostart operating in 2021. (Huilai GOV)

     AzureChinaCleantechNews24Dec2018 05

     

     

     

    China’s biggest offshore WTG shipped to project site

    On December 19, Shanghai Electric’s first 7MW offshore wind turbine has been shipped to the Sanchuan offshore project site in Fujian province. This unit is currently thelargest offshore wind turbineproducedin China so far. (BJX)

    AzureChinaCleantechNews24Dec2018 06

     

    The Shanghai Electric 7MWPMDDoffshore wind turbineis based on a licensefrom Siemens Gamesa, andShanghai Electric is also working on production of the SG 8MW-167 offshore wind turbine.Deeper sea, complex soil conditions combined with medium wind resource are driving the race for bigger turbines in China. So far Goldwind's 6.7MW turbine was the largest in China, but a number of OEMs are working on 7-8 MW models.

  • Week of February 04, 2019

    News Summary:

    • NEA publishes 2018 grid-connected wind power report
    • CEC releases national power market analysis and forecast report for 2018-2019
    • NDRC calls for greater promotion and prioritization of renewable energy
    • Local GOV can now independently organize unsubsidized PV generation projects
    • “ZTT 7#” vessel completes Goldwind 6.45MW offshore WTG installation

     

     

    NEA publishes 2018 grid-connected wind power report

    By the end of 2018, China’stotal installed grid-connectedwind powercapacityreached 184.26GW; with a total power generation of 366TWh, wind power made up 5.2% of the total. Wind curtailment rate was 7%, a 5% year-on-year (YOY) decrease. Among regions listed with the highest average wind power utilization hours, Yunnan came first at 2,654hrs, followed by Fujian (2,587hrs), Shanghai (2.489hrs) and Sichuan (2,333hrs). (NEA)

    Map of wind curtailment conditions

     AzureChinaCleantechNews04Feb2019 01

     

    In 2018, Xinjiang (curtailment rate: 23%, 10.7TWh), Gansu (curtailment rate: 19%, 5.4TWh) and IMAR (curtailment rate: 10%, 7.2TWh) had severe curtailment problems; the three provinces alone made up more than 84% of the country’s total curtailment.

     

     

    CEC releases national power market analysis and forecast report for 2018-2019

    In 2018, national power consumption totaled 6,840TWh, a YOY increase of 8.5%. Based on the country’s current economic situation, however, the outlook for power consumption growth is expected to fall steadily in the coming year, with an estimated growth rate increase of only 5.5%. (CEC)

    AzureChinaCleantechNews04Feb2019 05

     

     

    NDRC calls for greater promotion and prioritization of renewable energy

    The National Development and Reform Commission (NDRC) has requested a review of the management of the priority power generation and preferential power purchase system. The system was established to support the acquisition of clean energy such as wind power and solar power generation, as well as to ensure that clean energy such as nuclear power and large-scale hydropower are fully and safely operated. With the aim of promoting clean energy consumption, green energy development and energy structure optimization in the power industry, the NDRC is now calling for another look at ways to improve the policy system. (NDRC)

    AzureChinaCleantechNews04Feb2019 02

     

     

    Local GOV can now independently organize unsubsidized PV generation projects

    The National Energy Administration (NEA) has recently revealed the development plan for PV in 2019. Development will be divided into two major parts: PV power generation projects that do not require state subsidies and those that do. Projects that do not require state subsidies will be organized by local organizations on the premise of meeting management requirements such as planning, market environment monitoring and evaluation and implementing conditions such as grid connection. (NEA)

    According to statistics, the average construction cost of wind farms and photovoltaic power plants built in 2017 was 20% and 45% lower than those built in 2012, respectively. (NEA)

     

     

    “ZTT 7#” vessel completes Goldwind 6.45MW offshore WTG installation

    After ZTT (Stock Code 600522.SH) successfully installed the first pile foundation at the 3-Gorges Jiangsu Dafeng 300MW Offshore Wind Power Project site using “MENCK-3500S,” the largest hydraulic pile hammer in China, it also reported that “ZTT 7#,” its offshore installation vessel, successfully installed the first Goldwind 6.45MW offshore wind turbine. (ZTT)

    AzureChinaCleantechNews04Feb2019 03

  • Week of January 02, 2019

    News Summary:

    • China offshore 2018
    • Local DRC pre-approves Shanghai Electric 9.5GW offshore wind projects
    • Yangjiang DRC approves nine distributed wind projects totaling 230MW
    • Jiangsu wind projects to be attributed via competitive bidding in 2019
    • Local DRC releases Shaanxi new bidding mechanisms for onshore wind farms

     

     

    China offshore 2018

    As 2018 comes to an end, Azure has put together a comprehensive review of China’s offshore wind status. By the end of the year, China had a total of 3GW offshore wind projects in operation, with nearly 80% in Jiangsu Province. But the trend is now clearly shifting towards Guangdong Province which is home to more than 30GW of offshore wind projects in various stages of development, representing 90% of the country's pipeline. Note: All analysis data source collected from public data and Azure database.

     AzureChinaCleantechNews31Dec2018 01

    AzureChinaCleantechNews31Dec2018 02

     

     

    Local DRC pre-approves Shanghai Electric 9.5GW offshore wind projects

    On December 17, 2018, Guangdong Province’s Shantou Development and Reform Commission (DRC) published 10 offshore projects with a total of 9.5GW. (Shantou DRC)

    AzureChinaCleantechNews31Dec2018 03

    AzureChinaCleantechNews31Dec2018 04

     

    Shanghai Electric is currently the largest supplier of offshore wind turbines in China. By the end of 2017, the company had supplied more than 1.5GW of offshore wind turbines in China. In 2017, Shanghai Electric and the Shantou government signed a contract to set up the Shanghai Electric Guangdong offshore wind power intelligent manufacturing base in Shantou with an investment of 500 million CNY. After it is completed and put in operation, the base will have an annual production capacity of 200 wind turbines and an annual output value of more than 10 billion CNY. The facility is expected to ship its first wind turbine towards the middle of 2019.

     

     

    Yangjiang DRC approves nine distributed wind projects totaling 230MW

    Nine distributed wind farm projects, totaling 230MW, have been approved by the Yangjiang DRC. The project sizes range from 12 to 40MW. (Yangjiang DRC)

     AzureChinaCleantechNews31Dec2018 07

     

     

    Jiangsu wind projects to be attributed via competitive bidding in 2019

    According to a new notice posted by the Jiangsu DRC, from 2019 onwards, newly approved centralized onshore wind power projects and offshore wind power projects in Jiangsu Province should all be attributed via competitive bidding mechanisms taking in account proposed on-grid tariff. (Jiangsu DRC)

    AzureChinaCleantechNews31Dec2018 05

     

     

    Shaanxi DRC releases new bidding mechanisms for onshore wind farms

    The Shaanxi DRC has drafted new measures for competitive bidding of onshore wind power projects within the province in an attempt to promote efficient development of onshore wind power and technology, industrial upgrading, as well as market-oriented development. The measures will be implemented on January 1, 2019 for a trial period of two years. (Shaanxi DRC)

     AzureChinaCleantechNews31Dec2018 06

     

    Shaanxi requires that onshore wind projects be between 50 to 100MW and, for developers, that net assets be above 500 million CNY. Projects that do not meet these conditions will be subject to a 5% decrease in developer-proposed on-grid prices and will be restricted from investment for three years.

  • Week of January 07, 2019

    News Summary:

    • Hebei Government approves Xiongan New Area (2018 – 2035) comprehensive plan
    • Fujian DRC releases new bidding mechanisms for offshore wind farms
    • Yudean Zhenjiang Wailuo Offshore Wind Farm II begins construction
    • Xinjiang 1,200MW pumped hydroelectric energy storage project approved
    • Yunnan “West to East” electricity capacity to reach 39GW
    • China's first 100MW scale solar thermal power station successfully put into operation

     

     

    Hebei Government approves Xiongan New Area (2018 – 2035) comprehensive plan

    The State Council, China’s cabinet, recently approved the comprehensive development plan (2018-2035) for Xiongan New Area, a guideline for developing the region based on international standards with Chinese characteristics. The plan outlines the need to build a green low-carbon city, to optimize energy structures, to build green power supply systems and clean and environmental-friendly heating systems and to promote local renewable energy utilization. (GOV)

    AzureChinaCleantechNews07Jan2019 01

    Source:(chinadaily)

     

     

    Fujian DRC releases new bidding mechanisms for offshore wind farms

    The Fujian Development and Reform Commission (DRC) has drafted new measures for competitive bidding of offshore wind power projects within the province in an attempt to promote efficient development of offshore wind power and technology, industrial upgrading, as well as market-oriented development. The measures are currently being implemented in a trial period and applied to select projects as detailed below.

    Scope of application:

    1. Projects approved before 2019 – FIT (0.85CNY/kWh)

    2. Projects with determined investment entities and approved after 2018 will be subject to competitive on-grid tariffs and development rankings

    3. Projects that have not yet determined investment entities before May 18, 2018 will be required to determine the investment entities and will be subject to competitive on-grid tariffs and development rankings (Fujian DRC)

    Fujian Xinghuabay offshore wind project

    AzureChinaCleantechNews07Jan2019 07

    AzureChinaCleantechNews07Jan2019 08

    Looking at Fujian’s new bidding mechanisms for offshore wind farms, it seems that the lack of requirement for developer references but increased requirements for offshore wind turbine suppliers have leveled the playing field for foreign investors. As for on-grid pricing, it seems that the Fujian DRC favors excessive competition over proposed on-grid prices.

     

     

    Yudean Zhenjiang Wailuo Offshore Wind Farm II begins construction

    On December 26, the commencement ceremony for phase two of the Yudean Zhenjiang Wailuo Offshore Wind Farm was held in Guangdong’s Xuwen County. The project is to have a total installed capacity of 203.5MW with an investment of 3.8 billion CNY. The project plans to deploy 37 units of 5.5MW offshore wind turbines with annual power generation of 484GWh. (Xuwen GOV)

    AzureChinaCleantechNews07Jan2019 02

    AzureChinaCleantechNews07Jan2019 03

     

    The Yudean Zhenjiang Wailuo Offshore Project was divided into two phases. The first phase of the project oversaw a total installed capacity of 198MW and completed its first offshore wind turbine installation in December 2018.

     

     

    Xinjiang 1,200MW pumped hydroelectric energy storage project approved

    The Xinjiang Hami 1,200MW pumped hydroelectric energy storage project has been approved by the local DRC. This project is located Northeast of Hami City with a distance of 66km to shore. The project will have a total installed capacity of 1,200MW distributed in four energy storage units of 300MW each. The project will have an investment of 8.2 billion CNY with an annual power generation of 1.4TWh. (XJDRC)

    AzureChinaCleantechNews07Jan2019 04

     

    The project involves the construction of two reservoirs. The upper reservoir collects snow from Tian Shan (mountain range) and discharges water into the lower reservoir. The water from the lower reservoir is then pumped into the upper reservoir to generate electricity. Due to the large amount of wind power generated by Hami City at night, the power station can use the unutilized wind power to pump water to the reservoir during the nighttime so that the water can drain in the daytime. (SINJIANGNET)

     

     

    Yunnan “West to East” electricity capacity to reach 39GW

    Following implementation and acceleration of the Kunliulong±800kV and Lancangjiang 500kV projects, Yunnan’s “West to East Power Transmission” project is also said to speed up construction for completion by 2020 withelectricity capacity reaching 39GW. (CEC)

    Kunliulong±800kV project

    AzureChinaCleantechNews07Jan2019 05

     

    Since the transmission of electricity to Guangdong and Guangxi in 1993, it has accumulated 800TWh.Yunnan’s installed capacity for power generation jumped from 1.3GW in 1978 to 93.2GW by the end of October 2018. The proportion of clean energy installed by hydropower accounted for more than 82.7%, becoming an important green energy base and power transmission base for the “West to East” project.

     

     

    China's first 100MW scale solar thermal power station successfully put into operation

    The first-class, energy-saving Dunhuang 100MW molten salt tower type solar thermal power generation demonstration project has been successfully put into operation. This project’s total investment is above 3 billion CNY. According to the requirements of the National Energy Administration (NEA) on the grid connection time of the first batch of demonstration projects, the project will have a FIT of 1.15 CNY/kWh. (cnenergynews)

    AzureChinaCleantechNews07Jan2019 06

  • Week of January 14, 2019

    News Summary: 

    • CGN Baolihua Shanwei Houhu Offshore Wind Project begins construction
    • World’s first ±1100kV UHV DC line to start operation soon
    • Henan Power Grid 100MW Battery Energy Storage Demonstration Project begins operating
    • Five State Grid pumped hydro energy storage stations start construction concurrently
    • First turbine of Datang Binhai offshore wind farm successfully connected to grid

     

     

    CGN Baolihua Shanwei Houhu Offshore Wind Project begins construction

    The project is to have a total installed capacity of 500MW with an investment of 8.4 billion CNY. The project plans to deploy 91 units of 5.5MW offshore wind turbines with annual power generation of 1.4TWh. This project aims to be operating before the end of 2021. (Shanwei News)

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    This offshore wind project is co-developed by Baolihua (000690.SZ) and CGN. For more details, please see Azure’s December 24 news publication.

     

     

    World’s first ±1100kV UHVDC linetostart operation soon

    The world’s first ±1100kV UHVDirect Currentproject, extending from Changji (Xinjiang Province) to Guquan (Anhui Province), has entered the final inspection stage.With atotal investmentof 40.7 billion CNY, the UHV line spans across six provinces (Xinjiang,Gansu,Ningxia, Shaanxi, Henan and Anhui) overatotal distance of 3,3293km. Theproject started construction in January 2016; after completion, itis planned to send 66TWh of power to China’s eastern regionsannually. (Xinjiang daily)

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    Henan Power Grid 100MW Battery Energy Storage Demonstration Project begins operating

    All 16 energy storage power stations of the Henan Power Grid 100MW Battery Energy Storage Demonstration Project were completed and put into operation. China has taken an important step in the standardization and scaled construction of grid-side distributed energy storage power stations.The construction scale of the project is 100.8MW/125.8 MWh, with a total of 84 battery containers. (CEC)

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    Five State Grid pumped hydro energy storage stations start construction concurrently

    Five pumped hydro energy storage stations, located in Hebei, Jilin, Zhejiang, Shandong and Xinjiang, have begun construction concurrently and are set to operate at 6,000MW capacity by 2026. ThePHES stations have a total investment of 38.7 billion CNY. The construction of these stations is conducive to ensuring safe operation of the power grid and facilitatingintegration of other sources ofclean energy. (CEC)

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    First turbine of Datang Binhai offshore wind farm successfully connected to grid

    The first turbine of the Datang Binhai 300MW Offshore Wind Power Project was successfully connected to the grid. This project began construction in July 2018. On December 29, the first turbinecircuit installation and 35kV submarine cable laying work were successfully completed. (BJX)

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  • Week of January 21, 2019

    News Summary:

    • CSIC receives government funding for floating wind demonstration
    • PetroChina to build 23 new natural gas storage facilities by 2030
    • Shaanxi DRC releases direct electricity trading results
    • Shanghai Temple-Shandong ±800kV UHV DC line starts operating
    • Jiangsu DRC approves 24 offshore wind power projects

     

    CSIC receives government funding for floating wind demonstration

    The Ministry of Industry and Information Technology (MIIT) has recently publicized “Development of Offshore Floating Wind Power Equipment,” a proposed research project of China Shipbuilding Industry Corporation (CSIC). The project is designed to explore the development of high-tech ships and high-power offshore floating wind power by carrying out research on key technologies and overall design of offshore floating wind power equipment, manufacturing, commissioning of mooring systems and applications at sea. (BJX)

     AzureChinaCleantechNews21Jan2019 01

     

    With the project encompassing efforts to implement the “Made in China 2025” plan, promote the implementation of strategic emerging offshore engineering projects and improve the level of R&D and design of high-performing equipment in China, it is clear that China is looking to increase self-reliance by promoting large-scale domestic production. Currently, few foreign firms have development rights in China, but it is interesting to note that in late 2018 China seemed more open to the idea of using foreign aid to speed up development in deep-sea wind power. This could be due to prospects that the new policy effective January 1, which subjects all large-scale wind farm development to power price competitive bidding, will put a greater emphasis on the need for cost reduction.

     

     

    PetroChina to build 23 new natural gas storage facilities by 2030

    According to China Petroleum News, China National Petroleum Corporation (CNPC) and relevant oil and gas enterprises gathered in Beijing on January 9 to discuss PetroChina’s 2019-2030 underground gas storage construction and deployment plan. There, the various parties signed an agreement that delegated responsibilities accordingly, and it was disclosed that PetroChina would expand ten natural gas storage projects and build 23 new ones by 2030. (The Paper)

    From the winter of 2017 to the spring of 2018, tight supply of natural gas in China raised concerns about insufficient domestic gas storage capacity. According to international standards, the working volume of underground gas storage must exceed 12% of consumption if dependence on natural gas reaches or exceeds 30%. In 2017, the country’s natural gas dependence was close to 40%, and in 2018 exceeded 40%, but its gas storage capacity was far from meeting the standards. China’s geological conditions pose the greatest challenge to building large-scale economical and efficient natural gas storage facilities.

     

     

    Shaanxi DRC releases direct electricity trading results

    The Shaanxi Development and Reform Commission (DRC) has released the results for the direct electricity trading between centralized heating users in Shaanxi Province during the winter of 2018-2019. On October 26, 2018, the committee organized 16 direct-transmission power generation enterprises, 33 power sales companies and 412 users to participate, resulting in a total electricity turnover of 1.05TWh (0.329TWh in 2018 and 0.676TWh in 2019).Within this number, 0.889TWh is attributed to industrial and commercial users, and 0.107TWh to other industries. The average transaction price for industrial and commercial users was 321.4CNY/MWh, making the average price difference from other industries 23.45CNY/MWh. (Shaanxi DRC)

     AzureChinaCleantechNews21Jan2019 02

    AzureChinaCleantechNews21Jan2019 03

     

    Note that this list of participants is not exhaustive and represents only a small sample from the experiment. We present this table to demonstrate how thermal power plants are still the major players in direct electricity trading.

    As Azure had previously forecasted, while the direct power trading mechanisms introduced over the past few years were initially expected to have a positive impact in helping integrate clean energy, it is more likely that large coal power plants will continue to dominate the market in the beginning. As we can see from this experiment, the majority of direct electricity traded was still coal-generated electricity.

     

     

    Shanghai Temple-Shandong ±800kV UHV DC line starts operating

    On January 11, the Shanghai Temple-Shandong ±800kV UHV Direct Current (DC) project, conducted by State Grid Shandong Electric Power, successfully completed 168 hours of trial operation. The UHV DC line passes through Inner Mongolia, Shaanxi, Shanxi, Hebei, Henan and Shandong provinces over a total distance of 1,230km at a rated transmission capacity of 10GW. At present, only two UHV lines, in Weinan and Qingzhou, have a full-load transmission capacity as high as 20GW. (BJX)

     

     

    Jiangsu DRC approves 24 offshore wind power projects

    On December 28, 2018 the Jiangsu DRC approved 24 offshore wind power projects with a total installed capacity of 6,700MW and a total investment of 122.3 billion CNY. (Offshore wind)

     AzureChinaCleantechNews21Jan2019 04

     

    The news comes right after the NEA’s announcement that projects approved in 2019 will be subject to competitive on-grid price bidding, and can be seen as local governments’ last-ditch attempts to obtain feed-in tariffs (FIT). The FIT price was not stated, so it is unknown whether or not these projects will actually be receiving them.

  • Week of January 28, 2019

    News Summary:

    • 2018 newly installed grid connected wind power exceeds 20GW
    • Tianjin DRC publishes distributed wind plan (2018-2025)
    • 7 billion CNY pumped hydro station begins construction in Zhejiang
    • China’s farthest offshore wind turbine successfully installed
    • Qinghai’s clean energy supply exceeds 10TWh

     

     

    2018 newly installed gridconnectedwind powerexceeds 20GW

    By the end of 2018, China’stotal installed gridconnectedwind powercapacityreached 184.26GW, a 12.4% year-on-year (YOY) increase. The nation’stotal installed gridconnectedPV power reached 174.63GW, a 33.6% YOY increase. On the power consumption side, national power consumption totaled 6,844.9TWh, an 8.5% YOY increase. (NEA)

    AzureChinaCleantechNews28Jan2019 01

    AzureChinaCleantechNews28Jan2019 08

     

     

    Tianjin DRC publishes distributed wind plan (2018-2025)

    Tianjin’s 2018-2025 distributed wind plan, in combination with the overall city development plan and the current state of implementation of land, power grid and wind resources, reveals that the target for installed capacity of distributed wind power is set to reach 780MW by 2025. (TianjinDRC)

    Tianjin 100m height wind speed distribution map

    AzureChinaCleantechNews28Jan2019 03

    AzureChinaCleantechNews28Jan2019 04

     

     

    7 billion CNY Pumped hydro station begins construction in Zhejiang

    The Zhejiang Qujiang pumped hydroelectric energy storage station has begun construction.With a design capacity of 1200MW, thePHES stationrepresents a total investment of 7.3 billion CNY. The station has a planned construction periodof 70 months and once completed will havetwice the installed capacityof the two Xin'anjiang hydropower stations that are also scheduled to be completed in 2025. (JJSB)

    AzureChinaCleantechNews28Jan2019 05

    AzureChinaCleantechNews28Jan2019 06

     

     

    China’s farthest offshore wind turbine successfully installed

    The first large-diameter offshore monopile foundation for wind turbines has been successfully installed in the Jiangsu Dafeng Offshore Wind Power Project. This is the first offshore wind turbine to be located as far as 70km from shore. (BJX)

    AzureChinaCleantechNews28Jan2019 07

     

     

    Renewable energyexport from Qinghai during 2018exceeds 10TWh

    During 2018a total of 12,569 TWh of renewable energy was produced inQinghai, of which10.065TWh was exported to other provinces. At present, the installed capacity of Qinghai Province’s grid-connected renewable energy has reached 12.27GW,including 9GWof PV, 2.66GWofwind and 60MWofsolar thermal power.During 2018, the government of Qinghai province has signed framework agreements with neighboring provinces, giving priority to absorption of new energy coming from Qinghai.(State grid paper)