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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:
In addition, according to the requirements of this notice, there must be a subsidy capacity for onshore wind projects in 2019.
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:
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)
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)
Picture Source: ifeng
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)
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:
2019 first batch subsidy-free wind projects distribution
2019 first batch subsidy-free solar projects distribution
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:
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
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:
2020 RPS Requirements
2020 Non-hydro RPS Requirements
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)
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)
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)
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:
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:
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)
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)
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:
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)
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)
NEA releases Q1 2019 wind power generation report
From January to March 2019:
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)
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)
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)
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)
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)
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)
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)
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)