• China Cleantech Update March 17, 2016

    News Summary:

    • NDRC sends reform number 413 on power reform and direct power trading
    • NDRC requires +/- 660kV Yindong DC line to send at least 30% renewables power
    • Transmission and distribution pilot projects expanded to 18 provincial power grids


     
    Policy: NDRC Sends Notification of Electric Power Operation Adjustment Work
    2016 is the first year of the 13th Five-Year plan and the NDRC sent out reform number 413 to begin new reforms in line with the new plan. Major interest areas include: actively promote direct power trading, increase pilot projects, energy conservation, and low carbon power dispatching. The low-carbon energy power dispatch program includes all carbon reduction technologies, such as ultra-low emission coal, energy power scheduling, and wastewater reuse. (SDPC CN)
     
    Direct power trading is a key topic that is of great interest, as it pushes the marketization of electricity trading in China. Participating generators may be able to maximize their utilization hours, and local industries have the opportunity to create better deals for their energy consumption.

  • China Cleantech Update April 16, 2018

    News Summary:

    • 7 GB UHV Wind Power Transmission Base will be built in the Xilin Gol League
    • Analysis of UHV energy transmission efficiency
    • Mingyang wins 300MW offshore wind order in Guangdong
    • 303.4 million RMB wind power production equipment purchasing
    • Apple supports renewable energy in China
    • UHV construction to support Smart Cities

     
     
    7 GB UHV Wind Power Transmission Base will be built in the Xilin Gol League

    On March 19, 2018, Xilin Gol DRC announced the construction of a new UHV Wind Power Transmission Base in the Xilin Gol League. The project is aimed at supporting export of power produced in the Xilin Gol League power base which will including 7 GW of wind power. (Xilin Gol League DRC)
     
    The line will connect via lower voltage lines to wind farms in 8 cities, guaranteeing grid offtake and tackling the high wind curtailment problem in North China. This will in turn enable new growth for Xinlin Gol league in which new large wind farms are planned.
     

    Source: North China Electric Power University, Beijing 102206, China

  • China Cleantech Update April 2, 2018

    News Summary:

    • Significant offshore wind investments in Guangdong Province
    • 50GW 2030 renewable energy target in Zhangjiakou City
    • New marine area usage fees for offshore wind farm developers
    • 1 GW offshore wind power project agreement in Tianjin

     
     
    Wind: Guangdong Province announces the investment of 16 offshore wind farms

    The Guangdong Provincial Development and Reform Commission has issued the "Guangdong Province Major Construction Project Plan for 2018" officially announcing 1,098 key projects, with a total investment of 5.67 trillion yuan including 600 billion yuan to be invested during 2018. The overall plan includes 16 offshore wind power projects with the first 99MW project already in operation. (GDDRC.GOV.CN)
     
    The plan includes 6 offshore wind farms currently under construction with capacity of 1,618MW and 10 new offshore wind farms with capacity of 3,650MW (see detailed breakdown of project owners from our database below). The total capacity of 5.27 GW is lower but more realistic than the 10 GW of offshore wind which was earlier announced as part of the "Thirteenth Five-Year Plan"(2016-2020) for the Development of Marine Economy in Guangdong Province by 2020. However we advise wind investors to correlate these provincial level plans with national level NEA targets over the same period in order to assess any potential grid connection and FIT risk.

    Source: Azure International

  • China Cleantech Update April 23, 2018

    News Summary:

    • NEA promotes distributed wind
    • 7 MW wind turbines in Putian
    • Three wind projects will expire in Guangxi Zhuang Autonomous Region
    • NDRC price reduction measures
    • 2018 Energy consumption analysis
    • Shandong Province 110 key projects

     
     
    The National Energy Administration promotes social capital investment in wind distribution
    National Energy Administration issued the “Interim Management Measures for the Development and Construction of Distributed Wind Power Projects”, valid for the next 5 years. In order to be elligile as "distributed", a wind project must satisfy the following requirements:

    1. Connect to grid at 110 kV or less;
    2. Distributed wind power plants with access voltages of 35 kV and below shall fully utilize existing substations and grid facilities;
    3. Distributed wind power plants with a voltage level of 110 kV (66 kV in the northeast region) can only have one grid connection point and a total capacity within 50 MW.

    All wind power projects that satisfy the requirements will have priority in securing subsidy payments. (NEA)
     
    Currently, centralized (non-distributed) wind projects have to wait in line to be included on the NEA subsidy list, sometimes for many years. The new policy which simplifies the development process and offers bettter guarantees to project owners was greatly awaited by the whole industry, with hopes that it will help boost the installations in coming years, which was greatly expected by small developpers as well.   
     
     
    The first 7 MW wind turbines will be installed in Putian

    On March 26, China Railway Fuchuan Co. won the bid for the installation of 10 sets of 7 MW wind turbines in the “Fujian Pingtan Offshore Wind Farm in Putian”, with a contract of 34 million RMB. (chinanews)
     
    The 7MW machines to be supplied by ShangHai Electric under a license with Siemens are the largest wind turbines in China so far.
     

     

    Source: Fujian Fuchuan Investment Co
     
     

  • China Cleantech Update June 16, 2016

    News Summary: 

    • NEA releases 2016 national solar plan
    • Dianxibei 800 kV UHV DC line construction begins
    • Binhaibei 100MW offshore receives grid connection
    • NEA promoting energy storage technology for ancillary services market

     
     
    Solar: NEA Releases 2016 National Solar Plan
    The NEA plans to construct 18.1 GW of solar in 2016.  Of the total, 12.6 GW will be distributed solar generation, and 5.5 GW will be large solar “bases” with tens to hundreds of MW of capacity. Cumulative installed capacity of solar PV was 41.6 GW in 2015, and will reach 60 GW at the end of 2016 if the NEA meets its goal. (NEA CN)
     
    Construction in the gigawatts has been the mantra for the last five years, however, 2016 may very well be the final year of a large installed capacity push. The next phase of renewable energy in China will be the integration and utilization of renewable energy, which, so far, China is behind its peers in the rest of the world
     

     
    China National Cumulative and Forecast Installed Capacity from 2011-2016

    Source: Azure International, NEA

  • 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