On October 22, the annual China Wind Power (CWP) Conference in Beijing brought together government officials, investors and industry experts to share insights on the future of the wind energy industry inside and outside of China.
Azure CEO Hubert Beaumont was honored to join and speak about China’s power sector transition from highly-regulated to market-oriented, from coal-dominant to increasingly renewables-heavy, and from being closed to being more open to foreign investment. Some key takeaways from the presentation:
- China’s transition to renewables is driven by increasing competitiveness of wind and solar resources and how they serve long term national and global interests —they are abundant, cheap, clean and safe
- Electricity’s share of primary energy use is forecasted to increase from 21% today to 47% in 2050, with the “Re-electrification with renewables” program creating an unprecedented reconciliation of government, grid and market players
- Energy consumption peaks in 2035, and China’s energy mix sees a radical shift over 40 years with clean energy including nuclear, hydro, wind and solar taking over thermal as the dominating energy source
- Wind and PV account for half of electricity in 2050 but curtailment, which has been decreasing recently, re-emerges in central and coastal provinces after 2030
- Renewal of the coal fleet is key to higher RE penetration and will need at least a decade, meaning that China will continue to build new coal power plants
- Grid parity is the next big rush in China, with the 20 year fixed price PPA offering good opportunities for both domestic and foreign investors. Beyond that, market driven prices will introduce new uncertainties where foreign partners can contribute expertise and know-how
Hubert also announced Azure’s upcoming publication on China’s energy transition and 2050 energy forecast, in which the points above are discussed in more detail, so stay tuned to secure your own copy!