• China Cleantech Update August 02, 2016

    News Summary:

    • First half 2016 generation utilization hours published
    • Coal reduction reforms announced 
    • First half 2016 Jilin energy utilization rates published
    • Gansu strikes 1 billion RMB deal to integrate wind and 400MW storage
    • NEA publishes Dongbei electricity 2020 roadmap 
    • IMAR renewable energy generation January to May 2016 data released
    • Q1 to Q2 China energy consumption data release



    Data: First Half 2016 Power Plant Utilization Hours Published
    The NEA published the first half of 2016 utilization hours for power plants at the 6MW and above installed capacity. Average utilization hours for all power plants was 1,797 hours, a decrease by 137 hours (about 7%) from 2015 levels in the same time period. The table below summarizes the total installed capacity and utilization hours for the first half of 2016 and change relative to 2015 levels. (NEA CN)
     
    While the average decreased, the utilization hours per province varies greatly. Yunnan and Sichuan provinces, for example, were at 1,441 and 1,377 hours, respectively. Due to the major difficulties integrated wind, lower user demand, and lack of sufficient transmission capacity, Xinjiang, Gansu, Jilin, and Ningxia provinces all had less than 680 utilization hours. Gansu is aware of this situation and, as discussed later, is attempting to increase utilization hours with a storage plant solution. 
     
    Table: First Half 2016 Utilization Hours for 6MW+ Power Plants

    Source: NEA 
     
     

  • China Cleantech Update December 02, 2016

    News Summary:

    • NEA Publishes Power Generation Utilization Hours for First Three Quarters of 2016  
    • Renewable Power Generation on the Northwest Grid Surpasses 70 TWh
    • Goldwind to Supply 82 MW Wind Farm in Chile




    Statistics: Utilization Hours for First Three Quarters of 2016 Published by the NEA 

    • The NEA recently published data on the average utilization hours for all power plants over 6,000 KW. During the first three quarters of 2016 average utilization hours declined to 2,818 hrs, which makes for a decrease of 179hrs when compared to the same time frame in 2015. The key findings as broken down by sector:
    • Total Hydro installed capacity: 280 GW; Utilization hours: 2,766 hrs; an increase of 127 hrs
    • Total Thermal installed capacity: 1,030 GW; Utilization hours: 3,071 hrs; a decrease of 213 hrs
    • Total Wind installed capacity: 140 GW; Utilization hours: 1,251 hrs; a decrease of 66 hrs


    National Utilization Hours for First Three Quarters of 2016

    (Source: Azure International)

    The top two provinces for wind utilization hours are southwestern provinces, with Yunnan at 1,712 hrs and Sichuan at 1,643 hrs. In the same time, Gansu, Xinjiang and Jilin utilization hours remain low, at 870, 946, 951, respectively. With regards to thermal generation, an average of 3,071 hrs is the lowest level since 2005. (NEA CN)

  • China Cleantech Update December 09, 2016

    News Summary:

    • NEA publishes Wind Power 13th Five Year Plan (十三五)
    • Hydro Power 13th Five Year Plan (十三五)  published by NEA
    • China's Sany Signs MoU with Indian State of Gujarat
    • CNBM of China Lands 212 Million USD Solar Project in Portugal




    Plan: Wind Development Plan of the 13th Five Year Plan “十三五”  Published by NEA 
    The NEA recently published the Wind Power Development Plan of the 13th Five Year Plan. The development plan lays out comprehensive onshore and offshore installation targets per province for 2020.  According to the document, by the end of 2015, total installed wind capacity was 129 GW, and total power generation from wind 186.3 TWh, which was 3.3% of national power consumption. By 2020, installed wind capacity will be 210 GW, with total power generation more than doubling to 420 TWh, 6% of national power consumption. The development plan also highlights cross provincial UHV transmission lines under construction or that have recently come online, aimed at delivering power from the north to east and central China. (NEA CN)

    Long Distance Cross-Provincial UHV Transmission Lines Highlighted in Wind Power Development Plan



    2015 Installed Capacity and 2020 Targets, by province

     


    Source: Azure International, NEA

    The wind development plan calls for continued capacity expansion by 2020, however, as seen in the chart above, 64% of new capacity additions, 64 GW, will be in southern provinces with less robust wind resources. This reflects central planners desire to ease high curtailment levels in the “three norths”, 三北, area of the Northwest, Northeast and North China grids. Provinces seeing the largest capacity increase to 2020 are Yunnan (7.9 GW, 191%); Hebei (7.8 GW, 76%); Jiangsu (5.4 GW, 131%); and Henan (5.1 GW, 559%). Provinces that saw the highest levels of curtailment in 2016, such as Gansu (1.48 GW, 12%) Xinjiang (1.09 GW, 6%) and Jilin (0.56 GW, 13%) are targeted for much smaller capacity increases. Offshore wind development is also emphasized, with Fujian set to build 3 GW, or 60% of total offshore wind, by 2020. 

  • China Cleantech Update June 08, 2016

    News Summary:

    • NDRC announces new minimum utilization hours insurance for renewable energy
    • REN21 publishes global status of renewable energy for 2015 year in review
    • NDRC and NEA announce 2016 to 2030 energy technology innovation plan
    • Twelve electricity trading centers opened in May across nation for direct trading deals

     
     
    Finance: NDRC Announces New “Insurance” on Renewable Energy Utilization Hours
    The NDRC announced a financial guarantee to wind and solar power plants who fail to meet minimum utilization hours in the year due to manmade events (curtailment). The pricing is benchmarked to the on-grid price times the number of guaranteed utilization hours, shown in the tables below. (NDRC CN)
     
    The new policy may have sweeping implications across the renewable energy industry in China. Many wind and solar power producers have felt the pressure of high-level curtailment rates in the 30% range for the past few years, and have considered selling their investments due to a lack of financial protection during curtailment events. Now, for the first time ever, a sort of “insurance” policy has been set in place to allow renewable energy plants to continue to operate in an otherwise uncertain economic and market environment.
     
    While this may be positive thinking, it will be interesting to see what happens if curtailment rates and an overcapacity year eat into the cash reserves the NDRC will undoubtedly have to put aside to support this new policy. Azure maintains a state-of-the-art grid curtailment modeler that can forecast curtailment rates throughout China, and we suspect this new policy to have a positive impact on our wind and solar plant investment clients.
     
     
    Wind Power Utilization Hours Guarantee by Resource Type, Region/Area, and Hours

     
    Solar Power Utilization Hours Guarantee by Resource Type, Region/Area, and Hours

    Source: NEA, NDRC, Azure International