• Week of August 05, 2019

    News Summary:

    • National wind curtailment decreases 4% YoY in first half of 2019
    • Is the Spring finally here for foreign power battery makers?
    • Coal Mine Gas and Shale Gas seize China’s REDF Subsidy
    • Chongqing DRC introduces policy to up competitiveness of wind power industry
    • Sichuan launches pilot city for hydropower generation direct trading

     

     

    National wind curtailment decreases 4% YoY in first half of 2019

    From January to June 2019, national wind power generation capacity was 214.5TWh, an increase of 11.5% year-on-year (YoY). In the report released by the National Energy Administration (NEA), it was also revealed thatduring the six months the national average wind curtailment ratedropped to 4.7%, a 4% YoY decrease. (NEA)

    1H2019 National wind curtailment distribution

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    Is the Spring finally here for foreign power battery makers?

    The well-known Automotive Power Battery Industry Standard Conditions, also referred to as the “white list” of EV power battery, has been officially abolished by the Ministry of Industry and Information Technology (MIIT) recently. The “white list” was introduced by the Chinese government in 2015 to help foster domestic battery makers by barring foreign brands from getting on the list. Under this document, EV manufacturers are only able to obtain state EV subsidies if they employ the power batteries of companies on the “white list.” As evidence, 57 Chinese battery manufacturers such as BYD, CATL and OptimumNano, among others, were enlisted, while not a single foreign brand made it onto the list. With such policy support, the total installed capacity of new EV power batteries in China amounted to 56.89GWh in 2018, a 56% YoY increase and a volume 2.4 times that of Japan and 3.6 times that of South Korea.

    Among these domestic manufacturers, CATL and BYD occupied 61% of the power battery market share.

    This might change soon, however. Samsung SDI, LG Chem and SKI, all which have been out of the Chinese market, have returned—and they don’t seem to waste any time. SKI has just signed a supply contract with Tianqi Lithium to acquire battery materials company Lingbao Huaxin, LG Chem has set up a JV with Huayou Cobalt, and Samsung SDI is restarting the Xi'an battery project. Even Panasonic jumped at the opportunity to significantly expand its power battery production capacity in Suzhou and Dalian. (Baidu,MIIT)

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    Coal Mine Gas and Shale Gas seize China’s REDF Subsidy

    It has been known that the Renewable Energy Development Fund (REDF) supports the exploitation and utilization of unconventional natural gas such as coal mine gas, shale gas and dense gas, but reaffirmed lately by the Ministry of Finance (MoF) in its announcement of the latest supplementary notice of the Interim Measures to Manage the Special Fund for Renewable Energy Development.

    Beginning in 2019, subsidies will be paid according to the principle, "more production, more subsidies." Those who exceed the amount of production from the previous year will be rewarded an amount corresponding to the degree of excess, while subsidies will be deducted if mining fails to reach the previous year's yield. Meanwhile, the incremental part produced during heating season is incentivized by a higher subsidy.

    As determined in the Interim Measures for the Management of Renewable Energy Development Fund Collection and Use,the REDF includes special funds arranged by the public budget of the MoF (hereinafter referred to as the Special Fund for Renewable Energy Development) and additional income from renewable energy tariffs levied on power users. Subsidies for the abovementioned exploitation of unconventional gas come from the Special Fund for Renewable Energy Development. (MoF)

     

     

    Chongqing DRC introduces policy to up competitiveness of wind power industry

    The Chongqing Development and Reform Commission (DRC) has rolled out a new policy aimed at honing in on scientific research to help develop the city's wind energy resources, further optimize resource allocation, maintain orderly market development, advance wind power technology and cost reduction, and promote overall high-quality development of the local wind power industry. (Chongqing DRC)

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    Sichuan launches pilot city for hydropower generation direct trading

    By establishing and improving a new method of hydropower consumption in demonstration areas, the Sichuan Government is now focusing on “reducing electricity prices and encouraging multi-use” to form a win-win scenario in which they can have both maximum consumption of hydropower and sustainable development of key industries. The local government is also actively working on creating economic advantages from resource advantages found in the province. (Sichuan GOV)

    Sichuan hydro direct trade pilot city

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  • Week of July 30, 2019

    News Summary:

    • Yunnan 1H2019 “West to East” power trade report shows 38% increase
    • Hydro and Wind account for more than 85% of Datang Group’s 2018 profit
    • Huaneng Group and IMAR sign a strategic cooperation framework agreement for energy base construction
    • SPIC’s 2018 clean energy installed capacity close to half of total capacity
    • Goldwind, CSIC and Jidian participate in "North China Hydrogen Valley" project

     

     

    Yunnan 1H2019 “West to East” power trade report shows 38% increase

    In 1H2019, Yunnan Province’s “West to East” power trade totaled 63.7TWh, an increase of 38.25% year-on-year (YoY). Notably, thesections of the Yunnan power grid that stretchoverto Guangdong Province transmitted 40TWh, an increase of 61% YoY. Furthermore, the “Dianxibei to Guangdong” ±800kV UHVDC that began operating in May 2018 reached 10TWh, an increase of 278% YoY. (kmpex)

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    Hydro and Wind account for more than 85% of Datang Group’s 2018 profit

    China’s Datang Group has released their 2018 Social Responsibility Report, which revealed a total profit of 9.6 billion CNY in 2018 for the corporation. Last year, the group's wind power installed capacity reached 16GW, with a generation of 32TWh, accounting for a profit of 3.3 billion CNY.Meanwhile, hydropower installed capacity reached 27GW, generating 98TWh and achieving a profit of 4.9 billion CNY. (Datang)

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    Huaneng Group and IMAR sign a strategic cooperation framework agreement for energy base construction

    On July 23, Huaneng Group and the Inner Mongolia Autonomous Region (IMAR) Government signed an agreement declaring the two sides will jointly build a comprehensive clean energy delivery base and clean low-carbon self-use energy system in Inner Mongolia, as well as a leading domestic and international first-class wind, solar, coal, electricity and storage integration. The purpose of this joint initiative lies both in promoting clean, green, safe and efficient energy demonstration, and in promoting the development of a modern energy economy in IMAR. (Huaneng)

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    SPIC’s 2018 clean energy installed capacity close to half of total capacity

    State Power Investment Corporation (SPIC) hasreleased their 2018 Social Responsibility Report. In 2018, SPIC’s total installedelectric powercapacity was 140GW, total coal production capacity was 80.59 million tons and total electrolytic aluminum production capacity was 2.514 million tons. The report also revealed that SPIC currently has two operating offshore wind farms and one under construction in Yancheng, Jiangsu Province. Moreover, the corporation also has 1,700MW of offshore wind projects approved in Jieyang, Guangdong Province. (SPIC)

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    Goldwind, CSIC and Jidian participate in "North China Hydrogen Valley" project

    Goldwind, CSIC and Jidian (SPIC Jilin power) have signed an MoU with the Baicheng Energy Bureau laying out the planning and construction of wind energy hydrogen production integration demonstration projects, including wind farms,andhydrogen production and storage. Subsequently, Jidian is to expand the scale of wind energy hydrogen production according to market demand and participate in the construction and operation of Baicheng’s hydrogen energy industry throughout the whole industry chain. (dfcfw)

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    Jidian is a large-scale joint-stock enterprise engaged in power production in Jilin Province. It has two power generation branches, namely Minjiang and Erdaojiang.Its power generation accounts for 14.92% of the electricity consumption in Jilin Province and its heat supply accounts for 80% and 100% in Tonghua and Baishan, respectively.