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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:
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
Three wind projects will expire in Guangxi Zhuang Autonomous Region
According to the NDRC's "Procedures for Approval and Filing of Enterprise Investment Projects", if the construction of a wind power plant is not started within 2 years of securing governmental approval, the project shall automatically expire. Approval doocuments of the Longsheng Pingding wind farm approved in 2014, the Leye Luosha wind farm approved in 2013 and the Shangsi Sifangling wind farm approved in 2015, have all been officially nullified for this reason. (GuangxiDRC)
Validity of wind farm approval documents is something we look at carefully during project due diligences, as project approvals can be cancelled after exceeding this 2 year period, in which case the original developper can loose the project. This is a measure implemented by local governments to prevent small developpers from stalling project construction while organizing financing or trying to sell the project.
National Development and Reform Commission announces price reduction measures
NDRC announced a 10% electricity commercial price reduction plan, implemented starting from April, 2018. The policy will standardize and decrease power grid pricing and temporarily reduce both in-province and cross-provincial transmission and distribution fares. (NDRC)
The policy will promote commercial industry development, supporting a direct trading between developers and customers, resulting in considerable cost savings for the latter. We expect that the strategy will positively affect electricity demand, increasing power plants utilization hours.
Analysis of the electricity consumption in the first trimester of 2018
In March, overall electricity consumption in China has reached 532.5 TWh, an increase of 3.6% year-on-year. In terms of sub-sectors, the primary industry has consumed 7.5 TWh, a year-on-year increase of 5.9%; the secondary industry 358.4 TWh, decreasing by 1.6% from the previous year; and the tertiary industry 77.7 TWh, registering a year-on-year increase of 12.5%. (NEA)
In the first trimester of 2018, total Chinese electricity consumption saw a 10% year-on-year increase, with a growth in March considerably lower than in the previous months. We will wait until the end of the second trimester to have a better idea of whether the high growth trend in January and February could be maintained throughout the year.
Source: Azure International
110 key projects of Shandong Province for the 2018.
Shandong Province has officially published a list of 110 key projects for 2018, including the construction of 585 km of 1000kV UHV power lines and 449 km of 500kV power lines . The province will also support the installation of 2 new reactors with a capacity of 1.25 GW each, as an extension of the Haiyang nuclear plant. (SHANDONG.GOV)
Haiyang nuclear plant construction consists of three phases, each one with 2 reactors of 1.25 GW each. Construction of the first phase had started in 2009 and was planned to finish in 2013, but was just completed last yearafter delays associated challenges with the AP1000 technology.