• China Cleantech Update December 13, 2016

    News Summary:

    • NEA publishes Biomass 13th Five Year Plan (十三五)
    • Guangdong DRC Publishes Guangdong Onshore Wind Development Plan (2016-2030)
    • Goldwind and Apple Announce Joint-Venture




    Plan: Biomass Development Plan of the 13th Five Year Plan “十三五”  Published by NEA
    The NEA recently published the Wind Power Development Plan, part of China's national 13th Five Year Plan. According to the document, by the end of 2015, total installed wind capacity was 10.3 GW, and total power generation from wind 52 TWh, approximately 0.92% of national power generation. By 2020, installed wind capacity will reach 15 GW, with total power generation nearly doubling to 90 TWh, 1.3% of national power generation. (NEA CN


    Biomass pipeline covering the period of the 13th Five Year Plan

    Source: Azure International

    During the 13th Five Year Plan,  total investment in the Biomass industry will reach 196 billion RMB. Of this 196 billion RMB, 40 billion RMB will go towards power generation, 120 billion RMB for biogas, 18 billion RMB for biomass briquette industries, and 18 billion RMB for investment into liquid biofuels.


  • China Cleantech Update February 14, 2017

    News Summary:

    • NEA publishes Solar 13th Five Year Plan (十三五)
    • NDRC publishes Renewable Energy 13th Five Year Plan 
    • NDRC issues tariff adjustments for utility solar and onshore wind
    • Offshore wind project approval authority handed down to provincial NEAs
    • Shandong starts Electricity Reform Pilot Program
    • Guangdong publishes Measures on Retail Electricity Reform




    Plan: Solar Development Plan of the 13th Five Year Plan “十三五”  Published by NEA
    In December the NEA  published the Solar Power Development Plan, part of China's national 13th Five Year Plan. According to the document, by the end of 2015, total installed solar capacity was 43 GW, and total power generation from solar sources was nearly 40 TWh , approximately 0.7% of national power generation. By 2020, installed solar capacity is targeted to reach 110 GW, with total power generation more than tripling to 150 TWh, 1.6% of national power generation. (NEA CN

     

    Source: Azure International

    While not specified in the Solar Power Development Plan, under the Electricity Development Plan, the Solar Power target for 2020 further calls for 60 GW of distributed solar and 5 GW of concentrated solar, with the remaining 45 GW assumed to be standard utility scale solar. 

    While the explosive buildout of utility scale solar projects in 2016 puts the current installation numbers at 77 GW at 2016 year end, the majority of this growth has been from utility scale projects rushing to completion before the large tariff cut in June. Currently distributed solar in China is hovering at around only 7 GW. Therefore while the 110 GW target will likely be surpassed, it is unlikely that distributed solar will be able to reach its sub-target of 60 GW.

  • China Cleantech Update February 20, 2017

    News Summary:

    • CEC publishes solar installation statistics for 2016
    • State Council publishes National Land Planning Outline 2016-2030
    • China Sunergy to build 400 MW solar module facility in California
    • Green certificate trading program trial rules issued by NDRC




    Solar: 2016 Solar Installation Statistics Published by the CEC
    The CEC recently published statistics on domestic solar installations for 2016. According to the document, by the end of 2016, over 34 GW of new solar energy had been installed across the country, bringing the total installed capacity to over 77 GW. Total power generation from solar in 2016 was 66 TWh, approximately 1% of national power generation. 28% of new installations occurred in the Northwest area comprising Shaanxi (217 GW), Gansu (76 GW), Ningxia (217 GW), Qinghai (119 GW) and Xinjiang (329 GW). (CEC)

     

    Source: Azure International, CEC

    As mentioned in last week's News Update, the frenzied growth in solar in 2016 is largely due to utility scale projects rushing to completion before the large tariff cut in June 2016. However under the Electricity Development Plan, the Solar Power target for 2020 further calls for 60 GW of distributed solar and 5 GW of concentrated solar, with the remaining 45 GW is assumed to be standard utility-scale solar. Thus we expect the next three years to see a moderate cooling of utility scale projects in China as local governments digest current project pipelines. 

    On the other hand, current installation figures indicate distributed solar capacity in China is hovering at around only 10 GW. Therefore while the 2020 target of 110 GW target will likely be surpassed, it will be difficult for distributed solar to reach its sub-target of 60 GW, especially as the regions currently driving solar installation figures (Northwest and IMAR) are almost exclusively installing utility scale projects, with distributed projects concentrated more in highly populated east coast provinces. 

  • China Cleantech Update February 27, 2017

    News Summary:

    • CWEA publishes wind installation statistics for 2016
    • NEA publishes guiding opinion on energy work for 2017
    • Yingli Solar receives noncompliance notice from NYSE 




    Wind: 2016 Solar Installation Statistics Published by the CWEA
    China Wind Energy Association recently published new wind installation figures for 2016. New installations of wind dropped by 24% to 23 GW, down from 30 GW in 2015. This new installation of wind power brings the total installed capacity to 169 GW. Windy northwest provinces continued to attract the most amount of new capacity additions (26%), followed by the North China (Huabei) region (24%) and East China (Huadong) region (20%). Additionally, total offshore wind power capacity increased by 64%, with over 590 MW of new capacity installed in 2016, bringing the total offshore wind capacity to 1.6 GW. (ESCN)

     


    Source: Azure International, CWEA

    High curtailment in windy provinces is clearly making its mark on new installation patterns. While the resource-rich northwestern provinces still saw the largest share of new capacity additions at 26%, this was down from 2015's whopping 38%. In the face of congested transmission lines and high curtailment, developers are choosing to build closer to load centers, as evidenced by the eastern coastal region of Huadong seeing the largest percent increase in new capacity of any region.



    Plan: Guiding Opinion on Energy Work for 2017 Published by NEA
    According to the NEA's 2017 Guiding Opinion on Energy Work, by the end of 2017 China will install 20 GW of new wind capacity, with another 25 GW under construction. The document also calls for a gradual shift to developing wind in eastern coastal and southern provinces, as well as a short-term stay on building new wind power in provinces that have curtailment rates above 20%. Finally, the document also calls for the acceleration of offshore wind development. (BJX CN)

    As made clear both by the CWEA wind statistics and the NEA's guiding opinions, the major story for wind in 2017 is China's increasing emphasis on developing wind generation sources closer to eastern and southern coastal load centers. This emphasis on developing wind proximal to load centers can be seen both in the increasing emphasis on offshore wind generation as well as the targets set out in the 13th Five Year Plan to shift development away from windy northern provinces to the south and east. 



    Markets: NYSE  Issues Noncompliance Notice to Yingli Solar 
    Yingli Green Energy Holding Company Limited (NYSE: YGE) announced that the company had received notice from the New York Stock Exchange (NYSE) Regulation  on February 9th, 2017. The notice stated that the company was below the continued listing standards of the NYSE, specifically that its average market capitalization over a 30 day period was below $50 million. Following the notice, Yingli has 90 days to present a plan to the NYSE demonstrating how it will regain compliance with NYSE's standards within 18 months. The plan will then be evaluated by the NYSE. If accepted, Yingli will be subject to quarterly reviews of its compliance progress. If the plan is not accepted, Yingli Green Energy will be subject to suspension and delisting procedures from the New York Stock Exchange, although the stock may continue trading in over-the-counter (OTC) markets. (PRNewswire)

    Yingli modules at a 50 MW Datong solar farm

    Source: Yingli Solar

    This notice is not the first time Yingli has come into problems with the NYSE's continued listing standards, as the company faced the threat of delisting in November of 2015 as well, when its shares were trading below the $1 threshold for 20 consecutive days. Furthermore, according to Yingli's latest quarterly earnings report, for the third quarter 2016 Yingli suffered an operating loss of $34 million.

  • China Cleantech Update July 02, 2018

    News Summary: 

    • JiangsuDRC issues 2018 wind development and construction plan
    • Jiangsu DRC guidance for development of distributed energyand micro grids
    • Direct power trading in Beijing in June
    • AnhuiDRC issues distributed wind development and construction notice
    • Guohua Dongtai IV 300MW offshore wind project officially starts construction

     
    JiangsuDRC publishes 2018 wind development and construction plan
    The plan features 46 projects with total installed capacity of 2.58GW, and estimated utilization hours of 2,000 hrs in 2018. (Jiangsu DRC)

     


    In 2017, Jiangsuprovince saw power consumption of 580.8 TWh and power generationof 488.5TWh, therefore needing to satisfy more than 15% of its energy  demand by importing power from other provinces.As consequence, Jiangsu has no curtailment issue and it was listed as a "green province" in the 2018WindPowerInvestmentMonitoring report of theNDRC , meaning that it can move forward with their wind planning, by opposition to some "red provinces" which have to interrupt wind developments.
     
     
    Jiangsu DRC guidance for development of distributed energyand micro grids
    The documents proposes establishement of 20 micro-grid demonstration projects in Jiangsu province by 2020, representing 400MW of newly-added distributed energy capacty; and also guides towerdas building 50 projects by 2025, with an associated capacity of 2,000MW. (Jiangsu DRC)

    Source(BJX)
     
    Distributed energy microgridsaregenerally characterizedas clean, small, autonomous andconvenient.Their aim is to achieve a balance between local energydemand and production.
     
     
    Direct power trading in Beijing in June
    The Beijing Electric Trading Center saw 14 transactions in June, totalling 16,4 TWh of direct power trading, and including 7% of clean energy. Transactions are not only for power produced or consummed in Beijing however, but cover several provinces in the country. (BJX

     
     
    AnhuiDRC issues distributed wind development and construction notice
    The notice calls for DRC bureaus in all Anhui cities to submit their 2018 - 2020 distributed wind pipeline by the end of July. (Anhui DRC)
     
    Yet another province rapidly compiling its distributed energy plans, confirming the clear new trend in the industry.
     
     
    Guohua Dongtai IV 300MW offshore wind project officially started
    On June 22, Jiangsu Shenhua and its suppliers held a ground breaking ceremony for the start of construction of the Guohua Dongtai IV 300MW offshore wind project.(BJX)

     


     
    Dongtai IV iscurrently the offshore wind farm which is furthest from shore in China. After completion,it is expected to produce 813GWh annually, equivalent to 20% of Dongtai city's annual electricity consumption.

  • China Cleantech Update July 09, 2018

    News Summary: 

    • Sinovel Wind Power spends $57.5 million on reconciliation with AMSC WINDTEC
    • Asia's largest offshore wind farm starts operating
    • Gansu publishes its 13th 5 year energy development plan
    • SIDRI & INNOSEAsign offshore wind power engineering cooperation MOU
    • Datang Nanao Lemen 400MW offshore windfarm has been approved

     
     
    Sinovel Wind Power spends $57.5 million on reconciliation with AMSC WINDTEC
    Since 2011, AMSC WINDTEC has filed several law suits against Sinovel and its affiliates due to intellectual property issues which arised in their patnership to deploy power electronics for Sinovel wind turbines in China. After 7 years of struggle, it seems that the dispute may have finally come to end, with Sinovel paying $57.5 million to AMSC Windtec's Chinese subsidiary in Suzhou (SinaNews)
     
    Sinovel and AMSC started cooperating on wind turbine power electronics in 2005; a few years before Sinovel became the leading Chinese wind turbine OEM. The dispute starting in 2011 significantly affected Sinovel's image worldwide and is suspected to be the key reason for the group's decline in the following years. It is yet unknown what this final settlement may mean for both companies, as Sinovel's turbine sales have almost come to a halt last year, and AMSC's initial claim was initially counted in billion dollars.

     


     
     
    Asia's largest offshore wind farm stars operating
    The 100th Shanghai Electric 4MW wind turbine of the SPIC Binhai North H2# 400MW offshore wind power project has been connected to the grid, which indicates that the offshore wind power project has successfully completed full-capacity connection operation and has officially become the largest offshore wind farm in Asia.(JSTV)

     


     
    This is the same wind farm which had a severe accident at its offshore substation exactly 1 year ago which resulted in one casualty and partial loss of the OSS. It seems however that the accident did not cause significant delays in project constrution as the wind farm was completed according to schedule.
     
     
    Gansuprovincepublishes its 13th 5 yearenergy development plan
    The province targets installed capacity of 14GW of wind, 9.9GW of PV and 9.5GW of Hydro power by 2020. At the same time, Gansu engages to reduce wind & PV curtailment as well as increase utilization hours. (Gansu GOV)

     
    Most provinces have issued their 13th 5 year plan more than a year ago. Gansu was likely slowed down in this process due to challenges with integration of renewables, as average wind curtailment reached 33% in 2017 (NEA)
     

    SIDRI & INNOSEA signMOU for cooperation on offshore windengineering
    SIDRI (Shanghai Investigation Design & Research Institute), the engineering branch of China Three Gorges Group, and INNOSEA, a subsidiary of London Offshore Consultants delivering offshore wind engineering and design services, signed a MOU for cooperation on offshore wind power. SIDRI earlier purchased Innosea's offshore wind power foundation design and optimization software PREDIN as well as related training services. During the visit, the two sides also had detailed discussion about cooperation on deep sea jacket foundation design and floating wind power. (BJX)

     


    Azure International and Innosea have setup a partnership for delivering offshore wind design and engineering services in China, and the cooperation with SIDRI marks one of the first key milestones the consortium has achieved.  China's effort to become a global leader in offshore wind energy creates opportunities for western companies with relevant experience and references to participate. With more than 15 years experience in the Chinese wind sector, Azure is well poised to facilitate and support such partnerships.
     
     
    Datang Nanao Lemen 400MW offshore wind farm has been approved
    Datang Nanao Lemen 400MW offshore wind project in Guangdong has been approved, with a sea area of 56 square kilometers, a total installed capacity of 400MW, and featuring 57 wind turbines of 7 MW each. The wind farm is expected to provide 1.2 TWh of clean energy per year. (Datang Group)

  • China Cleantech Update July 17, 2018

    azure1News Summary: 

    • 3-Gorges group publishes its 2017 sustainability report
    • CATL Battery will investEuro240 millionto set up a battery production base in Germany andsecures a $4.7 billioncontract from BMW
    • MIIT publishesnew list of encouraged construction material technology and products
    • China leading wind gearbox manufacturer NGC to be acquired by Neoglory Prosperity Inc

     
     
    3-Gorges group publishes its 2017 sustainability report
    The report describes how 3-Gorges plans to create a large-scale development platform for new energy such as offshore wind power. The Group's target is to develop wind and solar energy as its second main busines after hydro, mainly focusing on large-scale development of offshore wind power.

      
    Three Gorges' Fujian Fuqing Xinghua Bay Phase I demonstration project is now in operation, featuring 14 wind turbines from 7 different manufacturers with unit capacity between 5 MW to 6.7 MW and a total installed capacity of 78.4 MW. The demonstration project has had positive press last week as the offshore turbines just withstood Maria typhoon without any damage.
     

    CATL Battery will invest Euro240 millionto set up a battery production base in Germany andsecures $4.7 billion contract from BMW
    Under the joint witness of the Chinese and German prime ministers, China CATL and the German state government of Thuringia signed an investment agreement in Berlin. According to the agreement, CATL will set up a battery production base and intelligent manufacturing technology research and development center in Erfurt, Thuringia. (Sohu)

     
    In 2017, CATL shipped 11.84 GWh of lithium-ion batteries, ranking first in the global market with a 17% market share.
     
     
    MIIT publishes new list of encouraged construction material technology and products
    The list published by the Ministry of Industry and Information Technology promotes the transformation and upgrade of the construction material industry,  as well as costs reduction, increase in efficiency and acceleration of the supply-side structural reform. The list also addresses the problem of overcapacity in the cement and glass industries. (MIIT)

     
    The listhas atotalof 48 items. An interesting one is the addition ofelectrochromic andthermochromicsmart windows as well as othershading systems, including specific performance requirements..
     
     
    China leading wind gearbox manufacturer NGC to be acquired by Neoglory Prosperity Inc
    Neoglory Prosperity Inc announced its intention to acquire NGC (Nanjing High Accurate Drive Equipment Manufacturing Group Co., Ltd) for a total asset value above 2 billion USD. Neoglory Prosperity released a major asset purchase plan which described the intention to have its Five Season subsidiary acquire between 834 and 1,208 million shares of NGC (00658, HK), representing 51% to 74% of the company, for a price ranging between RMB 9.99 and RMB 11.25 per share.(SinaFinance)
     
    NGC isthe leading Chinese wind turbine gearbox manufacturer, supplying a large number of domestic and international wind turbine OEMs.Neoglory Prosperity Inc. (hereinafter referred to as "Neoglory Prosperity ", stock code: 002147.sz), listed on the Shenzhen stock exchangesince April 2016, is a commercialand tourism real estate developper as well as a precision machinery manufacturingcompany.

    azure

  • China Cleantech Update July 23, 2018

    azure1News Summary: 

    • FujianGOV issues list of offshore wind farms
    • China's largest grid connected ESS project comes on line
    • Large fire at South Korean energy storage power station
    • Japan builds first PV power plant from recycled PV modules
    • NDRC promotes participation of renewable energy projects in power trading programs

     
     
    FujianGOV issues list of offshore wind farms
    Fujian GOV released a plan requiring the different government offices across the province to fully support implementation of 228 major projects, including 130 under construction and 98 in development, in order to accelerate the growth of the "marine economy" in the province.
    (Fujian GOV)

    azurenews20180723 01
     
    azurenews20180723 02
     

    We have extracted offshore wind projects out of the document as well as summarized key information in the tables below. The list includes 9 offshore wind farms with cumulative capacity of 2.7GW and average CAPEX of 20,800 CNY/kW.
        
     
    China's largest grid connected ESS project comes on line
    The 20MW/160MWh intelligent energy storage power station of the Feida Group invested by Nandu Power (300068) was successfully connected to the grid. The power station is a key project of the State Grid Jiangsu summer peak shaving plan. The project has an annual energy storage capacity of about 53 million kWh. (ntdaily)

    azurenews20180723 03

     
    According to the State Grid Jiangsu Power Forecast,peak summer consumption in Jiangsu has reached 112 million kW in 2018, an increase of 10% since last year. Now that the Chinese economy is transiting from a secondary to a tertiary economy, while the total consumption growth is predicted to slow down, we can actually expect the growth of peak consumption to accelerate, which drives up the requirements for the scale of the whole energy production and transmission infrastructure but drives the utilization hours down. Energy storage peak shaving projects are one of the solutions to increase the efficiency of the whole system.
     
     
    Large fire atSouth Korean energy storage power station
    A fire broke out at the energy storage project connected to the Lingyan Wind Power Plant, causing the 706m2 scale battery building and more than 3,500 Li-Ion batteries to burn. The grid scale energy storage project with a capacity of 12MWh was installed in 2015. (Sohu)

    azurenews20180723 04

     
    This news item was found by Azure on several news platform in Chinese language, but has not been reported anywhere else to Azure's knowledge. Azure is investigating the accuracy of this news item, and in the meantime does not guarantee its validity. Fire hazards with Lithium Ion battery is a well know issue and a key concern in the sector, as well as a drive for development of alternative battery technologies.
     
     
    Japan builds first PV power plant from recycled PV modules
    Japan's NextEnergy&Resources builds a PV power plant using recycled PV panels. The project has an installed capacity of 280.78KW and features five different panel technologies including monocrystalline, polycrystalline, CIS thin film etc. (BJX)
     
    By the end of 2017, Chinahad atotalPV capacityof more than 130GWIncluding 50GW newly installedduring 2017.At this pace, recycling PV material should soon become an important topic in the industry.
     
     
    NDRC promotes participation of renewable energy projects in power trading programs
    According to the new policy, direct power trading mechanisms are now open to medium size end-users which connect to the grid at 10kV or above (versus 35kV in previous versions of the policy) and sources of clean energy such as wind, solar, hydro and nulcear are encouraged to trade directly with large industrials such as coal, steel, nonferrous metals,  cement and glass producers. (NDRC)
     
    As Azure had forecasted a few years back, while the direct power trading mechanisms introduced over the past years were intially expected to have a positive impact in helping integrate clean energy, in reality it is more likely that lage coal power plants with stable and controllable production sign up with large industrial producers with flat and predictable consumption. The policy confirms that more work is needed to help clean energy sources be competitive in a deregulated market. 

  • China Cleantech Update June 06, 2018

    News Summary: 

    • Important: NEA announces competitive FIT for wind projects
    • Shandong: 2.4 GW wind power construction in 2018
    • Tianjin: 64.3 billion RMB in smart grid development
    • A new wind power R&D center in Guangdong
    • Siemens Gamesa supplies 640MW offshore project in Taiwan
    • Shanxi province, 400MW wind power to heat project
    • First commercial wind farm in Jiangsu with turbines > 6MW



    NEA issues newFIT guidelines for wind projects

    On May 18, 2018, NEA issued the “Circular on the 2018 Annual Requirements for Wind Power Construction Management”, listing a number of management guidelines for deployment of wind farms such as how implementing of national targets and avoiding wind curtailment. The most important item is the sudden announcement that, as of the date on which the policy was issued, for all the new onshore wind farms in provinces which have not yet issued their 2018 wind construction plans, and all new offshore wind farms for which an investment entity is not yet identified, the feed-in-tariff (FIT) shall be established via a competitive mechanism. Other projects that already built or do not fit in above categories can continue to enjoy the regular wind FIT. It is also suggested that the wind farms eligible under the distributed wind policy (less than 50MW, 110kV or less grid connection) can still benefit from the original tariffs. (NEA)

    There has been regular policy drafting and discussion around reduction of FIT for wind energy, but such a sudden change effective immediately was generally unexpected. Relying on historical events, one can imagine that FITs established via competitive bidding will be significantly lower than original FITs and might also create uncertainty on developer's capacity to retain their project. This can be very bad news for some investors, especially those with projects still in development and not yet announced in provincial plans.  Azure is currently performing further research to understand the details of the policy, such as to which projects it applies, the definition of "investment entity", which "competitive mechanisms" will be put in place to establish future tariffs, and the potential impact on market players.


    Shandong province announced 2.4 GW wind power projects in 2018

    On May 17th, Shandong Province issued the 2018 annual wind power development plan. The province informed that, in 2017, a total of 3.34 GW of wind power projects have been developed, and announced that a total of 51 power projects have been arranged for 2018, with a total construction scale of 2.4 GW.  (BJX)

    Shandong will promote more than 50 new wind energy plants. Considering the relatively average low capacity of wind farms, we expectthat several of them are decentralized projects, connecting at or below 110kV.The timing of the announcement is interesting, 1 day prior to the national FIT policy described above.

  • China Cleantech Update June 25, 2018

    News Summary: 

    • MOF published the 7th batch new energy subsidy list
    • NEA published national power industry statistics from Jan to May
    • Shaanxi Province distributed wind power development plan
    • China and Russia sign nuclear energy cooperation project
    • NDRC & NEA agreeto carry out electricpower system reforms in Tibet

     
     
    MOF published the 7th batch new energy subsidy list


    On June 15, the Chinese Ministry of Finance published the 7th batch of the new energy subsidy list. The batch covers more than 5,000 renewable energy projects that were connected to the grid between closure of the 6th batch and March 2016, including 1,185 grid-connected power generation projects with a total capacity of approximately 53GW.  475 wind farms with cumulative capacity of 34GW account for 64% of all grid-connected power generation projects. 613 solar power projects with cumulative capacity of 17 GW account for 33% of all grid-connected power projects (MOF)

     

     
    The issuance of the subsidy catalogue will help improve the cash flow of related renewable energyprojects,which have not been able to secure full FIT revenue streams since they connected to the grid and started selling electricity, up to years ago. This seventh batch in particular has been awaited for a longer time than in the past, as the application was closed more than a year ago.
     
     
    NEA published national power industry statistics from Jan to May


    Between January and May 2018, a total of 34GW of energy projects have been installed throughout the country.

     


    The data is incomplete as solar installations are not given, however we can extrapolate that they have exceeded 10GW, from looking at the total installed capacity. Hydro and thermalinstallations are slowing down compared to previous years, and windis maintaining a steady growth.
     


    Shaanxi Province distributed wind power development plan


    In June 2018, Shaanxi Province officially issued its distributed wind power development plan, with a total installed capacity of 426 MW. (CHINAWINDNEWS)

     

    From the documents,we can see that a majority of the projectsarebelow 20 MW, and that 90% of them do not overcome 30 MW.  This definitely is a new trend compared to the past were big 50MW projects have been preferred. We remind that smallercapacity distributed wind power projects will benefitfrom more government subsidies (for further information consult the news published on April 23rd).
     

    Xi Jinping andPutinsignnuclear energy cooperation project


    On June 8th, during the Cooperation Summit in Qingdao, the Chinese President Xi Jinping and Russian President Putin signed an agreement for joint construction of 4 VVER-1200 third-generation nuclear reactors in Tianwan, Liaoning province, and Xudabao, Jiangsu province. The value of the contract exceeds 20 billion RMB contract and the total cost of the 2 projects is estimated above 100 billion RMB. (CEC)
     
     
    NDRC & NEA agree Tibet carry out electric reformation


    On June 21st, NDRC & NEA agreed that the Autonomous Region of Tibet will join other provinces in implementing electrical power system reforms, By the end of 2017, Tibet power consumptions reached 6.201TWh and power generation reached 6.226 TWh for a total installed generation capacity of 3.09GW. (NDRC)
     
    Electric reforms applied to a growing number of Chinese provinces form aset of policiesenabling to determineenergy pricesthrough market mechanisms, therefore disrupting the monopoly of grid companies and establishing a more transparent structure for pricing of T&D. 

  • China Cleantech Update March 03, 2017

    News Summary:

    • Wind project approvals halted for six northern provinces
    • 2016 IMAR power generation summary published by statistics bureau 
    •  Preliminary construction begins on biomass power plant in Guinea-Bissau




    Wind: NEA Issues 2017 Wind Investment Monitoring and Warning Results
    The NEA recently published monitoring and warning results for wind investment in 2017. Most important is the red-listing of six major wind producing provinces, which prevents project approvals for new wind power projects. The affected provinces are: Xinjiang, Gansu, Ningxia, Inner Mongolia, Jilin and Heilongjiang. The NEA document also encourages a greater and concentrated effort for wind investment in the greater Jing-Jin-Tang area, which borders the red-listed provinces. (NEA CN)

    Map of Regions where Wind Power Project Approvals Are Halted (Red)

     

    Source: Azure International, NEA

    Authorities continue to struggle with high curtailment rates in many provinces due to significant installed capacity, low power demand, or transmission bottlenecks constraints. The red-listed provinces account for over 76 GW, 51% of total wind capacity in China. Individually, the affected provinces all experienced high levels of curtailment in 2016, with Inner Mongolia (21%), Jilin (30%), Heilongjiang (19%), Gansu (43%), Ningxia (13%), and Xinjiang (38%). The intent of the temporary ban on project approvals is to  push project development southward. The halt corroborates with the trend to push wind power development away from Northern areas and towards the South.

  • China Cleantech Update March 09, 2017

    News Summary:

    • Anhui's Industrial Green Development Plan calls for the acceleration of distributed solar
    • Fujian government publishes list of key construction projects for 2017
    • Jinko Solar and Japan's Marubeni sign 1.18 GW power purchase agreement in Abu Dhabi
    • Weinan City, Shaanxi publishes New Energy and New Materials Development Plan (2016-2020)




    Solar: Anhui's Industrial Green Development Plan Emphasizes Distributed Solar
    Anhui's Economic Information Council recently released the Industrial Green Development Plan as part of the province's 13th Five Year Plan. The document calls for the acceleration of constructing distributed energy sources in industrial parks, with particular emphasis on solar rooftops and solar heaters. Distributed solar, along with smart grid technology, is encouraged for integration into industrial parks, particularly iron and steel factories, as part of Anhui's promotion of industrial energy efficiency. (BJX CN)

     

    Source: Azure International

    While not specified in the most recent Solar Power Development Plan, under the national Electricity Development Plan, the Solar Power target for 2020 contains a 60 GW sub-target for distributed solar. Anhui province currently has 3.45 GW of installed solar capacity, however, only 780 MW of this is distributed solar. Nevertheless, this installed capacity figure still makes Anhui the fifth largest province for distributed solar in China. The top four are Zhejiang (2,070 MW), Jiangsu (1,730 MW), Shandong (1,190 MW), and Guangdong (880 MW). 

    Developing distributed solar has been more difficult than utility-scale projects primarily due to the high self-consumption threshold requirement set out by the NEA. The requirement mandates that at least 80% of the self-generated power will be consumed on-site with no more than 20% of the power sold back to the grid, and largely limits the applications of distributed solar to energy intensive industrial parks. Therefore, successfully integrating distributed solar with heavy industry will be key if China's ambitious 60 GW sub-target is to be met by 2020. 

  • China Cleantech Update March 20, 2017

    News Summary:

    • Fujian province publishes development plan outline under 13th Five Year Plan
    • China's SPIC, Mingyang Electric to develop offshore wind power in Guangdong province
    • ReneSola plans 550 MW of global solar installations in 2017
    • Shanxi province publishes January wind power statistics




    Wind: Fujian Province Publishes Development Plan Outline of the Provincial 13th Five Year Plan
    Fujian province recently published the provincial development plan as part of its 13th 5YP. Included in the plan is the provincial government's intention to promote both onshore and offshore wind development. While the provincial target does not set out a concrete installation number for 2020, instead calling for a “doubling of 2015's installed capacity of 1.72 GW” by 2020. (Fujian DRC)

    Fujian Province Large Scale Power Projects Distribution Map

     

    Source: Fujian DRC

    Offshore wind currently occupies only a small percentage of China's total wind generation capacity, however we expect it to grow steadily over the coming years. China has currently set out a national 5 GW target for offshore wind development, with Fujian slated to be the centerpiece of this development. The Fujian Putian Nanri offshore wind project's total installed capacity of 400 MW is currently the largest offshore wind project in China. 

    Under the national target, Fujian province plans to reach 3 GW by 2020, or 60% of total offshore wind. However the provincial development target is more vague, simply calling for a “doubling of 2015 installed capacity”. While doubling 2015's 1.72 GW would certainly surpass the national target of 3 GW, the noncommittal language used for the provincial target is reflective of the difficulties China has faced in developing offshore wind, with it's attendant technological challenges, greater investment needed and longer build-out period.

  • China Cleantech Update March 26, 2018

    Dear readers,

     

    It's been a while since we've shared some weekly China cleantech news. We had interrupted this good habit last year due to some internal changes. Answering the requests of many of you who have kindly contacted us, we're now thrilled to re-launch the effort, especially as plenty is happening and the Chinese cleantech landscape is more exciting than ever. We're starting with this simple info-graphic summarizing the growth in the power market during 2017, to make sure everybody is up to speed. Starting next week we'll revert back to our standard format with 5 selected news items along with summary analysis from our experts. We're always happy to exchange on the Chinese Cleantech markets with you, learn about new technologies and make new friends, so don't hesitate to reach out. Thanks to all for your precious support !

     

    Hubert Beaumont
    Azure International
    CEO

     

  • China Cleantech Update May 02, 2018

    News Summary:

    • Completion of the Fujian Xinhua Bay offshore wind demonstration project
    • China's first provincial offshore wind data centre
    • 38.5 TWh direct power trading in Liaoning province
    • 2.5 % Electricity price drop in Hubei province

     
    Completion of the Fujian Xinhua Bay offshore wind demonstration project

    The Xinghua Bay offshore test wind farm has been inaugurated in Fujian Province. The project has been completer with a total investment of 1.47 billion RMB and is composed of 14 wind turbines, produced by 7 manufactures, with a total 80 MW installed capacity. During the first 4 months of operation, the plant has performed with an average availability of 99.3%, 417 average monthly utilization hours and a cumulative power generation equal to 17.7 GWh. (IN-EN)
     
    Results of the Three Gorges demonstration projects are well awaited by the whole industry as it features a few new turbines, all above 5MW and with a mix of well known domestic players (Goldwind, Mingyang, XEMC, CSIC), international players (GE and Siemens) as well as relatively new players (Taiyuan Heavy Industry). The CAPEX of 18,375 RMB per kW is high compared to other offshore wind farms but very reasonable for a demonstration project which is more complex and costly in nature.

  • China Cleantech Update May 18, 2018

    News Summary:

    • Jilin: 35.5% wind curtailment ratedrop in Q1
    • Henan: 5.5 GWwind power construction in 2018
    • Hebei: 4.3 GW of decentralized wind power projects
    • Yunnan: two-part electricity prices flexibility
    • Asia's largest offshore wind farm connects to the grid in Jiangsu
    • 400MW offshore wind farm project in Guangdong province


     
    Jilin: 35.5% wind curtailment rate drop in Q1

    In the first quarter of 2018, wind curtailment in Jilin Province has decreased by 35.5%. During the same period last year, the province had the worst curtailmentin the country with a rate of 44%.Thanks to new UHV DC projects that came in operation in February 2018, in less than 2 months, Jilin has been able to export a total of 1.78 TWh of clean energy. In 2018, the province plans to control wind curtailment rate within 15%, and within 12% in 2019 and 10% in 2020. During the first quarter of this year, Heilongjiang Province also registered strong improvements, with a curtailment reduction of 27.8% compared to Q1 the previous year. (CHINA WIND NEWS)
     
    The provinces in the north of China are focusing on reducing wind curtailment. In 2016, NEA added Jilin on the red alert zone list, suspending construction of new wind farms. The province is increasing power exportations in order to increase power plants utilization hours. If it can achieve its objectives, Jilin should be able to get off the red ban list within a few years, which would be great news for the developpers that have projects in standby in the area .
     

    Henan province announces 5.5 GW of wind power construction in 2018

    On May 8, Henan province issued the "2018 Wind Power Construction Scale Notice." This year,the province plans to develop 5,5 GW of wind powers projects, with a 50 MW minimum power unit size. (BJX)
     

    Source: Azure International
     
    Henan is seeing increasing investment in wind power. Almost 30 different projects have been approved, with an installed capacity varying between 50 MW and 350 MW..

  • China Cleantech Update May 24, 2018

    News Summary:

    • Liaoning: 1.5 GW offshore wind
    • EDP rejects €9.1 billion offer from Three Gorges Group
    • 300 MW offshore wind in Guangdong
    • 30 MW energy storage system

     
    Dalian City announced 1.5 GW offshore wind farm project

    Dalian City (Liaoning province) has recently approved 200 MW of onshore wind, 600 MW of offshore wind and 40 MW of photovoltaic power generation projects. Dalian Development and Reform Commission has also announced a plan to develop 1.5 GW of offshore wind power in Zhuanghe sea area. (BJX)
     
    As the most Northern of the ten Chinese coastal provinces, Liaoning also has significant offshore wind ambitious, and its own technical challenges, such as low temperatures and ice conditions. Dalian city was home to Sinovel, once a leading Chinese wind turbine manufacturer. It is yet unknown whether the local  manufacturer will get a chance to participate in said project.
     
     
    EDP rejects €9.1 billion offer from Three Gorges Group

    On May 14th, Portugal’s largest power company EDP (Energias de Portugal) rejected Three Gorges’ 9.1 billion € acquisition offer. Three Gorges Group became EDP’s shareholder in 2011, acquiring 21,35% of the company for 2.69 billion €. Currently, Three Gorges is the largest of EDP’s shareholder and just made an offer to requiring all remaining shares. According to Bloomberg, although the Portuguese government was satisfied by Three Gorges Group's offer, it has not received the support of EDP shareholders. (CHINAWINDNEWS)
     
     

  • China Cleantech Update November 04, 2016

    News Summary:

    • NEA Publishes Draft of Inter-provincial Renewable Energy Incremental Spot Market Regulations
    •  Wind Investment for First Three Quarters of 2016 Falls 29%
    • Jinko Solar to Build 40 MW Solar Farm in Vietnam

     
     
     
    Policy: Draft of Inter-provincial Renewable Energy Incremental Spot Market Regulations Published by NEA
    The NEA recently published regulations concerning the establishment of an interprovincial renewable energy spot market. Market participants will be able to trade power from renewable energy sources on a day-ahead and inter-day time scale only after having already signed long or medium term power contracts and only if renewable energy producers are forecasted to encounter curtailment.Market participants may enter into the incremental spot market only after these preconditions are met. (BJX CN)
     
    This represents the strongest signal yet of establishing a fully functioning spot market trading mechanism, an indicator of true marketization of the power sector. However, attaching participation in the spot market with signing a long term power purchase contract may present an obstacle to renewable generators looking to participate.
     
     
     
    Statistic: Wind Investment for First Three Quarters of 2016 Falls 29%
    According to a recent China Electricity Council Report on China's Electricity Demand for the first three quarters of 2016, while total installment figures of grid-connected wind capacity reached 140 GW, wind power investment dropped by a total of 29%. (CEC CN
     
    Heavy curtailment and decreasing utilization hours for wind is becoming evident in dampening investor enthusiasm. National wind utilization hours declined overall by 5% from last year to 1251 hours for the same period. However certain provinces have seen large reductions in operating hours, with Xinjiang seeing a decrease of 29% to 946 hours, Ningxia falling 25% to 1064 hours and Gansu decreasing 9% to 870 hours.
     

  • China Cleantech Update November 05, 2018

    News Summary:

    • Q3 2018 report shows China boosts grid-connected offshore capacity by 1,020MW
    • Fujian DRC approves Fujian Putian City offshore wind farm
    • SPIC Dafeng H3#300MW offshore wind farm first 6 WTG units connected to the grid
    • 2017 wind power generation average on-grid price decreases 0.43% YOY
    • CIP & Century Group sign 16.5 billion TWD offshore wind foundation contract
    • Baoxin Energy and CGN sign MoU for 1,400MW offshore wind project
    • NEA publishes letter promoting non-subsidized PV & Wind on-grid work
    • NEA data show national wind power utilization hours increase 167hrs by end of August

     

    Q3 2018 report shows China boosts grid-connected offshore capacity by 1,020MW

    By the end of Q3 2018, China’s yearly installedwind capacity reached 12,610MW, a 30% year-on-year (YOY) increase. Total wind generation capacity in China was 267.6TWh, a 26% YOY increase. For China’s grid-connected offshore wind, there was 1,020MW newly added capacity, mainly concentrated in Jiangsu (920MW) and Fujian (90MW) provinces. (NEA)

    AzureChinaCleantechNews15Oct2018 04

    AzureChinaCleantechNews15Oct2018 05

     

     

    Fujian DRC approves Fujian Putian City offshore wind farm

    Fujian Putian City offshore wind farm will be located in Xinghua Bay, with plans to set 40 units of 5.0MW WTG. Project details – distance from shore: 3km; depth range: 5 to 15m; total investment: 3.44 billion CNY.

     AzureChinaCleantechNews15Oct2018 06

     

     

     SPIC Dafeng H3#300MW offshore wind farm first 6 WTG units connected to the grid

    The 75-unit 4.0MW WTG SPIC Dafeng H3#300MW offshore wind power project has been successfully connected to the grid. The project is located in Yancheng City’s Binhai County in Jiangsu Province. Project details – distance from shore: 36km; depth range: 17.9 to 18.3m; sea area: 46km2; total investment: 4.96 billion CNY (excludes onshore investment)(CEC)

     AzureChinaCleantechNews15Oct2018 01

    Before this project, SPIC already had two offshore wind farms completed and in operation.

    SPIC Binhai North H1# - 25 units 4.0MW WTG operating in May 2015

    SPIC Binhai North H2# - 100 units 4.0MW WTG operating in June 2018

     

     

    2017 wind power generation average on-grid price decreases 0.43% YOY

    The 2017 national wind power generation average on-grid price was 0.5623CNY/kWh, a 0.43% YOY decrease. Shanghai’s average on-grid price, ranked the highest, was 0.7519CNY/kWh, whereas Yunnan’s was only 0.4238CNY/kWh. (Average on-grid price = power sale income / on-gird power * 1.17 including TAX) (NEA)

    AzureChinaCleantechNews15Oct2018 02

     

     

    CIP & Century Group sign 16.5 billion TWD offshore wind foundation contract

    The Copenhagen Infrastructure Fund (CIP) and Century Group (Century) signed an Offshore Wind Foundation Contract for 16.5 billion TWD on October 2. CIP Zhangfang and CIP Xidao, which have a total capacity of 600MW and more than 60 units of offshore wind foundations, will be handed over to Century Group, making it the highest single contract in the history of offshore wind power in Taiwan. (CIP tw)

    CIP Taiwan offshore projects

    AzureChinaCleantechNews15Oct2018 03

    The project is based on Taiwan’s goal to remove nuclear power plants by 2025. Taiwan wants to install a 520MW offshore wind farm in 2020 and a total of 3,000MW offshore wind farms by 2025. In phase I of CIP Zhangfang offshore wind farm, 100MW will be operating in 2021, and in phase II, 452MW will be operating in 2023. For CIP Xidao offshore wind farm, 48MW will be operating in 2024.

     

     

    Baoxin Energy and CGN sign MoU for 1,400MW offshore wind project

    Baoxin Energy has announced the signing of an MoU with CGN for a 1,400MW offshore wind project. The two sides will negotiate a cooperation agreement based on the letter of intent for cooperation. According to the letter, the two sides intend to jointly develop the Shanwei Jiazi Offshore Wind Farm (900MW) and the Shanwei Houhu Offshore Wind Farm (500MW). After the Shanwei Houhu (500MW) Offshore Wind Farm project is approved, Baoxin Energy and CGN will establish a JV in which CNG will hold 80% and Baoxin 20%. (Sina Finance)

    Shanwei Houhu 500MW project sea area diagram.

    AzureChinaCleantechNews17Sep2018 02

     

    CGN is a large clean energy group. By the end of 2017, CGN had 21,470MW of nuclear plants in operation, 10,270MW under construction, more than 11GW of wind installed, and more than 2GW of PV installed.

     

     

    NEA publishes letter promoting non-subsidized PV & Wind on-grid work

    In the context ofon goingPhotovoltaic (PV) & Wind technology advancement and costreductions, the National Energy Administration (NEA) announced that it will further promote the acceleration of renewable energy development and competitiveness, and eliminate subsidy dependence as soon as possible. Non-subsidized PV & Wind projects will be approved by local governments and should sign long-term contracts with local power grid companies with curtailment levels below 5%. In this notice, NEA also announced plans to promote direct trading in PV & Wind. In direct trading, PV & Wind developers and customersnegotiateanon-grid price and payaT&D (Transmission and Distribution) price to the power grid company. (BJX)

    Non-subsidized renewable energy direct trading.

    AzureChinaCleantechNews17Sep2018 05

    For illustration, wind farms connected in type I wind resource areas (mostly in North, NE and NW China) can currently receive a subsidized on-grid tariff of0.4CNY/kWh, whereas thermalpower plants in the same region receive between0.25and 0.30 CNY/kWh. However these same wind farms often face severe curtailment, with up to 30% of possible production lost because of grid off-take challenges. .

     

     

    NEA data show national wind power utilization hours increase 167hrs by end of August

    The National Energy Administration (NEA) has released statistics on the national electricity industry for January to August. Between January and August, national power consumption was 4,529.6TWh, a 9% YOY increase. During this period, there was also 10.26GWofnewly installed wind capacity with 1,412 utilization hours. (NEA)

    Azure has summarized some of the key data in the graph below:

    AzureChinaCleantechNews17Sep2018 03

    AzureChinaCleantechNews17Sep2018 04

     

  • China Cleantech Update November 09, 2016

    News Summary:

    • Beijing-Tianjin-Tangshan Regional Exchange Completes Trading
    • Newly Installed PV Capacity for the First Three Quarters of 2016 Reaches 26 GW
    • Belgian DEME and China's COSCO Shipping Form Joint Venture to Develop Offshore Wind in China

     
     
     
    Marketization: Power Trading Finishes for the Beijing-Tianjin-Tangshan Regional Power Exchange
    The recently opened Beijing-Tianjin-Tangshan Exchange completed its trading for 2016 after it reached its target trade volume of 6.1 TWh. Many independent observers expressed disappointment with the performance of the exchange, mainly that each region traded largely within their administrative boundaries, rather than cross-regionally. Approximately 60% and 77% of power purchased in Tianjin and Tangshan, amounting to 900 GWh and 1.7 TWh, respectively, was generated from within their administrative areas. (BJX CN)
     
    This stated dissatisfaction with the interregional direct trading platform presents an obstacle to further Jing-Jin-Ji power integration. The trading center was only stipulated to run in 2016 and no further plans have been published for the continuation of the exchange in the future.
     
     
     
    Statistic: Newly Installed PV Capacity for the First Three Quarters of 2016 Reaches 26 GW
    The China Renewable Energy Society recently announced that new PV installations in China reached 26 GW in the first three quarters of 2016. According to the announcement by Vice President Meng Xian'gan, China is on track to install a total of 30 GW of solar energy for 2016, even though the annual target is only 18.1 GW. (BJX CN
     
    The new installment figures this year are especially high due to the rush of PV companies to build before the June 30th tariff cut. However, a glut of PV projects could cause pipeline delays and loss of subsidies, as well as exacerbate a germinating solar curtailment issue. National curtailment rate for 2015 was 13%, however, some provinces such as Gansu and Xinjiang have been experiencing curtailment rates of 32% and 33%.