• China Cleantech Update

     News Summary:

    • Yangjiang DRC approves 3-Gorges Yangjiang Xishapa III offshore wind project
    • China releases biomass electricity on-grid price research report
    • Jiangsu sets 2019 power trading target at 300TWh
    • Zhejiang gas on-grid price temporarily increases 0.2 CNY/kWh

     

     

    Yangjiang DRC approves 3-Gorges Yangjiang Xishapa III offshore wind project

    The Yangjiang Development and Reform Commission (DRC) has approved the Yangjiang Xishapa III offshore wind project, which plans to install 73 units of 5.5MW WTG. This project includes two zones: Zone A1 will hold 55 units of WTG connected to a newly installed offshore substation and Zone A2 will hold 18 units connected to the 3-Gorges Xishapa II offshore substation. (Yangjiang DRC)

     AzureChinaCleantechNews12Nov2018 01

     

     

    In the Xishapa area, 3-Gorges has five offshore wind projects in total:

    AzureChinaCleantechNews12Nov2018 02 

     

     

    China releases biomass electricity on-grid price research report

    According to the “Biomass Electricity Price Policy Research Report” jointly published by the National Renewable Energy Centre, the Energy Research Institute of the National Development and Reform Commission, and the Biomass Energy Branch of the China Association for the Promotion of Industrial Development, the gap between subsidy funds and installed capacity of China’s renewable energy has continued to widen. By the end of 2017, a total of 14.4 billion CNY, of which 6.41 billion CNY was agricultural and forestry biomass, and 1,228MW (about 8% of total installed capacity) were not included in the government subsidy list. The report outlines the challenges in biomass power generation—projects have high cost, weak profitability, long payback periods, subsidy arrears—alongside the important role biomass power generation plays in environmental protection, people’s livelihood and clean heating. (BJX)

    AzureChinaCleantechNews12Nov2018 03AzureChinaCleantechNews12Nov2018 04 

     

     

     

    Jiangsu sets 2019 power trading target at 300TWh

    The 2019 Jiangsu power market transaction notice states that the province’s power trading target is 300TWh based on a two-sided negotiation and bidding system. On the power demand side, power voltage levels of 10kV and above are required to participate in trading. On the power supply side, trading participation is open to thermal and nuclear power units. (JSPEC)

     

    Jiangsu’s total power consumption in 2017 was 580TWh, and total power consumption for 2019 is estimated to reach 630TWh, putting the 300TWh power market trading target at half of total power consumption.

     

     

    Zhejiang gas on-grid price temporarily increases 0.2 CNY/kWh

    From October 1, 2018 to December 31, 2018, Zhejiang will increase gas power generation on-grid price by 0.202CNY/kWh. During this period, 9F and 6F power generation units’ on-grid price will be 0.73CNY/kWh. 9E and 6B power generation units’ on-grid price will be 0.79 CNY/kWh. (Zhejiang DRC)

    In comparison, Zhejiang’s wind on-grid price sits at 0.57CNY/kWh based on resource type IV, and its PV on-grid price at 0.85CNY/kWh based on resource type III. This is encouraging evidence that wind and solar are competitive players in the region.

  • China Cleantech Update

    News Summary:

     

    • 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:

    1. 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.
    2. 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.
    3. 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

    AzureChinaCleantechNews19Nov2018 04

     (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%).

      

  • China Cleantech Update

    News Summary:

    • Local DRC pre-approves SPIC Zhanjiang Xuwen offshore wind project
    • Q1 ~ Q3 PV newly installed capacity decreases 19.7% YOY
    • ZSOAF pre-approves CGN Daishan IV offshore wind project sea area use right
    • 3-Gorges plans to transfer 61% stake in pumped storage power generation company
    • JHD and Guangxi HOPE sign MOU for waste power battery recycling

     

     

    Local DRC pre-approves SPIC Zhanjiang Xuwen offshore wind project

    The Zhanjiang City Development and Reform Bureau has released a public notice regarding the Zhanjiang Xuwen offshore wind project and is now accepting feedback during the notice period. The project is divided into two phases and has a total planned installed capacity of 600MW. The estimated annual on-grid power for this project is 1.5Twh and the annual equivalent full load hours is 2505h. The project will also involve the construction of 2 units of 220kv offshore substations. (Zhanjiang DRC)

    AzureChinaCleantechNews26Nov2018 01

     

    In December 2017, the Zhanjiang government, SPIC and Mingyang Wind Power signed an MOU for the Zhanjiang Xuwen offshore wind project. The agreement stated that:

    1. The Zhanjiang government will promote the project’s approval and support preferential policy.
    2. SPIC will ensure that the project begins construction in 2019 and deploys Mingyang’s WTG and O&M service.
    3. Mingyang will invest in building a new energy service center in Zhanjiang.

     

     

    Q1 ~ Q3 PV newly installed capacity decreases 19.7% YOY

    According to the National Energy Administration (NEA), China’s PV power generation newly installed capacity totaled 34.5GW in the first three quarters of 2018, down 19.7% year-on-year (YOY). Among that figure, centralized PV newly installed capacity made up 17.4GW and distributed PV newly installed capacity made up 17.1GW. By the end of September, the national PV total installed capacity was 164.7GW, with 117.9GW in centralized PV and 46.8GW in distributed PV. (NEA)

     AzureChinaCleantechNews26Nov2018 02

    The chart above represents the percentage of PV newly installed capacity that each region accounts for of the total 34.5GW. The sharp decrease (19.7%) in Q1 ~ Q3 PV newly installed capacity can be seen as a direct result of the “PV 531” policy.

     

     

    ZSOAF pre-approves CGN Daishan IV offshore wind project sea area use right

    On November 13, the Zhoushan Ocean and Fishery Bureau released a public notice for the CGN Daishan IV Offshore Wind Power Project’s (Phase I) sea area use application, giving the public a period of 20 days to voice any objections or hearing requests. The CGN Daishan IV offshore wind farm is planned to have a total installed capacity of 216MW and a total investment of 4 billion CNY. (ZSOAF)

     AzureChinaCleantechNews26Nov2018 04

    AzureChinaCleantechNews26Nov2018 03

     

     

     

    3-Gorges plans to transfer 61% stake in pumped storage power generation company

    On November 19, 3-Gorges announced plans to transfer a 61% stake in Hohhot Pumped Storage Power Generation Co., Ltd. for a reserve price of 929 million CNY. The IMAR hydro pump power generation company was established in 2005 with a registered capital of 1.5 billion CNY. As of October 31, 2018, the company’s financial report stated that its operating income was 838 million CNY, total assets were 6.224 billion CNY, and owner's equity was 1.322 billion CNY. (CS)

     

     

    JHD and Guangxi HOPE sign MOU for waste power battery recycling

    On November 20, JHD (Guangdong Guanghua Sci-Tech Co., Ltd) and Guangxi HOPE Automobile Co., Ltd signed an MOU regarding waste power battery recycling. Through the cooperation between the two parties, organic integration of economic benefits, environmental benefits and social benefits can be realized, and a model for the recycling and utilization of power batteries as well as for a circular economy can be established. (Finance Sina)

    As evidence of JHD’s commitment to environmental and social responsibility, the company was among the first batch of automobile, motorcycle, three-wheeled vehicle and freight car products and producers approved by the Ministry of Industry and Information Technology (MIIT) based on its Interim Measures for the Management of Recycling and Utilization of Power Batteries of New Energy Vehicles. Additionally, apart from this MOU JHD also signed with BJEV and Skywell (Nanjing Jinlong) to cooperate and advance sustainable development in China.

  • China Cleantech Update

    News Summary:

    • Yangjiang DRC approves two Mingyang offshore wind projects
    • Jieyang DRC approves SPIC  Jieyang Shenquan II 350MW project
    • Data shows national wind total installed capacity reached 177GW by end of October
    • Imports less than or equal to 6MW now required to pay duties and value-added taxes
    • Reports show rapid development in grid side power storage

     

     

    Yangjiang DRC approves two Mingyang offshore wind projects

    The Development and Reform Commission (DRC) of Yangjiang, a city in China’s southern Guangdong Province, has approved two offshore wind projectsto be owned and developped by one of the country’s largest private wind turbine manufacturer Mingyang.

    1. Mingyang Yangjiang Qingchuan VI offshore wind project: 500MW with 72 units of 7.0MW WTG each and total investment projected to be above 9 billion CNY.
    2. Mingyang Yangjiang Shaba 300MW offshore wind project: 300MW with 55 units of 5.5MW WTG each and total investment projected to be above 5.9 billion CNY (Yangjiang DRC)

    Mingyang Yangjiang Shaba 300MW Wind Farm

    AzureChinaCleantechNews03Dec2018 01

    Mingyang MySE5.5-7.0MW Installation at Xinghua Bay

    AzureChinaCleantechNews03Dec2018 02

     

     

    The Mingyang MySE5.5-7.0MW platform is already being tested at the Three Gorges Xinghua Bay offshore demonstration project in Fujian. The technology is based on the same platform as the Mingyang 5.5MW turbine, and will be deployed in large volume in the Yangjian projects. Interestingly, these projects are being developed by Mingyang which is both private and a turbine manufacturer, which changes from the usual large state owned utilities which dominate most of the pipeline. Mingyang is also setting up a blade manufacturing base in Yangjiang’s High Tech Development Zone with a capacity of 230 blade set per year (with each set being made of 3 blades).

     

     

    Jieyang DRC approves SPIC  Jieyang Shenquan II 350MW project

    The Jieyang DRC has reviewed and approved phase two of SPIC’s Jieyang offshore project application. The project will have a total installed capacity of 750MW, divided into two phases, Shenquan I with 400MW and Shenquan II with 350MW. Shenquan I was approved in August earlier this year with plans to install 73 units of 5.5MW WTG. Shenquan II has plans to use 64 units of 5.5MW WTG. (Jieyang DRC)

    AzureChinaCleantechNews03Dec2018 03

     

    A large number of big wind farms are being approved in Guangdong this week. This is driven by a strong will from local governments to boost the local offshore wind industry, as well as by a rush to get projects approved this year in order to benefit from the 0.85 CNY/kWh tariff.

     

     

    Data shows national wind total installed capacity reached 177GW by end of October

    The National Energy Administration (NEA) has released data on the national power industry from January to October 2018. The numbers revealed that by the end of October, the national wind total installed capacity was 177.57MW. From January to October, wind utilization hours totaled 1,724 hrs, an increase of 172 hrs from the same period last year. (NEA)

    AzureChinaCleantechNews03Dec2018 08

     

     

    Imports less than or equal to 6MW now required to pay duties and value-added taxes

    The Ministry of Finance has decided to revise relevant catalogues of import tax policies for major technical equipment according to the development of the domestic equipment manufacturing industry and its supporting industries in recent years. Among the revisions, it is now stated that imports of technical equipment of less than or equal to 6MW should pay an import duty and an import value-added tax. (MOF)

    Imports of major technical equipment and catalogues not exempt from taxes:

    AzureChinaCleantechNews03Dec2018 06

     

    What is also suggested by the policy is that whole wind turbine systems of more than 6MW would not be subject to import duty and import VAT (which sum to more than 20%). Maybe an opportunity for foreign suppliers to sell large turbines in China ?

     

     

    Reports show rapid development in grid side power storage

    Since the beginning of this year, China's grid side energy storage has developed rapidly. At present, local governments and power grid enterprises in Jiangsu, Henan, Qinghai, Gansu and other regions are actively deploying grid side energy storage projects. According to statistics from the CNESA global energy storage project library, from January to September 2018, the installed capacity of electrochemical energy storage connected to China's power grid reached 150MW, of which 140MW was newly installed. (People)

    AzureChinaCleantechNews03Dec2018 07

  • China Cleantech Update

    News Summary:

    • Local DRC releases Guangdong new bidding mechanisms for offshore wind farms
    • Yangjiang DRC approves China’s largest offshore wind farm
    • 6,000MW unsubsidized onshore wind project FSR passes review
    • Taiwan 2025 “non-nuclear home” target fails
    • China State Grid and Portugal REN sign MOU for cooperation in energy

     

     

    Local DRC releases Guangdong new bidding mechanisms for offshore wind farms

    The Guangdong 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 apply 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 (Guangdong DRC)

    Guangdong Zhuhai Guishan 102MW offshore wind farm (Operating)

    AzureChinaCleantechNews10Dec2018 01

    AzureChinaCleantechNews10Dec2018 02 2

     

    According to the scope of application of this policy, Azure thinks that multiple offshore projects in Guangdong will be approved within this month. The Guangdong DRC has previously published an opinion on this policy in August earlier this year (Azure news). The policy has not changed much since the draft, and still favors local developers as only references in Guangdong province and China are taken in account. However based on discussions with local governments and players in Guangdong we believe this is an omission rather than a deliberate intention to exclude foreign investors from Guangdong.

     

     

    Yangjiang DRC approves China’s largest offshore wind farm

    CGN’s Yangjiang Fanshi I 1,000MW offshore wind farm has been approved for construction by the Yangjiang DRC. The 1,000MW offshore wind farm surpasses what used to be the largest wind farm in China, the Zhenjiang Xuwen 600MW offshore wind farm, by 400MW, making it now number one. CGN’s Yangjiang Fanshi I 1,000MW offshore wind farm is located south of Yangjiang’s Nanpeng Island in Guangdong Province. The project plans to deploy 5.5MW WTG and feature three 220kV offshore substations. The turbines will be installed in depths of 38m to 50m, and the wind farm will be  constructed between 2020 and 2025 with a total investment above 18.8 billion CNY. (Yangjiang DRC)

    AzureChinaCleantechNews10Dec2018 03

     

    CGN’s Yangjiang Fanshi I project belongs to the Yangjiang deep-water offshore wind zone II (as outlined in the Guangdong offshore wind development plan). With increases in water depth, floating foundations may have more advantage than the traditional WTG foundations and some of the developpers are interested to test floating technologies. Since November 2018, Yangjiang City has approved 3,300MW offshore wind projects but has more than 5,000MW of pipeline is still under review by the local government. Azure thinks that some of the remaining pipeline will be approved within this month.

     

     

    6,000MW unsubsidized onshore wind project FSR passes review

    The Feasibility Study Report (FSR) for the first phase of SPIC’s IMAR Ulanqab 6,000MW onshore wind project has passed review. The project will be listed in the National 2018 Wind Development Plan and will not be receiving national electricity price subsidies. (SPIC)

    AzureChinaCleantechNews10Dec2018 04 

     

    Ulanqab has access to Type I wind resources and belongs to the West IMAR power grid. The aim is for the project to sell electricity at the local on-grid price of 0.28CNY/kWh instead of 0.4CNY/kWh like other nearby wind farms that benefit from a feed-in-tariff. However in counterpart, UHV power lines are being build specifically for this wind base which should enable to guarantee close to 100% energy offtake, whereas other nearby projects that suffer from severe curtailment  

     

     

    Taiwan 2025 “non-nuclear home” target fails

    A November 30 referendum on abolishing Taiwan’s 2025 non-nuclear target has resulted in the failure of the ruling. Previously, the Taiwanese government proclaimed that Taiwan would stop all operations of nuclear power generation plants before 2025 and replace them with clean energy. On December 2, the act has been declared ineffective. (MOEA)

    Taiwan 2025 installed capacity by technology [resource]

    AzureChinaCleantechNews10Dec2018 05

     

    Earlier this year, Taiwan approved 5,500MW of offshore wind projects and aimed to have all the projects operating by 2025. The 5,500MW of offshore projects were divided into 3,836MW selected projects and 1,664MW auctioned projects.

     

     

    China State Grid and Portugal REN sign MOU for cooperation in energy

    On December 5 (Portugal local time), under the joint witness of Chinese President Xi Jinping and Portuguese Prime Minister Antonio Costa, China State Grid and Portugal’s national energy network REN signed an MOU at the Cruz Palace in Lisbon to deepen cooperation and development in the energy field. With this framework, the two sides agree to utilize their respective advantages in South America, Africa and Europe, as well as other regions, to explore energy infrastructure cooperation. China and Portugal are to strengthen joint R&D of new energy technology and the exchange of business best practices via specialized personnel visits between the two countries. (CEC)

     AzureChinaCleantechNews10Dec2018 06

     

    In 2012, China State Grid acquired 25% of REN’s stock for 387 million EUR and became the company’s largest shareholder.

  • China Cleantech Update February 24, 2016

    News Summary:

    • NEA posts new energy requirements for selected provinces
    • Goldwind subsidiary announces first microgrid project
    • Power Construction Co of China announces lifetime overseas cumulative installation base of 110GW
    • Goldwind wind turbine blade break down in America



    Renewables: NEA Posts New  Energy Requirements for Provinces
    The NEA published a notice of nine new requirements, aimed at increasing renewable and higher energy efficient power generation. The nine requirements take aim at the major challenges China State Grid faces today: direct power trading, centralized heating systems in the Winter, spinning reserve requirements, and more. NEA placed the notice for Huabei, Dongbei, and Xibei Provinces. (NEA CN)

    These new policies provide guidance to power generation companies on how to do new business, and aim to improve utilization rates for renewables. 


    Microgrid: Goldwind Launches First Microgrid Project
    Goldwind subsidiary Elechwin announced its first microgrid project, to be launched July 2016. It includes 2MW of wind, and an array of solar, microturbine, and storage facilities. The microgrid is grid-connected and utilizes Goldwind-developed transient stability control to maintain voltage stability when the microgrid is in island mode. (Goldwind CN)

    After dealing with tough grid-connection regulations, Goldwind has finally deployed its first microgrid solution in China. By deploying more solutions like this, the microgrid market in China could develop in the coming years.

    Source: Goldwind

  • China Cleantech Update June 25, 2018

    News Summary: 

    • MOF published the 7th batch new energy subsidy list
    • NEA published national power industry statistics from Jan to May
    • Shaanxi Province distributed wind power development plan
    • China and Russia sign nuclear energy cooperation project
    • NDRC & NEA agreeto carry out electricpower system reforms in Tibet

     
     
    MOF published the 7th batch new energy subsidy list


    On June 15, the Chinese Ministry of Finance published the 7th batch of the new energy subsidy list. The batch covers more than 5,000 renewable energy projects that were connected to the grid between closure of the 6th batch and March 2016, including 1,185 grid-connected power generation projects with a total capacity of approximately 53GW.  475 wind farms with cumulative capacity of 34GW account for 64% of all grid-connected power generation projects. 613 solar power projects with cumulative capacity of 17 GW account for 33% of all grid-connected power projects (MOF)

     

     
    The issuance of the subsidy catalogue will help improve the cash flow of related renewable energyprojects,which have not been able to secure full FIT revenue streams since they connected to the grid and started selling electricity, up to years ago. This seventh batch in particular has been awaited for a longer time than in the past, as the application was closed more than a year ago.
     
     
    NEA published national power industry statistics from Jan to May


    Between January and May 2018, a total of 34GW of energy projects have been installed throughout the country.

     


    The data is incomplete as solar installations are not given, however we can extrapolate that they have exceeded 10GW, from looking at the total installed capacity. Hydro and thermalinstallations are slowing down compared to previous years, and windis maintaining a steady growth.
     


    Shaanxi Province distributed wind power development plan


    In June 2018, Shaanxi Province officially issued its distributed wind power development plan, with a total installed capacity of 426 MW. (CHINAWINDNEWS)

     

    From the documents,we can see that a majority of the projectsarebelow 20 MW, and that 90% of them do not overcome 30 MW.  This definitely is a new trend compared to the past were big 50MW projects have been preferred. We remind that smallercapacity distributed wind power projects will benefitfrom more government subsidies (for further information consult the news published on April 23rd).
     

    Xi Jinping andPutinsignnuclear energy cooperation project


    On June 8th, during the Cooperation Summit in Qingdao, the Chinese President Xi Jinping and Russian President Putin signed an agreement for joint construction of 4 VVER-1200 third-generation nuclear reactors in Tianwan, Liaoning province, and Xudabao, Jiangsu province. The value of the contract exceeds 20 billion RMB contract and the total cost of the 2 projects is estimated above 100 billion RMB. (CEC)
     
     
    NDRC & NEA agree Tibet carry out electric reformation


    On June 21st, NDRC & NEA agreed that the Autonomous Region of Tibet will join other provinces in implementing electrical power system reforms, By the end of 2017, Tibet power consumptions reached 6.201TWh and power generation reached 6.226 TWh for a total installed generation capacity of 3.09GW. (NDRC)
     
    Electric reforms applied to a growing number of Chinese provinces form aset of policiesenabling to determineenergy pricesthrough market mechanisms, therefore disrupting the monopoly of grid companies and establishing a more transparent structure for pricing of T&D. 

  • China Cleantech Update March 26, 2018

    Dear readers,

     

    It's been a while since we've shared some weekly China cleantech news. We had interrupted this good habit last year due to some internal changes. Answering the requests of many of you who have kindly contacted us, we're now thrilled to re-launch the effort, especially as plenty is happening and the Chinese cleantech landscape is more exciting than ever. We're starting with this simple info-graphic summarizing the growth in the power market during 2017, to make sure everybody is up to speed. Starting next week we'll revert back to our standard format with 5 selected news items along with summary analysis from our experts. We're always happy to exchange on the Chinese Cleantech markets with you, learn about new technologies and make new friends, so don't hesitate to reach out. Thanks to all for your precious support !

     

    Hubert Beaumont
    Azure International
    CEO

     

  • China Cleantech Update November 05, 2018

    News Summary:

    • Q3 2018 report shows China boosts grid-connected offshore capacity by 1,020MW
    • Fujian DRC approves Fujian Putian City offshore wind farm
    • SPIC Dafeng H3#300MW offshore wind farm first 6 WTG units connected to the grid
    • 2017 wind power generation average on-grid price decreases 0.43% YOY
    • CIP & Century Group sign 16.5 billion TWD offshore wind foundation contract
    • Baoxin Energy and CGN sign MoU for 1,400MW offshore wind project
    • NEA publishes letter promoting non-subsidized PV & Wind on-grid work
    • NEA data show national wind power utilization hours increase 167hrs by end of August

     

    Q3 2018 report shows China boosts grid-connected offshore capacity by 1,020MW

    By the end of Q3 2018, China’s yearly installedwind capacity reached 12,610MW, a 30% year-on-year (YOY) increase. Total wind generation capacity in China was 267.6TWh, a 26% YOY increase. For China’s grid-connected offshore wind, there was 1,020MW newly added capacity, mainly concentrated in Jiangsu (920MW) and Fujian (90MW) provinces. (NEA)

    AzureChinaCleantechNews15Oct2018 04

    AzureChinaCleantechNews15Oct2018 05

     

     

    Fujian DRC approves Fujian Putian City offshore wind farm

    Fujian Putian City offshore wind farm will be located in Xinghua Bay, with plans to set 40 units of 5.0MW WTG. Project details – distance from shore: 3km; depth range: 5 to 15m; total investment: 3.44 billion CNY.

     AzureChinaCleantechNews15Oct2018 06

     

     

     SPIC Dafeng H3#300MW offshore wind farm first 6 WTG units connected to the grid

    The 75-unit 4.0MW WTG SPIC Dafeng H3#300MW offshore wind power project has been successfully connected to the grid. The project is located in Yancheng City’s Binhai County in Jiangsu Province. Project details – distance from shore: 36km; depth range: 17.9 to 18.3m; sea area: 46km2; total investment: 4.96 billion CNY (excludes onshore investment)(CEC)

     AzureChinaCleantechNews15Oct2018 01

    Before this project, SPIC already had two offshore wind farms completed and in operation.

    SPIC Binhai North H1# - 25 units 4.0MW WTG operating in May 2015

    SPIC Binhai North H2# - 100 units 4.0MW WTG operating in June 2018

     

     

    2017 wind power generation average on-grid price decreases 0.43% YOY

    The 2017 national wind power generation average on-grid price was 0.5623CNY/kWh, a 0.43% YOY decrease. Shanghai’s average on-grid price, ranked the highest, was 0.7519CNY/kWh, whereas Yunnan’s was only 0.4238CNY/kWh. (Average on-grid price = power sale income / on-gird power * 1.17 including TAX) (NEA)

    AzureChinaCleantechNews15Oct2018 02

     

     

    CIP & Century Group sign 16.5 billion TWD offshore wind foundation contract

    The Copenhagen Infrastructure Fund (CIP) and Century Group (Century) signed an Offshore Wind Foundation Contract for 16.5 billion TWD on October 2. CIP Zhangfang and CIP Xidao, which have a total capacity of 600MW and more than 60 units of offshore wind foundations, will be handed over to Century Group, making it the highest single contract in the history of offshore wind power in Taiwan. (CIP tw)

    CIP Taiwan offshore projects

    AzureChinaCleantechNews15Oct2018 03

    The project is based on Taiwan’s goal to remove nuclear power plants by 2025. Taiwan wants to install a 520MW offshore wind farm in 2020 and a total of 3,000MW offshore wind farms by 2025. In phase I of CIP Zhangfang offshore wind farm, 100MW will be operating in 2021, and in phase II, 452MW will be operating in 2023. For CIP Xidao offshore wind farm, 48MW will be operating in 2024.

     

     

    Baoxin Energy and CGN sign MoU for 1,400MW offshore wind project

    Baoxin Energy has announced the signing of an MoU with CGN for a 1,400MW offshore wind project. The two sides will negotiate a cooperation agreement based on the letter of intent for cooperation. According to the letter, the two sides intend to jointly develop the Shanwei Jiazi Offshore Wind Farm (900MW) and the Shanwei Houhu Offshore Wind Farm (500MW). After the Shanwei Houhu (500MW) Offshore Wind Farm project is approved, Baoxin Energy and CGN will establish a JV in which CNG will hold 80% and Baoxin 20%. (Sina Finance)

    Shanwei Houhu 500MW project sea area diagram.

    AzureChinaCleantechNews17Sep2018 02

     

    CGN is a large clean energy group. By the end of 2017, CGN had 21,470MW of nuclear plants in operation, 10,270MW under construction, more than 11GW of wind installed, and more than 2GW of PV installed.

     

     

    NEA publishes letter promoting non-subsidized PV & Wind on-grid work

    In the context ofon goingPhotovoltaic (PV) & Wind technology advancement and costreductions, the National Energy Administration (NEA) announced that it will further promote the acceleration of renewable energy development and competitiveness, and eliminate subsidy dependence as soon as possible. Non-subsidized PV & Wind projects will be approved by local governments and should sign long-term contracts with local power grid companies with curtailment levels below 5%. In this notice, NEA also announced plans to promote direct trading in PV & Wind. In direct trading, PV & Wind developers and customersnegotiateanon-grid price and payaT&D (Transmission and Distribution) price to the power grid company. (BJX)

    Non-subsidized renewable energy direct trading.

    AzureChinaCleantechNews17Sep2018 05

    For illustration, wind farms connected in type I wind resource areas (mostly in North, NE and NW China) can currently receive a subsidized on-grid tariff of0.4CNY/kWh, whereas thermalpower plants in the same region receive between0.25and 0.30 CNY/kWh. However these same wind farms often face severe curtailment, with up to 30% of possible production lost because of grid off-take challenges. .

     

     

    NEA data show national wind power utilization hours increase 167hrs by end of August

    The National Energy Administration (NEA) has released statistics on the national electricity industry for January to August. Between January and August, national power consumption was 4,529.6TWh, a 9% YOY increase. During this period, there was also 10.26GWofnewly installed wind capacity with 1,412 utilization hours. (NEA)

    Azure has summarized some of the key data in the graph below:

    AzureChinaCleantechNews17Sep2018 03

    AzureChinaCleantechNews17Sep2018 04

     

  • China Cleantech Update September 12, 2018

    News Summary:

    • Zhejiang province to limit coal production and energy consumption
    • NEA publishes national coal power ultra-low emission and energy saving targets
    • Wind production accounts for more than 5% of national total in 1H2018
    • Fujian and Shandong cancel subsidies for distributed PV projects
    • China's first flexible high-voltage direct current (VSC HVDC) offshore wind farm
    • NDRC requires power trading companies to carry out shareholding reforms

     

     

    Zhejiang province to limit coal production and energy consumption

    According to this notice, Zhejiang will control the proportion of coal production, limit the development of high energy-consuming industries and promote development of new energy such as wind, PV and biomass. ( ZJDRC)

    Azure has summarized some of the key data in the graph below:

     AzureChinaCleantechNews01Sep2018 01

    Despite the notice announcing more support for new energy, we are in fact surprised by how small the numbers are for new wind installations. The projections are reasonable in light of historical installations, with average annual installations of 160MW over the past 7 years, but they are not in line with the target of reaching 4GW by 2020 according to the province's 13th 5 year plan, starting from 1.3GW in 1H2018.  We therefore assume that wind targets listed above are not including distributed wind projects nor offshore wind. Zhejiang currently has 252MW of offshore wind under construction and more than 1.2GW already approved.

     

     

    NEA publishes national coal power ultra-low emission and energy saving targets

    2018 National coal power ultra-low emission target: 48,680MW.

    Energy saving transformation target: 53,905MW. (NEA)

    Energy saving target map below:

     AzureChinaCleantechNews01Sep2018 02

     

     

    Wind production accounts for more than 5% of national total in 1H2018

    A total of82.9TWh of wind power was produced in China during1H2018 ,accounting for 5.4% of total on-grid power. Wind power trading reached 19.8TWh inluding 9TWh of cross-provincial trading. (CEC)

    1H2018 Wind power market trading diagram

    AzureChinaCleantechNews01Sep2018 03

    Large power generation groupshave participated in wind power transactions in 16 provinces,with the three provinces of Yunnan, Xinjiang and Gansu accounting for more than half. The average transaction pricein these provinces(including production as well ascross-provincialand / or cross-regionaltransmission price s) ranged between 0.37and 0.44 CNY/ kWh.

     

     

    Fujian and Shandong cancel subsidies for distributed PV projects

    Following the“531” < 国家发展改革委财政部国家能源局关于2018年光伏发电有关事项的通知> ( NDRC)policyrealised earlier this year, Shandong & Fujianprovinces are officially cancelling subsidies for newly connected PV project. The final subsidy amount or power tariff depends on the timing of both registration and connection of the project (BJX)

    Fujian distributed PV subsidy breakdown 

    AzureChinaCleantechNews01Sep2018 04

     

     

    China's first flexible high-voltage direct current (VSC HVDC) offshore wind farm

    ChinaHuadong Design Instituteis planning to open a groundbreaking 1.1 GW offshore wind farm 90 kilometres from the coast of Jiangsu Province in eastern China.DNV GL announced that it will provide technical support for the feasibility study of China's first flexible high-voltage direct current (VSC HVDC) offshore wind farm converter station.  ( BJX)

    Compared with traditional submarine high voltageAC power transmission(HVAC), VSC HVDC canminimizepowerlossesand is suitable for long distance and large capacity project.

     

     

    NDRC requires power trading companies to carry out shareholding reforms

    According to NDRC document #9 <中共中央国务院关于进一步深化电力体制改革的若干意见> and as part of the power market reform, many new power trading companies have been setup over the past two years. The result however is that most power trading companies are still wholly-owned subsidiaries of the grid company. In this new policy, NDRC now requires that preferably 50% and at least 20% of power trading companies stock be owned by enterprises independent of state grid.  ( NDRC

  • Week of April 01, 2019

    News Summary:

    • Guangdong DRC releases 2019 project construction plan
    • EDF enters China offshore wind market
    • More than 1,400MW of solar projects documented in Anhui but not included in national development plan
    • Huaneng Guanyun 300MW and Dafeng 100MW offshore WTG bidding result released
    • SPIC and Siemens sign Strategic Partnership Framework Agreement

     

     

    Guangdong DRC releases 2019 construction project plan

    In 2019, Guangdong Province will arrange 1,170 key projects, with a total investment of 5.93 trillion CNY to be divided annually at 650 billion CNY. There will be 628 preparatory projects for preliminary construction, with an estimated total investment of 3.18 trillion CNY. The plan includes more than 9,000MW of offshore wind projects. (Guangdong DRC)

    AzureChinaCleantechNews01Apr2019 01

     

     

    EDF enters China offshore wind market

    EDF has signed a cooperation agreement with China Energy Investment Group to participate in the investment of Dongtai IV and V offshore wind power projects in Jiangsu Province. Dongtai IV has already begun construction, and Dongtai V will begin in 2019. Once the contract is in effect, the two parties will jointly build and operate the two projects. The projects will have an installed capacity of 500MW and will be put into operation batch by batch by 2021. (EDF CHINA)

    AzureChinaCleantechNews01Apr2019 02

     

     

    This project, which is the first foreign investment in a Chinese offshore wind farm, may be marking the beginning of a new trend, as China is opening up to foreign investment in a number of sectors. Azure is thankful to EDF for giving us the opportunity to support the due diligence on this ground breaking project.

     

     

    More than 1,400MW of solar projects documented in Anhui but not included in national development plan

    Following National Development and Reform Commission (NDRC) requirements, Anhui DRC released a list of more than 1,400MW of solar projects that were documented in the local province but not included in the national development plan:

    1. Projects that have been filed but were not included in the national development plan and have not been constructed: 1,231MW (906MW of which have been filed for over two years)
    2. Projects that are under construction: 224MW

    (Anhui DRC)

     

     

    Huaneng Guanyun 300MW and Dafeng 100MW offshore WTG bidding result released

    The Huaneng Guanyun 300MW and Dafeng 100MW offshore WTG bidding result has been released, with Goldwind taking the winning bid. (Huaneng)

    AzureChinaCleantechNews01Apr2019 03

    AzureChinaCleantechNews01Apr2019 04

     

     

    SPIC and Siemens sign Strategic Partnership Framework Agreement

    State Power Investment Corporation (SPIC) and Siemens have signed a Strategic Partnership Framework Agreement allowing the two sides to take advantage of their respective industries and resources, and cooperate in the fields of heavy-duty gas turbines, digitalization of power plants, hydrogen energy utilization, distributed energy, smart micro-grid, industrial upgrade and international gas turbine projects, in addition to frequent exchanges between senior management personnel. (SPIC)

    AzureChinaCleantechNews01Apr2019 05

  • Week of April 08, 2019

    News Summary:

    • NDRC determines on-grid price for third generation nuclear power technology
    • NDRC approves transmission price of Guangdong project in Northwestern Yunnan
    • SPIC releases final 6GW subsidy free onshore wind project WTG bidding results
    • CGN completes trial of 1,200-ton self-elevating offshore wind turbine installation platform
    • Beijing-Tianjin-Tangshan power grid absorbs 33.3TWh of local clean energy in 2018

     

     

    NDRC determines on-grid price for third generation nuclear power technology

    In 2013, the National Development and Reform Commission (NDRC), Zhejiang DRC, Shangdong DRC and Guangdong DRC issued a notice that supports the introduction of technology to the first batch of nuclear power units in the provinces. Last week, in conjunction with the provinces’ support for the first three generations (AP1000) of nuclear power projects, the following trial prices of on-grid tariffs have been determined:

    1. Guangdong Taishan Phase I Nuclear Power Project: 0.4350 CNY/kWh
    2. Zhejiang Sanmen Phase I Nuclear Power Project: 0.4203 CNY/kWh
    3. Shandong Haiyang Phase I Nuclear Power Project: 0.4151 CNY/kWh
      (NDRC)

    AzureChinaCleantechNews08Apr2019 01

    Note:The FITswill be put into effect from the projects’ start date until the end of 2021.

     

     

    NDRC approves transmission price of Guangdong project in Northwestern Yunnan

    The transmission price of the DC project in Northwestern Yunnan has been approved at 0.092 CNY/kWh (including tax without line loss); the transmission price of the supporting AC project in Yunnan Province is 0.015 CNY/kWh. The transmission price is determined by income generated from CAPEX, which ultimately depends on the span of distance of the project. (NDRC)

    AzureChinaCleantechNews08Apr2019 02

    The starting point of the project is located in Dali Prefecture, Yunnan Province. The line runs through Yunnan, Guizhou, Guangxi and Guangdong Provinces, with its endpoint located in Shenzhen, Guangdong Province. With a total length of 1,928 kilometers, it is the longest transmission project of the Southern Power Grid. The project relies on a ±800 kV DC transmission technology with a transmission capacity of 5GW.

     

     

    SPIC releases final 6GW subsidy free onshore wind project WTG bidding results

    Following the close of the recent bidding (refer to Azure’s earlier publication for more details on thebidding process) for SPIC’s 6GW subsidy free onshore wind project, the final results have been released last week: the project site will be located in Siziwangqi, Wulanchabu City, Inner Mongolia Autonomous Region (IMAR), it will require a total investment of 42.544 billion CNY, occupy a planned area of 3,800 square kilometers and reach a construction scale of 6GW. (BJX)

    AzureChinaCleantechNews08Apr2019 03

     

     

    CGN completes trial of 1,200-ton self-elevating offshore wind turbine installation platform

    This platform is currently the most advanced of wind power installation platforms in China, classified by the China Classification Society (CCS) as a 7MW and below offshore wind turbine installation. It has a total length of 94.5 meters, width of 43.3 meters and depth of 7.6 meters, a design draft of 4.7 meters, leg length of 91.5 meters and maximum working depth of 60 meters. (BJX)

     AzureChinaCleantechNews08Apr2019 04

     

     

    Beijing-Tianjin-Tangshan power grid absorbs 33.3TWh of local clean energy in 2018

    In 2018, total electricity consumption in the Beijing-Tianjin-Tangshan region totaled 372.9TWh, a year-on-year (YOY) increase of 6.33%. Of that total consumption, on-grid electricity produced by local clean energy constituted 33.3TWh, a YOY increase of 13.8%. (BJ-PX)

    AzureChinaCleantechNews08Apr2019 05

  • Week of April 15, 2019

    News Summary:

    • CWEA releases 2018 China wind power installed capacity report
    • NEA releases subsidy-free wind and PV projects development plan
    • China’s largest and heaviest offshore wind turbine jacket foundation completes lifting
    • Shanghai DRC releases FITs for third batch of 2018 projects
    • Xiong'an’s first UHV line project to be completed by end of April

     

     

    CWEA releases 2018 China wind power installed capacity report

    In 2018, China’s total installed capacity reached 209.53GW, of which 21.14GW were newly installed wind power, a 7.5% year-on-year (YOY) increase. Of more than 4GW of offshore wind total installed capacity, 1,655MW were newly installed, a 42.7% YOY increase. On the wind turbine manufacturer side, Goldwind’s newly installed capacity reached 6,707MW, constituting 31.7% of the total installed capacity. Followingpositions are held byEnvision, Mingyang, United Power and Shanghai Electric, the five making up 75% of the sector’s newly installed capacity. (CWEA)

     AzureChinaCleantechNews15Apr2019 01

    AzureChinaCleantechNews15Apr2019 02

    AzureChinaCleantechNews15Apr2019 03

     

     

    NEA releases subsidy-free wind and PV projects development plan

    The National Energy Administration (NEA) has released a development plan for subsidy-free wind and PV projects. The plan highlights:

    1. Prioritizing development of subsidy-free projects
    2. Prioritizing consumption of power generated by subsidy-free projects
    3. Encouraging approval of inactive projects converted to subsidy-free projects

    (NEA)

     AzureChinaCleantechNews15Apr2019 04

     

     

    China’s largest and heaviest offshore wind turbine jacket foundation completes lifting

    Contracted to deliver jacket foundations for the Yangjiang Nanpeng Island Offshore Wind Farm Project developed by China General Nuclear (CGN), CCCC Third Harbor Engineering has completed the lifting of the project’s first set of wind turbine jacket foundations last week. With a total weight of over 900 tons, it is the largest and heaviest offshore wind turbine jacket foundation in China so far. (BJX)

     AzureChinaCleantechNews15Apr2019 05

     

     

    Shanghai DRC releases FITs for third batch of 2018 projects

    49 PV projects (including two full-scale PV power plants and 47 distributed PV projects, with a total of ~28MW) and 1,250 household PV projects ( with a total of ~9.5 MW) are eligible to receive feed-in tariffs (FITs) from the city’s Renewable Energy and New Energy Development Project Funds for five years. The FIT for PV projects has been raised from 0.25CNY/kWh to 0.55CNY/kWh, while the FIT for household PVs is 0.4CNY/kWh. (Shanghai DRC)

     

     

    Xiong'an’s first UHV line project to be completed by end of April

    The Beijing West-Shijiazhuang 1000kV UHV transmission line is the fourth UHV line in the southern power grid of Hebei Province and the first UHV line to serve Xiong'an. With a total length of 2 × 224km, this project will be of great significance to improving the security and stability of the Beijing-Tianjin-Hebei region and the northern China power grids, meeting the needs of Xiong'an New District's load growth and alleviating the power shortage in southern Hebei. (Xiong’an GOV)

    AzureChinaCleantechNews15Apr2019 06

     

  • Week of April 22, 2019

    News Summary:

    • NEA requires cities to promote winter wind power heating
    • NEA releases second batch of “13th Five-Year Plan” PV poverty alleviation projects
    • Shandong shuts down four coalmines of 1.25 million ton annual capacity
    • Hebei promotes application of 35,500 new energy vehicles in 2019
    • CGN and Huaneng Group sign strategic cooperation agreement

     

     

    NEA requires cities to promote winter wind power heating

    Following the winter clean heating plan for China’s northern regions (2017-2021) (NDRC), the National Energy Administration (NEA) requires that northern cities complete wind power heating development planning before June 2019. Meanwhile, it will implement corresponding investment subsidy policies for wind power clean heating projects. (NEA)

    AzureChinaCleantechNews22Apr2019 01

     

    This solution is being implemented gradually with several objectives: 1. provide an alternative revenue steam for wind farms suffering from heavy curtailment and 2. electrify heat supply in order to reduce the need for CHP plants which are among the key contributors to pollution in urban areas.

     

     

    NEA releases second batch of “13th Five-Year Plan” PV poverty alleviation projects

    The second batch of photovoltaic (PV) poverty alleviation projects of the “13th Five-Year Plan” will be carried out in 15 provinces (districts) and include 165 county PV poverty alleviation projects that comprise of 3,961 village-level PV power stations with a total installed capacity of 1.67GW. The target is to assist 301,773 households in poverty-stricken villages, and all projects should be operating before the end of 2019. (NEA)

    Second batch of “13th Five-Year Plan” PV poverty alleviation projects distribution

    AzureChinaCleantechNews22Apr2019 04

     

     

    Shandong shuts down four coalmines of 1.62 million ton annual capacity

    Regarding the decision-making and deployment of structural reforms on the power supply side, the Energy Administration of Shandong Province is working towards resolving and preventing overcapacity of coal-fired power generation by shutting down four coalmines that have constituted a capacity of 1.62 million tons in 2019. (SDNYJ)

     AzureChinaCleantechNews22Apr2019 02

     

    To put this in perspective, 1.62 million tons of coal allows to produce about 5,500 GWh of thermal power in a year. Closing down these mines thus creates space for roughly 2,800MW of new wind farms on the Shandong grid, where wind produces at an average of 1,971 utilization hours.

     

     

    Hebei promotes the application of 35,500 new energy vehicles in 2019

    The lead department for the Development and Promotion of New Energy Vehicles in Hebei Province has proposed to promote the application of 35,500 new energy vehicles in 2019 and increase the proportion of new energy vehicles used in the public service sector, such as logistics vehicles, school coaches, postal service vehicles, street cleaning vehicles, etc. The department will also support the pilot results of the promotion and application of new energy vehicles in Baoding City and promote the full roll out of new energy vehicles in the main vicinity of the 2022 Winter Olympic Games (in the Zhangjiakou City administrative zone). (Hebei GOV)

    AzureChinaCleantechNews22Apr2019 03

    (Source:Diandong)

     

     

    CGN and Huaneng Group sign strategic cooperation agreement

    China General Nuclear Power Corporation (CGN) and Huaneng Group have signed a strategic cooperation agreement stating that the two sides will carry out specific cooperation in the fields of nuclear power, information technology development, nuclear fuel, finance and nuclear technology. (CGN)

    AzureChinaCleantechNews22Apr2019 05

  • Week of April 29, 2019

    News Summary:

    • NEA releases 2022 thermal power plan and construction risk warning
    • Mingyang wins bid for 1,400MW of offshore wind projects
    • Data shows wind power generation reached 104TWh, increased 6.1% between January and March
    • HEAG signs an 800MW wind resource development agreement with the Panshi Government
    • Beijing establishes “Belt and Road” energy partnership with 30 countries

     

    NEA releases 2022 thermal power plan and construction risk warning

    The National Energy Administration (NEA) has released the2022 thermal power plan and construction risk warningto support decision-making and deployment of structural reformsin the thermal energy sector. (NEA)

     AzureChinaCleantechNews29Apr2019 03

    AzureChinaCleantechNews29Apr2019 04

     

     

    The thermal installation margin is a binding indicator that reflects the redundancy of local thermal power installation and power supply. The early warning financial indicator for thermal power construction is a recommended indicator, which reflects the economics of self-use thermal power projects in the province and provides decision-making reference for the planning and construction of thermal power projects.

     

     

    Mingyang wins bid for 1,400MW of offshore wind projects

    Mingyang has won the bid for the procurement of wind turbines for CGN’s Shanwei Offshore Wind Power Project, for a total capacity of 1,400MW, and a total bidding price of 8,602.49 million CNY, which indicatesa WTG price of 6,144 CNY/kW. (CGN)

    AzureChinaCleantechNews29Apr2019 01

    AzureChinaCleantechNews29Apr2019 02

     

    As Goldwind’s bids in the Shanwei Houhu project and Jiazi I & II projects areonly0.55% and 1.25%, respectively, higher than those of Mingyang’s, it can be seen that current bidding for offshore wind turbines is becoming more and morecompetitive. These prices for ~6MW range turbines are also significantly lower than 1 year ago, when the same turbines were bidding in the 8k range.

     

     

    Q1 wind power generationreaches 104TWh, increasing 6.1%YoY

    By the end of March 2018, China’s total installed capacity reached 1,810GW, which included 310GW from Hydro, 1,010GW from Thermal, 85GW from Gas, 46GW from Nuclear, 190GW from Wind and 130GW from Solar. Between January and March, total power generation reached 1,674.7TWh, a 4.2% increase, and included 104TWh of Wind power generation, a 6.1% increase. (CEC)

    AzureChinaCleantechNews29Apr2019 05

     

     

    HEAG (Huayi) signs an 800MW wind resource development agreement with the Panshi Government

    According to the agreement signed by Huayi Wind Energy (HEAG) and the Panshi (Jilin Province) Government on April 24, the former is declared the only resource developer in the development area, which includes Jichang Town, Sanpeng Town, Mingcheng Town, Yantaishan Town, Shizui Town, Baoshan Township, Niuxin Town and Futai Town of Panshi City. Furthermore, Panshi’s Hongqiling Town has invested in the development of wind resources with a total scale of 800MW. (HEAG)

     AzureChinaCleantechNews29Apr2019 06

     

    According to the “wind power investment risk warning” released by the NEA, the risk warning for Jilin wind changed from red to green, meaning that curtailment issues in Jilin area been significantly reduced and Jilin has been given the green light to continue developing wind power construction.

     

     

    Beijing establishes “Belt and Road” energy partnership with 30 countries

    On April 25, energy ministers, ambassadors to China and high-level representatives of energy authorities from 35 countries attended the “Belt and Road” energy partnership ceremony in Beijing. The partnership will promote intergovernmental policy exchanges and cooperative intent communication, build a bilateral and multilateral project cooperation and technology exchange platform, and promote pragmatic cooperation in the energy field between the 30 member countries. (NEA)

    AzureChinaCleantechNews29Apr2019 07

  • Week of August 05, 2019

    News Summary:

    • National wind curtailment decreases 4% YoY in first half of 2019
    • Is the Spring finally here for foreign power battery makers?
    • Coal Mine Gas and Shale Gas seize China’s REDF Subsidy
    • Chongqing DRC introduces policy to up competitiveness of wind power industry
    • Sichuan launches pilot city for hydropower generation direct trading

     

     

    National wind curtailment decreases 4% YoY in first half of 2019

    From January to June 2019, national wind power generation capacity was 214.5TWh, an increase of 11.5% year-on-year (YoY). In the report released by the National Energy Administration (NEA), it was also revealed thatduring the six months the national average wind curtailment ratedropped to 4.7%, a 4% YoY decrease. (NEA)

    1H2019 National wind curtailment distribution

     AzureChinaCleantechNews05August2019 03

     

      

     

    Is the Spring finally here for foreign power battery makers?

    The well-known Automotive Power Battery Industry Standard Conditions, also referred to as the “white list” of EV power battery, has been officially abolished by the Ministry of Industry and Information Technology (MIIT) recently. The “white list” was introduced by the Chinese government in 2015 to help foster domestic battery makers by barring foreign brands from getting on the list. Under this document, EV manufacturers are only able to obtain state EV subsidies if they employ the power batteries of companies on the “white list.” As evidence, 57 Chinese battery manufacturers such as BYD, CATL and OptimumNano, among others, were enlisted, while not a single foreign brand made it onto the list. With such policy support, the total installed capacity of new EV power batteries in China amounted to 56.89GWh in 2018, a 56% YoY increase and a volume 2.4 times that of Japan and 3.6 times that of South Korea.

    Among these domestic manufacturers, CATL and BYD occupied 61% of the power battery market share.

    This might change soon, however. Samsung SDI, LG Chem and SKI, all which have been out of the Chinese market, have returned—and they don’t seem to waste any time. SKI has just signed a supply contract with Tianqi Lithium to acquire battery materials company Lingbao Huaxin, LG Chem has set up a JV with Huayou Cobalt, and Samsung SDI is restarting the Xi'an battery project. Even Panasonic jumped at the opportunity to significantly expand its power battery production capacity in Suzhou and Dalian. (Baidu,MIIT)

    AzureChinaCleantechNews05August2019 01

     

     

    Coal Mine Gas and Shale Gas seize China’s REDF Subsidy

    It has been known that the Renewable Energy Development Fund (REDF) supports the exploitation and utilization of unconventional natural gas such as coal mine gas, shale gas and dense gas, but reaffirmed lately by the Ministry of Finance (MoF) in its announcement of the latest supplementary notice of the Interim Measures to Manage the Special Fund for Renewable Energy Development.

    Beginning in 2019, subsidies will be paid according to the principle, "more production, more subsidies." Those who exceed the amount of production from the previous year will be rewarded an amount corresponding to the degree of excess, while subsidies will be deducted if mining fails to reach the previous year's yield. Meanwhile, the incremental part produced during heating season is incentivized by a higher subsidy.

    As determined in the Interim Measures for the Management of Renewable Energy Development Fund Collection and Use,the REDF includes special funds arranged by the public budget of the MoF (hereinafter referred to as the Special Fund for Renewable Energy Development) and additional income from renewable energy tariffs levied on power users. Subsidies for the abovementioned exploitation of unconventional gas come from the Special Fund for Renewable Energy Development. (MoF)

     

     

    Chongqing DRC introduces policy to up competitiveness of wind power industry

    The Chongqing Development and Reform Commission (DRC) has rolled out a new policy aimed at honing in on scientific research to help develop the city's wind energy resources, further optimize resource allocation, maintain orderly market development, advance wind power technology and cost reduction, and promote overall high-quality development of the local wind power industry. (Chongqing DRC)

    AzureChinaCleantechNews05August2019 04

     

     

    Sichuan launches pilot city for hydropower generation direct trading

    By establishing and improving a new method of hydropower consumption in demonstration areas, the Sichuan Government is now focusing on “reducing electricity prices and encouraging multi-use” to form a win-win scenario in which they can have both maximum consumption of hydropower and sustainable development of key industries. The local government is also actively working on creating economic advantages from resource advantages found in the province. (Sichuan GOV)

    Sichuan hydro direct trade pilot city

    AzureChinaCleantechNews05August2019 05

  • Week of August 12, 2019

    News Summary:

    • Zhangjiakou plans to establish a renewable energy power trading center
    • NDRC reveals power spot market construction plan
    • Shandong accelerates construction of new energy projects
    • Renewables generate 26% of electricity consumed in 1H2019 China
    • New subsidy bidding mechanism brings average PV subsidy to 0.0645 CNY/kWh

     

     

    Zhangjiakou plans to establish a renewable energy power trading center

    The Zhangjiakou Capital Water Conservation Functional Zone and Ecological Environment Supporting Zone Construction Plan for 2019-2035 has been introduced by the National Development and Reform Commission (NDRC). The notice specifies that Zhangjiakou will build a strong smart grid with high-quality on-site matching of renewable energy supply and demand.  The document also reveals the province’s plans to establish of a renewable energy power trading center in Zhangjiakou to carry out market-based trading of renewable energy consumption in the Beijing-Tianjin-Hebei region. (NDRC)

    Jing-jin-ji (Beijing-Tianjin-Hebei) coordinated development plan

    AzureChinaCleantechNews12August2019 01

     

     

    NDRC reveals power spot market construction plan

    The NDRC has revealed its plans for a spot market that will mainly carry out daily, intraday and real-time electricity energy transactions, which contrasts traditional power trading that carries out medium to long term transactions. According to the plan, the corresponding priority power generation of non-hydro renewable energy should then cover the number of guaranteed utilization hours. (NDRC)

    AzureChinaCleantechNews12August2019 02

     

     

     

    Shandong accelerates construction of new energy projects

    The Shandong Government has just rolled out a new measure to “vigorously expand the consumer market and accelerate the shaping of new advantages for the domestic demand-driven economy. In terms of energy, Shandong has pledged to speed up the construction of “Shandong power import” transmission projects, implement solar power generation demonstration projects, offshore wind projects, coastal nuclear power and coastal LNG import hubs, as well as launch the first pilot demonstration project for offshore wind power integration development. (Shandong GOV)

    Changyi City Marine Ranch and 3-Gorges 300MW Offshore Wind Power Integration Test Demonstration Project

    AzureChinaCleantechNews12August2019 03

     

     

    Data on 1H2019 show 26% of electricity consumed in China is generated by renewable energy

    In the six months, China consumed 3400TWh of electricity, up 5% from the same time last year. The total electricity consumption in the east, central, west and northeast regions account for 47.0%, 19.1%, 27.9% and 6.0% of the nation-wide total electricity consumption, respectively. Electricity consumption in Qinghai, Gansu and Shanghai provinces decreased by 2.8%, 0.7% and 0.1%, while electricity consumption in the other 28 provinces grew at a rate that exceeded the national average.

    In the first half of 2019, renewable energy has generated 888TWh of electricity, which means a growth of 14% year-on-year (YoY). Within this, 514TWh of electricity was generated by hydropower for an 11.8% YoY increase, 215TWh was generated by wind power for an 11.5% YoY increase, 107TWh was generated by photovoltaic (PV) power for a 30% YoY increase and 53TWh was generated by biomass power for a 21.3% YoY increase

    Newly installed capacity for the first six months totaled 41GW, of which 1.8GW is hydropower, 9.1GW is wind power, 11.4GW is PV power and 1.3GW is nuclear power. Therefore, non-fossil energy generation has a significant share of 58.4% of newly installed capacity.

    Moreover, progress in electrification has been further advanced. In recent years, the share of electricity in China's energy consumption has been steadily increasing. In the first half of the year, 98TWh of electric power had substituted fossil fuels, accounting for 2.9% of total electricity consumption of the whole society. By the end of June, a total of 1 million charging piles had been built across the country. In addition, according to data released by the China Charging Alliance, as of June 2019 China's EV to charging station ratio reached 3.5:1. Meanwhile, China has 2.81 million all-electric cars, which is 82% of the total number of new energy vehicles.

     (NEA,CEC,EVCIPA)

     AzureChinaCleantechNews12August2019 04

    Source: Azure International, NEA, CEC, EVCIPA

     

     

    New subsidy bidding mechanism brings average PV subsidy to 0.0645 CNY/kWh

    As of the end of July 2019, the average subsidy for PV projects participating in the subsidy auction was 0.0645 CNY/kWh, which is down more than 50% compared to the guiding price. Since the new release of the Notice on the Active Promotion of Grid-Parity of Wind Power & PV Power Generation in May, a total of 23 provinces (except Jilin, Heilongjiang, Fujian, Hainan, Yunnan, Gansu, Xinjiang, Tibet and Xinjiang) organized 4,338 projects for the bidding of state subsidies for 24.56GW of PV power generation. According to Mr. Li Chuangjun, Chief of the New Energy Division of the National Energy Administration (NEA), a new mechanism has been established to both save subsidy funds and guarantee stable development of the industry. Comparing the demand for subsidies under the new bidding mechanism and that under the current guiding FIT, the demand can be reduced by 2.16 billion CNY per year, which can save the state 43 billion CNY based on a 20-year subsidy period, said Mr.Li at an NEA press conference at the end of July. (NEA)

    AzureChinaCleantechNews12August2019 05

  • Week of August 20, 2019

    News Summary:

    • Zhejiang DRC releases methods for competitive bidding of offshore wind projects
    • Liaoning strives to reach PV installed capacity of 5GW in 2021
    • Heilongjiang promotes nuclear, wind, hydrogen and smart grid development
    • South Hebei power grid power trading to include all commercial users
    • Mingyang’s offshore wind turbine orders exceed 4GW

     

     

    Zhejiang DRC releases methods for competitive bidding of offshore wind projects

    According to the notice, all projects that will undergo competition must be listed in the Zhejiang Offshore Wind Farm Project Planning Report, which has yet to be released. Projects subject to competition include two types:

    1. Projects with undetermined developer: project developer, on-grid price and construction sequence will be determined by competition
    2. Projects with determined developer but not approved before the end of 2018:

    For both types of projetson grid price accounts for a score of40 pointsout of a total of100. (Zhejiang DRC)

    AzureChinaCleantechNews19August2019 01

     

     

     Liaoning strives to reach PV installed capacity of 5GW in 2021

    In the Liaoning PV Construction Plan Notice (2019-2021) released by the provincial DRC, it has been revealed that the 2021 target for PV installed capacity is 5.1GW. This reflects the province’s desire to take advantage of the lack of any serious PV curtailment problem in the region and therefore fully exploit PV capacity. The notice also emphasizes promoting investment in PV poverty alleviation projects in Northwest Liaoning. (PVNEWS)

     AzureChinaCleantechNews19August2019 02

     

     

    Heilongjiang promotes nuclear, wind, hydrogen and smart grid development

    The Heilongjiang Government has released the Strong Industrial Provinces Construction Plan (2019-2025). In regards to energy, the plan aims to strengthen the construction efforts of new energy service platforms, as well as encourage the development of production support services such as R&D and design, inspection and testing, and management consulting within the new energy industry. Specifically, emphasis was placed on promoting the R&D and application of nuclear energy, wind power, hydrogen energy and smart grids. (Heilongjiang GOV)

     AzureChinaCleantechNews19August2019 03

     

     

    South Hebei power grid power trading to include all commercial users

    The power trade on the South Hebei power grid is now fully open to commercial users. Prior to the opening of the power trade, only users with voltage levels above 10kV and annual power consumption above 10MWh were able to participate in direct trading, while those below 10MWh were required to entrust a trading company to act as their agent. Now, commercial users—which are power users in industries other than residential, agriculture, utilities and public welfare services—are no longer subject to such voltage level, power usage and general industry restrictions. (Hebei DRC)

     AzureChinaCleantechNews19August2019 04

     

     

    Mingyang’s offshore wind turbine orders exceed 4GW

    Mingyang has released its semi-annual performance forecast, declaring a half-year net profit of 290-350 million CNY, an increase of 99.19-140.4% year-on-year. The company also reported that its offshore wind turbine orders reached 4.18GW, and that its contract amount was about 26.949 billion CNY. Its offshore wind power orders were mostly concentrated in Guangdong and Fujian Provinces. It was also revealed that Mingyang has deployed three sea blade production bases in Guangdong and that by 2020, the production capacity of the MySE5.5MW series and above will reach 3.5GW. (Sina)

    MySE6.0MW product line basic parameter

    AzureChinaCleantechNews19August2019 05

  • Week of December 17, 2018

    News Summary:

    • Local DRC approves 3,000MW of offshore wind capacity for 3 Gorges
    • Power trading companies can now take seats on South Hebei Power Grid Electricity Market Management Committee
    • CGN 1,200t jackup vessel launched in Guangdong
    • China’s first turn-key EPCI offshore wind project begins installation
    • November report shows 3.6% YOY industry-wide power generation increase

     

     

    Local DRC approves 3,000MW of offshore wind capacity for 3 Gorges

    As Azure predicted in last week’s (December 10) news report, the Yangjiang government will be approving a series of offshore wind projects before the end of this month. 3-Gorges’ Qingzhou V, VI and VII offshore wind projects with a cumulative capacity of 3,000 MW have been approved by the Yangjiang Development and Reform Commission (DRC) earlier this month. The three projects all plan to deploy 5.5MW and above offshore WTGs. The total investment for all three projects is said to be above 55.3 billion CNY, of which 30% shall be invested as equity by 3-Gorges and 70% as bank financing. (Yangjiang DRC)

    AzureChinaCleantechNews17Dec2018 02

     

    Yangjiang City’s Qingzhou offshore area has 7 projects with a total installed capacity of 5,000MW. Of these projects, 60% is led by 3-Gorges, followed by 20% from Yuedian and 10% from Huadian and Mingyang. The Yangjiang City projects closely follow the approval of 7 other offshore projects in Jieyang City, also in Southern China’s Guangdong Province, undertaken by Mingyang, CGN and SPIC. Azure sees the timing of these approvals as Guangdong’s last-minute attempt to  help the industry make the best of the existing 0.85 CNY/kWh offshore wind tariff.

     

     

    Power trading companies can now take seats on South Hebei Power Grid Electricity Market Management Committee

    The Hebei DRC has released a notice outlining the composition of South Hebei’s new Power Grid Electricity Market Management Committee. The committee will consist of 26 members who represent market entities such as power grid enterprises, power generation enterprises, power users, power trading companies, trading centers and third-party institutions (including research institutions and independent experts). (Hebei DRC)

     AzureChinaCleantechNews17Dec2018 03

     

    The Electricity Market Management Committee is established to ensure the fairness and openness of the electricity market and protect the legitimate rights and interests of market participants. With a more diverse mix of players being represented, Azure believes that China will be pushing power sector liberalization more aggressively. As a result, electricity prices may expected to drop and barriers to inter-provincial electricity trading reduced, which among other benefits can help ease curtailment issues.

     

     

    CGN 1,200t jackup vessel launched in Guangdong

    On December 8, China State Shipbuilding Corporation (CSSC) Guangzhou Huangpu Shipbuilding Co. and China General Nuclear (CGN) launched a 1,200t jackup offshore wind installation vessel which will start operation in early 2019. The platform has a total length of 94.5m, a width of 43.3m, a maximum working depth of 60m and and will be used for installation of offshore wind turbines up to 7MW. (BJX)

     AzureChinaCleantechNews17Dec2018 04

    AzureChinaCleantechNews17Dec2018 05

     

     

    China’s first turn-key EPCI offshore wind project begins installation

    The Guangdong Yudean Wailuo offshore project is currently undergoing installation and is set to be operating in 2019. The project plans to deploy 36 units of 5.5MW offshore wind turbines with a total capacity of 198MW. The project developer, Yudean, signed a  a full turn-key EPCI contract with China Energy Engineering Group Guangdong Electric Power Design Institute Co., Ltd (GEDI), making it the first domestic offshore wind project for which design, construction and commissioning  is contracted to one single company, therefore allowing to significantly reduce risk and work load for the project owner. (CEEC)

    AzureChinaCleantechNews17Dec2018 06

    AzureChinaCleantechNews17Dec2018 07

     

     

    November report shows 3.6% YOY industry-wide power generation increase

    The National Bureau of Statistics has released data on China’s energy production for November 2018. In November, industry-wide power generation was 554.3TWh, an increase of 3.6% year-on-year (YOY). Among this statistic, thermal power generation increased 3.9%, hydropower generation increased 1.5%, nuclear power generation increased 24.7%, wind power generation decreased 9.5% and solar power generation increased 2.5%. The fall in wind power production can be attributed to unfavorable wind conditions in Hebei, Shanxi and IMAR. (Stats)

    AzureChinaCleantechNews17Dec2018 08

  • Week of December 24, 2018

    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 toco-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 which80% million CNYis 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 fora total 1,928 MW capacity. On-grid price bidding ranges from 0.37 to 0.49 CNY/kWh. (Ningxia DRC)

     AzureChinaCleantechNews24Dec2018 04

     

    Ningxia belongs toaType IV wind resourcearea; prior projects wouldreceivea fixedFIT 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’sCNY22 billionproject 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 isexpectedtosupply 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 andisplanned tostart 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 thelargest offshore wind turbineproducedin China so far. (BJX)

    AzureChinaCleantechNews24Dec2018 06

     

    The Shanghai Electric 7MWPMDDoffshore wind turbineis based on a licensefrom Siemens Gamesa, andShanghai 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.