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13th Five Year Plan: National Electric Power Sector Development Plan Released by the NEA
On November 7th, the long-awaited Electric Power Sector Development Plan of the 13th Five Year Plan was released by the NEA. Although further details are slated for release at a later date, key takeaways from this release include:
Along with renewable capacity expansion, the development plan includes concrete benchmarks for mitigating renewable curtailment, with the NEA calling for renewable curtailment to be limited to a "reasonable level" of 5%. National curtailment levels for wind and solar in 2015 were 15% and 13%, respectively. The plan also calls for implementing power trading spot market trials by the end of 2018, and a national rollout of spot markets by 2020.
Solar: CNBM International Purchases Ukrainian Solar Farm Operator Neptune Solar LLC
CNBM International Corp of China recently completed a 100% purchase of Ukrainian Solar farm operator Neptune Solar LLC. Neptune Solar has a photovoltaic (PV) park in Mykolaiv region with a capacity of 29.3 MW operational since 2013. The Antimonopoly Committee of Ukraine has already approved the deal with CNBM, and CNBM is said to be interested in other solar assets in Ukraine as well.(SEE)
We expected overseas acquisitions to continue as domestic PV projects face lower tariffs and stiff solar curtailment. The national curtailment rate for 2015 was 13%, however, provinces with higher solar penetration such as Gansu and Xinjiang have been experiencing curtailment rates as high as 32% and 33%.
(Ukrainian Solar Farm, Source: SEE)
Projects: Gansu DRC Announces Completion of Jiuquan-Hunan ±800kV UHV DC Transmission Line and Construction of 200 MW Wind Farm in Tongwei, Gansu
Gansu Province DRC recently announced the construction of a 200 MW wind farm in Tongwei county. Additionally, they completed a ±800kV UHV DC Transmission Line from Jiuquan to Hunan province. The transmission line is planned to be able to have the capacity to export 5 GW from wind power projects in Gansu to Hunan. (BJX, DRC CN)
Even in the face of heavy wind curtailment, Gansu continues its push to increase wind penetration in the province as evidenced by the announcement of both the high capacity wind farm and UHV transmission line. According to NEA figures, as of the first half of 2016, Gansu had a total installed capacity of 11.2 GW wind power and 5.7 GW of solar, occupying 27% and 13% of Gansu's total generative capacity. However, Gansu also is confronted with the highest rates of wind and solar curtailment, at 47% and 32%. Increased grid connectivity will help wind and solar power producers in the sparsely populated north supply power to load centers in China's heartland.