• China Cleantech Update April 27, 2016

    News Summary:

    • NEA publishes Q1 solar curtailment rates
    • Jiangsu province to add 900MW wind in 2016
    • NEA publishes Q1 power generation utilization hours 
    • NDRC and NEA release coal production capacity metrics
    • Chongqing government releases guidance on electricity price reform


     
    Solar: NEA Publishes Q1 2016 Solar Curtailment Rates
    First quarter solar installed capacity and curtailment figures were published last week, and levels are high for some provinces. Nationally, 7.2GW of new solar was installed, raising the total installed solar installed capacity to 50.3GW by the end of the quarter. In the first quarter, total solar power generated was 11.8 TWh, and 1.9TWh of solar power was curtailed, or about 14%. Provinces with the worst curtailments are:

    • Gansu, 0.84TWh curtailed, 39% of total
    • Xingjiang, 0.76TWh curtailed, 52% of total
    • Ningxia, 0.21 TWh curtailed, 20% of total. (NEA CN)

    Severe wind curtailment has been a known risk for years, but investors in solar were hoping that integration of PV would be easier, given lower penetration levels and a good match between resource and energy demand patterns. Last year, Azure started to warn that our models also predicted the emergence of PV curtailment in certain regions, which is now being confirmed on the ground. We advise investors to assess PV curtailment risk as part of normal due diligence, as curtailment is set to become the most significant factor in off-take risk for PV projects going forward.
     

    Source:Gansu PV
     
     

  • China Cleantech Update October 20, 2016

    News Summary:

    • Zhejiang DRC and NEA publish Electric Development Plan of the 13th Five Year Plan
    • Huadian Heavy Industry wins 1.8 billion RMB offshore wind project in Jiangsu
    • Spot Market Trials rumored to be implemented by the end of 2018
    • Jiuquan City, Gansu DRC approves wind curtailment energy storage demonstration project

     
     
     
    Policy: Electric Development Plan of the 13th Five Year Plan published by Zhejiang DRC and NEA
    The Zhejiang NEA and DRC released its Electric Development Plan as part of the provincial 13th Five Year Plan. The province plans to install new capacity of 15.2 GW including 13.3 GW of non-fossil energy by 2020, bringing the total installed capacity of the province to 94 GW. Further targets include:

    • 43.35 GW thermal
    • 13.1 GW renewable energy (excluding hydro)
    • 12.5 GW natural gas 
    • 9.07 GW nuclear
    • 7.04 GW hydro
    • 4.93 GW pumped hydro
    • 1 GW waste heat power generation (DRC CN

    The decreasing installations of new thermal capacity forecasted in Zhejiang's 13th Five Year Plan promotes an increased share of renewables in the province, as the percentage of installed renewable capacity is expected to rise from 40% in 2015 to nearly 50% in 2020.
     

     

    Source: NEA, Azure International
     

  • Week of March 18, 2019

    News Summary:

    • NEA releases 2018 wind power market evaluation results
    • Jilin adjusts “13th Five-Year Plan” energy development targets
    • Guangdong DRC terminates more than 2GW of wind projects
    • Shouhang Resources Saving Company 100MW photothermal power station on-grid price set to 1.15CNY/kWh
    • Henan to eliminate 1.5GW of coal-fired power units in 2019

     

    NEA releases 2018 wind power market evaluation results

    The National Energy Administration (NEA) has released the results of the monitoring and evaluation of market conditions for wind power generation in 2018. The results serve as an important basis for promoting continual optimization of wind construction and operation, guiding rational investment and promoting orderly development of the overall wind industry. (NEA)

    l In the "red regions", wind development and construction has been halted (including already approved projects for which construction is suspended)

    l Inthe "orangeregions", construction of new wind projectshas been terminated (No new construction projects have been reported for 2019)

    l Inthe "greenregions" construction is being carried out normally

    While the map below shows color codes on a provincial basis, some cities are treated differently, including Zhangjiakou, Chengde, Xinzhou, Suzhou, Datong and Yulin in Hebei, Shanxi and Shaanxi which are all considered as orange zones despite being in green provinces.

    AzureChinaCleantechNews18Mar2019 01

     

     

    Jilin adjusts its “13th Five-Year Plan” energy development targets

    According to the new “13th Five-Year Plan”, Jilin’s total installed capacity is set to reach 41.9GW in 2020, an increased of 3.41GW from the previous draft of the “13th Five-Year Plan”.

     AzureChinaCleantechNews18Mar2019 02

    Map of 2018 wind curtailment conditions

     AzureChinaCleantechNews18Mar2019 03

     

     

    Guangdong DRCterminates more than 2GW of wind projects

    Following National Development and Reform Commission (NDRC) requirements, Guangdong DRC released the list of wind projects that are being terminated totaling 2,008MW, of which two are offshore:

    1. Projects that have been approved but have not been built within the project construction period: 187MW
    2. Projects that have been incorporated into the annual construction plan during the “12th Five-Year Plan” period, but failed to be completed as required: 1,434MW
    3. Projects that have been incorporated into the annual construction plan during the “13th Five-Year Plan” period, but failed to be completed as required: 388MW

    (Guangdong DRC)

    AzureChinaCleantechNews18Mar2019 04

     


    Shouhang Resources Saving Company 100MW photo-thermal power station on-grid price set to 1.15CNY/kWh

    Shouhang Resources Saving Company and State Grid Gansu Provincial Electric Power Company have signed a contract for the purchase and sale of a 100MW photo-thermal power station. Approved by the government price department and in accordance with its regulations, the on-grid price of the CSP (concentrated solar power) project is tentatively set to 1.15CNY/kWh. (Sina finance)

    AzureChinaCleantechNews18Mar2019 05

     

     

    Henan to eliminate 1.5GW of coal-fired power units in 2019

    The Implementation Plan of Atmospheric Pollution Prevention and Control in Henan Province has been released to strengthen the control of total coal consumption. The plan aims to contain the total coal consumption in the province at around 210 million tons in 2019, down about 5% year-on-year (YOY). It also aims to eliminate 1.5GW of coal-fired power units in Henan in 2019, and accelerate the development of wind power by promoting the construction of four 1000MW wind power bases. (Henan commerce)

    Henan 70m-height 30-year average wind speed distribution map

    AzureChinaCleantechNews18Mar2019 06

  • Week of May 13, 2019

    News Summary:

    • Kick-start of competitive FIT for onshore and offshore wind may be delayed
    • NDRC releases documents on overcapacity resolution in key areas
    • IMAR DRC approves CGN 3GW subsidy-free onshore wind project
    • Jiangsu wind installed capacity predicted to exceed 10GW by 2020
    • Jiangsu to accelerate 5G development and technological breakthroughs
    • Azure presents in GWEC Webcast: Doing Business In China’s Offshore Wind Market

     

     

    Kick-start of competitive FIT for onshore and offshore wind may be delayed

    Last week, the National Energy Administration (NEA) held a symposium to solicit opinions on the 2019 wind power construction management measures (NEA) and to discuss previous consultations. According to the information disclosed at the meeting, the wind power construction management measures in 2019 have been intentionally adjusted to balance various factors such as corporate demands, industry development and subsidy gaps. Specifically, the meeting intended to adjust measures for onshore and offshore wind power management, resulting in drafts for comments regarding the following measures:

    1. Approved onshore wind power projects that have not been put into operation within the two-year validity period are subject to re-participate in on-grid price bidding
    2. Loosen access control for offshore wind power projects that have been approved in 2018 and provide a guaranteed price of 0.85CNY/kWh for projects completed by the end of 2020
      (BJX)

    AzureChinaCleantechNews13May2019 06

     

    In the past weeks and months we have seen increasing debate in the industry, between key players and government regulators, trying to reach a common ground for implementation of competitive FIT mechanisms. So far there has been some uncertainty around the exact interpretation of various policies issued over the past year, in the background of which local governments and industry players are pushing to secure as much "tariff pipeline" as possible, whereas the government is trying to limit the subsidy burden. While the final management notice still has to be seen, it is worth noting that we are seeing a key change in eligibility criteria, from "approval date" or "start of construction date" towards "grid connection date", putting even stronger pressure on developers to build their projects as fast as possible.

     

     

    NDRC releases documents on overcapacity resolution in key areas

    NDRC released an official document announcing results of overcapacity control in key areas over the past 2-3 years, mainly focused on steel production, coal mining and thermal power. So far the following capacity reductions have been achieved:

    • more than 150 million tons of compressed steel manufacturing capacity
    • more than 810 million tons of coal mining capacity
    • over 20 GW of coal-fired power units that were not up to standard have been shut down

    The document then lists out directions for pursuing overcapacity control, including for example closing down of small coal mines (less than 300 tons annual capacity), cleansing of "zombie companies", etc.   (NDRC)

    AzureChinaCleantechNews13May2019 01

     

    In terms of thermal power, there has been a lot of focus on eliminating outdated coal-fired power units that are not up to standard (including coal-fired self-supply units). The National Development and Reform Commission (NDRC) announced that it would clean up and rectify the illegal construction of coal power projects in accordance with the law and strictly control new production capacity of coal power in various regions. In the map above, areas in red and orange illustrate provinces in which new “self-use” coal-fired power projects will not be put into operation.

     

     

    IMAR DRC approves CGN 3GW subsidy-free onshore wind project

    The Inner Mongolia Autonomous Region (IMAR) Xing'an League 3GW Old Revolutionary Base Area Wind Power Poverty Alleviation Project is located in Horqin Right Front Banner and Kerqin Zuoyi Zhong Qi. The total planned capacity is 3GW, of which 1GW will be allocated to Horqin Right Front Banner and 2GW to Horqin Right Middle Banner. (BJX)

    AzureChinaCleantechNews13May2019 02

     

    With the continuous commissioning of UHV lines, grid offtake in the Sanbei area ("Three North" including Northeast China, North China and Northwest China) has significantly improved, and low-cost large scale wind power projects regions are being launched one after another—we expect to see incremental growth in wind power construction in these regions in the future.

     

     

    Jiangsu wind installed capacity predicted to exceed 10GW by 2020

    Jiangsu Government has released a 3 year construction plan showing key objectives for the province, including the following:

    • total coal consumption is estimated to decrease by 32 million tons between 2016 and 2020
    • in 2020, the province’s installed wind power capacity will exceed 10GW
    • by 2020, non-fossil energy power generation should reach 26GW, accounting for about 20% of the total power capacity in the province (non-fossil energy will then account for 11% of primary energy consumption in Jiangsu).

    (Jiangsu GOV)

     AzureChinaCleantechNews13May2019 03

     

    It is clear that the Jiangsu Government recognizes renewable energy as an increasingly important component to ensure energy supply and has already started to adjust its power mix structure.

     

     

    Jiangsu to accelerate 5G development and technological breakthroughs

    The Jiangsu Government has announced efforts to further implement provincial strategy for strengthening networks, accelerating the development of fifth generation (5G) mobile communication networks and enhancing construction and application of the new generation of information infrastructure in the province. Doing so will include accelerating the pace of commercial deployment and breakthroughs in the fields of In-vehicle Networking, Industrial Internet, Internet of Things, Smart Grids and converged media. (Jiangsu GOV)

     AzureChinaCleantechNews13May2019 04

     

     

    Azure presents in GWEC Webcast: Doing Business In China’s Offshore Wind Market

    Join the Global Wind Energy Council’s (GWEC) Webcast next Monday, May 20 at 10:00 AM CET as industry experts share insights into the current situation of the Chinese offshore wind market, the barriers that new entrants should be aware of and how foreign investors can play a role. Azure CEO Hubert Beaumont will share insights on the market and opportunities at this occasion.Register for the event here: (GWEC)

    AzureChinaCleantechNews13May2019 05