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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.
Statistics: NEA Publishes March 2016 Electricity Consumption Data
The NEA released data for March 2016 electricity consumption. Total electricity consumption for May 2016 was 457 TWh, and from January to March cumulative consumption was 1809 TWh. This January to March figure represents a 2.9% increase from 2015 levels. The following May 2016 data shows the breakdown of consumption by industry: (NEA CN)
China March 2016 Energy Consumption Statistics
|Industry Segment||TWh||Year-on-year Percent Change||Net Change (TWh)|
Source: NEA, Azure International
The data signals a potential slowdown as the residential sector decreased its energy consumption by nearly 10% compared to 2015 levels. However, the tertiary industry picked up the slack from the residential sector, smoothing energy oversupply concerns for the time being. Any slowdown in business could result in a domino effect impact on the energy generation industry.
Hydro: NEA Responding to Flooding and Hydropower Curtailment Issues in Central China
April in Hunan and Sichuan saw a massive increase in flooding. The NEA has been responded by routing water through emergency drain channels to mitigate the effects of the flood. This routing has caused hydropower curtailment, as utilities struggle to utilize the excess hydropower available to them.
The NEA is doing its best to now increase the penetration of hydropower in Central-China provinces to take advantage of the steady power supply. Furthermore, the NEA is promoting a policy for greater supervision of the guaranteed purchase of electricity generated by renewable energy resources in the region.
Often times, renewable energy is not purchased in full amounts by transmission operators who cite reliability concerns. As shown through a hydropower example, some of the issues surrounding priority dispatch — the order in which generation power sources are utilized — revolves around policy, and not technology, barriers. By creating a stronger enforcement mechanism, the NEA hopes to both encourage the use of more renewable energy and alleviate the excess water capacity in Central China during the flood season.
Wind: Hebei Plans to Expedite Phase Two Wind Farm in Chengde
The Hebei government is speeding up the construction progress for its Phase Two Chengde wind farm. The NEA has already approved the second phase of the construction program, and now the local government is shifting its policies to reduce the bureaucratic burden that has been slowing down the project. (Hebei DRC CN)
Policy hurdles are a common bottleneck in wind farm construction, and it is typical to have government intervention to help speed up the start of construction phase of a project. Once started, a typical 50MW wind farm takes one year to complete construction and commission into use. Azure maintains a database of wind farm projects, useful for understanding project dynamics and finding ways to speed up the construction process of a wind farm.