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Azure International is a leading investment and advisory company focused on China's cleantech energy sector. Founded in 2003, we have a team of 20+ local and international professionals based in China with backgrounds in engineering, marketing, manufacturing, consulting, policy, government relations and finance. In addition to deep advisory capabilities in renewable energy, energy efficiency, carbon management, and energy finance, we have proven capability to invest in and accelerate the development of clean energy companies.  Our portfolio and partner companies have achieved both significant commercial success and returns to investors. Azure provides the necessary expertise and execution capabilities in China to lead relationship development with government and strategic partners, project execution, sourcing, sales and technology development – all with deep understanding of Chinese and international requirements.

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News Summary:

  • NEA releases notice on 2019 wind and solar power generation construction
  • NDRC releases revised T&D price cost supervision and examination methods
  • Xiong'an New District battery storage station research has been tendered
  • Zhejiang lauches power spot market simulation test run

 

 

NEA releases notice on 2019 wind and solar power generation construction

The notice puts forward four general intentions regarding the construction of wind power and photovoltaic power generation projects in 2019:

  1. Promote the construction and development of subsidy-free projects.
  2. Strictly regulate the competitive allocation of project subsidies. Projects that require state subsidies must be selected through strict and standardized competitive allocation methods.
  3. Fully implement the conditions for power transmission and consumption, giving priority to the supply and consumption of electricity from subsidy-free projects.
  4. Optimize investment, build a comprehensive business environment and implement non-technical cost reductions such as land use.

(NEA)

In addition, according to the requirements of this notice, there must be a subsidy capacity for onshore wind projects in 2019.

AzureChinaCleantechNews03June2019 01

 

The document also describes that for offshore wind projects to benefit from FIT subsidies, they must connect to the grid before the end of 2021 and therefore must be included in provincial construction plans by 2020.

 

 

NDRC releases revised T&D price cost supervision and examination methods

The new measures have been revised on the basis of combining the reform of the power system, drawing on and absorbing the experience of foreign transmission and distribution supervision, and summarizing the results from the pilot of the first round of transmission and distribution cost supervision and examination. The measures have the following main characteristics:

  1. Strengthening cost supervision and examination constraints and incentives, and implementing cost cap control on part of the transmission and distribution cost projects of grid companies.
  2. Refining the cost supervision and examination method by identifying items that are not included in the cost of transmission and distribution.
  3. Standardizing the requirements for cost supervision procedures.

(NDRC)

AzureChinaCleantechNews03June2019 02

 

 

Xiong'an New District battery storage station research has been tendered

Each district, county and small town in the region will be equipped with one battery storage power station, each with a scale of about 10MW/40MWh to reach an overall scale of about 500MW/2000MWh. The battery energy storage stations will be mainly used as for peak-adjusting and frequency regulation. The centralized plants will use decommissioned batteries from local and Beijing-Tianjin-Hebei region electric vehicles. During the off-peak period, surplus wind power from Inner Mongolia and Zhangbei areas are utilized. While power generation peaks are used to generate electricity, the battery storage power station will provide emergency backup and other services. (BJX)

AzureChinaCleantechNews03June2019 03

 

 

Zhejiang begins power spot market simulation test run

A simulation and testing of the Zhejiang Electric Power Spot Market has just been launched. The initial stage was mainly between power plants of 110kV and above in Zhejiang (the province with the largest energy import within the State Grid Corporation area) and electricity sales company. In the spot market simulation, every half hour the price of electricity will change according to supply and demand, which means that 48 different electricity prices will be generated 24 hours a day. (CEC)

AzureChinaCleantechNews03June2019 04

 

Picture Source: ifeng

News Summary:

  • NDRC releases competitive FIT results for onshore and offshore wind
  • NEA releases first batch of subsidy-free projects for 2019
  • Heilongjiang DRC releases plan for 627MW of distributed wind projects
  • 2018 non-fossil energy power generation consumption reaches over 50%

 

 

NDRC releases competitive FIT results for onshore and offshore wind

The National Development and Reform Commission (NDRC) has announced a change to FIT benchmark pricing for onshore wind power. The FITs for newly approved centralized onshore wind power projects will all be determined by competitive bidding and should not exceed the guiding price of the resource area where the projects are located. Meanwhile, offshore wind power projects approved before the end of 2018 and operating before the end of 2021 can still receive the 0.85 CNY FIT, but projects approved in 2019 and 2020 should have FITs lower than the newly announced ceiling of 0.8 CNY/kWh and 0.75 CNY/kWh respectively. (NDRC)

AzureChinaCleantechNews27May2019 07

Note: If resulting competitive FITs are below local thermal on-grid prices, local thermal on-grid prices will be applied.

 

 

NEA releases first batch of subsidy-free projects for 2019

The National Energy Administration (NEA) has released a development plan for subsidy-free wind and PV projects, in which it is determined that the first batch of projects will span 16 provinces with a total installed capacity of 20.76GW. The plan highlights:

  1. Prioritizing development of subsidy-free projects
  2. Prioritizing consumption of power generated by subsidy-free projects
  3. Encouraging approval of inactive projects converted to subsidy-free projects

(NEA)

AzureChinaCleantechNews27May2019 01

 

2019 first batch subsidy-free wind projects distribution

AzureChinaCleantechNews27May2019 02

 

2019 first batch subsidy-free solar projects distribution

AzureChinaCleantechNews27May2019 03

 

 

 

Heilongjiang DRC releases plan for 627MW of distributed wind projects

The Heilongjiang DRC has released a plan for distributed wind power development, revealing a total of 98 distributed projects with an aggregate capacity of 626.9MW, with individual project capacity ranging from 1.5MW to 36MW. The announcement also stipulates that:

  1. If a single enterprise in a single county area constructs multiple distributed wind power projects, the projects should be bundled into one so that preliminary work can be carried out in a unified manner, such as the handling of relevant supporting documents and the approval of projects.
  2. Distributed wind power projects included in this plan should be built and connected to the grid by the end of 2020, otherwise the project will be automatically abolished.
  3. The power sector should actively cooperate with grid access and grid-connected operation services for distributed wind power projects to ensure safe and reliable grid access for distributed wind power projects. (Heilongjiang DRC)

AzureChinaCleantechNews27May2019 04

 

 

Non-fossil energy exceeds 50% of total power generation on China Southern Grid in 2018

Southern Power Grid has released the 2018 Social Responsibility Report. Highlights of the report include:

a)        51.5% of 2018 power generation consumption was non-fossil energy

b)        217.5TWh of power was transported from West to East

c)        The entire power grid had a comprehensive line loss rate of 6.31%

d)        Electric power substitution (or Re-Electrification) reached 22.4TWh

  • (Southern grid)

    AzureChinaCleantechNews27May2019 06

    News Summary:

    • NDRC releases new RPS (Renewable Portfolio Standard)
    • Electricity price for commercial consumption to be reduced 10% in 2019
    • NDRC encourages clean energy participation in power trading
    • Q1 national power consumption totals 2,232.9TWh, 5.6% YOY increase
    • Didi Travel and State Grid Electric Vehicle sign cooperation agreement

     

    NDRC releases new RPS (Renewable Portfolio Standard)

    In accordance with regulations in each provincial administrative region, the National Development and Reform Commission (NDRC) has released a new Renewable Portfolio Standard to determine the weight of responsibility of renewable energy power consumption, which refers to the proportion of renewable energy power that should be achieved in overall energy production and consumption. This includes both the weight of responsibility of total renewable energy power consumption and of non-hydropower renewable energy power consumption. The NDRC also released the substandard alternatives:

    1. Sale of excess renewable energy power consumption to market participants who have exceeded their annual consumption
    2. Voluntary subscription of the renewable energy green power certificate (NDRC)

     

    2020 RPS Requirements

     AzureChinaCleantechNews20May2019 01

     

    2020 Non-hydro RPS Requirements

    AzureChinaCleantechNews20May2019 02

     

     

    Electricity price for commercial consumption to be reduced 10% in 2019

    The Government Work Report from the second meeting of the 13th National People’s Congress revealed China’s 2019 goals of reinforcing power marketization reform, refining add-on pricing for electricity and reducing the cost of electricity consumption in manufacturing. It was also revealed that the average electricity price for commercial consumption would be reduced by 10% in 2019. Pricing departments of all provinces (autonomous regions and municipalities) should promptly study and propose thorough plans to reduce local general industrial and commercial electricity prices in accordance with the above-mentioned price reduction ideology, issue corresponding documents before the end of May following proper procedure and formally implement the plans on July 1. (NDRC)

    AzureChinaCleantechNews20May2019 03

     

     

     

    NDRC encourages clean energy participation in power trading

    The NDRC has released the 2019 cost reduction target for enterprise work, which involves improving the marketization of electricity trading. The NDRC also expressed willingness to deepen power marketization reform, by encouraging sales companies to represent small and medium-sized users in power market transactions and encourage more clean energy companies to participate in transactions. (NDRC)

     

     

    Q1 national power consumption totals 2,232.9TWh, 5.6% YOY increase

    From January to April, national total power consumption reached 2,232.9TWh, an increase of 5.6% year-on-year (YOY). Of the total, the agricultural sector consumed 21.7TWh, an increase of 6.1%; the industrial sector consumed 1,479.2TWh, an increase of 3.2%; the service sector consumed 372.8TWh, an increase of 10.3%; and theresidential sector consumed 359.1, an increase of 10.9%. (NEA)

    AzureChinaCleantechNews20May2019 04

     

     

    Didi Travel and State Grid Electric Vehicle sign cooperation agreement

    On May 15, Didi Travel and State Grid Electric Vehicle signed a strategic cooperation agreement that stipulates that the two parties will use their respective brands and resource advantages to cooperate in the areas of travel, charging, energy and finance to promote a comprehensive green solution based on “car + electricity”.After reaching an agreement, the two sides are to set up pilot projects in Zhejiang, Fujian, Jiangsu, Shandong, Shaanxi, Hunan and Jiangxi. (BJX)

    AzureChinaCleantechNews20May2019 05

    News Summary:

    • Kick-start of competitive FIT for onshore and offshore wind may be delayed
    • NDRC releases documents on overcapacity resolution in key areas
    • IMAR DRC approves CGN 3GW subsidy-free onshore wind project
    • Jiangsu wind installed capacity predicted to exceed 10GW by 2020
    • Jiangsu to accelerate 5G development and technological breakthroughs
    • Azure presents in GWEC Webcast: Doing Business In China’s Offshore Wind Market

     

     

    Kick-start of competitive FIT for onshore and offshore wind may be delayed

    Last week, the National Energy Administration (NEA) held a symposium to solicit opinions on the 2019 wind power construction management measures (NEA) and to discuss previous consultations. According to the information disclosed at the meeting, the wind power construction management measures in 2019 have been intentionally adjusted to balance various factors such as corporate demands, industry development and subsidy gaps. Specifically, the meeting intended to adjust measures for onshore and offshore wind power management, resulting in drafts for comments regarding the following measures:

    1. Approved onshore wind power projects that have not been put into operation within the two-year validity period are subject to re-participate in on-grid price bidding
    2. Loosen access control for offshore wind power projects that have been approved in 2018 and provide a guaranteed price of 0.85CNY/kWh for projects completed by the end of 2020
      (BJX)

    AzureChinaCleantechNews13May2019 06

     

    In the past weeks and months we have seen increasing debate in the industry, between key players and government regulators, trying to reach a common ground for implementation of competitive FIT mechanisms. So far there has been some uncertainty around the exact interpretation of various policies issued over the past year, in the background of which local governments and industry players are pushing to secure as much "tariff pipeline" as possible, whereas the government is trying to limit the subsidy burden. While the final management notice still has to be seen, it is worth noting that we are seeing a key change in eligibility criteria, from "approval date" or "start of construction date" towards "grid connection date", putting even stronger pressure on developers to build their projects as fast as possible.

     

     

    NDRC releases documents on overcapacity resolution in key areas

    NDRC released an official document announcing results of overcapacity control in key areas over the past 2-3 years, mainly focused on steel production, coal mining and thermal power. So far the following capacity reductions have been achieved:

    • more than 150 million tons of compressed steel manufacturing capacity
    • more than 810 million tons of coal mining capacity
    • over 20 GW of coal-fired power units that were not up to standard have been shut down

    The document then lists out directions for pursuing overcapacity control, including for example closing down of small coal mines (less than 300 tons annual capacity), cleansing of "zombie companies", etc.   (NDRC)

    AzureChinaCleantechNews13May2019 01

     

    In terms of thermal power, there has been a lot of focus on eliminating outdated coal-fired power units that are not up to standard (including coal-fired self-supply units). The National Development and Reform Commission (NDRC) announced that it would clean up and rectify the illegal construction of coal power projects in accordance with the law and strictly control new production capacity of coal power in various regions. In the map above, areas in red and orange illustrate provinces in which new “self-use” coal-fired power projects will not be put into operation.

     

     

    IMAR DRC approves CGN 3GW subsidy-free onshore wind project

    The Inner Mongolia Autonomous Region (IMAR) Xing'an League 3GW Old Revolutionary Base Area Wind Power Poverty Alleviation Project is located in Horqin Right Front Banner and Kerqin Zuoyi Zhong Qi. The total planned capacity is 3GW, of which 1GW will be allocated to Horqin Right Front Banner and 2GW to Horqin Right Middle Banner. (BJX)

    AzureChinaCleantechNews13May2019 02

     

    With the continuous commissioning of UHV lines, grid offtake in the Sanbei area ("Three North" including Northeast China, North China and Northwest China) has significantly improved, and low-cost large scale wind power projects regions are being launched one after another—we expect to see incremental growth in wind power construction in these regions in the future.

     

     

    Jiangsu wind installed capacity predicted to exceed 10GW by 2020

    Jiangsu Government has released a 3 year construction plan showing key objectives for the province, including the following:

    • total coal consumption is estimated to decrease by 32 million tons between 2016 and 2020
    • in 2020, the province’s installed wind power capacity will exceed 10GW
    • by 2020, non-fossil energy power generation should reach 26GW, accounting for about 20% of the total power capacity in the province (non-fossil energy will then account for 11% of primary energy consumption in Jiangsu).

    (Jiangsu GOV)

     AzureChinaCleantechNews13May2019 03

     

    It is clear that the Jiangsu Government recognizes renewable energy as an increasingly important component to ensure energy supply and has already started to adjust its power mix structure.

     

     

    Jiangsu to accelerate 5G development and technological breakthroughs

    The Jiangsu Government has announced efforts to further implement provincial strategy for strengthening networks, accelerating the development of fifth generation (5G) mobile communication networks and enhancing construction and application of the new generation of information infrastructure in the province. Doing so will include accelerating the pace of commercial deployment and breakthroughs in the fields of In-vehicle Networking, Industrial Internet, Internet of Things, Smart Grids and converged media. (Jiangsu GOV)

     AzureChinaCleantechNews13May2019 04

     

     

    Azure presents in GWEC Webcast: Doing Business In China’s Offshore Wind Market

    Join the Global Wind Energy Council’s (GWEC) Webcast next Monday, May 20 at 10:00 AM CET as industry experts share insights into the current situation of the Chinese offshore wind market, the barriers that new entrants should be aware of and how foreign investors can play a role. Azure CEO Hubert Beaumont will share insights on the market and opportunities at this occasion.Register for the event here: (GWEC)

    AzureChinaCleantechNews13May2019 05

    News Summary:

    • NEA releases Q1 2019 wind power generation report
    • Changes to PV FIT pricing mechanism
    • Henan DRC releases data on first batch of subsidy-free wind and PV projects in 2019
    • Fujian DRC releases 2019 major project construction plan

     

     

    NEA releases Q1 2019 wind power generation report

    From January to March 2019:

    1. Installed capacity of new wind power in the country was 4.78GW, of which 120MW was offshore wind power;
    2. Cumulative installed capacity of grid-connected power reached 189GW;
    3. National wind power generation capacity was 104.1TWh, a 6.3% year-on-year (YOY) increase;
    4. National average wind power utilization hours was 556 hours, a YOY decrease of 37 hours;
    5. National wind curtailment was 4.3TWh, a YOY decrease of 4.8TWh;
    6. National average curtailment rate was 4.0%, a 4.5% YOY decrease.
      (
      NEA)

     AzureChinaCleantechNews06May2019 04

     

    During this quarter, the provinces with higher average utilization hours included Yunnan (1078 hours) and Sichuan (1048 hours). The regions that experienced severe wind curtailment included Xinjiang (wind curtailment rate of 15.2%, wind power curtailment of 1.37TWh), Gansu (wind curtailment rate of 9.5%, wind power curtailment of 550TWh) and IMAR (wind curtailment rate of 7.4%, wind power curtailment of 1.30TWh). However curtailment has continued to decrease noticeably compared to previous years.

     

     

    Changes to PV FIT pricing mechanism

    The National Development and Reform Commission (NDRC) has released a notice on improving the current on-grid pricing mechanism for centralized PV power generation. The notice states that the PV FITs for new centralized PV power plants shall follow"guiding prices" of 0.40CNY/kWh, 0.45CNY/kWh and 0.55CNY/kWh (tax included) for resource type I, II and III areas respectively. In principle, the on-grid tariff of new centralized PV power plants should be determined through market competition, and should not exceed the guiding price of the resource area, which therefore serve as a ceiling. This will apply to Centralized PV power plants connected to the grid on or after July 1st 2019. Projects connected prior to this date may enjoy the prices from the "531" policy. (NDRC)

    AzureChinaCleantechNews06May2019 02

     

     

    Henan DRC releases data on first batch of subsidy-free wind and PV projects in 2019

    According to the report released by the Henan DRC, the 28 projects in the first batch of subsidy-free wind and PV projects have met national requirements. The projects include 11 subsidy-free wind projects with a total of 1.1GW, four subsidy-free PV projects with a total of 274MW and 13 market-oriented distributed power generation pilot projects with a total of 362MW. (Xueqiu)

    AzureChinaCleantechNews06May2019 03

     

     

    Fujian DRC releases 2019 major project construction plan

    Focusing on the objectives, tasks and overall requirements for accelerating the construction of a strong marine province as determined by the provincial party committee and the provincial government, the Fujian DRC vows to coordinate services such as project construction approval guidance, factor guarantee and implementation management, and to comprehensively support the 148 major projects that are under construction and the 91 that are in the pre-construction phases. The major project construction plan has already made great strides in achieving the completion or partial completion of more than 36 projects, the construction of more than 30 projects and the further planning of a number of major projects. (Fujian DRC)

    News Summary:

    • NEA releases 2022 thermal power plan and construction risk warning
    • Mingyang wins bid for 1,400MW of offshore wind projects
    • Data shows wind power generation reached 104TWh, increased 6.1% between January and March
    • HEAG signs an 800MW wind resource development agreement with the Panshi Government
    • Beijing establishes “Belt and Road” energy partnership with 30 countries

     

    NEA releases 2022 thermal power plan and construction risk warning

    The National Energy Administration (NEA) has released the 2022 thermal power plan and construction risk warning to support decision-making and deployment of structural reforms in the thermal energy sector. (NEA)

     AzureChinaCleantechNews29Apr2019 03

    AzureChinaCleantechNews29Apr2019 04

     

     

    The thermal installation margin is a binding indicator that reflects the redundancy of local thermal power installation and power supply. The early warning financial indicator for thermal power construction is a recommended indicator, which reflects the economics of self-use thermal power projects in the province and provides decision-making reference for the planning and construction of thermal power projects.

     

     

    Mingyang wins bid for 1,400MW of offshore wind projects

    Mingyang has won the bid for the procurement of wind turbines for CGN’s Shanwei Offshore Wind Power Project, for a total capacity of 1,400MW, and a total bidding price of 8,602.49 million CNY, which indicates a WTG price of 6,144 CNY/kW. (CGN)

    AzureChinaCleantechNews29Apr2019 01

    AzureChinaCleantechNews29Apr2019 02

     

    As Goldwind’s bids in the Shanwei Houhu project and Jiazi I & II projects are only 0.55% and 1.25%, respectively, higher than those of Mingyang’s, it can be seen that current bidding for offshore wind turbines is becoming more and more competitive. These prices for ~6MW range turbines are also significantly lower than 1 year ago, when the same turbines were bidding in the 8k range.

     

     

    Q1 wind power generation reaches 104TWh, increasing 6.1% YoY

    By the end of March 2018, China’s total installed capacity reached 1,810GW, which included 310GW from Hydro, 1,010GW from Thermal, 85GW from Gas, 46GW from Nuclear, 190GW from Wind and 130GW from Solar. Between January and March, total power generation reached 1,674.7TWh, a 4.2% increase, and included 104TWh of Wind power generation, a 6.1% increase. (CEC)

    AzureChinaCleantechNews29Apr2019 05

     

     

    HEAG (Huayi) signs an 800MW wind resource development agreement with the Panshi Government

    According to the agreement signed by Huayi Wind Energy (HEAG) and the Panshi (Jilin Province) Government on April 24, the former is declared the only resource developer in the development area, which includes Jichang Town, Sanpeng Town, Mingcheng Town, Yantaishan Town, Shizui Town, Baoshan Township, Niuxin Town and Futai Town of Panshi City. Furthermore, Panshi’s Hongqiling Town has invested in the development of wind resources with a total scale of 800MW. (HEAG)

     AzureChinaCleantechNews29Apr2019 06

     

    According to the “wind power investment risk warning” released by the NEA, the risk warning for Jilin wind changed from red to green, meaning that curtailment issues in Jilin area been significantly reduced and Jilin has been given the green light to continue developing wind power construction.

     

     

    Beijing establishes “Belt and Road” energy partnership with 30 countries

    On April 25, energy ministers, ambassadors to China and high-level representatives of energy authorities from 35 countries attended the “Belt and Road” energy partnership ceremony in Beijing. The partnership will promote intergovernmental policy exchanges and cooperative intent communication, build a bilateral and multilateral project cooperation and technology exchange platform, and promote pragmatic cooperation in the energy field between the 30 member countries. (NEA)

    AzureChinaCleantechNews29Apr2019 07

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