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Wind / Power Grid–Wind curtailment improvements in North Hebei: following comissioning of the "3 station 4 lines" bundle of 500kV substations and transmission lines between Zhangjiakou and Beijing, wind curtailment in North Hebei has dropped to 1.3% between June and August, compared to 15% between January and May. Other improvements such as the wider use of Automatic Generation Control have enabled further optimization of dispatch over the same period. (ESCN CN)
Short term curtailment trends can be misleading, and should not be considered independently of wind resource variation. Summer is typically a low wind season in North East China. Also during the summer, peak demand is high, and thermal power plants are free of CHP related operating constraints. As such, low wind curtailment during summer months is to be expected. The overall impact of recent additions in power grid capacity has yet to be seen over the high-curtailment winter season, while we advise using complex and dynamic analysis of curtailment drivers in order to understand the likely impact on curtailment of ongoing and future grid and capacity development.
Offshore Wind – NEA accelerates approval of offshore wind power projects: at the end of 2014, NEA released a list of 10.5 GW of offshore wind farms to be approved within 2 years. Of this list, 2 projects have already been installed with total capacity of 61MW; 9 are under construction with total
Building Energy Efficiency - Energy-Efficiency has staying power as China business trend. In China, buildings account for approximately 40% of the country’s total primary energy use, and building space is increasing at a rate of about 2 billion square meters per year. China’s central government has issued key policies to promote building energy efficiency, and these policies are leading to significant business opportunities for domestic and international companies.
China’s central government policies to promote building energy efficiency technologies are showing clear signs of conversion into commercial results. This development has historical precedence, as a similar central government policy push heralded the boom in wind and solar energy infrastructure development, leading to China becoming a global leader in these technologies within ten years. Azure analysis predicts that China will demonstrate similar global leadership for technology development and investment in building energy efficiency. (CNTV EN)
Building Energy Efficiency – Beijing Chaoyang District provides additional subsidy to developers of LEED certified buildings. Developers of buildings with LEED Gold and Platinum certifications will receive subsidies of 10 CNY / m2 and 20 CNY / m2 of floor area, respectively.
The subsidy is small compared to that available for buildings certified
Grid – NEA releases 2015-2020 Power Grid construction and reform plan. The 19 page document released by NEA describes considerable grid development and upgrade objectives over the coming five years, representing total investment of more than 2 trillion Yuan ($315 billion). Between 2015 and 2020, cumulative length of transmission lines will increase by 40% for UHV and 30% for medium voltage.
Back in 2010, Sate Grid announced a 2.55 trillion Yuan investment to be deployed during the 12th 5 year plan (2011-2015), suggesting that grid deployment will maintain a constant, rather than accelerated pace. The additionnal UHV capacity is aimed at both reducing coal consumption and air pollution in load centers along the east coast, as well as increasing penetration of renewable energy. Recent Azure modeling and analysis suggests that in some situations these goals may be conflicting. (NEA CN)
Grid – The Tian-Zhong 800kV DC UHV power line from Xinjiang Hami to Henan Zhengzhou successfully reached cumlative transmission of 30 TWh, with more than 10% composed of wind and PV energy. The line is said to operate stably with peak transmission capacity of 5GW enabling transmission of 100 GWh per day. (BJX CN)
Wind – The largest Chinese onshore wind turbine connected to the grid in Zhangjiakou. The 5MW turbine produced by XEMC is the largest onshore turbine installed in China to date.
Larger prototypes have been installed offshore or in inter-tidal areas,
Wind – NEA releases 1H 2015 coutry wide wind curtailement and performance stats: Curtailement and utilization hours statistics for all grid connected wind farms across China, released by the National Energy Administration on July 27, show worse curtailement in the first half of 2015 compared to 2014. Jilin ranks highest with a staggering curtailement rate of 58% of energy in Q1 and 27% in Q2 (compared to 35% and 7% in 2014). Interestingly however, wind utilization hours (or capacity factors) in provinces in North Eastern and North China at slightly higher than in 2014.
These numbers confirm Azure's 2014 comments and analysis: curtailement is far from being solved and is closely related to wind resources. 2014 was a low wind speed year, leading to less curtailement but also low performance of wind farms. 2015 is proving to be an exceptionnaly windy year, ephasising challenges caused by limited grid and market flexibility. Azure also notes that Beijing and Tianjin show considerable curtailement in Q1 2015 (7% and 11% respectively). This is a new trend, which should be a concern for wind farm developpers, as Beijing and Tianjin are large load centers meant to absorb increasing amounts of wind energy from the North and North East, via construction of UHV lines. (NEA CN)
Renewables – State Council and NDRC release plan for the Zhangjiakou Renewable Energy Development Zone. Based on the plan, Zhangjiakou adminstrative region, which will host the Winter Olympics in 2022, is set to be one of the largest renewable energy zones in China, with 2030 targets of 20GW of wind, 24GW of PV and 6GW of solar thermal.
The annnounced wind targets are in line with on the ground project
Smart Grid – NEA releases suggestions for microgrid demonstration project construction: On July 22, the National Energy Administration published a series of suggestions for pushing forward microgrid development in China. These suggestions are quite general, discussing the types of generation to be considered and the need to create repeatable development models. However, the policy does call for every province to develop 1-2 projects. It also provides sizing guidelines based on voltage levels in the technology qualifications attachment. Up till now, China has been slow in realizing its goal of 30 microgrids by 2015. However, this new policy calls for greater local government support and will likely inspire a new wave of technology demonstrations (over 50 based on the per province guidance), which will in turn create new opportunities for solar, energy storage, small-scale wind and distributed natural gas generation technology suppliers. As many microgrid demonstrations to date have been funded by domestic innovation programs, it is not clear whether foreign companies will be able to participate in this new wave of microgrid development. (NEA CN)
Outbound – China State Grid to construct Brazil’s longest UHV line: On July 17, China State Grid won a concession to build a UHV line to
Grid – Electricity consumption grows 1.8% in June, generation oversupply worsens: According to NEA statistics, overall electricity consumption grew by 1.8% in June, led by an 8.1% increase in commercial load growth and a 4.8% increase in residential load growth. Industrial power consumption dropped 0.5%. For the first six months of 2015, electricity growth was 1.3%, well behind the annual forecasted growth rate of 4-5%. In contrast, new generation capacity grew 8.7%. Failure to slow down new generation builds despite missed electricity consumption targets created a 9% drop in thermal generation utilization. In 2014, China’s thermal generation utilization reached the lowest level since 1978, driven by nearly 50 GW in generation overcapacity. The situation continues to deteriorate in 2015 as generation capacity continues to grow with little sign of resistance. Historically low coal prices have helped mitigate potential losses by thermal power plant operators, but strong measures to address this market inefficiency remain elusive. If unaddressed, by the end of 2015 China’s generation oversupply could reach 100 GW, nearly equal to China’s installed wind power capacity. (CEC CN)
Electric Vehicles – MIIT reports 25,000 new energy vehicles produced in June: According to Ministry of Industry and Information Technology statistics released in early July, China produced 25,000 new energy vehicles – 10,500 pure EV sedans, 6,663 plug-in hybrid