- 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:
- 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
- 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
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)
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)
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).
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)
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)