• 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 August 06, 2018

    News Summary:

    • NEA publishes 1H2018 wind power on-grid operation situation
    • 157MW of offshore wind installed in 1H
    • Guangdong 2018-2020 “Blue sky defence” plan published by Guangdong Department of Environmental Protection
    • Hainan's first pumped hydro energy storage (PHES) station put into operation
    • Beijing-Tianjin-Hebei included in new energy vehicle battery recycling pilot



    NEA publishes 1H2018 wind power on-grid operation situation

    During the first half of this year, 7.94GW of new wind capacity was connected to the grid, reaching a total of 171.6 GW. Wind farms produced a total of 191.7TWh, an increase of 28.7% yr-on-yr, with average utilization hours increasing more than 10% since last year. (NEA)

     AzureChinaCleantechNews06Aug2018 06

    AzureChinaCleantechNews06Aug2018 02

    The wind curtailment isssue has also been significantly improved, with curtailment decreasing more than 10% in the provinces of Jinlin, Heilongjiang and Gansu.



    157MW of offshore wind installed in 1H

    With an additionnal 157MW connected during 1H, the total on-grid offshore wind capacity in China is now 2.7GW. (NEA)

    AzureChinaCleantechNews06Aug2018 04

    While 157MW is not a big number, we expect more significant installations in the second half of the year, allowing 2018 to be a record year for offshore wind in China.



    Guangdong 2018-2020 “Blue sky defence” plan published by Guangdong Department of Environmental Protection

    The plan lists installed capacity targets for all clean energy, including 16GW of Nuclear, 6.5GW of Wind and 5GW of PV. Key cities for deployment of offshore wind are Zhuhai, Shantou, Shanwei, Yangjiang, Zhengjiang and Jieyang. By the end of 2020, the province should have more than 2GW offshore wind in operation and more than 6.5GW under construction.(GDEP)

    AzureChinaCleantechNews06Aug2018 01

    As a power import province, and the most populated province in China with a population above 100 million, Guangdong has a lot of grid space to build its power generation capacity. In 2017, Guangdong consummed 595.9 TWh but produced only 451.6 TWh.



    Hainan's first pumped hydro energy storage (PHES) station put into operation

    The 600MW PHES project has 3 units of 200MW each and projected annual power generation of 1.0 TWh for a total investment of 3.4 billion CNY. This dam is adjacent to Hainan province load centers and to nuclear power transmission channels. (Hainan News)

    AzureChinaCleantechNews06Aug2018 03

    Once it comes into operation, the PHES station will enable to reduce the average peak-regulation rate of thermal power in Hainan by 11%, and to increase provincial thermal power annual utilization hours by 374 hours.


    Beijing-Tianjin-Hebei included in new energy vehicle battery recycling pilot

    The NEA has launched a large scale pilot project to explore technical and market solutions to encourage recycling of batteries used in electric vehicles.  So far the projet will involve the regions of Beijing-Tianjin-Hebei, Shanxi Province, Shanghai and Guangdong Province. The annoucement also introduces China Railway Tower Co., Ltd as a key player in the pilot project.  (GOV) (NEA)

    AzureChinaCleantechNews06Aug2018 05




  • China Cleantech Update August 14, 2018

    News Summary:

    • NEA publishes 1H2018 solar power installations
    • HHI signs an offshore wind construction & installation contract with 3-Gorges
    • Jiangsu power grid load exceeds 100 GW for second consecutive year
    • China EV charging infrastructure annual report (2017-2018) published by NEA
    • Shanghai Electric terminates acquisition of subsidiary of GCL-Poly


    NEA publishes 1H2018 solar power installations

    During the first half of this year, 24 GW of new PV capacity was installed. This includes 12GW of centralized PV, a decrease of 30% yr-on-yr, and 12GW of distributed PV, an increase of 72% yr-on-yr. The total installed PV capacity has now reached 154.5GW, about three quarters of which is centralized. (NEA)

     AzureChinaCleantechNews13Aug2018 01

    AzureChinaCleantechNews13Aug2018 02

    In the first half of 2018, newly installed PV capacity in Shandong, Zhejiang, Henan and Jiangsu provinces all above 1GW, and the newly installed distributed photovoltaic installations in the four provinces accounted for more than half of the country.



    HHI signs an offshore wind construction & installation contract with 3-Gorges

    Huadian Heavy Industries (HHI), a subsidiary of Huadian Group, won the bid for the first batch of foundation construction and installation of 38 wind turbines as well as an offshore high voltage substation for the 3-Gorges Guandong Yangjiang Xishaba 300MW offshore wind project. The contract is worth 1 billion CNY.(Finance Sina)

    AzureChinaCleantechNews13Aug2018 03

    Source: Yangjiang GOV



    Jiangsu power grid load exceeds 100 GW for second consecutive year

    On August 8, Jiangsu Power Grid load reached 102.26 GW, breaking last year's record of 102.19GW. From January to July this year, total power consumption in Jiangsu reached 349.5TWh, an increase of 6.78% yr-on-yr. Appoximately 22% of this  power demand was produced from renewable energy sources.(CEC)

    AzureChinaCleantechNews13Aug2018 05



    China EV charging infrastructure annual report (2017-2018) published by NEA

    777,000 electric vehicles were sold in China in 2017, an increase of 53.3% year-on-year, allowing EV market share to reach 2.7%. In 2017, there were 214,000 public charging stations and 232,000 private charging stations. Construction of another 600,000 charging stations is in planning, including 100,000 public and 500,000 private. (NEA)

    AzureChinaCleantechNews13Aug2018 04

    Highway power charging network



    Shanghai Electric terminates acquisition of subsidiary of GCL-Poly

    In June this year, Shanghai Electric announced its intention to acquire 51% of Jiangsu Zhongneng, a subsidiary of GCL-Poly (HK3800) focused on high-purity polysilicon production, for 12.7 billion CNY. Shanghai Electric now terminates the acquisition procedure. (Finance Sina)

    The acquisition was cancelled due to changes in the photovoltaic situation since the second half of the year. Especially after the “531” PV New Deal, the two sides have different judgments on the trading conditions and the future development prospects of the PV market.

  • China Cleantech Update August 28, 2018

    News Summary:

    • Guangdong DRC publishes opinion on new bidding mechanisms for wind farms
    • Jan to Jul energy statistics published by NEA
    • 3-Gorges Guangdong 400MW offshore wind farm approved by Yangjiang DRC
    • SPIC secures project approval for 2 offshore wind farms in Guangdong province
    • Mingyang and SPIC sign an MOU for cooperation on offshore wind


    Guandong DRC publishes opinion on new bidding mechanisms for wind farms

    Guangdong is the first province to publish clarifications on the specific mechanisms which will be used to allocate wind farm subsidies following the new competitive on-grid tariff guidelines requirements issued by NEA earlier this year. The document provides some details on the scoring scale which will enable to compare bidders, as well as guidelines on procedures for applying for subsidies. (GD DRC)

    AzureChinaCleantechNews27Aug2018 04


    AzureChinaCleantechNews27Aug2018 03

    According to theNEA policy issued earlier this year (NEA), the tariff related score for both onshore and offshore wind farms should account for at least 40% of total score. The remaining criteria are listed in the pie charts above. For offshore projects, the business capability score, which relies on a specific scale for rating references, is the second most important criteria with a weight of 30%. For onshore projects progress on preliminary construction is given more importance.



    Jan to Jul energy statistics published by NEA

    From Jan to Jul, power consumption in China reached 3,877.5TWh, a 9% increase yr-on-yr.  Wind showed the strongest growth, with new installations of 9.46 GW, with utilization hours improving as well. (NEA)


    Azure has summarized key information in the graphs below:

    AzureChinaCleantechNews27Aug2018 01


    AzureChinaCleantechNews27Aug2018 02 



    3-Gorges Guangdong 400MW offshore wind farm approved by Yangjiang DRC

    Theprojecthas a sea area of approximately 67km2, waterdepthof21 to26m and distance to shore of15.9km.The project will feature 73 5.5MWwind turbines with a projected annual production of 1.5TWh.

    AzureChinaCleantechNews27Aug2018 05




    SPIC secures project approval for 2 offshore wind farms in Guangdong province

    SPIC Jieyang Jinghai 150MW & Shenquan PhaseI 400MW offshore wind projectshave been approved by Jieyang DRC.The two projects will require a combined number of 101 5.5MW wind turbines. Both projectsplan to start construction by the end of 2018 and will be operating in 2021.(JYDRC)

    AzureChinaCleantechNews27Aug2018 06


    Mingyang is the only turbine supplier with a 5.5MW turbine on the market and is securing a large number of orders in Guangdong province where it is headquartered, especially this year as developers are rushing to secure approvals while the 0.85 CNY / kWh feed in tariff is still available.



    Mingyang and SPIC sign an MOU for cooperation on offshore wind

    Mingyang and SPIC signed an MOUregardingfixed as well as floatingoffshore wind.The strategic partnershipwill be focused on offshore wind power development, clean energy equipment supply, technical cooperation, international projects, information sharing, engineering construction and ancillary services.(BJX)

  • China Cleantech Update February 02, 2016

    News Summary:

    • 152MW Jiangsu offshore windfarm gets partial grid connection
    • Chinese firm gets another EPC project in Africa
    • 2015 annual power plant utilization hours released
    • Inner Mongolia company signs 300MW wind farm development agreement

    Offshore: China General Nuclear Connects Part of 152MW Offshore Wind Farm
    China General Nuclear, the largest nuclear power operator in China, achieved grid connection for six of its 4MW offshore wind turbines. The Jiangsu Rudong 152MW offshore wind farm is 10km from shore, while water is at a maximum depth of 10-15 meters. (Xinhua CN)
    CGN plans to connect 38 4MW offshore wind turbines using simple monopile foundations.  The 152MW offshore farm is forecast to produce 400GWh of power annually, equivalent to a coal power plant using 131kt of standard coal which would emit 267kt of CO2.  

    Figure: A monopile offshore wind turbine.

  • China Cleantech Update February 20, 2017

    News Summary:

    • CEC publishes solar installation statistics for 2016
    • State Council publishes National Land Planning Outline 2016-2030
    • China Sunergy to build 400 MW solar module facility in California
    • Green certificate trading program trial rules issued by NDRC

    Solar: 2016 Solar Installation Statistics Published by the CEC
    The CEC recently published statistics on domestic solar installations for 2016. According to the document, by the end of 2016, over 34 GW of new solar energy had been installed across the country, bringing the total installed capacity to over 77 GW. Total power generation from solar in 2016 was 66 TWh, approximately 1% of national power generation. 28% of new installations occurred in the Northwest area comprising Shaanxi (217 GW), Gansu (76 GW), Ningxia (217 GW), Qinghai (119 GW) and Xinjiang (329 GW). (CEC)


    Source: Azure International, CEC

    As mentioned in last week's News Update, the frenzied growth in solar in 2016 is largely due to utility scale projects rushing to completion before the large tariff cut in June 2016. However under the Electricity Development Plan, the Solar Power target for 2020 further calls for 60 GW of distributed solar and 5 GW of concentrated solar, with the remaining 45 GW is assumed to be standard utility-scale solar. Thus we expect the next three years to see a moderate cooling of utility scale projects in China as local governments digest current project pipelines. 

    On the other hand, current installation figures indicate distributed solar capacity in China is hovering at around only 10 GW. Therefore while the 2020 target of 110 GW target will likely be surpassed, it will be difficult for distributed solar to reach its sub-target of 60 GW, especially as the regions currently driving solar installation figures (Northwest and IMAR) are almost exclusively installing utility scale projects, with distributed projects concentrated more in highly populated east coast provinces. 

  • China Cleantech Update February 27, 2017

    News Summary:

    • CWEA publishes wind installation statistics for 2016
    • NEA publishes guiding opinion on energy work for 2017
    • Yingli Solar receives noncompliance notice from NYSE 

    Wind: 2016 Solar Installation Statistics Published by the CWEA
    China Wind Energy Association recently published new wind installation figures for 2016. New installations of wind dropped by 24% to 23 GW, down from 30 GW in 2015. This new installation of wind power brings the total installed capacity to 169 GW. Windy northwest provinces continued to attract the most amount of new capacity additions (26%), followed by the North China (Huabei) region (24%) and East China (Huadong) region (20%). Additionally, total offshore wind power capacity increased by 64%, with over 590 MW of new capacity installed in 2016, bringing the total offshore wind capacity to 1.6 GW. (ESCN)


    Source: Azure International, CWEA

    High curtailment in windy provinces is clearly making its mark on new installation patterns. While the resource-rich northwestern provinces still saw the largest share of new capacity additions at 26%, this was down from 2015's whopping 38%. In the face of congested transmission lines and high curtailment, developers are choosing to build closer to load centers, as evidenced by the eastern coastal region of Huadong seeing the largest percent increase in new capacity of any region.

    Plan: Guiding Opinion on Energy Work for 2017 Published by NEA
    According to the NEA's 2017 Guiding Opinion on Energy Work, by the end of 2017 China will install 20 GW of new wind capacity, with another 25 GW under construction. The document also calls for a gradual shift to developing wind in eastern coastal and southern provinces, as well as a short-term stay on building new wind power in provinces that have curtailment rates above 20%. Finally, the document also calls for the acceleration of offshore wind development. (BJX CN)

    As made clear both by the CWEA wind statistics and the NEA's guiding opinions, the major story for wind in 2017 is China's increasing emphasis on developing wind generation sources closer to eastern and southern coastal load centers. This emphasis on developing wind proximal to load centers can be seen both in the increasing emphasis on offshore wind generation as well as the targets set out in the 13th Five Year Plan to shift development away from windy northern provinces to the south and east. 

    Markets: NYSE  Issues Noncompliance Notice to Yingli Solar 
    Yingli Green Energy Holding Company Limited (NYSE: YGE) announced that the company had received notice from the New York Stock Exchange (NYSE) Regulation  on February 9th, 2017. The notice stated that the company was below the continued listing standards of the NYSE, specifically that its average market capitalization over a 30 day period was below $50 million. Following the notice, Yingli has 90 days to present a plan to the NYSE demonstrating how it will regain compliance with NYSE's standards within 18 months. The plan will then be evaluated by the NYSE. If accepted, Yingli will be subject to quarterly reviews of its compliance progress. If the plan is not accepted, Yingli Green Energy will be subject to suspension and delisting procedures from the New York Stock Exchange, although the stock may continue trading in over-the-counter (OTC) markets. (PRNewswire)

    Yingli modules at a 50 MW Datong solar farm

    Source: Yingli Solar

    This notice is not the first time Yingli has come into problems with the NYSE's continued listing standards, as the company faced the threat of delisting in November of 2015 as well, when its shares were trading below the $1 threshold for 20 consecutive days. Furthermore, according to Yingli's latest quarterly earnings report, for the third quarter 2016 Yingli suffered an operating loss of $34 million.

  • China Cleantech Update July 02, 2018

    News Summary: 

    • JiangsuDRC issues 2018 wind development and construction plan
    • Jiangsu DRC guidance for development of distributed energyand micro grids
    • Direct power trading in Beijing in June
    • AnhuiDRC issues distributed wind development and construction notice
    • Guohua Dongtai IV 300MW offshore wind project officially starts construction

    JiangsuDRC publishes 2018 wind development and construction plan
    The plan features 46 projects with total installed capacity of 2.58GW, and estimated utilization hours of 2,000 hrs in 2018. (Jiangsu DRC)


    In 2017, Jiangsuprovince saw power consumption of 580.8 TWh and power generationof 488.5TWh, therefore needing to satisfy more than 15% of its energy  demand by importing power from other provinces.As consequence, Jiangsu has no curtailment issue and it was listed as a "green province" in the 2018WindPowerInvestmentMonitoring report of theNDRC , meaning that it can move forward with their wind planning, by opposition to some "red provinces" which have to interrupt wind developments.
    Jiangsu DRC guidance for development of distributed energyand micro grids
    The documents proposes establishement of 20 micro-grid demonstration projects in Jiangsu province by 2020, representing 400MW of newly-added distributed energy capacty; and also guides towerdas building 50 projects by 2025, with an associated capacity of 2,000MW. (Jiangsu DRC)

    Distributed energy microgridsaregenerally characterizedas clean, small, autonomous andconvenient.Their aim is to achieve a balance between local energydemand and production.
    Direct power trading in Beijing in June
    The Beijing Electric Trading Center saw 14 transactions in June, totalling 16,4 TWh of direct power trading, and including 7% of clean energy. Transactions are not only for power produced or consummed in Beijing however, but cover several provinces in the country. (BJX

    AnhuiDRC issues distributed wind development and construction notice
    The notice calls for DRC bureaus in all Anhui cities to submit their 2018 - 2020 distributed wind pipeline by the end of July. (Anhui DRC)
    Yet another province rapidly compiling its distributed energy plans, confirming the clear new trend in the industry.
    Guohua Dongtai IV 300MW offshore wind project officially started
    On June 22, Jiangsu Shenhua and its suppliers held a ground breaking ceremony for the start of construction of the Guohua Dongtai IV 300MW offshore wind project.(BJX)


    Dongtai IV iscurrently the offshore wind farm which is furthest from shore in China. After completion,it is expected to produce 813GWh annually, equivalent to 20% of Dongtai city's annual electricity consumption.

  • China Cleantech Update July 09, 2018

    News Summary: 

    • Sinovel Wind Power spends $57.5 million on reconciliation with AMSC WINDTEC
    • Asia's largest offshore wind farm starts operating
    • Gansu publishes its 13th 5 year energy development plan
    • SIDRI & INNOSEAsign offshore wind power engineering cooperation MOU
    • Datang Nanao Lemen 400MW offshore windfarm has been approved

    Sinovel Wind Power spends $57.5 million on reconciliation with AMSC WINDTEC
    Since 2011, AMSC WINDTEC has filed several law suits against Sinovel and its affiliates due to intellectual property issues which arised in their patnership to deploy power electronics for Sinovel wind turbines in China. After 7 years of struggle, it seems that the dispute may have finally come to end, with Sinovel paying $57.5 million to AMSC Windtec's Chinese subsidiary in Suzhou (SinaNews)
    Sinovel and AMSC started cooperating on wind turbine power electronics in 2005; a few years before Sinovel became the leading Chinese wind turbine OEM. The dispute starting in 2011 significantly affected Sinovel's image worldwide and is suspected to be the key reason for the group's decline in the following years. It is yet unknown what this final settlement may mean for both companies, as Sinovel's turbine sales have almost come to a halt last year, and AMSC's initial claim was initially counted in billion dollars.


    Asia's largest offshore wind farm stars operating
    The 100th Shanghai Electric 4MW wind turbine of the SPIC Binhai North H2# 400MW offshore wind power project has been connected to the grid, which indicates that the offshore wind power project has successfully completed full-capacity connection operation and has officially become the largest offshore wind farm in Asia.(JSTV)


    This is the same wind farm which had a severe accident at its offshore substation exactly 1 year ago which resulted in one casualty and partial loss of the OSS. It seems however that the accident did not cause significant delays in project constrution as the wind farm was completed according to schedule.
    Gansuprovincepublishes its 13th 5 yearenergy development plan
    The province targets installed capacity of 14GW of wind, 9.9GW of PV and 9.5GW of Hydro power by 2020. At the same time, Gansu engages to reduce wind & PV curtailment as well as increase utilization hours. (Gansu GOV)

    Most provinces have issued their 13th 5 year plan more than a year ago. Gansu was likely slowed down in this process due to challenges with integration of renewables, as average wind curtailment reached 33% in 2017 (NEA)

    SIDRI & INNOSEA signMOU for cooperation on offshore windengineering
    SIDRI (Shanghai Investigation Design & Research Institute), the engineering branch of China Three Gorges Group, and INNOSEA, a subsidiary of London Offshore Consultants delivering offshore wind engineering and design services, signed a MOU for cooperation on offshore wind power. SIDRI earlier purchased Innosea's offshore wind power foundation design and optimization software PREDIN as well as related training services. During the visit, the two sides also had detailed discussion about cooperation on deep sea jacket foundation design and floating wind power. (BJX)


    Azure International and Innosea have setup a partnership for delivering offshore wind design and engineering services in China, and the cooperation with SIDRI marks one of the first key milestones the consortium has achieved.  China's effort to become a global leader in offshore wind energy creates opportunities for western companies with relevant experience and references to participate. With more than 15 years experience in the Chinese wind sector, Azure is well poised to facilitate and support such partnerships.
    Datang Nanao Lemen 400MW offshore wind farm has been approved
    Datang Nanao Lemen 400MW offshore wind project in Guangdong has been approved, with a sea area of 56 square kilometers, a total installed capacity of 400MW, and featuring 57 wind turbines of 7 MW each. The wind farm is expected to provide 1.2 TWh of clean energy per year. (Datang Group)

  • China Cleantech Update June 02, 2016

    News Summary:

    • 153MW overseas EPC project delivered to Ethiopia
    • Top 100 machinery industry companies
    • Hebei coal industry plans to wind down
    • SDIC Power buys foreign offshore wind power company in England

    Wind: ADAMA Phase II 153 MW Wind Power Plant in Ethiopa Completed
    China Power recently completed the delivery of 102 1.5  MW wind turbines to the ADAMA Phase II wind farm in Ethiopia. The total installed capacity for the wind farm is 153 MW. The export project is part of China’s one belt policy, where it hopes to have unifying push toward exporting its technologies to developing markets globally. (China Power CN)
    President Xi Jinping Inspecting a Wind Farm Model 

    Source: Power China
    Azure maintains a list of qualified EPC suppliers to support overseas construction projects. When choosing EPC partners, they must pass a thorough vetting process to understand they can deliver high quality goods on time, on budget, and without headaches.

  • 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 09, 2017

    News Summary:

    • Anhui's Industrial Green Development Plan calls for the acceleration of distributed solar
    • Fujian government publishes list of key construction projects for 2017
    • Jinko Solar and Japan's Marubeni sign 1.18 GW power purchase agreement in Abu Dhabi
    • Weinan City, Shaanxi publishes New Energy and New Materials Development Plan (2016-2020)

    Solar: Anhui's Industrial Green Development Plan Emphasizes Distributed Solar
    Anhui's Economic Information Council recently released the Industrial Green Development Plan as part of the province's 13th Five Year Plan. The document calls for the acceleration of constructing distributed energy sources in industrial parks, with particular emphasis on solar rooftops and solar heaters. Distributed solar, along with smart grid technology, is encouraged for integration into industrial parks, particularly iron and steel factories, as part of Anhui's promotion of industrial energy efficiency. (BJX CN)


    Source: Azure International

    While not specified in the most recent Solar Power Development Plan, under the national Electricity Development Plan, the Solar Power target for 2020 contains a 60 GW sub-target for distributed solar. Anhui province currently has 3.45 GW of installed solar capacity, however, only 780 MW of this is distributed solar. Nevertheless, this installed capacity figure still makes Anhui the fifth largest province for distributed solar in China. The top four are Zhejiang (2,070 MW), Jiangsu (1,730 MW), Shandong (1,190 MW), and Guangdong (880 MW). 

    Developing distributed solar has been more difficult than utility-scale projects primarily due to the high self-consumption threshold requirement set out by the NEA. The requirement mandates that at least 80% of the self-generated power will be consumed on-site with no more than 20% of the power sold back to the grid, and largely limits the applications of distributed solar to energy intensive industrial parks. Therefore, successfully integrating distributed solar with heavy industry will be key if China's ambitious 60 GW sub-target is to be met by 2020. 

  • China Cleantech Update March 20, 2017

    News Summary:

    • Fujian province publishes development plan outline under 13th Five Year Plan
    • China's SPIC, Mingyang Electric to develop offshore wind power in Guangdong province
    • ReneSola plans 550 MW of global solar installations in 2017
    • Shanxi province publishes January wind power statistics

    Wind: Fujian Province Publishes Development Plan Outline of the Provincial 13th Five Year Plan
    Fujian province recently published the provincial development plan as part of its 13th 5YP. Included in the plan is the provincial government's intention to promote both onshore and offshore wind development. While the provincial target does not set out a concrete installation number for 2020, instead calling for a “doubling of 2015's installed capacity of 1.72 GW” by 2020. (Fujian DRC)

    Fujian Province Large Scale Power Projects Distribution Map


    Source: Fujian DRC

    Offshore wind currently occupies only a small percentage of China's total wind generation capacity, however we expect it to grow steadily over the coming years. China has currently set out a national 5 GW target for offshore wind development, with Fujian slated to be the centerpiece of this development. The Fujian Putian Nanri offshore wind project's total installed capacity of 400 MW is currently the largest offshore wind project in China. 

    Under the national target, Fujian province plans to reach 3 GW by 2020, or 60% of total offshore wind. However the provincial development target is more vague, simply calling for a “doubling of 2015 installed capacity”. While doubling 2015's 1.72 GW would certainly surpass the national target of 3 GW, the noncommittal language used for the provincial target is reflective of the difficulties China has faced in developing offshore wind, with it's attendant technological challenges, greater investment needed and longer build-out period.

  • China Cleantech Update March 29, 2016

    News Summary:

    • NEA approves 2016 wind power plan
    • Carbon trading deal set up between Beijing and Inner Mongolia
    • New offshore wind turbine regulations announced
    • Direct trading planned to account for 30% of industrial energy consumption in 2016

    Wind: NEA Approves 2016 Wind Power Construction Plan
    The NEA approved its wind power construction plan for 2016. There will be 30.8GW of new installed capacity. Of note, the Jilin, Heilongjiang, Inner Mongolia, Gansu, Ningxia, and Xinjiang provinces have had serious wind curtailment issues last year, and thus no new installed capacity was allotted in those regions. Additionally, the NEA announced nine points to increase the quality of project management, reporting standards, and overall transparency of the installation process. (NEA CN)

    Source: NEA, Azure International
    Following a record year in 2015 of new installed capacity, during which China installed 30,5GW of wind capacity, industry players have expected further development to be affected by decreasing feed-in tariffs.  The new plan is likely to guide the sector's regional activity focus as well as the overall capacity volume. However, the actual outcome may vary considerably from the plan. 

  • China Cleantech Update May 02, 2018

    News Summary:

    • Completion of the Fujian Xinhua Bay offshore wind demonstration project
    • China's first provincial offshore wind data centre
    • 38.5 TWh direct power trading in Liaoning province
    • 2.5 % Electricity price drop in Hubei province

    Completion of the Fujian Xinhua Bay offshore wind demonstration project

    The Xinghua Bay offshore test wind farm has been inaugurated in Fujian Province. The project has been completer with a total investment of 1.47 billion RMB and is composed of 14 wind turbines, produced by 7 manufactures, with a total 80 MW installed capacity. During the first 4 months of operation, the plant has performed with an average availability of 99.3%, 417 average monthly utilization hours and a cumulative power generation equal to 17.7 GWh. (IN-EN)
    Results of the Three Gorges demonstration projects are well awaited by the whole industry as it features a few new turbines, all above 5MW and with a mix of well known domestic players (Goldwind, Mingyang, XEMC, CSIC), international players (GE and Siemens) as well as relatively new players (Taiyuan Heavy Industry). The CAPEX of 18,375 RMB per kW is high compared to other offshore wind farms but very reasonable for a demonstration project which is more complex and costly in nature.

  • China Cleantech Update May 18, 2018

    News Summary:

    • Jilin: 35.5% wind curtailment ratedrop in Q1
    • Henan: 5.5 GWwind power construction in 2018
    • Hebei: 4.3 GW of decentralized wind power projects
    • Yunnan: two-part electricity prices flexibility
    • Asia's largest offshore wind farm connects to the grid in Jiangsu
    • 400MW offshore wind farm project in Guangdong province

    Jilin: 35.5% wind curtailment rate drop in Q1

    In the first quarter of 2018, wind curtailment in Jilin Province has decreased by 35.5%. During the same period last year, the province had the worst curtailmentin the country with a rate of 44%.Thanks to new UHV DC projects that came in operation in February 2018, in less than 2 months, Jilin has been able to export a total of 1.78 TWh of clean energy. In 2018, the province plans to control wind curtailment rate within 15%, and within 12% in 2019 and 10% in 2020. During the first quarter of this year, Heilongjiang Province also registered strong improvements, with a curtailment reduction of 27.8% compared to Q1 the previous year. (CHINA WIND NEWS)
    The provinces in the north of China are focusing on reducing wind curtailment. In 2016, NEA added Jilin on the red alert zone list, suspending construction of new wind farms. The province is increasing power exportations in order to increase power plants utilization hours. If it can achieve its objectives, Jilin should be able to get off the red ban list within a few years, which would be great news for the developpers that have projects in standby in the area .

    Henan province announces 5.5 GW of wind power construction in 2018

    On May 8, Henan province issued the "2018 Wind Power Construction Scale Notice." This year,the province plans to develop 5,5 GW of wind powers projects, with a 50 MW minimum power unit size. (BJX)

    Source: Azure International
    Henan is seeing increasing investment in wind power. Almost 30 different projects have been approved, with an installed capacity varying between 50 MW and 350 MW..

  • China Cleantech Update May 24, 2018

    News Summary:

    • Liaoning: 1.5 GW offshore wind
    • EDP rejects €9.1 billion offer from Three Gorges Group
    • 300 MW offshore wind in Guangdong
    • 30 MW energy storage system

    Dalian City announced 1.5 GW offshore wind farm project

    Dalian City (Liaoning province) has recently approved 200 MW of onshore wind, 600 MW of offshore wind and 40 MW of photovoltaic power generation projects. Dalian Development and Reform Commission has also announced a plan to develop 1.5 GW of offshore wind power in Zhuanghe sea area. (BJX)
    As the most Northern of the ten Chinese coastal provinces, Liaoning also has significant offshore wind ambitious, and its own technical challenges, such as low temperatures and ice conditions. Dalian city was home to Sinovel, once a leading Chinese wind turbine manufacturer. It is yet unknown whether the local  manufacturer will get a chance to participate in said project.
    EDP rejects €9.1 billion offer from Three Gorges Group

    On May 14th, Portugal’s largest power company EDP (Energias de Portugal) rejected Three Gorges’ 9.1 billion € acquisition offer. Three Gorges Group became EDP’s shareholder in 2011, acquiring 21,35% of the company for 2.69 billion €. Currently, Three Gorges is the largest of EDP’s shareholder and just made an offer to requiring all remaining shares. According to Bloomberg, although the Portuguese government was satisfied by Three Gorges Group's offer, it has not received the support of EDP shareholders. (CHINAWINDNEWS)

  • China Cleantech Update November 09, 2016

    News Summary:

    • Beijing-Tianjin-Tangshan Regional Exchange Completes Trading
    • Newly Installed PV Capacity for the First Three Quarters of 2016 Reaches 26 GW
    • Belgian DEME and China's COSCO Shipping Form Joint Venture to Develop Offshore Wind in China

    Marketization: Power Trading Finishes for the Beijing-Tianjin-Tangshan Regional Power Exchange
    The recently opened Beijing-Tianjin-Tangshan Exchange completed its trading for 2016 after it reached its target trade volume of 6.1 TWh. Many independent observers expressed disappointment with the performance of the exchange, mainly that each region traded largely within their administrative boundaries, rather than cross-regionally. Approximately 60% and 77% of power purchased in Tianjin and Tangshan, amounting to 900 GWh and 1.7 TWh, respectively, was generated from within their administrative areas. (BJX CN)
    This stated dissatisfaction with the interregional direct trading platform presents an obstacle to further Jing-Jin-Ji power integration. The trading center was only stipulated to run in 2016 and no further plans have been published for the continuation of the exchange in the future.
    Statistic: Newly Installed PV Capacity for the First Three Quarters of 2016 Reaches 26 GW
    The China Renewable Energy Society recently announced that new PV installations in China reached 26 GW in the first three quarters of 2016. According to the announcement by Vice President Meng Xian'gan, China is on track to install a total of 30 GW of solar energy for 2016, even though the annual target is only 18.1 GW. (BJX CN
    The new installment figures this year are especially high due to the rush of PV companies to build before the June 30th tariff cut. However, a glut of PV projects could cause pipeline delays and loss of subsidies, as well as exacerbate a germinating solar curtailment issue. National curtailment rate for 2015 was 13%, however, some provinces such as Gansu and Xinjiang have been experiencing curtailment rates of 32% and 33%.