• Azure China Cleantech Update May 8, 2018

    News Summary: 

    • Shandong, renewables account for 20% of new installed capacity
    • 6.4 TWh nuclear power transmission in Fujian province
    • 1.52 GW offshore wind in Zhejiang Province
    • The world’s largest water, wind and solar multi-energy complementary project
    • Beijing is increasing inter-regional power tradings


    Shandong, renewables account for 20% of new installed capacity

    Shandong is speeding up the establishment of a clean energy supply system. On April 26th, State Grid Shandong Electric Power Co. announced that the province's renewable energy installed capacity has reached 26.04 GW, accounting for 20.7% of total installed capacity and, by the end of 2020, it is expected to reach 31 GW. Moreover, Shandong has recently actively promoted the construction of UHV transmission channels that,up to now, have guaranteed an incoming 400 GWhof energy,allowing to save the equivalent of 180 million tons of coal consumption. By 2019, the 1000 kV Shandong-Hebei UHV project will be completed and put into operation, andby 2020, Shandong’s grids expected to be more than 30 GW incoming power. (CEC)

    Shandong is actively incentivizing clean-energy and cross-regional market transactions. Renewables capacity is expected to increase by 16% in less than 2 years. The province is currently promoting non-coal energy sources.The premium localization between Beijing and Shanghai offers huge potentialities for energy tradings. The development of UHV transmissions channels will generate high opportunities also for the neighboring provinces.

     

    6.4 TWh nuclear power transmissions in Fujian province

    During the first quarter of this year, Fujian province consumed 10.8 TWh of energy. Nuclear power delivered 6.4 TWh, two times the production registered during the same period of 2017. The total installed power capacity reached a 55.97 GW value, with clean energy accounting for 54.5%, and nuclear energy accounting for 8.71 GW, 15.6% of total, ranking second in the country. Moreover, the 1000-kV UHV T&D project between northern Zhejiang and Fuzhou has been put into operation, increasing power grids exchange capacity from 1.7 GW to 4.5 GW. (BJX)

    Renewable energy is currently accounting for more than half of installed power capacity in Fujian. During the first quarter of 2018, nuclear power satisfied almost 60% of transactions in the province. Renewables are expected to represent a solution to support the continuous growth of demand in the area.Distribution networks development will support new power stations construction, offering the possibility to rely on other provinces demands and increasing power plants utilization hours.

  • 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

    News Summary:

    • Local DRC pre-approves SPIC Zhanjiang Xuwen offshore wind project
    • Q1 ~ Q3 PV newly installed capacity decreases 19.7% YOY
    • ZSOAF pre-approves CGN Daishan IV offshore wind project sea area use right
    • 3-Gorges plans to transfer 61% stake in pumped storage power generation company
    • JHD and Guangxi HOPE sign MOU for waste power battery recycling

     

     

    Local DRC pre-approves SPIC Zhanjiang Xuwen offshore wind project

    The Zhanjiang City Development and Reform Bureau has released a public notice regarding the Zhanjiang Xuwen offshore wind project and is now accepting feedback during the notice period. The project is divided into two phases and has a total planned installed capacity of 600MW. The estimated annual on-grid power for this project is 1.5Twh and the annual equivalent full load hours is 2505h. The project will also involve the construction of 2 units of 220kv offshore substations. (Zhanjiang DRC)

    AzureChinaCleantechNews26Nov2018 01

     

    In December 2017, the Zhanjiang government, SPIC and Mingyang Wind Power signed an MOU for the Zhanjiang Xuwen offshore wind project. The agreement stated that:

    1. The Zhanjiang government will promote the project’s approval and support preferential policy.
    2. SPIC will ensure that the project begins construction in 2019 and deploys Mingyang’s WTG and O&M service.
    3. Mingyang will invest in building a new energy service center in Zhanjiang.

     

     

    Q1 ~ Q3 PV newly installed capacity decreases 19.7% YOY

    According to the National Energy Administration (NEA), China’s PV power generation newly installed capacity totaled 34.5GW in the first three quarters of 2018, down 19.7% year-on-year (YOY). Among that figure, centralized PV newly installed capacity made up 17.4GW and distributed PV newly installed capacity made up 17.1GW. By the end of September, the national PV total installed capacity was 164.7GW, with 117.9GW in centralized PV and 46.8GW in distributed PV. (NEA)

     AzureChinaCleantechNews26Nov2018 02

    The chart above represents the percentage of PV newly installed capacity that each region accounts for of the total 34.5GW. The sharp decrease (19.7%) in Q1 ~ Q3 PV newly installed capacity can be seen as a direct result of the “PV 531” policy.

     

     

    ZSOAF pre-approves CGN Daishan IV offshore wind project sea area use right

    On November 13, the Zhoushan Ocean and Fishery Bureau released a public notice for the CGN Daishan IV Offshore Wind Power Project’s (Phase I) sea area use application, giving the public a period of 20 days to voice any objections or hearing requests. The CGN Daishan IV offshore wind farm is planned to have a total installed capacity of 216MW and a total investment of 4 billion CNY. (ZSOAF)

     AzureChinaCleantechNews26Nov2018 04

    AzureChinaCleantechNews26Nov2018 03

     

     

     

    3-Gorges plans to transfer 61% stake in pumped storage power generation company

    On November 19, 3-Gorges announced plans to transfer a 61% stake in Hohhot Pumped Storage Power Generation Co., Ltd. for a reserve price of 929 million CNY. The IMAR hydro pump power generation company was established in 2005 with a registered capital of 1.5 billion CNY. As of October 31, 2018, the company’s financial report stated that its operating income was 838 million CNY, total assets were 6.224 billion CNY, and owner's equity was 1.322 billion CNY. (CS)

     

     

    JHD and Guangxi HOPE sign MOU for waste power battery recycling

    On November 20, JHD (Guangdong Guanghua Sci-Tech Co., Ltd) and Guangxi HOPE Automobile Co., Ltd signed an MOU regarding waste power battery recycling. Through the cooperation between the two parties, organic integration of economic benefits, environmental benefits and social benefits can be realized, and a model for the recycling and utilization of power batteries as well as for a circular economy can be established. (Finance Sina)

    As evidence of JHD’s commitment to environmental and social responsibility, the company was among the first batch of automobile, motorcycle, three-wheeled vehicle and freight car products and producers approved by the Ministry of Industry and Information Technology (MIIT) based on its Interim Measures for the Management of Recycling and Utilization of Power Batteries of New Energy Vehicles. Additionally, apart from this MOU JHD also signed with BJEV and Skywell (Nanjing Jinlong) to cooperate and advance sustainable development in China.

  • 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.

  • China Cleantech Update April 09, 2018

    News Summary:

    • Yunnan-Guangdong UHV nearing completion
    • Wind energy projects approved in March 2017
    • China Resources Power has reduced coal consumption
    • 2018, Market Supervision of the National Energy Administration
    • The introduction of new Renewable Energy Quotas
    • 300kW tidal power project has been developed

     

    ± 800 kV UHV line nearing completion in Yunnan-Guangdong

    The Yunnan-Guangdong connection is now 98% complete and is expected to be operative by mid-year. It will have a power transmission capacity of 5 GW and plan to deliver 20 TWh of electricity annually, equivalent to 1/4 of the annual electricity consumption in Shenzhen. (CHINA ELECTRICITY COUNCIL)
     
    This 3143 km infrastructure project built to carry excess hydro power in Yunnan to coastal load centers. Through this project, the Zhusanjiao region will be able to reduce its coal consumption by 6 million tons, carbon dioxide emissions by 16 million tons, and sulfur dioxide emissions by 123,000 tons per year.


    AzureChinaCleantechNewsApril9 2018 sourceAzureInternational

    Source: Azure International
     
     

  • China Cleantech Update April 16, 2018

    News Summary:

    • 7 GB UHV Wind Power Transmission Base will be built in the Xilin Gol League
    • Analysis of UHV energy transmission efficiency
    • Mingyang wins 300MW offshore wind order in Guangdong
    • 303.4 million RMB wind power production equipment purchasing
    • Apple supports renewable energy in China
    • UHV construction to support Smart Cities

     
     
    7 GB UHV Wind Power Transmission Base will be built in the Xilin Gol League

    On March 19, 2018, Xilin Gol DRC announced the construction of a new UHV Wind Power Transmission Base in the Xilin Gol League. The project is aimed at supporting export of power produced in the Xilin Gol League power base which will including 7 GW of wind power. (Xilin Gol League DRC)
     
    The line will connect via lower voltage lines to wind farms in 8 cities, guaranteeing grid offtake and tackling the high wind curtailment problem in North China. This will in turn enable new growth for Xinlin Gol league in which new large wind farms are planned.
     

    Source: North China Electric Power University, Beijing 102206, China

  • China Cleantech Update April 2, 2018

    News Summary:

    • Significant offshore wind investments in Guangdong Province
    • 50GW 2030 renewable energy target in Zhangjiakou City
    • New marine area usage fees for offshore wind farm developers
    • 1 GW offshore wind power project agreement in Tianjin

     
     
    Wind: Guangdong Province announces the investment of 16 offshore wind farms

    The Guangdong Provincial Development and Reform Commission has issued the "Guangdong Province Major Construction Project Plan for 2018" officially announcing 1,098 key projects, with a total investment of 5.67 trillion yuan including 600 billion yuan to be invested during 2018. The overall plan includes 16 offshore wind power projects with the first 99MW project already in operation. (GDDRC.GOV.CN)
     
    The plan includes 6 offshore wind farms currently under construction with capacity of 1,618MW and 10 new offshore wind farms with capacity of 3,650MW (see detailed breakdown of project owners from our database below). The total capacity of 5.27 GW is lower but more realistic than the 10 GW of offshore wind which was earlier announced as part of the "Thirteenth Five-Year Plan"(2016-2020) for the Development of Marine Economy in Guangdong Province by 2020. However we advise wind investors to correlate these provincial level plans with national level NEA targets over the same period in order to assess any potential grid connection and FIT risk.

    Source: Azure International

  • China Cleantech Update April 23, 2018

    News Summary:

    • NEA promotes distributed wind
    • 7 MW wind turbines in Putian
    • Three wind projects will expire in Guangxi Zhuang Autonomous Region
    • NDRC price reduction measures
    • 2018 Energy consumption analysis
    • Shandong Province 110 key projects

     
     
    The National Energy Administration promotes social capital investment in wind distribution
    National Energy Administration issued the “Interim Management Measures for the Development and Construction of Distributed Wind Power Projects”, valid for the next 5 years. In order to be elligile as "distributed", a wind project must satisfy the following requirements:

    1. Connect to grid at 110 kV or less;
    2. Distributed wind power plants with access voltages of 35 kV and below shall fully utilize existing substations and grid facilities;
    3. Distributed wind power plants with a voltage level of 110 kV (66 kV in the northeast region) can only have one grid connection point and a total capacity within 50 MW.

    All wind power projects that satisfy the requirements will have priority in securing subsidy payments. (NEA)
     
    Currently, centralized (non-distributed) wind projects have to wait in line to be included on the NEA subsidy list, sometimes for many years. The new policy which simplifies the development process and offers bettter guarantees to project owners was greatly awaited by the whole industry, with hopes that it will help boost the installations in coming years, which was greatly expected by small developpers as well.   
     
     
    The first 7 MW wind turbines will be installed in Putian

    On March 26, China Railway Fuchuan Co. won the bid for the installation of 10 sets of 7 MW wind turbines in the “Fujian Pingtan Offshore Wind Farm in Putian”, with a contract of 34 million RMB. (chinanews)
     
    The 7MW machines to be supplied by ShangHai Electric under a license with Siemens are the largest wind turbines in China so far.
     

     

    Source: Fujian Fuchuan Investment Co
     
     

  • China Cleantech Update August 02, 2016

    News Summary:

    • First half 2016 generation utilization hours published
    • Coal reduction reforms announced 
    • First half 2016 Jilin energy utilization rates published
    • Gansu strikes 1 billion RMB deal to integrate wind and 400MW storage
    • NEA publishes Dongbei electricity 2020 roadmap 
    • IMAR renewable energy generation January to May 2016 data released
    • Q1 to Q2 China energy consumption data release



    Data: First Half 2016 Power Plant Utilization Hours Published
    The NEA published the first half of 2016 utilization hours for power plants at the 6MW and above installed capacity. Average utilization hours for all power plants was 1,797 hours, a decrease by 137 hours (about 7%) from 2015 levels in the same time period. The table below summarizes the total installed capacity and utilization hours for the first half of 2016 and change relative to 2015 levels. (NEA CN)
     
    While the average decreased, the utilization hours per province varies greatly. Yunnan and Sichuan provinces, for example, were at 1,441 and 1,377 hours, respectively. Due to the major difficulties integrated wind, lower user demand, and lack of sufficient transmission capacity, Xinjiang, Gansu, Jilin, and Ningxia provinces all had less than 680 utilization hours. Gansu is aware of this situation and, as discussed later, is attempting to increase utilization hours with a storage plant solution. 
     
    Table: First Half 2016 Utilization Hours for 6MW+ Power Plants

    Source: NEA 
     
     

  • China Cleantech Update August 06, 2018

    News Summary:

    • NEA publishes 1H2018 wind power on-grid operation situation
    • 157MW of offshore wind installed in 1H
    • Guangdong 2018-2020 “Blue sky defence” plan published by Guangdong Department of Environmental Protection
    • Hainan's first pumped hydro energy storage (PHES) station put into operation
    • Beijing-Tianjin-Hebei included in new energy vehicle battery recycling pilot

     

     

    NEA publishes 1H2018 wind power on-grid operation situation

    During the first half of this year, 7.94GW of new wind capacity was connected to the grid, reaching a total of 171.6 GW. Wind farms produced a total of 191.7TWh, an increase of 28.7% yr-on-yr, with average utilization hours increasing more than 10% since last year. (NEA)

     AzureChinaCleantechNews06Aug2018 06

    AzureChinaCleantechNews06Aug2018 02

    The wind curtailment isssue has also been significantly improved, with curtailment decreasing more than 10% in the provinces of Jinlin, Heilongjiang and Gansu.

     

     

    157MW of offshore wind installed in 1H

    With an additionnal 157MW connected during 1H, the total on-grid offshore wind capacity in China is now 2.7GW. (NEA)

    AzureChinaCleantechNews06Aug2018 04

    While 157MW is not a big number, we expect more significant installations in the second half of the year, allowing 2018 to be a record year for offshore wind in China.

     

     

    Guangdong 2018-2020 “Blue sky defence” plan published by Guangdong Department of Environmental Protection

    The plan lists installed capacity targets for all clean energy, including 16GW of Nuclear, 6.5GW of Wind and 5GW of PV. Key cities for deployment of offshore wind are Zhuhai, Shantou, Shanwei, Yangjiang, Zhengjiang and Jieyang. By the end of 2020, the province should have more than 2GW offshore wind in operation and more than 6.5GW under construction.(GDEP)

    AzureChinaCleantechNews06Aug2018 01

    As a power import province, and the most populated province in China with a population above 100 million, Guangdong has a lot of grid space to build its power generation capacity. In 2017, Guangdong consummed 595.9 TWh but produced only 451.6 TWh.

     

     

    Hainan's first pumped hydro energy storage (PHES) station put into operation

    The 600MW PHES project has 3 units of 200MW each and projected annual power generation of 1.0 TWh for a total investment of 3.4 billion CNY. This dam is adjacent to Hainan province load centers and to nuclear power transmission channels. (Hainan News)

    AzureChinaCleantechNews06Aug2018 03

    Once it comes into operation, the PHES station will enable to reduce the average peak-regulation rate of thermal power in Hainan by 11%, and to increase provincial thermal power annual utilization hours by 374 hours.

     

    Beijing-Tianjin-Hebei included in new energy vehicle battery recycling pilot

    The NEA has launched a large scale pilot project to explore technical and market solutions to encourage recycling of batteries used in electric vehicles.  So far the projet will involve the regions of Beijing-Tianjin-Hebei, Shanxi Province, Shanghai and Guangdong Province. The annoucement also introduces China Railway Tower Co., Ltd as a key player in the pilot project.  (GOV) (NEA)

    AzureChinaCleantechNews06Aug2018 05

    Source:163

     

     

  • China Cleantech Update August 08, 2016

    News Summary:

    • Shanxi Province publishes consumption data for H1 2016
    • Zhejiang Province announces 25% non-thermal energy generation sources
    • Fujian Province announces 2GW wind power installed capacity

     
     
     
    Statistics: Shanxi Province H1 2016 Energy Data Released
    Shanxi Province data has been published for H1 2016. The data includes: generation, consumption, operations, and business entities. Energy generation levels for 2016 are in line with 2015 data, meaning from the energy-side, there has been no major downward pressure from macroeconomic trends. (NEA CN)
     
    While generation levels remain healthy, underneath the surface we expect to see mid-term impacts from the lack of quality transmission lines in the region and demand growth. Azure is tracking the provincial markets for economic signals.
     
    Figure: Shanxi Province Monthly Generation Data in 100s of GWh: 2016 H1 vs 2015

    Source: NEA 
     

  • China Cleantech Update August 14, 2018

    News Summary:

    • NEA publishes 1H2018 solar power installations
    • HHI signs an offshore wind construction & installation contract with 3-Gorges
    • Jiangsu power grid load exceeds 100 GW for second consecutive year
    • China EV charging infrastructure annual report (2017-2018) published by NEA
    • Shanghai Electric terminates acquisition of subsidiary of GCL-Poly

     

    NEA publishes 1H2018 solar power installations

    During the first half of this year, 24 GW of new PV capacity was installed. This includes 12GW of centralized PV, a decrease of 30% yr-on-yr, and 12GW of distributed PV, an increase of 72% yr-on-yr. The total installed PV capacity has now reached 154.5GW, about three quarters of which is centralized. (NEA)

     AzureChinaCleantechNews13Aug2018 01

    AzureChinaCleantechNews13Aug2018 02

    In the first half of 2018, newly installed PV capacity in Shandong, Zhejiang, Henan and Jiangsu provinces all above 1GW, and the newly installed distributed photovoltaic installations in the four provinces accounted for more than half of the country.

     

     

    HHI signs an offshore wind construction & installation contract with 3-Gorges

    Huadian Heavy Industries (HHI), a subsidiary of Huadian Group, won the bid for the first batch of foundation construction and installation of 38 wind turbines as well as an offshore high voltage substation for the 3-Gorges Guandong Yangjiang Xishaba 300MW offshore wind project. The contract is worth 1 billion CNY.(Finance Sina)

    AzureChinaCleantechNews13Aug2018 03

    Source: Yangjiang GOV

     

     

    Jiangsu power grid load exceeds 100 GW for second consecutive year

    On August 8, Jiangsu Power Grid load reached 102.26 GW, breaking last year's record of 102.19GW. From January to July this year, total power consumption in Jiangsu reached 349.5TWh, an increase of 6.78% yr-on-yr. Appoximately 22% of this  power demand was produced from renewable energy sources.(CEC)

    AzureChinaCleantechNews13Aug2018 05

     

     

    China EV charging infrastructure annual report (2017-2018) published by NEA

    777,000 electric vehicles were sold in China in 2017, an increase of 53.3% year-on-year, allowing EV market share to reach 2.7%. In 2017, there were 214,000 public charging stations and 232,000 private charging stations. Construction of another 600,000 charging stations is in planning, including 100,000 public and 500,000 private. (NEA)

    AzureChinaCleantechNews13Aug2018 04

    Highway power charging network

     

     

    Shanghai Electric terminates acquisition of subsidiary of GCL-Poly

    In June this year, Shanghai Electric announced its intention to acquire 51% of Jiangsu Zhongneng, a subsidiary of GCL-Poly (HK3800) focused on high-purity polysilicon production, for 12.7 billion CNY. Shanghai Electric now terminates the acquisition procedure. (Finance Sina)

    The acquisition was cancelled due to changes in the photovoltaic situation since the second half of the year. Especially after the “531” PV New Deal, the two sides have different judgments on the trading conditions and the future development prospects of the PV market.

  • China Cleantech Update August 18, 2016

    News Summary:

    • State Grid forecasts 3.5% bump in consumption
    • Shaanxi solar cell manufacturing increases 85%
    • China Longyuan Power announces 11.2 billion CNY in 2016H1
    • China Shenhua announces 0.8 billion CNY in 2016H1

     

    Statistics: State Grid Forecasts 3.5% Rise in National Electricity Consumption
    State Grid announced a forecast increase of 3.5% in energy consumption levels for 2016 compared to the previous year. The first half of 2016 saw 2,780 TWh of demand, an increase of 2.7% over 2015. State Grid believes total consumption for 2016 will be up to 5,770 TWh. New installed capacity for 2016H1 include:

    • 27.1 GW thermal of 54 GW planned
    • 5.7 GW wind of 34 GW planned
    • 17.6 GW solar of 27 GW planned
    • 4.4 GW hydro of 11 GW planned
    • 2.2 GW nuclear of 4.9 GW planned

    The top contributors of new capacity growth are from the following regional grids:

    • 25% from Huabei
    • 23% from Xibei
    • 15% from Nanfang
    • 13% from Huadong
    • 10%, 8%, and 6% from Huazhong, Donbgei, and Xinan (SGCC CN)

    Typical growth is not typical in China — there have been consecutive growth years in the 10%+ range, followed by either a single digit contraction or flat growth. 3.5% is an aggressive growth number for an established energy base, however, for China, this is still a healthy level and we'll need a few more years of data to see if 3.5% represents the new normal. 
     
     
    Distribution of New Installed Capacity for 2016


    Source: SGCC, Azure International
     
     

     

    Source: SGCC, Azure International
     
     

     

    Source: SGCC, Azure International
     
     

  • China Cleantech Update August 24, 2016

    News Summary:

    • Shanxi government publishes electricity sales competition bulletin
    • NEA publishes July energy consumption data
    • China Electricity Council publishes January to June energy consumption data
    • Hunan publishes July energy consumption data

     
     
     
    Statistics: Shanxi government publishes electricity sales price reform bulletin
    The Shanxi government published its number 9 reformation document, focused on bringing in electricity competition to the regional market. Companies with over 20 million RMB registered capital can participate. The first payment rate will focus on providing capacity, as it is one of the easiest market transactions to provide, measure, and compensate for. (Shanxi Gov CN)
     
     
    Requirements for Companies to Join Shanxi Capacity Payments Market

     

    Source: Shanxi Government
     
     
     
    Statistics: NEA publishes July energy consumption data
    July saw an 8.2% month-on-month increase in energy consumption to 553 TWh, leading to a cumulative consumption of 3,329 TWh for the year to date. Year-on-year, January to July saw a 3.2% increase from 2015 levels.  Current installed capacity of energy generation is as follows:

    • Thermal: 1,021 GW
    • Hydro: 282 GW
    • Wind: 138 GW
    • PV: 44 GW
    • Nuclear: 31 GW

    Energy consumption in July is speculated to have increased greatly due to the record high temperatures, reaching a national average of 27.7 , 0.9 higher than last year. (NEA CN)
     
    Energy Consumption Data by Industry Segment, 2016 January to July

     

    Source: NEA
     

     

    Source: NEA 
     

  • China Cleantech Update August 28, 2018

    News Summary:

    • Guangdong DRC publishes opinion on new bidding mechanisms for wind farms
    • Jan to Jul energy statistics published by NEA
    • 3-Gorges Guangdong 400MW offshore wind farm approved by Yangjiang DRC
    • SPIC secures project approval for 2 offshore wind farms in Guangdong province
    • Mingyang and SPIC sign an MOU for cooperation on offshore wind

     

    Guandong DRC publishes opinion on new bidding mechanisms for wind farms

    Guangdong is the first province to publish clarifications on the specific mechanisms which will be used to allocate wind farm subsidies following the new competitive on-grid tariff guidelines requirements issued by NEA earlier this year. The document provides some details on the scoring scale which will enable to compare bidders, as well as guidelines on procedures for applying for subsidies. (GD DRC)

    AzureChinaCleantechNews27Aug2018 04

     

    AzureChinaCleantechNews27Aug2018 03

    According to theNEA policy issued earlier this year (NEA), the tariff related score for both onshore and offshore wind farms should account for at least 40% of total score. The remaining criteria are listed in the pie charts above. For offshore projects, the business capability score, which relies on a specific scale for rating references, is the second most important criteria with a weight of 30%. For onshore projects progress on preliminary construction is given more importance.

     

     

    Jan to Jul energy statistics published by NEA

    From Jan to Jul, power consumption in China reached 3,877.5TWh, a 9% increase yr-on-yr.  Wind showed the strongest growth, with new installations of 9.46 GW, with utilization hours improving as well. (NEA)

     

    Azure has summarized key information in the graphs below:

    AzureChinaCleantechNews27Aug2018 01

     

    AzureChinaCleantechNews27Aug2018 02 

     

     

    3-Gorges Guangdong 400MW offshore wind farm approved by Yangjiang DRC

    Theprojecthas a sea area of approximately 67km2, waterdepthof21 to26m and distance to shore of15.9km.The project will feature 73 5.5MWwind turbines with a projected annual production of 1.5TWh.

    AzureChinaCleantechNews27Aug2018 05

     

     

     

    SPIC secures project approval for 2 offshore wind farms in Guangdong province

    SPIC Jieyang Jinghai 150MW & Shenquan PhaseI 400MW offshore wind projectshave been approved by Jieyang DRC.The two projects will require a combined number of 101 5.5MW wind turbines. Both projectsplan to start construction by the end of 2018 and will be operating in 2021.(JYDRC)

    AzureChinaCleantechNews27Aug2018 06

     

    Mingyang is the only turbine supplier with a 5.5MW turbine on the market and is securing a large number of orders in Guangdong province where it is headquartered, especially this year as developers are rushing to secure approvals while the 0.85 CNY / kWh feed in tariff is still available.

     

     

    Mingyang and SPIC sign an MOU for cooperation on offshore wind

    Mingyang and SPIC signed an MOUregardingfixed as well as floatingoffshore wind.The strategic partnershipwill be focused on offshore wind power development, clean energy equipment supply, technical cooperation, international projects, information sharing, engineering construction and ancillary services.(BJX)

  • China Cleantech Update August 31, 2016

    News Summary:

    • NEA publishes 2015 national renewable energy portfolio
    • Beijing imports 21 TWh of wind for March to July period
    • NDRC approves new UHV DC IMAR to Shandong line
    • Xi Jinping visits  State Power Investment Corporation

     

    Policy: NEA Publishes 2015 National Renewable Development Energy Portfolio
    The NEA released a report highlighting the end of year 2015 national renewable energy data. Total installed capacity of all renewable energy sources stood at 480 GW. The installed capacity and annual generation for each resource is shown below.

    • Hydro: 300 GW , 1,099 TWh 
    • Wind: 129 GW, 186 TWh
    • Solar: 43 GW, 39 TWh
    • Biomass: 10 GW, 52 TWh (NEA CN)

    Total generation figures stand at 1,363 TWh, approximately 24.5% of total power demand. Excluding hydro, however, paints a less rosy picture of 278 TWh and 5% of total power demand. 
     
     
    Power Generation (Outer Circle) and Installed Capacity (Inner Circle) Ratio by Generation Type, 2015 All of China

     

    Source: NEA, Azure International
     

  • China Cleantech Update December 02, 2016

    News Summary:

    • NEA Publishes Power Generation Utilization Hours for First Three Quarters of 2016  
    • Renewable Power Generation on the Northwest Grid Surpasses 70 TWh
    • Goldwind to Supply 82 MW Wind Farm in Chile




    Statistics: Utilization Hours for First Three Quarters of 2016 Published by the NEA 

    • The NEA recently published data on the average utilization hours for all power plants over 6,000 KW. During the first three quarters of 2016 average utilization hours declined to 2,818 hrs, which makes for a decrease of 179hrs when compared to the same time frame in 2015. The key findings as broken down by sector:
    • Total Hydro installed capacity: 280 GW; Utilization hours: 2,766 hrs; an increase of 127 hrs
    • Total Thermal installed capacity: 1,030 GW; Utilization hours: 3,071 hrs; a decrease of 213 hrs
    • Total Wind installed capacity: 140 GW; Utilization hours: 1,251 hrs; a decrease of 66 hrs


    National Utilization Hours for First Three Quarters of 2016

    (Source: Azure International)

    The top two provinces for wind utilization hours are southwestern provinces, with Yunnan at 1,712 hrs and Sichuan at 1,643 hrs. In the same time, Gansu, Xinjiang and Jilin utilization hours remain low, at 870, 946, 951, respectively. With regards to thermal generation, an average of 3,071 hrs is the lowest level since 2005. (NEA CN)

  • China Cleantech Update December 09, 2016

    News Summary:

    • NEA publishes Wind Power 13th Five Year Plan (十三五)
    • Hydro Power 13th Five Year Plan (十三五)  published by NEA
    • China's Sany Signs MoU with Indian State of Gujarat
    • CNBM of China Lands 212 Million USD Solar Project in Portugal




    Plan: Wind Development Plan of the 13th Five Year Plan “十三五”  Published by NEA 
    The NEA recently published the Wind Power Development Plan of the 13th Five Year Plan. The development plan lays out comprehensive onshore and offshore installation targets per province for 2020.  According to the document, by the end of 2015, total installed wind capacity was 129 GW, and total power generation from wind 186.3 TWh, which was 3.3% of national power consumption. By 2020, installed wind capacity will be 210 GW, with total power generation more than doubling to 420 TWh, 6% of national power consumption. The development plan also highlights cross provincial UHV transmission lines under construction or that have recently come online, aimed at delivering power from the north to east and central China. (NEA CN)

    Long Distance Cross-Provincial UHV Transmission Lines Highlighted in Wind Power Development Plan



    2015 Installed Capacity and 2020 Targets, by province

     


    Source: Azure International, NEA

    The wind development plan calls for continued capacity expansion by 2020, however, as seen in the chart above, 64% of new capacity additions, 64 GW, will be in southern provinces with less robust wind resources. This reflects central planners desire to ease high curtailment levels in the “three norths”, 三北, area of the Northwest, Northeast and North China grids. Provinces seeing the largest capacity increase to 2020 are Yunnan (7.9 GW, 191%); Hebei (7.8 GW, 76%); Jiangsu (5.4 GW, 131%); and Henan (5.1 GW, 559%). Provinces that saw the highest levels of curtailment in 2016, such as Gansu (1.48 GW, 12%) Xinjiang (1.09 GW, 6%) and Jilin (0.56 GW, 13%) are targeted for much smaller capacity increases. Offshore wind development is also emphasized, with Fujian set to build 3 GW, or 60% of total offshore wind, by 2020.