• 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 November 04, 2016

    News Summary:

    • NEA Publishes Draft of Inter-provincial Renewable Energy Incremental Spot Market Regulations
    •  Wind Investment for First Three Quarters of 2016 Falls 29%
    • Jinko Solar to Build 40 MW Solar Farm in Vietnam

     
     
     
    Policy: Draft of Inter-provincial Renewable Energy Incremental Spot Market Regulations Published by NEA
    The NEA recently published regulations concerning the establishment of an interprovincial renewable energy spot market. Market participants will be able to trade power from renewable energy sources on a day-ahead and inter-day time scale only after having already signed long or medium term power contracts and only if renewable energy producers are forecasted to encounter curtailment.Market participants may enter into the incremental spot market only after these preconditions are met. (BJX CN)
     
    This represents the strongest signal yet of establishing a fully functioning spot market trading mechanism, an indicator of true marketization of the power sector. However, attaching participation in the spot market with signing a long term power purchase contract may present an obstacle to renewable generators looking to participate.
     
     
     
    Statistic: Wind Investment for First Three Quarters of 2016 Falls 29%
    According to a recent China Electricity Council Report on China's Electricity Demand for the first three quarters of 2016, while total installment figures of grid-connected wind capacity reached 140 GW, wind power investment dropped by a total of 29%. (CEC CN
     
    Heavy curtailment and decreasing utilization hours for wind is becoming evident in dampening investor enthusiasm. National wind utilization hours declined overall by 5% from last year to 1251 hours for the same period. However certain provinces have seen large reductions in operating hours, with Xinjiang seeing a decrease of 29% to 946 hours, Ningxia falling 25% to 1064 hours and Gansu decreasing 9% to 870 hours.
     

  • China Cleantech Update November 17, 2016

    News Summary:

    • NEA Releases Electric Power Sector Development Plan of the 13th Five Year Plan
    • CNBM International Purchases Ukrainian Solar Farm Operator Neptune Solar LLC
    • Gansu DRC Announces Completion of Jiuquan-Hunan ±800kV UHV DC Transmission Line and Construction of 200 MW Wind Farm in Tongwei, Gansu

     
     
     
    13th Five Year Plan: National Electric Power Sector Development Plan Released by the NEA 
    On November 7th, the long-awaited Electric Power Sector Development Plan of the 13th Five Year Plan was released by the NEA. Although further details are slated for release at a later date, key takeaways from this release include:

    • Targets for total electricity capacity by 2020 to reach 2 TW, up from 1.5 TW in 2015.
    • By 2020 thermal power capacity should be "controlled" by adding 200 GW to a total capacity of 1.1 TW
    •  Non-fossil fuel capacity is planned to reach 720 GW or 30% of total capacity.
    • Wind capacity is planned to reach 210 GW by 2020, including 5 GW of offshore wind.
    • Solar capacity is slated to reach 110 GW, including 60 GW of distributed solar and 5 GW of concentrated solar. (NEABJX CN)

     
    Along with renewable capacity expansion, the development plan includes concrete benchmarks for mitigating renewable curtailment, with the NEA calling for renewable curtailment to be limited to a "reasonable level" of 5%. National curtailment levels for wind and solar in 2015 were 15% and 13%, respectively. The plan also calls for implementing power trading spot market trials by the end of 2018, and a national rollout of spot markets by 2020. 
     
     
     
    Solar: CNBM International Purchases Ukrainian Solar Farm Operator Neptune Solar LLC
    CNBM International Corp of China recently completed a 100% purchase of Ukrainian Solar farm operator Neptune Solar LLC. Neptune Solar has a photovoltaic (PV) park in Mykolaiv region with a capacity of 29.3 MW operational since 2013. The Antimonopoly Committee of Ukraine has already approved the deal with CNBM, and CNBM is said to be interested in other solar assets in Ukraine as well.(SEE
     
    We expected overseas acquisitions to continue as domestic PV projects face lower tariffs and stiff solar curtailment. The national curtailment rate for 2015 was 13%, however, provinces with higher solar penetration such as Gansu and Xinjiang have been experiencing curtailment rates as high as 32% and 33%.
     

     

    (Ukrainian Solar Farm, Source:SEE
     

  • China Cleantech Update November 25, 2016

    News Summary:

    • NEA Publishes January to September 2016 On-Grid Wind Data
    • Total Electricity Consumption Statistics Published for October
    • Gamesa to Build 90 MW Offshore Wind Farm in Tianjin

     
     
     
    Wind: First Three Quarters On-Grid Wind Data Published by the NEA 
    The NEA published wind operations data from January to the end of September 2016. Ten GW of wind power came online during this period and wind power sent to the grid reached 169.3 TWh. The average utilization hours was 1,251, representing a decrease of 66 hours, or 5% from the same period in 2015. Wind curtailment was 39.5 TWh for an average curtailment rate of 19%. (NEA CN)
     

     

    (Source: Azure)
     
    In line with Azure'sprevious coverage of renewable curtailment in China, wind curtailment covered in this period is heaviest in Xinjiang (41%), Gansu (46%), IMAR (23%) and Jilin (34%). These provinces have historically been suffering from the highest curtailment rates in China, as local power consumption is relatively low while installed wind capacity is high. Xinjiang and Gansu have taken numerous measures to alleviate this issue, with Xinjianginvesting 180 million RMB in wind-to-heat projects, while Gansu recently completed a ±800kV UHV DC transmission line that should help send renewable power reach demand centers in Hunan province 
     

  • China Cleantech Update October 20, 2016

    News Summary:

    • Zhejiang DRC and NEA publish Electric Development Plan of the 13th Five Year Plan
    • Huadian Heavy Industry wins 1.8 billion RMB offshore wind project in Jiangsu
    • Spot Market Trials rumored to be implemented by the end of 2018
    • Jiuquan City, Gansu DRC approves wind curtailment energy storage demonstration project

     
     
     
    Policy: Electric Development Plan of the 13th Five Year Plan published by Zhejiang DRC and NEA
    The Zhejiang NEA and DRC released its Electric Development Plan as part of the provincial 13th Five Year Plan. The province plans to install new capacity of 15.2 GW including 13.3 GW of non-fossil energy by 2020, bringing the total installed capacity of the province to 94 GW. Further targets include:

    • 43.35 GW thermal
    • 13.1 GW renewable energy (excluding hydro)
    • 12.5 GW natural gas 
    • 9.07 GW nuclear
    • 7.04 GW hydro
    • 4.93 GW pumped hydro
    • 1 GW waste heat power generation (DRC CN

    The decreasing installations of new thermal capacity forecasted in Zhejiang's 13th Five Year Plan promotes an increased share of renewables in the province, as the percentage of installed renewable capacity is expected to rise from 40% in 2015 to nearly 50% in 2020.
     

     

    Source: NEA, Azure International