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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)
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)
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)
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)
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)
Fujian GOV 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.
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)
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 at South 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)
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, China had a total PV capacity of more than 130GW Including 50GW newly installed during 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.
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 Euro 240 million to set up a battery production base in Germany and secures $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 list has a total of 48 items. An interesting one is the addition of electrochromic and thermochromic smart windows as well as other shading 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 is the 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 exchange since April 2016, is a commercial and tourism real estate developper as well as a precision machinery manufacturing company.
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.
Gansu province publishes its 13th 5 year energy 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 sign MOU for cooperation on offshore wind engineering
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)
Jiangsu DRC 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, Jiangsu province saw power consumption of 580.8 TWh and power generation of 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 2018 Wind Power Investment Monitoring report of the NDRC , 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 energy and 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)
Distributed energy microgrids are generally characterized as clean, small, autonomous and convenient. Their aim is to achieve a balance between local energy demand 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)
Anhui DRC 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 is currently 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.
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 energy projects, 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 thermal installations are slowing down compared to previous years, and wind is 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 projects are below 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 smaller capacity distributed wind power projects will benefit from more government subsidies (for further information consult the news published on April 23rd).
Xi Jinping and Putin sign nuclear 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 a set of policies enabling to determine energy prices through market mechanisms, therefore disrupting the monopoly of grid companies and establishing a more transparent structure for pricing of T&D.