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.

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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:

  • Shandong province publishes 2016 wind power plan
  • NEA publishes March 2016 energy consumption statistics
  • NEA responds to flooding and hydropower curtailment issues in central China
  • Hebei plans to expedite Chengde, Hebei phase two wind power plant

 

 
Wind: Shandong DNC Publishes 2016 Wind Power Development and Construction Agreement
The Shandong DNC published its 2016 wind power development and construction plan, focused on the cities of Yantai, Dezhou, Binzou, and Qingdao. The government is following up on nationwide capacity plans the NEA published in March,  requiring Shandong to build 3.3GW new wind power in 2016. The chart below highlights the highest wind penetration regions in Shandong province. (Shandong Gov CN)
 
Current Installed Capacity in Shandong province, as of May 2016

Source: NEA, Azure International
 
Azure maintains a database of historic, planned, approved, and in-construction wind farms across China, and is able to help forecast future wind power penetration and curtailment rates at the provincial level.
 
 

Read more: China Cleantech Update May 25, 2016

News Summary:

  • Sichuan electricity trading center inaugurated 
  • NEA releases notice on PV project quality guidelines
  • Envision Energy invests in ChargePoint EV charging network
  • POWERCHINA-build hydropower plan in Laos begins operation

 
 
 
Policy: Sichuan Electric Trading Center Inaugurated May 12th
The Sichuan direct sales electricity trading center began operation on May 12th. State Grid will run the operation. Sichuan province is now the 16th region in China to open up direct sales, which began in November last year. Sichuan has the largest hydropower capacity in China, standing at 66GW installed capacity. (SGCC CN)
  
Sichuan Electricity Trading Center Opening Ceremony

Source: State Grid 

 
 

Read more: China Cleantech Update May 18, 2016

News Summary:

  • Henan and Hebei direct sales trading centers established
  • Chengdu, Chongqing City publish new energy development plan
  • Envision Energy acquires software company Bazefield
  • New 300MW Rudong offshore wind project set to be China’s largest

 
 
 
Policy: Henan & Hebei Establish Direct Sales Trading Centers
On May 4th, Henan & Hebei DRC, Energy Bureau, Electric Power Company, and State Grid jointly established their  new power trading center. The State Grid-owned center will enable direct electricity sales from power generation facilities to large consumers. (SGCC CN)
 
Direct trading, along with renewable energy curtailment, are the two themes of 2016. In the past few months ten provincial-level trading centers have been established, shown in the table below.  
 
Direct Trading Centers and Commissioning Date

Source: NDRC, Azure International
 
 

Read more: China Cleantech Update May 10, 2016

News Summary:

  • NEA publishes Q1 2016 wind power generation data
  • Tibet begins construction on first 1GW+ hydro power plant
  • Hebei province approves Zhangjiakou 6.8GW phase three wind power base
  • Xinjiang pilots new retail-side electricity purchase program

 

 
Wind: NEA Posts Q1 2016 Wind Power Generation and Curtailment Data
The NEA announced wind power data for the first quarter 2016. Total new wind installed capacity was 5.3GW, raising the cumulative total installed wind capacity to 134GW. Total wind power generation for the quarter was 55.2 TWh, and a staggering 19.2 TWh of wind power was curtailed. Key high curtailment regions, by absolute percentage, were:

  • Jilin: 1.2 TWh curtailed, 53% of total, 224 utilization hours
  • Xinjiang: 2.9 TWh curtailed, 49% of total, 189 utilization hours
  • Gansu: 3.2 TWh curtailed, 48% of total, 294 utilization hours
  • Ningxia: 1.1 TWh curtailed, 35% of total, 264 utilization hours (NEA CN)

The Northern regions — western, central, and eastern — are both major wind resource and wind curtailment zones. The map below highlights the curtailment levels by province. These areas are low population, high installed capacity areas, where power needs to be exported or else it is underutilized. Azure provides curtailment modeling and consulting services to forecast curtailment levels in the future.
 
Q1 2016 Wind Power Curtailment Levels by Province

Source: NEA, Azure International

 

Read more: China Cleantech Update May 05, 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
 
 

Read more: China Cleantech Update April 27, 2016

News Summary:

  • NDRC approves new program to address renewable energy oversupply 
  • NEA increases promotion of  public-private partnership projects in energy industry
  • First quarter 2016 electricity consumption data released
  • Electric vehicle sales up 107% in first quarter of 2016

 
 
Renewables: NDRC Approves New Program in IMAR, Gansu, Jilin Provinces to Address Renewable Energy Oversupply
The NDRC announced and approved a new program to address the oversupply and underutilization of renewable energy in IMAR, Gansu, and Jilin provinces. Gansu province, with an annual electricity consumption rate of 110 TWh, has a 60 TWh oversupply of power generation. Inner Mogolia, with 104GW total installed capacity, has 10GW more thermal power generation than needed in the West, and 6GW excess thermal power generation in the East. Lastly, Jilin province, with 70.4TWh annual generation, produces 40 TWh excess capacity annually. 
 
To address this oversupply, the NDRC is testing a pilot program that expands electricity demand, improve grid connection infrastructure, and also improves distribution grid policies to encourage renewable energy utilization. (NDRC CN)
 
The excess capacity, poor grid connection, and a number of other factors all lead to high renewable energy curtailment rates in these provinces. Apparently, the NDRC is testing the waters with how an increasingly open power market will impact curtailment rates and other grid inefficiencies.
 

Source: NDRC, Azure International
 

Read more: China Cleantech Update April 19, 2016

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