Welcome to Azure International

Azure International is a leading investment and advisory company focused on China's cleantech energy sector. Founded in 2003, we have a team of 20+ local and international professionals based in China with backgrounds in engineering, marketing, manufacturing, consulting, policy, government relations and finance. In addition to deep advisory capabilities in renewable energy, energy efficiency, carbon management, and energy finance, we have proven capability to invest in and accelerate the development of clean energy companies.  Our portfolio and partner companies have achieved both significant commercial success and returns to investors. Azure provides the necessary expertise and execution capabilities in China to lead relationship development with government and strategic partners, project execution, sourcing, sales and technology development – all with deep understanding of Chinese and international requirements.

Contact Info

For further enquiries or if you are interested to

learn more about how we can collaborate, please

contact us directly at:

Azure International

Tel: +86 10 8447 7053

Fax: +86 10 8447 7058

E-mail: info@azure-international.com

News Summary:

  • Guangxi, Guangdong trading centers opened end of June
  • Ximeng-Shandong UHV fully operational
  • Shanxi Datong 50MW high-voltage PV plant grid connected
  • Siemens doubling Chinese blade manufacturing capacity

 
 
 
Policy: Guangxi and Guangdong Trading Centers Open 
Guangxi and Guangdong electric trading centers opened at the end of June. The two trading centers are part of China Southern Grid, which estimates 18%, or 144TWh total, of electricity consumed will be traded. (CSG CN)
 
 
 
Transmission: Ximeng-Shandong 1000 kV UHV Transmission Line Fully Operational
The Ximeng-Shandong 1000 kV UHV power line is now fully operational. Key statistics are: 

  • 730 km long
  • 5.6GW transmission capacity 
  • 17.8 billion RMB total investment (BJX CN)

With the new transmission line, approximately 2GW of power from Inner Mongolia is being sent to Shandong province, resulting in a total of 10GW of power coming from outside the province. 
 
 
Ximeng-Shandong Transmission Line 

Source: NEA, Azure International
 

Read more: China Cleantech Update July 06, 2016

News Summary:

  • 7GW of new wind capacity installed year to date
  • Envision invests in Autogrid
  • NEA promoting energy storage in Northern China
  • Guizhou market trading rules trial set up

 
 
 
Wind: 7GW of New Installed Capacity From January to May 2016
In the first five months of 2016, 7GW of new wind capacity was installed. China is on track for installing 20GW of wind in 2016. Wind curtailment, on the other hand, remains at roughly 15% for the national average, with some regions in the 30% average range in 2015. (Recharge EN)
 
 
 
Finance: Envision Energy Invests in AutoGrid
Envision Energy was part of a $20 million financing round for AutoGrid Systems. AutoGrid is a big-data software company which helps optimize demand response programs in America and runs virtual power plants in Europe. (BJX CN)
 
Envision is a number of growing Chinese firms investing into foreign companies who have no immediate plans for China expansion. These investments, however, provide Chinese companies with access to foreign talent and technology. When the timing is right, expect AutoGrid technology to come to the Mainland. 
 

Read more: China Cleantech Update June 29, 2016

News Summary:

  • T&D prices average increase of 5% in six provinces
  • NEA publishes May 2016 electricity consumption report
  • Guizhou direct trading reaches 12.8 TWh Jan-May
  • Siemens wind power division combines with  Gamesa

 
 

Transmission: T&D Prices Increase on Average 5% Across Six Provinces
Average T&D prices have risen to 186 RMB/MWh, up to 5.18% in 2015. Transmission and distribution infrastructure O&M costs rose 6.6%, or 10.3 billion RMB, from 2013 to 2014 for six provinces. The six provinces are Jibei, Heilongjiang, Shaanxi, Fujian, Hunan, and Guizhou. (NEA CN)
 
As shown in the figure below, depreciation took up the lion's share of the T&D costs, at 32%, followed by employee salaries, at 25%. As China's economy shifts from construction-based GDP growth to efficiency-based GDP growth, we can expect to see this trend reflected in T&D infrastructure maintenance as well. 

AzureChinaCleantechNews20160620v1


Source: NEA (for both figures)
 
 

Read more: China Cleantech Update June 21, 2016

News Summary: 

  • NEA releases 2016 national solar plan
  • Dianxibei 800 kV UHV DC line construction begins
  • Binhaibei 100MW offshore receives grid connection
  • NEA promoting energy storage technology for ancillary services market

 
 
Solar: NEA Releases 2016 National Solar Plan
The NEA plans to construct 18.1 GW of solar in 2016.  Of the total, 12.6 GW will be distributed solar generation, and 5.5 GW will be large solar “bases” with tens to hundreds of MW of capacity. Cumulative installed capacity of solar PV was 41.6 GW in 2015, and will reach 60 GW at the end of 2016 if the NEA meets its goal. (NEA CN)
 
Construction in the gigawatts has been the mantra for the last five years, however, 2016 may very well be the final year of a large installed capacity push. The next phase of renewable energy in China will be the integration and utilization of renewable energy, which, so far, China is behind its peers in the rest of the world
 

 
China National Cumulative and Forecast Installed Capacity from 2011-2016

Source: Azure International, NEA

Read more: China Cleantech Update June 16, 2016

News Summary:

  • NDRC announces new minimum utilization hours insurance for renewable energy
  • REN21 publishes global status of renewable energy for 2015 year in review
  • NDRC and NEA announce 2016 to 2030 energy technology innovation plan
  • Twelve electricity trading centers opened in May across nation for direct trading deals

 
 
Finance: NDRC Announces New “Insurance” on Renewable Energy Utilization Hours
The NDRC announced a financial guarantee to wind and solar power plants who fail to meet minimum utilization hours in the year due to manmade events (curtailment). The pricing is benchmarked to the on-grid price times the number of guaranteed utilization hours, shown in the tables below. (NDRC CN)
 
The new policy may have sweeping implications across the renewable energy industry in China. Many wind and solar power producers have felt the pressure of high-level curtailment rates in the 30% range for the past few years, and have considered selling their investments due to a lack of financial protection during curtailment events. Now, for the first time ever, a sort of “insurance” policy has been set in place to allow renewable energy plants to continue to operate in an otherwise uncertain economic and market environment.
 
While this may be positive thinking, it will be interesting to see what happens if curtailment rates and an overcapacity year eat into the cash reserves the NDRC will undoubtedly have to put aside to support this new policy. Azure maintains a state-of-the-art grid curtailment modeler that can forecast curtailment rates throughout China, and we suspect this new policy to have a positive impact on our wind and solar plant investment clients.
 
 
Wind Power Utilization Hours Guarantee by Resource Type, Region/Area, and Hours

 
Solar Power Utilization Hours Guarantee by Resource Type, Region/Area, and Hours

Source: NEA, NDRC, Azure International
 

Read more: China Cleantech Update June 08, 2016

News Summary:

  • 153MW overseas EPC project delivered to Ethiopia
  • Top 100 machinery industry companies
  • Hebei coal industry plans to wind down
  • SDIC Power buys foreign offshore wind power company in England


 
 
Wind: ADAMA Phase II 153 MW Wind Power Plant in Ethiopa Completed
China Power recently completed the delivery of 102 1.5  MW wind turbines to the ADAMA Phase II wind farm in Ethiopia. The total installed capacity for the wind farm is 153 MW. The export project is part of China’s one belt policy, where it hopes to have unifying push toward exporting its technologies to developing markets globally. (China Power CN)
 
President Xi Jinping Inspecting a Wind Farm Model 

Source: Power China
 
Azure maintains a list of qualified EPC suppliers to support overseas construction projects. When choosing EPC partners, they must pass a thorough vetting process to understand they can deliver high quality goods on time, on budget, and without headaches.
 
 

Read more: China Cleantech Update June 02, 2016

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