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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News Summary:

  • 2018 newly installed grid connected wind power exceeds 20GW
  • Tianjin DRC publishes distributed wind plan (2018-2025)
  • 7 billion CNY pumped hydro station begins construction in Zhejiang
  • China’s farthest offshore wind turbine successfully installed
  • Qinghai’s clean energy supply exceeds 10TWh

 

 

2018 newly installed grid connected wind power exceeds 20GW

By the end of 2018, China’s total installed grid connected wind power capacity reached 184.26GW, a 12.4% year-on-year (YOY) increase. The nation’s total installed grid connected PV power reached 174.63GW, a 33.6% YOY increase. On the power consumption side, national power consumption totaled 6,844.9TWh, an 8.5% YOY increase. (NEA)

AzureChinaCleantechNews28Jan2019 01

AzureChinaCleantechNews28Jan2019 08

 

 

Tianjin DRC publishes distributed wind plan (2018-2025)

Tianjin’s 2018-2025 distributed wind plan, in combination with the overall city development plan and the current state of implementation of land, power grid and wind resources, reveals that the target for installed capacity of distributed wind power is set to reach 780MW by 2025. (TianjinDRC)

Tianjin 100m height wind speed distribution map

AzureChinaCleantechNews28Jan2019 03

AzureChinaCleantechNews28Jan2019 04

 

 

7 billion CNY Pumped hydro station begins construction in Zhejiang

The Zhejiang Qujiang pumped hydroelectric energy storage station has begun construction. With a design capacity of 1200MW, the PHES station represents a total investment of 7.3 billion CNY. The station has a planned construction period of 70 months and once completed will have twice the installed capacity of the two Xin'anjiang hydropower stations that are also scheduled to be completed in 2025. (JJSB)

AzureChinaCleantechNews28Jan2019 05

AzureChinaCleantechNews28Jan2019 06

 

 

China’s farthest offshore wind turbine successfully installed

The first large-diameter offshore monopile foundation for wind turbines has been successfully installed in the Jiangsu Dafeng Offshore Wind Power Project. This is the first offshore wind turbine to be located as far as 70km from shore. (BJX)

AzureChinaCleantechNews28Jan2019 07

 

 

Renewable energy export from Qinghai during 2018exceeds 10TWh

During 2018a total of 12,569 TWh of renewable energy was produced in Qinghai, of which 10.065TWh was exported to other provinces. At present, the installed capacity of Qinghai Province’s grid-connected renewable energy has reached 12.27GW, including 9GW of PV, 2.66GW of wind and 60MW ofsolar thermal power. During 2018, the government of Qinghai province has signed framework agreements with neighboring provinces, giving priority to absorption of new energy coming from Qinghai. (State grid paper)

News Summary:

  • CSIC receives government funding for floating wind demonstration
  • PetroChina to build 23 new natural gas storage facilities by 2030
  • Shaanxi DRC releases direct electricity trading results
  • Shanghai Temple-Shandong ±800kV UHV DC line starts operating
  • Jiangsu DRC approves 24 offshore wind power projects

 

CSIC receives government funding for floating wind demonstration

The Ministry of Industry and Information Technology (MIIT) has recently publicized “Development of Offshore Floating Wind Power Equipment,” a proposed research project of China Shipbuilding Industry Corporation (CSIC). The project is designed to explore the development of high-tech ships and high-power offshore floating wind power by carrying out research on key technologies and overall design of offshore floating wind power equipment, manufacturing, commissioning of mooring systems and applications at sea. (BJX)

 AzureChinaCleantechNews21Jan2019 01

 

With the project encompassing efforts to implement the “Made in China 2025” plan, promote the implementation of strategic emerging offshore engineering projects and improve the level of R&D and design of high-performing equipment in China, it is clear that China is looking to increase self-reliance by promoting large-scale domestic production. Currently, few foreign firms have development rights in China, but it is interesting to note that in late 2018 China seemed more open to the idea of using foreign aid to speed up development in deep-sea wind power. This could be due to prospects that the new policy effective January 1, which subjects all large-scale wind farm development to power price competitive bidding, will put a greater emphasis on the need for cost reduction.

 

 

PetroChina to build 23 new natural gas storage facilities by 2030

According to China Petroleum News, China National Petroleum Corporation (CNPC) and relevant oil and gas enterprises gathered in Beijing on January 9 to discuss PetroChina’s 2019-2030 underground gas storage construction and deployment plan. There, the various parties signed an agreement that delegated responsibilities accordingly, and it was disclosed that PetroChina would expand ten natural gas storage projects and build 23 new ones by 2030. (The Paper)

From the winter of 2017 to the spring of 2018, tight supply of natural gas in China raised concerns about insufficient domestic gas storage capacity. According to international standards, the working volume of underground gas storage must exceed 12% of consumption if dependence on natural gas reaches or exceeds 30%. In 2017, the country’s natural gas dependence was close to 40%, and in 2018 exceeded 40%, but its gas storage capacity was far from meeting the standards. China’s geological conditions pose the greatest challenge to building large-scale economical and efficient natural gas storage facilities.

 

 

Shaanxi DRC releases direct electricity trading results

The Shaanxi Development and Reform Commission (DRC) has released the results for the direct electricity trading between centralized heating users in Shaanxi Province during the winter of 2018-2019. On October 26, 2018, the committee organized 16 direct-transmission power generation enterprises, 33 power sales companies and 412 users to participate, resulting in a total electricity turnover of 1.05TWh (0.329TWh in 2018 and 0.676TWh in 2019). Within this number, 0.889TWh is attributed to industrial and commercial users, and 0.107TWh to other industries. The average transaction price for industrial and commercial users was 321.4CNY/MWh, making the average price difference from other industries 23.45CNY/MWh. (Shaanxi DRC)

 AzureChinaCleantechNews21Jan2019 02

AzureChinaCleantechNews21Jan2019 03

 

Note that this list of participants is not exhaustive and represents only a small sample from the experiment. We present this table to demonstrate how thermal power plants are still the major players in direct electricity trading.

As Azure had previously forecasted, while the direct power trading mechanisms introduced over the past few years were initially expected to have a positive impact in helping integrate clean energy, it is more likely that large coal power plants will continue to dominate the market in the beginning. As we can see from this experiment, the majority of direct electricity traded was still coal-generated electricity.

 

 

Shanghai Temple-Shandong ±800kV UHV DC line starts operating

On January 11, the Shanghai Temple-Shandong ±800kV UHV Direct Current (DC) project, conducted by State Grid Shandong Electric Power, successfully completed 168 hours of trial operation. The UHV DC line passes through Inner Mongolia, Shaanxi, Shanxi, Hebei, Henan and Shandong provinces over a total distance of 1,230km at a rated transmission capacity of 10GW. At present, only two UHV lines, in Weinan and Qingzhou, have a full-load transmission capacity as high as 20GW. (BJX)

 

 

Jiangsu DRC approves 24 offshore wind power projects

On December 28, 2018 the Jiangsu DRC approved 24 offshore wind power projects with a total installed capacity of 6,700MW and a total investment of 122.3 billion CNY. (Offshore wind)

 AzureChinaCleantechNews21Jan2019 04

 

The news comes right after the NEA’s announcement that projects approved in 2019 will be subject to competitive on-grid price bidding, and can be seen as local governments’ last-ditch attempts to obtain feed-in tariffs (FIT). The FIT price was not stated, so it is unknown whether or not these projects will actually be receiving them.

News Summary: 

  • CGN Baolihua Shanwei Houhu Offshore Wind Project begins construction
  • World’s first ±1100kV UHV DC line to start operation soon
  • Henan Power Grid 100MW Battery Energy Storage Demonstration Project begins operating
  • Five State Grid pumped hydro energy storage stations start construction concurrently
  • First turbine of Datang Binhai offshore wind farm successfully connected to grid

 

 

CGN Baolihua Shanwei Houhu Offshore Wind Project begins construction

The project is to have a total installed capacity of 500MW with an investment of 8.4 billion CNY. The project plans to deploy 91 units of 5.5MW offshore wind turbines with annual power generation of 1.4TWh. This project aims to be operating before the end of 2021. (Shanwei News)

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This offshore wind project is co-developed by Baolihua (000690.SZ) and CGN. For more details, please see Azure’s December 24 news publication.

 

 

World’s first ±1100kV UHV DC line to start operation soon

The world’s first ±1100kV UHV Direct Current project, extending from Changji (Xinjiang Province) to Guquan (Anhui Province), has entered the final inspection stage. With a total investment of 40.7 billion CNY, the UHV line spans across six provinces (Xinjiang, Gansu, Ningxia, Shaanxi, Henan and Anhui) overa total distance of 3,3293km. The project started construction in January 2016; after completion, it is planned to send 66TWh of power to China’s eastern regions annually. (Xinjiang daily)

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Henan Power Grid 100MW Battery Energy Storage Demonstration Project begins operating

All 16 energy storage power stations of the Henan Power Grid 100MW Battery Energy Storage Demonstration Project were completed and put into operation. China has taken an important step in the standardization and scaled construction of grid-side distributed energy storage power stations.The construction scale of the project is 100.8MW/125.8 MWh, with a total of 84 battery containers. (CEC)

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Five State Grid pumped hydro energy storage stations start construction concurrently

Five pumped hydro energy storage stations, located in Hebei, Jilin, Zhejiang, Shandong and Xinjiang, have begun construction concurrently and are set to operate at 6,000MW capacity by 2026. The PHES stations have a total investment of 38.7 billion CNY. The construction of these stations is conducive to ensuring safe operation of the power grid and facilitating integration of other sources ofclean energy. (CEC)

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First turbine of Datang Binhai offshore wind farm successfully connected to grid

The first turbine of the Datang Binhai 300MW Offshore Wind Power Project was successfully connected to the grid. This project began construction in July 2018. On December 29, the first turbine circuit installation and 35kV submarine cable laying work were successfully completed. (BJX)

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News Summary:

  • Hebei Government approves Xiongan New Area (2018 – 2035) comprehensive plan
  • Fujian DRC releases new bidding mechanisms for offshore wind farms
  • Yudean Zhenjiang Wailuo Offshore Wind Farm II begins construction
  • Xinjiang 1,200MW pumped hydroelectric energy storage project approved
  • Yunnan “West to East” electricity capacity to reach 39GW
  • China's first 100MW scale solar thermal power station successfully put into operation

 

 

Hebei Government approves Xiongan New Area (2018 – 2035) comprehensive plan

The State Council, China’s cabinet, recently approved the comprehensive development plan (2018-2035) for Xiongan New Area, a guideline for developing the region based on international standards with Chinese characteristics. The plan outlines the need to build a green low-carbon city, to optimize energy structures, to build green power supply systems and clean and environmental-friendly heating systems and to promote local renewable energy utilization. (GOV)

AzureChinaCleantechNews07Jan2019 01

Source:(chinadaily)

 

 

Fujian DRC releases new bidding mechanisms for offshore wind farms

The Fujian Development and Reform Commission (DRC) has drafted new measures for competitive bidding of offshore wind power projects within the province in an attempt to promote efficient development of offshore wind power and technology, industrial upgrading, as well as market-oriented development. The measures are currently being implemented in a trial period and applied to select projects as detailed below.

Scope of application:

1. Projects approved before 2019 – FIT (0.85CNY/kWh)

2. Projects with determined investment entities and approved after 2018 will be subject to competitive on-grid tariffs and development rankings

3. Projects that have not yet determined investment entities before May 18, 2018 will be required to determine the investment entities and will be subject to competitive on-grid tariffs and development rankings (Fujian DRC)

Fujian Xinghuabay offshore wind project

AzureChinaCleantechNews07Jan2019 07

AzureChinaCleantechNews07Jan2019 08

Looking at Fujian’s new bidding mechanisms for offshore wind farms, it seems that the lack of requirement for developer references but increased requirements for offshore wind turbine suppliers have leveled the playing field for foreign investors. As for on-grid pricing, it seems that the Fujian DRC favors excessive competition over proposed on-grid prices.

 

 

Yudean Zhenjiang Wailuo Offshore Wind Farm II begins construction

On December 26, the commencement ceremony for phase two of the Yudean Zhenjiang Wailuo Offshore Wind Farm was held in Guangdong’s Xuwen County. The project is to have a total installed capacity of 203.5MW with an investment of 3.8 billion CNY. The project plans to deploy 37 units of 5.5MW offshore wind turbines with annual power generation of 484GWh. (Xuwen GOV)

AzureChinaCleantechNews07Jan2019 02

AzureChinaCleantechNews07Jan2019 03

 

The Yudean Zhenjiang Wailuo Offshore Project was divided into two phases. The first phase of the project oversaw a total installed capacity of 198MW and completed its first offshore wind turbine installation in December 2018.

 

 

Xinjiang 1,200MW pumped hydroelectric energy storage project approved

The Xinjiang Hami 1,200MW pumped hydroelectric energy storage project has been approved by the local DRC. This project is located Northeast of Hami City with a distance of 66km to shore. The project will have a total installed capacity of 1,200MW distributed in four energy storage units of 300MW each. The project will have an investment of 8.2 billion CNY with an annual power generation of 1.4TWh. (XJDRC)

AzureChinaCleantechNews07Jan2019 04

 

The project involves the construction of two reservoirs. The upper reservoir collects snow from Tian Shan (mountain range) and discharges water into the lower reservoir. The water from the lower reservoir is then pumped into the upper reservoir to generate electricity. Due to the large amount of wind power generated by Hami City at night, the power station can use the unutilized wind power to pump water to the reservoir during the nighttime so that the water can drain in the daytime. (SINJIANGNET)

 

 

Yunnan “West to East” electricity capacity to reach 39GW

Following implementation and acceleration of the Kunliulong ±800kV and Lancangjiang 500kV projects, Yunnan’s “West to East Power Transmission” project is also said to speed up construction for completion by 2020 with electricity capacity reaching 39GW. (CEC)

Kunliulong ±800kV project

AzureChinaCleantechNews07Jan2019 05

 

Since the transmission of electricity to Guangdong and Guangxi in 1993, it has accumulated 800TWh. Yunnan’s installed capacity for power generation jumped from 1.3GW in 1978 to 93.2GW by the end of October 2018. The proportion of clean energy installed by hydropower accounted for more than 82.7%, becoming an important green energy base and power transmission base for the “West to East” project.

 

 

China's first 100MW scale solar thermal power station successfully put into operation

The first-class, energy-saving Dunhuang 100MW molten salt tower type solar thermal power generation demonstration project has been successfully put into operation. This project’s total investment is above 3 billion CNY. According to the requirements of the National Energy Administration (NEA) on the grid connection time of the first batch of demonstration projects, the project will have a FIT of 1.15 CNY/kWh. (cnenergynews)

AzureChinaCleantechNews07Jan2019 06

News Summary:

  • China offshore 2018
  • Local DRC pre-approves Shanghai Electric 9.5GW offshore wind projects
  • Yangjiang DRC approves nine distributed wind projects totaling 230MW
  • Jiangsu wind projects to be attributed via competitive bidding in 2019
  • Local DRC releases Shaanxi new bidding mechanisms for onshore wind farms

 

 

China offshore 2018

As 2018 comes to an end, Azure has put together a comprehensive review of China’s offshore wind status. By the end of the year, China had a total of 3GW offshore wind projects in operation, with nearly 80% in Jiangsu Province. But the trend is now clearly shifting towards Guangdong Province which is home to more than 30GW of offshore wind projects in various stages of development, representing 90% of the country's pipeline. Note: All analysis data source collected from public data and Azure database.

 AzureChinaCleantechNews31Dec2018 01

AzureChinaCleantechNews31Dec2018 02

 

 

Local DRC pre-approves Shanghai Electric 9.5GW offshore wind projects

On December 17, 2018, Guangdong Province’s Shantou Development and Reform Commission (DRC) published 10 offshore projects with a total of 9.5GW. (Shantou DRC)

AzureChinaCleantechNews31Dec2018 03

AzureChinaCleantechNews31Dec2018 04

 

Shanghai Electric is currently the largest supplier of offshore wind turbines in China. By the end of 2017, the company had supplied more than 1.5GW of offshore wind turbines in China. In 2017, Shanghai Electric and the Shantou government signed a contract to set up the Shanghai Electric Guangdong offshore wind power intelligent manufacturing base in Shantou with an investment of 500 million CNY. After it is completed and put in operation, the base will have an annual production capacity of 200 wind turbines and an annual output value of more than 10 billion CNY. The facility is expected to ship its first wind turbine towards the middle of 2019.

 

 

Yangjiang DRC approves nine distributed wind projects totaling 230MW

Nine distributed wind farm projects, totaling 230MW, have been approved by the Yangjiang DRC. The project sizes range from 12 to 40MW. (Yangjiang DRC)

 AzureChinaCleantechNews31Dec2018 07

 

 

Jiangsu wind projects to be attributed via competitive bidding in 2019

According to a new notice posted by the Jiangsu DRC, from 2019 onwards, newly approved centralized onshore wind power projects and offshore wind power projects in Jiangsu Province should all be attributed via competitive bidding mechanisms taking in account proposed on-grid tariff. (Jiangsu DRC)

AzureChinaCleantechNews31Dec2018 05

 

 

Shaanxi DRC releases new bidding mechanisms for onshore wind farms

The Shaanxi DRC has drafted new measures for competitive bidding of onshore wind power projects within the province in an attempt to promote efficient development of onshore wind power and technology, industrial upgrading, as well as market-oriented development. The measures will be implemented on January 1, 2019 for a trial period of two years. (Shaanxi DRC)

 AzureChinaCleantechNews31Dec2018 06

 

Shaanxi requires that onshore wind projects be between 50 to 100MW and, for developers, that net assets be above 500 million CNY. Projects that do not meet these conditions will be subject to a 5% decrease in developer-proposed on-grid prices and will be restricted from investment for three years.

News Summary:

  • Jiangsu DRC approves Zhugensha H2# 300MW offshore wind project
  • Baolihua & CGN establish company to co-develop offshore wind project
  • China publishes first bidding mechanism results for onshore wind project
  • SPIC’s CNY 22 billion project starts construction in Jieyang City
  • China’s biggest offshore WTG shipped to project site

 

 

Jiangsu DRC approves Zhugensha H2# 300MW offshore wind project

According to the Jiangsu Development and Reform Commission (DRC), the Zhugensha H2# 300MW offshore wind project has been approved. The project has a special sea area located between the Guohua Dongtai IV 300MW and Guohua Zhugensha H1# 200MW. The project’s distance from shore is 39km, making it a part of the intertidal zone offshore project. The project plans to deploy 50 units of 4.0MW and 17 units of 6.0MW offshore wind turbines. The project’s total investment is about 5.2 billion CNY and project capital is 1.04 billion CNY. (Jiangsu DRC)

 AzureChinaCleantechNews24Dec2018 01

AzureChinaCleantechNews24Dec2018 02

 

While most offshore wind projects in China are developed and operated by large state-owned companies, this project’s developer, Dongtai Shuangchuang New Energy, is a private company. However, it is interesting to note that this project’s legal representative, Mr. Rong Leng, also works for CHN Energy Longyuan, which belongs to state-owned China Guodian Corporation. Last week, another project developped by a private owner was approved in Jiangsu, the GCL Rudong H15 200MW project.

 

 

Baolihua & CGN establish company to co-develop offshore wind project

Guangdong Baolihua New Energy Stock (000690.SZ) and China General Nuclear Power Group (CGN) have agreed to jointly invest in the establishment of a project company to develop the CGN Shanwei Jiazi offshore wind project (900MW) and the CGN Shanwei Houhu offshore wind project (500MW). The registered capital of the project company is 521 million CNY, of which 80% million CNY is contributed in cash by CGN, and the remaining 20% held by Baolihua.  (Finance sina)

 AzureChinaCleantechNews24Dec2018 03

 

 

China publishes first bidding mechanism results for onshore wind project

The Ningxia 2018 wind bidding mechanism results have been published. A total of 32 projects joined the bidding, of which 20 successfully received the Ningxia DRC’s approval for a total 1 ,928 MW capacity. On-grid price bidding ranges from 0.37 to 0.49 CNY/kWh. (Ningxia DRC)

 AzureChinaCleantechNews24Dec2018 04

 

Ningxia belongs to a Type IV wind resource area; prior projects would receive a fixed FIT of 0.49 CNY/kWh. Following the new policy issued in May this year, projects now need to bid for approval with a ranking score partly based on the proposed tariff.  

 

 

SPIC’s CNY 22 billion project starts construction in Jieyang City

The SPIC Jieyang 900MW offshore wind project, phase one of the Qianzhan general offshore terminal and the Jieyang gas power generation project have started construction. The three projects’ total investment is above 22 billion CNY. After a construction period of 4-5 years, the Jieyang offshore wind project is expected to supply 2.7TWh of clean energy to Jieyang city annually. The Jieyang gas power generation project is designed with an annual power generation of 1.3TWh and is planned to start operating in 2021. (Huilai GOV)

 AzureChinaCleantechNews24Dec2018 05

 

 

 

China’s biggest offshore WTG shipped to project site

On December 19, Shanghai Electric’s first 7MW offshore wind turbine has been shipped to the Sanchuan offshore project site in Fujian province. This unit is currently the largest offshore wind turbine produced in China so far. (BJX)

AzureChinaCleantechNews24Dec2018 06

 

The Shanghai Electric 7MW PMDD offshore wind turbine is based on a license from Siemens Gamesa, and Shanghai Electric is also working on production of the SG 8MW-167 offshore wind turbine. Deeper sea, complex soil conditions combined with medium wind resource are driving the race for bigger turbines in China. So far Goldwind's 6.7MW turbine was the largest in China, but a number of OEMs are working on 7-8 MW models.

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