- Published: 19 November 2018
- NEA revises RPS on quota system and policies
- Mingyang Smart Energy Group approved for IPO
- Zhejiang Daishan signs MOU with XEMC, CCCC Third Harbor and Ningbo Dongfang Cable
- Beijing increases natural gas price during winter heating period
- Yangjiang promotes investment activities in wind power industry
- Hebei publishes 2018 Engineering Research Center Construction List proposal
- MOEA reaffirms commitments to reach 5.5 GW of offshore wind by 2025
- Jiangsu promotes PPP projects in revision of awards and supplemental funds
NEA revises RPS on quota system and policies
The National Energy Administration (NEA) has revised the Renewable Portfolio Standard (RPS) on the premise of keeping the quota system and policies basically the same. Previously, in March and September of this year, the NEA published two drafts for the RPS. In this notice, the methods for measuring provincial-level regional quotas, monitoring and evaluating the quotas and assessing the market entities that bear the quota obligations are as follows:
- The 2020 indicator is a guiding indicator, which is dynamically adjusted according to the situation of renewable energy resources and the transmission of renewable energy across provincial and inter-regional channels. When the indicators for 2020 are measured, the proportion of renewable energy in Jiuquan-Hunan, Zalute-Shandong, Ningxia-Shandong, Shanghai-Shandong, Ningdong-Zhejiang UHV transmission channels is considered to be no less than 30%.
There has been some debate about whether UHV transmission lines were built to support renewables or just to move coal and pollution from the big cities to more remote areasThis policy inticates the answer is 'a bit of both', suggesting the need to continue building both renewables and new coal power plants in West China.
- The minimum renewable energy index that should be achieved for each provincial administrative region is a binding indicator, and the incentive index is determined by exceeding 10% of the binding index.
- For the provincial administrative areas where the quota of renewable energy power reaches 80%(including hydro [i.e., Sichuan and Yunnan), no binding monitoring and evaluation will be carried out.(NEA)
Non-hydro RPS required
(Note: The column on the right indicates the number of 100MW wind farms which would need to be built by 2020 to satisfy the increase in RPS requirement (assuming the whole gap is filled with wind, with utilization hours of 1800 hours, and also assuming average annual city power consumption growth of 5%).
Mingyang Smart Energy Group approved for IPO
In the 171st Working Session of the 17th Audit Committee in 2018, Mingyang Smart Energy Group’s application for an IPO has been approved. It has only been 281 days between the first disclosure of the prospectus in February and the meeting this week (November 13). (CSRC)
Note that in recent years, Mingyang’s performance has been declining. In 2017, the company's revenue was 5.3 billion CNY, down 19% year-on-year; the net profit return on revenue was 344 million CNY, down 11.5%. However, being headquartered in Guangdong province which has an agressive offshore wind pipeline, Mingyang is well positioned for rapid growth in the offshore sector in the coming years.
Zhejiang Daishan signs MOU with XEMC, CCCC Third Harbor and Ningbo Dongfang Cable
On November 6, the Zhejiang Daishan Government signed an MOU with XEMC, CCCC Third Harbor and Ningbo Dongfang Cable to promote offshore wind industry development. According to this document:
- XEMC will invest 1 billion CNY to build a WTG manufacturing R&D base.
- CCCC Third Harbor will invest 0.2 billion CNY to manage offshore steel structure manufacturing and installation.
- Ningbo Dongfang Cable will participate in the construction of the Daishan wind power industry chain by providing resources, capital, technology and market.
Beijing increases natural gas price during winter heating period
From November 15, 2018 to March 15, 2019, natural gas sales price for non-residential consumption in Beijing will rise by 0.23 CNY/m3, from 2.48 CNY/m3 to 3.22 CNY/m3 based on usage.
China has always been in a state of natural gas shortage. In the first three quarters of this year, natural gas production was 115.6 billion m3, up 6.3% year-on-year (YOY), and natural gas imports were 88.6 billion m3, up 37.6% YOY, while consumption of natural gas was 201.7 billion m3, up 18.2% YOY.
Yangjiang promotes investment activities in wind power industry
From October 31 to November 9, the mayor of Yangjiang led a delegation to the UK, Denmark and France to carry out investment activities in the wind power industry. This trip resulted in the signing of 3 MOUs and a trade cooperation contract of 25 million USD. The Yangjiang mayor pointed out that Yangjiang is an offshore wind power equipment manufacturing industrial base in Guangdong Province, that the offshore wind farm is planned to reach 10GW, and that the wind power industry has a favorable investment environment. And for this trip Azure also helped organize some of sht Yangjiang Delegation’s meeting (YJRB)
Hebei publishes 2018 Engineering Research Center Construction List proposal
Hebei Development and Reform Commission has published a proposal of projects to be listed on the 2018 Engineering Research Center Construction List. In this list, 4 out of the total 30 projects are in new energy. These include:
- Renewable energy for heating
- Low-speed wind and offshore wind blades
- Hydrogen storage and transportation equipment
- Photovoltaic conductive film(HBDRC)
Projects that are not rejected before November 16 can receive special provincial funds for the development of strategic emerging industries.
MOEA reaffirms commitments to reach 5.5 GW of offshore wind by 2025
Earlier this week, the Ministry of Economic Affairs (MOEA) has reaffirmed commitments to reach 5.5 GW of offshore wind power generation by 2025, a goal set by President Tsai Ing-wen after she took office and which attracted wind power developers from all over the world. However, after a series of intensive selection and bidding procedures in the first half of the year, selected developers are often limited to a provisional permit, which prevents them from being able to sign purchase and sale agreements. The MOEA has clarified that the installation procedure is divided into three stages: preparation of licenses, granting of construction permits and granting of licenses. The MOEA says that at present, all developers have in fact obtained most preparatory documents, that application operations are being carried out in parallel, and that implementation is progressing smoothly in accordance with the target of installing 520MW of offshore wind by 2020 and 5,500MW by 2025. (TWTPO)
Jiangsu promotes PPP projects in revision of awards and supplemental funds
The Jiangsu Provincial Department of Finance has revised the “Administrative Measures for the Government and Private-Public Partnership (PPP) Project Awards and Supplemental Funds” to further promote and accelerate the implementation of PPP projects. For private enterprise projects, the award-added standard will increase by 10%; for projects in the green environmental protection field, the award-added standard will increase by 10%. The maximum amount awarded for a single district-level project does not exceed 20 million CNY, and the maximum amount awarded for a single county-level project does not exceed 10 million CNY. (CZT)