• 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)

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    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)

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    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)

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    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)

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    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)

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    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)

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    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)

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    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.