CNREC China National Renewable Energy Centre. Activities within China National Renewable Energy Centre. March 2014

Transcription

1 CNREC 2013 Activities within China National Renewable Energy Centre March 2014 China National Renewable Energy Centre

2 Table of Contents 2013: Progress for RE and for CNREC... 1 RE development in China in Deployment of RE in China... 2 Chinese RE policy measures in CNREC activities in Policy Strategy Research... 6 Industry Policy Research Industry monitoring and RE information Demonstration Project Management International and Regional Cooperation CNREC - organisation and partners Mission and vision Organization Partners Selected publications CNREC Staff... 23

3 Pg : Progress for RE and for CNREC 2013: Progress for RE and for CNREC In 2013 is became obvious for all that the energy path that China has pursued the last 10 years is unsustainable. The heavy air pollution in many cities and provinces of China is a severe threat to people s health and to the continuation of the economic growth in China. Economic growth is a precondition for the further development of China but the growth must be based on sustainability and environmental sound solutions. Renewable energy (RE) can deliver clean energy and recent years have shown a steady improvement of the different technologies and rapid decrease in cost of energy. RE therefore have an important role in the future energy system, in China and globally, delivering low-carbon solutions and green jobs for the countries which are willing to grasp the huge possibilities for these technologies. China is now gradually turning into the path towards a sustainable energy system but still many challenges and barriers have to be overcome China saw in 2013 a revival of the wind power deployment, a rapid increase in the use of solar PV systems with increasing focus on distributed energy solutions, following the trends in leading RE countries like Germany, Denmark and USA. In 2012 and 2013 more than 20% of the Chinese electricity production came from RE. So China is now gradually turning into the path towards a sustainable energy system, but still many challenges and barriers have to be overcome. Institutional barriers makes it difficult to make the power system flexible enough to integrate RE power, the quality and economic competitiveness for the RE technologies must be improved, and the right incentives for deployment of RE must be in place. China National Renewable Energy Centre, CNREC, is born to assist in dealing with these challenges and barriers. As the leading advisor for the Chinese government on RE policy strategy the centre have carried out a large number of topical research projects and analyses in One of the main activities in 2013, which will be continued in 2014 is the long-term scenario analysis of the Chinese energy system, showcasing the possibilities to have a lowcarbon energy system with a high share of renewable energy. These analyses will also give directions for the most short-term implementation strategies as developed in the 12 th five-year and the upcoming13 th five-year plan. Since the start of CNREC in the beginning of 2012, the centre has developed its capacity to carry out topical energy policy research with state-of-the-art tools and methodologies. At the same time the centre has worked closely together with leading energy institutions in China and abroad to ensure the most recent knowledge to be included in the results. It is my hope and expectation that CNREC will continue and accelerate this in 2014 and the years to come. This annual report from CNREC gives a brief overview of the activities in the centre in Enjoy the reading. Wang Zhongying Director General, China National Renewable Energy Centre

4 Pg. 02 RE development in China in 2013 RE development in China in 2013 Deployment of RE in China In 2013 renewable energy contributed to 10.6% of the total energy consumption in China (calculated as equivalent coal consumption), and RE power accounted for 20% of the electricity production, approximately the same share as in ,200 25% New RE capacity in 2013: 1, % 15% Hydro: 31 GW Wind: 14 GW TWh % 5% Solar PV: 11 GW % Hydropower Wind on-grid Biomass Solar on-grid Geothermal & Ocean RE share Development in RE power production (TWh) and share of total electricity production in China from 2005 to Hydropower Hydropower is the dominant RE technology in China. In GW of new capacity was put into operation and the total installed capacity reached 280 GW. Wind power The total wind power installed on-grid capacity reached GW contributing with134.9 TWh to China s electricity production. Around 85% of the capacity is in the Northern part of China, with Inner Mongolia (18.33 GW), Hebei (7.75 GW) and Gansu (7.03 GW) as the top three provinces regarding installed wind power capacity. The amount of curtailed wind power was in 2013 around 11% of the total possible wind power production on a country level and in Jilin and Eastern Mongolia around 20% of the possible wind power production was curtailed. The curtailment has however improved from 2012 where the national curtailment reached more than 20%. The average number of full load hours increased from 1890 hours in 2012 to 2074 hours in 2013, partly due to lower curtailment.

5 Pg. 03 RE development in China in 2013 The progress of China's offshore wind power development was slow in By the end of the year, the installed offshore capacity was 300 MW, with additional approved projects under construction with a capacity of 100 MW was a busier year for the wind turbine manufacturers in China compared to the years before GW wind power capacity was installed; around 3.1 GW more than in 2012; and the total wind power capacity (on-grid and off-grid) reached GW. Around 21 GW of new projects were put for tendering in 2013 nearly a doubling compared to The Chinese wind turbine manufacturers exported 338 wind turbines with a total capacity of 650 MW, an increase of 50% compared to Currently more than 20 Chinese wind turbine manufacturers are operating in China, and Goldwind, United Power and Mingyang Wind Power are among the global top ten manufacturers. The typical size of Chinese wind turbines is 1.5 MW and 2 MW, while 3 MW has been introduced on commercial terms and 5 MW and 6 MW models for off-shore and onshore use has been developed and put into operation. Solar power The Chinese governments high priority for developing the Solar PV industry resulted in massive deployment of solar PV in China in GW of new capacity was installed in 2013 and by the end of the year the cumulative solar PV capacity reached 15 GW 10 GW as solar power plants and 5 GW as distributed solar PV systems. The investments in solar PV in China are quite concentrated. In 2013 the country's largest ten photovoltaic power plant investment companies installed capacity accounted for more than 50% market share. In 2013 the top ten Chinese manufactures Industry produced 16.6 GW, a significant improvement compared to China's solar thermal power generation market has just started, the first concession 50 MW tender was completed in 2011, but the project progress has been slow. Solar heating The deployment of individual solar water heaters has been a great success in China where the solar heaters are deployed on market conditions without subsidies. In 2013, the annual production capacity of solar water heaters reached 63.9 million square meters, an increase of 11%, and the totally around 317 million square meters of solar heaters is now installed in China. Biomass By the end of 2013 China had a total of 8.5 GW biomass power plant capacity, of which 4.1 GW is agriculture and forestry biomass direct combustion power generation capacity, around 2.3 GW is waste incineration power generation capacity, and around 300 MW is biogas power generation capacity, 1.2 GW of power generation capacity from sludge and biomass gasification power generation, and 1.7 GW of bagasse power plant capacity.

6 Pg. 04 RE development in China in 2013 Since the introduction of government subsidies to straw briquettes in 2008 the national biomass briquette market has expanded rapidly, and in 2013 nearly 600 million tons, equivalent to 3,000,000 tons of standard coal was produced. At present there are more than 205 biomass briquette production plants mainly in North and East China. The use of biomass briquettes is mainly concentrated in eastern China. The biofuel production is currently quite low in China, 210 million tons bioethanol in 2013 based on non-grain biomass. Other renewable energy technologies China has 27 MW geothermal power generation capacity and almost non low-temperature utilization of geothermal energy. Several tidal power demonstration plants are in operation with a total capacity of more than 4 MW, but the technology is still not matured. Chinese RE policy measures in is an important year for achieving the goals for 2015 in the 12 th five-year plan and in order to have good progress in the deployment of RE, the Chinese government has introduced a number of policy measures during Surcharge In August 2013 the National Development and Reform Commission issued a "renewable energy tariff adjustment on additional environmental standards and tariff matters" with an adjustment of the surcharge to electricity consumers for financing the Chinese RE fund. The surcharge was raised from 0.8 RMB cents to 1.5 RMB cents per kwh. Wind Power The main challenge for the future deployment of wind power in China is the high share of curtailed wind turbines 20% in To address this problem, the National Energy Administration, NEA, in February 2013 issued a notice (2013, 65) on wind power focusing on ways to reduce curtailment and ensure a high priority for the utilisation of wind-generated electricity. In March 2013 NEA issued a notice regarding the use of wind power to produce heat in the winter time in the Northern China, particularly during night-time, in order to reduce the amount of curtailment, which is especially high in the winter period. A "Blue Sky day" in Beijing - viewed from CNRECs office in Guohong In May 2013 NEA issued a notice (2013, 201) on strengthen the monitoring and evaluation of wind power industry, setting up an information system for better evaluation of the industry development trends and for promoting a better quality of the future turbines. CNREC is entrusted the monitoring and evaluation task, including collection and analysis of the international and national wind power industry development, collection of operational data. The analysis should be reported to NEA on a quarterly basis.

7 Pg. 05 RE development in China in 2013 Solar In July 2013 the State Council issued the "Opinions on Promoting the healthy development of the PV industry" in response to the photovoltaic industry issues, to further standardize and promote the sustained and healthy development of the PV industry. In August 2013 the National Development and Reform Commission settled the tariff for solar PV, depending on the resource availability. The country is divided into three types of solar resource area, and the tariff for solar PV is set to 0.90 Yuan per kwh in resource class I, 0.95 Yuan per kwh for resource class II and 1.0 Yuan per kwh for class III. The government subsidy is set up 0.42 Yuan per kwh to be paid through the Renewable Energy Fund via the grid enterprises. NEA issued in 2013 a notice (2013, 422) on the "Interim Measures for PV power plant project" and "distributed photovoltaic power generation project on Interim Measures," which is a specification solar PV power plant project management, protection of photovoltaic power plants and power systems and distributed power plants safe and reliable operation scale management, project record, construction conditions, grid access and operation, metering and billing, industry information monitoring, compliance responsibilities etc. Other renewable energy policy In January 2013 the National Energy Board, the Ministry of Finance, Ministry of Land and Ministry of Housing issued a joint "guidance on the promotion of geothermal energy development and utilization" to the 2015 proposed national plan of geothermal power generation capacity with a goal of 100 MW, substituting 20 million tons of coal. The guidance includes establishment of a geothermal resource assessment, and development of a Chinese geothermal industry. In December 2013 the State Oceanic Administration released the "Ocean Renewable Energy Development Program ( )," The overall objective is to further enhance the ocean energy technology, establish a number of demonstration projects and setting up the necessary policy and regulation to support the development of the ocean energy industry.

8 Pg. 06 CNREC activities in 2013 CNREC activities in 2013 CNREC is an active participant in the RE policy formulation, and the centre has in 2013 contributed with a large number of projects and research studies. In the following the most important projects are described. Policy Strategy Research 2050 Scenario studies In 2013 CNREC and the Danish Energy Agency (DEA) have carried out a 2050 lowcarbon/high RE share scenario study with the aim to develop the methodology and modelling tools for such analyses and to showcase the possible role of RE in the future Chinese energy system. At the same time CNREC leads and coordinates a larger 2050 scenario study for the Energy Foundation with a large number of partners involved. This study will be finalized in The methodology for the scenario study is to have a detailed bottom-up analysis of the possible role of RE in the Chinese energy system, with focus on economic rational decisions. The models used for these analyses are therefore economic optimization models, taking into account the cost of investments, fuel cost and operational cost for the whole energy system (see more about CNRECs modelling tool in the CREAM box). The starting point for the analyses is projections for the future energy demand, based on assumptions for economy growth, per capita development in energy consumption, urbanization rate, industry transformation etc. Based on these projections, the energy system is modelled. Especially for the electricity and district heating sector detailed modelling is carried out, including investment decisions for new power plants and simulation of the hourly dispatch for the whole sector. This level of detail is necessary in order to examine how to integrate fluctuating RE into the system. Main conclusions from the 2050 scenario study A high share of RE seems possible in the Chinese energy system, especially in the power sector It is possible to integrate large amount of RE in the system with a flexible dispatch and with expansion of the transmission grid A high share of RE will substantially reduce SO2, NOx and CO2 emissions from the Chinese energy sector after 2030 The use of coal would peak in and then be reduced significantly.

9 Pg. 07 CNREC activities in 2013 Different constraints for the development are set up, including resource constraints and constraints for emissions from energy production. Furthermore different policy measures can be modelled in order to examine the impact of the measures on a provincial and national level. Finally the macro economic consequences for the different scenarios are analysed using a macro-economic model for the Chinese economy. In the CNREC-DEA study three scenarios have be developed, a Reference scenario, a RE Max scenario and an Optimization scenario. The study was based on preliminary data and the results are in the process of revaluation with improved data. The methodology and the models CREAM CNRECs modelling tool China Renewable Energy Analyses Model, CREAM, is the advanced tool for policy strategy analyses that CNREC has developed in The tools can be used for a large number of studies, i.e. Scenarios for the development of the energy sector for the next forty years Analyses of RE targets for the next five years Analyses of the impact of different policy measures for promoting RE including quotas, taxes, targets, caps etc. Five-year development plans for a province or a city Studies of dispatch of the power system with a high share of RE. The model consists of four interlinked sub-models with different purposes, but capable of interacting through soft data links. CREAM-EDO covers the electricity and district heating system and it will optimize the total cost of the system within the given framework and limitations (mixed integer/linear programming optimization). The optimization can include investments in new power plants, based on cost estimations for investments, fuel costs and operational costs for the different technologies. CREAM-CGE is a dynamic Computable General Equilibrium model for China s economy and energy system. The model represents the Chinese economy in four blocks, Production, Income, Expenditure and Market. As result CREAM-CGE estimates the economic impact of the transition of the energy system. Thereby the models can be used for estimation of the economic output of the Chinese RE industry sectors, the impact of the transformation to RE for other sectors and the whole economy, in form of employment, economic output and added value. Also pollution and carbon emission is calculated. CREAM-DEMAND estimates the current and future energy demand for China. The model includes more detailed modules for transport, for industry and for housing together with a summary module. CREAM-TECH is a spreadsheet model calculating the Levelised Cost of Energy (LCOE) for a number or RE technologies and compare these with fossil fuel technologies. The model uses the CNREC database for RE technologies as input, including present and future estimations of investment costs and operation cost for the different technologies.

10 Pg. 08 CNREC activities in 2013 used will however be a vital part of the 2050 scenario study for Energy Foundation. The main results from the cooperation between CNREC and DEA are that CNREC now is fully capable of preparing comprehensive scenario analyses for China, based on internationally state-of-theart methodology and tools. Besides these 2050 scenario studies, CNREC is also developing a macro-economic impact analysis methodology for high penetration RE development for the Academy of Macro Economy Research (AMR). This work is mainly based on CNRECs general equilibrium model CREAM-CGE. Reinventing Fire to explore the road to China s energy revolution. Energy Foundation China has launched a joint research with different departments of ERI, the US Rocky Mountain Institute and the US Lawrence Berkeley Laboratory. CNREC is responsible for the RE production study. The research analyses possible roadmaps, measures and policies for a re-invented world power, transport, industry and building sectors with energy transition completed by 2050 in China. The purpose is to find the gaps, economically available technologies and roadmaps to achieve the most efficiency and the high penetration of RE in the energy mix. CNREC s CREAM-EDO model is central in the study of the power system performance. The research started in June 2013 and will be finished June Mid-term assessment of the implementation of the 12th Five-Year RE Planning Entrusted by NEA, CNREC has assessed the progress in implementation the 12 th Five-year Plan regarding renewable energy. All key RE technologies, hydropower, wind power, solar energy, biomass energy, geothermal energy and ocean energy have been included. The industries are reviewed regarding market expansion as well as policy environment. Comments CNREC Director Wang Zhongying presents the 2050 Scenario study at the Energy Foundation meeting in Beijing in November 2013

11 Pg. 09 CNREC activities in 2013 and recommendations to improve further implementation and more enabling policy and legislation environment are provided. A report has been provided to NEA in October Global RE Development Outlook CNREC has provided input on the development of China s low carbon development strategy to NDRC. The research aims to analyse the drivers, environment, current status, technology innovation competence and policy improvement for global RE development in the context of low carbon development and energy transition. All the RE technologies are assessed in terms of their technological and economical performance and deployment potential. Based on the analysis and assessment, the projection to RE development in the main countries and regions is made, including China. A preliminary draft report has been finished and the work will continue in Integration of RE into the power system CNREC has been working together with the EU-China trade project to establish a dialogue between Chinese and European experts on RE integration. A joint CNREC-EU workshop was held in April 2014 followed by several follow-up activities. The main conclusions from these activities are: The integration of RE is mainly an institutional challenge, not a technical The thermal power plants and the transmission lines should be operated more flexible, but currently there is no economic incentives for such flexibility Dispatch should be based on marginal costs of producing electricity, allowing for the cheapest power to have the first priority Economic measures should be developed in order to compensate for increased flexibility for the thermal power plants, i.e. payment for system services or capacity payments. Integration of wind power is also the topic for a project carried out by Beijing Huajian Power Design and Research Institute and CNREC with the support of Danish power system experts. The project looks at specific measures for integration of wind power in Baicheng in Jilin province. It was launched in 2013 and will conclude in As part of this project Danish experts from the company Added Values presented the experience on flexible power plants in Denmark at meetings in Beijing in December 2013 and they participated in a study tour to Baicheng to look at the Chinese power plants and the possibilities for flexible operation. The Danish power plants have strong economic incentives to be flexible because the market price is very dynamic and could even be negative, if the production tends to be more than the demand. Hence the Danish power plants are capable to operate down to around 10% of the installed capacity for a unit, being able to quickly change the power output and able to quickly start-up. The preliminary evaluation of new Chinese power plants shows that the Chinese power plants should be able to operate more flexible than today if the economic incentives are in place.

12 Pg. 10 CNREC activities in 2013 RE quota regulation Entrusted by NEA and sponsored by US Energy Foundation, the research was initiated by CNREC in March 2012 and will be completed in February The purpose is to improve the matched regulations to facilitate a full-fledged implementation of RE quota policy framework. It includes the improvement of the RE power quota statistic system, the enabling regulation system, green certificate trading pilot plan, etc. A research report has been provided to NEA for the policy making process as well as the support to the reporting to the State Council. The assistance was provided to NEA for the stakeholder consultation meeting. Demand analysis and system design for high-polymer clean energy Entrusted by State Administration for Science, Technology and Industry for National Defence, the research is a sub-project and provides inputs to prepare a demonstration project named by high-polymer clean energy remote-sense application system. The research analysed the industry demand, designed the product system, and suggested the operation environment for such system with the testing and simulation results. The final reports were submitted by the end of Energy production and consumption revolution research Entrusted by Academy of Macro Economy Research (AMR), the whole research is to support the concept interpretation and further analyse how to achieve China s energy system transition in terms of the target, roadmaps and enabling environment to push the reform. CNREC undertakes a sub-task the survey of Brazilian bio-liquid energy industry development. By the end of 2013, the research has been finished with the key research findings and results provided to AMR. Economic assessment and policy design for distributed RE power technologies Entrusted by AMR, the research is to analyse the RE power technologies and industry development situations, review the current policy framework and regulations, and assess the technological and economical performance of the key RE technologies; finally the research will provide recommendations on how to improve the policy system to enable the distributed RE power development in China. The research was initiated in February 2013 and will be completed in March Distributed energy technology, management model and policy research. Entrusted by NEA and sponsored by China Development Bank (CDB), the research is targeted at provide recommendations on how to establish a well-designed distributed power project operation and management model based on the international best practices. The research was initiated in February 2012 and finished in August The research results have been provided to NEA, NDRC and China Development Bank for the policy making process. RE for heating Entrusted by NEA, CNREC organized the key experts and stakeholders to conduct research on a RE heating development strategy. Starting with the various exited RE heating supply technologies and solutions, CNREC analysed the barriers and gaps as well as the possibility and feasibility of RE replacing fossil fuels. The research provides recommendations on the

13 Pg. 11 CNREC activities in 2013 targets, key priorities and roadmaps for RE heating supply technology applications. The research was initiated in early 2013 and finished in July Based on this, CNREC organized the key experts to assist NEA for the drafting of a RE heating supply guide manual in June The drafting was completed in November 2013 and provided inputs to NEA for policy making. The work will continue in 2014 as part of establishing the RE heating platform. Local RE policy strategy development In 2013 CNREC carried out a number of project for provincial governments. For the Jiangxi government, CNREC provides a draft planning for Jiangxi Provincial new energy industry development, recommending the RE industry layout in Jiangxi. It includes the analysis of Jiangxi current local manufacturing situations in terms of opportunities and challenges, and recommends the new energy industry development targets, key priorities, layout and enabling policies. The research started in June 2012 and finished in January Entrusted by Ningxia government, CNREC provided an implementation plan for the established Ningxia regional new energy planning. The development potential and the current situations of the new energy industry have been analysed. The key components of power system operation, technology innovation and demonstration projects are recommended together with the policy and regulations to be improved. The research is finished in December Entrusted by Guangzhou government, CNREC prepare a new energy development strategy aiming at addressing the limited fossil fuel supply and environmental demand in Guangzhou city. It analyses the potential for Guangzhou to deploy biomass, solar and geothermal energy and recommend the middle and long term development targets, roadmaps, key priorities and policies. A draft report has been provided to Guangzhou government for comments. It will be completed in March For the Sanshui municipal government, CNREC conduct a Sanshui city distributed PV demo zone planning the research was initiated in November The purpose is to analyse the key institutional and mechanism barriers to the establishment of distributed PV demo zone. The analysis include the current project review and approval process, grid integration, rooftop ownership, bank insurance system, etc.. The planning was proposed with the key policy and regulations to be developed for a more enabling environment in Sanshui city. It will be completed by June CNREC assist in the economic assessment of the possibilities for RE district heating in Yilan County in Heilongjiang province. The research is aimed to provide economic assessment of possible and available RE heating technologies for Yilan County, which is one of the Green energy county awarded by NEA. Danish experiences are learned based on inputs and assistance from the Danish Energy Agency. Most tasks have been concluded and the project will be finalized by March 2014.

14 Pg. 12 CNREC activities in 2013 CNREC prepare a project regarding solar PV industry development in Alxa in Inner Mongolia. The project was started in November 3013, and will be finished by March CNREC was entrusted by Alxa municipal government, Inner Mongolia to have the full responsibility of the project. The study comprise a number of activities related to the development of solar PV system in Alxa, including technical and economical evaluation of the potential development, cost-benefit analysis and recommendations for policy measures to promote the development of solar PV in the region. The field research was concluded in December 2013, and the draft research report was finished by January Industry Policy Research Offshore wind power policy Entrusted by NEA, together with China Renewable Energy Engineering Institute, CNREC began the offshore wind power pricing policy research in February 2013 and finished the research in August The main tasks include the analysis of China s offshore wind power industry, market and technology development, and the concession projects. The policy barriers to China s offshore wind power development, technological and economical indicators and power tariff are analysed as well. Power tariff category based on distance from shore and ocean depth and other matched policies are recommended for the tidal and offshore wind power. The research results have been provided to NEA and NDRC in July 2013 for policy making. Offshore wind power development trend and policy research. The research is aimed to assess the current offshore wind power policy and provide suggestions to improve the policy system and framework. A special attention will be paid to the power tariff formulation mechanism. The research will be finished by the end of June Wind power cost and subsidy evaluation This assignment was delegated by NEA to CNREC and China Renewable Energy Engineering Institute. The project was launched in August 2013 and will be finished by February The major research contents were: summary and analysis of the status quo of wind power industry development, actual operation status analysis, resources status as well as cost evaluation of wind farms scattering all round the country, and the measurements of on-grid price and subsidy of different areas of China. By the end of January 2014, the main task of the project had been finished, the mid-term research discussion meeting was held in November 2013, the draft wind power cost evaluation and optimizing subsidy mechanism research report was finished by December 2013 and a draft policy improvement program has been submitted to the New Energy Department, NEA. The project results would provide policy decision references to NDRC and NEA targeting the designing and implementation of China wind power price adjustment plan. RED provided funding to China Renewable Energy Engineering Institute. CNREC also carried out the compiling work of wind energy heat supply technology guidance, scattered wind power construction and demonstration project evaluation and Changing wind power market accommodation research.

15 Pg. 13 CNREC activities in 2013 Biomass power and heat supply roadmap In 2013 a biomass power and heat supply development roadmap was launched as part of the RED program implementation. By learning international biomass energy development experience, summarized the status quo of China biomass power and heat supply industry development, analysing the factors that restrained industry development, combining the urges that vitalized by urbanization, the project aims to provide development targets for China biomass power and heat supply industry for 2015, 2020, 2030 and The targets will be supplemented by corresponding action plans which including the must-accomplish technology targets, must-adopt key actions, must-implement incentive policies and procedures as well as other relevant contents. By the end of 2013 a first draft of the roadmap report is being prepared to be finalized in April RED supported the project and the experts of both CNREC and DEA provided technology guidance. Biomass liquid fuel development roadmap The biofuel roadmap was launched in the beginning of 2013 with Tsinghua University as implementing body. By analysing and predicting the resource potential, technology development level, market demands, fuel supply system, policy circumstances and other related conditions and influential factors of China biomass liquid fuel, the project aims to present development targets for China s biomass power and heat supply industry supplemented by action plans and proposals for incentive policies for 4 periods: 2015, 2020, 2030 and By the end of 2013 the first draft of roadmap report had been finished, and the project will be finalized in March RED supported the project and the experts of both CNREC and DEA provided technology guidance. The Solar Energy Development Roadmap The Solar Energy Development Roadmap study was launched in the beginning of 2013 with China RE Society as implementing body. The roadmap shall describe the future development direction and routes of solar energy utilization in China and explore the solar energy long-term development path of 2030 and The study includes solar power and solar heating technologies and combines the national and global development trends for these technologies. Development targets are set-up for 2020, 2030 and 2050, including action plans and policy recommendations. The role of government, enterprises, the public and other stakeholders during the development process will be analysed. By the end of 2013 the technology research part had been finished, and the roadmap report is expected to be concluded in April The RED program supports the study and experts from CNREC and DEA provide guidance. Investment and financing models for distributed Solar PV projects. The current challenges and future solutions regarding financing distributed solar PV projects are analysed in this project, which was launched in July The project is funded by the RED program and it is carried out by China RE Industry Association with guidance from CNREC and DEA. The project will be concluded in March Concentrated Solar Power (CSP) industry policy research. Assigned by NEA, the project was launched in September 2012, and concluded in April 2013, the report had submitted to NEA, which was lead by CNREC and Solar energy Industry

16 Pg. 14 CNREC activities in 2013 Innovation Alliance, experts, with assistance from equipment manufactures and investment companies in the field of CSP. CNREC was responsible for a report on CSP technology and policy bottleneck analysis, which focused on analysis of technical barriers and policy environment of CSP, including suggestions for policy measures to promote CSP industry development, and also involved in other areas of the study. The drafting geothermal energy application guideline. Entrusted by NEA, the task was imitated in September 2012 and completed in February NEA issued the guideline in June 2013, which identify the main geothermal energy application technology catalogue, the technological and economical performance, the application situations, and the technological standards, etc. Industry monitoring and RE information Database for CNREC s information platform The project, supported by the RED program, started in April 2013 and will be finished in the beginning of The purpose is to provide data for NEAs mid- and long-term renewable energy development strategy work. The database comprises a statistical database and a renewable energy policy database. The statistical database contains organized statistic data by time and space suitable for further analyses. The renewable energy policy database is planned to cover China and other major countries renewable energy policy with clear categories and easy assess to analysing this information. By the end of 2013 the statistical database contains monthly, quarterly and yearly data; the geographic database covers major countries in the world and the provinces in China, including 2013 data of China and other major countries. The policy database includes more than 500 policies and regulations covering 29 countries and regions. Wind power monitoring and evaluation system This project, supported by the RED program, was commissioned by NEA and started in May It s aiming to monitor the information and situation of wind power as a basis for improving the technical level and quality of wind turbine, detection of the core issues for the further development of wind power and ensuring the sustainable and sound development of wind power. The system will monitor and evaluate the conditions of the equipment, the project construction and the grid connection of wind power. REIAC have the responsibility of grid connection information and international wind power information. The system is now providing monthly and yearly data reports to NEA and it will support energy authority control wind energy development situation. Monitoring and evaluation system of off-grid PV system construction and power service in non-electrified area With the guidance of NEA and the support of Shanghai Solar Technology Company, the project started in September 2013 and it will be finished on May, The project aims to improve stand-alone PV system service, promote reliable operation of PV system and explore the new management methods and the monitoring and evaluation of systems in in areas

17 Pg. 15 CNREC activities in 2013 without electricity supply from the central grid in accordance with implementation of the Threeyear Action Plan for electricity access in non-electrified area. The results will support the energy authorities in developing management methods and monitoring criteria. The project has finalized the research work in five western provinces and will study and design management methods and criteria for monitoring and evaluation of these systems. Renewable Energy Data Manual and other publications This project, funded by the RED program, started in February 2013 and is part of the daily information work. It aims to collect and organize the renewable energy statistical data and major information of previous year and edit in data manual to support researchers in providing specific and objective data. The manual was published in July Based on the Renewable Energy Data Manual, CNREC edited the English version of Renewable Energy in China which also provided data support for international researchers to acknowledge the renewable energy situation in China. CNRECs web site

18 Pg. 16 CNREC activities in 2013 Renewable Energy Digest and other information service This task, supported by the RED program, is part of the daily work for REIAC and it aims to collect and edit information about the Chinese and international renewable energy development. The edited information is published in a weekly Renewable Energy Digest, which is distributed to NEA, RE researchers, and published on the REIAC Information Portal. By the end of issues of the RE Digest has been published. Demonstration Project Management An improvement of new energy city design Entrusted by NEA and sponsored by the World Bank, as one of the pre-research projects of the CRESP Phase II, the research is aimed at assisting NEA to scale up the new energy city demonstration project. The main scope of work includes a review on the lessons learned and the national best practices based on the conducted demonstration projects, also the international best practices learned. The review will further provide implications on re-identify the key priorities and the policy framework to be improved. Prepare a plan for new energy integration application project implementation This task started in January According to the national strategic project industry development plan during the 12th five-year period, CNREC assist NEA to compile "new energy integration application engineering implementation plan". The plan includes background, project objectives, major tasks, key special projects, risk analysis and policy measures. After the draft study, the project objectives and key tasks have been clear. Three key projects will be organized and implemented: 1) a project for large-scale new energy power generation and transmission integration application innovation, 2) new energy comprehensive application demonstration in cities and towns, and 3) demonstration of new energy micro grid systems. The detailed quantitative indicators of each key special project were defined and the safeguard measures have been put forward. The Centre submitted the first draft version of this plan in March 2013 to NEA. The plan was improved it in November 2013 according to NDRC's comments, and the revised version was submitted in early December. According to the work plan, NEA and NERC will organize the relevant units to improve the plan, and it is expected to be disseminated in the first half of Planning study on a distributed solar PV demonstration park in Sanshui city Authorized by Sanshui city, the project of distributed solar PV demonstration park in Sanshui city started in November 2013, all kinds of problems of mechanism and system faced by the park construction are cleared, the existing systems' effect on the solar PV demonstration park construction, such as project approval, grid access, roof property and bank insurance system for distributed photovoltaic, is analyzed, the policy recommendations promoting the scale of solar PV application will be put forward. This work is expected to end in June 2014 The Preparations of the second phase of CRESP The work started in May A project management office was set up to do the preparation work with the approval of NEA in February From March to July of 2013, the preliminary

19 Pg. 17 CNREC activities in 2013 assessment and evaluation for CRESP phase II was completed according to the World Bank GEF project process. During this period, CRESP project file (draft) and the project implementation plan (draft) were modified by working with World Bank experts. Several workshop were held during the process, with participation of managers from NEA as well as domestic and international experts to discuss the overall target and specific work content of CRESP phase II project, to further improve the project framework, detailed procurement procedures and supervising implementation method. Based on this the final version of CRESP phase II project documents and project implementation plan were prepared. From August to September of 2012, the project documents and project implementation plan of CRESP ii phase project were approved by NEA, and NEA submitted to the Ministry of Finance (MOF). The PMO also assisted NEA, MOF and WB to prepare series files for the CRESP phase II project grant agreements negotiation, and to communicate for determining the time and agenda. On September 6, representatives of MOF, NEA and WB held grants agreement negotiations with the WB's lawyers in WB's Beijing office by video system, and the grant agreement was achieved. On October 30, CRESP project ii phase was passed by WB's executive board. On November 27, MOF on behalf of the Chinese government signed the grant agreements with WB. On December 26, CRESP project phase II grant agreements entered into force. Organization of the project implementation during the retroactive period of CRESP second phase This task started in April According to the current renewable energy work needs, CRESP PMO together with the experts of WB prepared some research projects during the retroactive period by using the GEF project tracing mechanism. Eight projects were approved by NEA, including five consulting projects and 3 grant projects. By the end of 2013 four consulting project contract have been signed for the total amount of $ The projects are "appraisal management measures for renewable energy quota system supervision and review", "new energy demonstration city concept system upgrade research", "distributed RE power grid integration technical standard and capacity study of distribution network access high proportion distributed RE power", "wind power development, supporting power grid construction and market consumption solution research in west Inner Mongolia during the twelfth five-year period". International and Regional Cooperation Assistance to NEA to implement the Memorandum of Understanding on cooperation in the area of renewable energy with Danish Ministry of Climate, Energy and Building According to the MOU, CNREC carried out coordination and joint research work together with the Danish Energy Agency. On January 7th, 2014 the Danish Minister of Climate, Energy and Building with senators visited the Center. CNREC reported the key tasks and important achievements of the RED program, and put forward a proposal for the future cooperation, and accompanied to Harbin city and Yilan County to discuss the research progress.

20 Pg. 18 CNREC activities in 2013 Organizing the participation of 3GF 2013 China is member of the Global Green Growth Forum and CNREC serve as coordination with the 3GF secretariat, according to the requirements of NEA. CNREC participated in the 3GF in October in Copenhagen, assisting in hosting the China session with the theme Energy Transformation, and also taking part in the electric power transformation forum and a special forum regarding Green Revenues for Green Energy. Organizing the cross-strait RE industry cooperation forum in 2013 According to the requirement from NEA, in November 22nd 2013, CNREC assisted to organize the mainland party to attend the 6th cross-strait renewable energy industry cooperation forum. After the forum, the two sides communicated on the latest progress, development prospects and cooperation opportunities in the areas such as offshore wind turbines R&D, low wind speed, scaled solar PV power generation, distributed energy utilization, standards and certification & testing, urban comprehensive utilization of renewable energy, new energy micro power grid projects and so on. Soon afterwards, CNREC drafted the five years ( ) plan for the cross-strait cooperation in the renewable energy, which is revising. Since 2009, such forum has been hosted by both sides in turn for 5 times. Assistance to the organization of 2013 China-US renewable energy industry forum In accordance with the requirements of NEA, CNREC assisted to organize the China-US renewable energy industry forum This forum was held on July in Shanghai. The themes focusing on solar energy and wind energy were discussed, like as industry policy, development planning, investment and financing, technical standards, grid integration and market mechanism; and the key areas of cooperation in the future was put forward. In order to further promote the cooperation of China and the United States, the specific plans also has been formed, the projects of which will be carried out jointly by Chinese and American enterprises and institutions. The Forum has started since November 2009, within the framework of the China-US strategic and economic dialogue, and is held in turn by the administration department of energy in China and US. Assist China's participation of IRENA In accordance with the requirements of NEA, CNREC assisted to prepare series of work for China's participation in IRENA, including document preparation of the national review and approval procedure as well as the IRENA approval procedure, Martin Lidegaard, The Danish minster for Climate, Energy and Building and Liu Qi the Vice minister for NEA attend the CNREC presentation of the 2050 scenario study in July 2013

21 Pg. 19 CNREC activities in 2013 daily dialogue with IRENA, etc. China formally joined IRENA 2 January In January 2014 CNREC together with CREIA supported NEA to participate the conference in Abu Dhabi as a formal member, also providing various support of documents and communication. Cooperation with the International Energy Agency CNREC has a good tradition for cooperation with IEA regarding RE. In CNREC participated in IEA's Renewable Energy Working Group meeting contributed to IEAs Medium-Term Renewable Energy Market Report, and to other reports, including IEAs report on biomass. Furthermore CNREC participated in several of the IEA Technology Initiative meeting, including the TI for Wind and Solar PV. Assistance in the implementation of China-Germany renewable energy partnership According to the" Memorandum of Understanding on cooperation in the field of renewable energies" signed by Chinese NEA and German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, CNREC and the German international cooperation agency (GIZ) assisted to organize and implement the activities as the specific implementing agencies. In the second half of 2013, the main job as provide exchange of experts e.g German experts introduced the smart grid related policies and case on June 27, a lecture about distributed power generation legislation and policy framework in Germany held on September 11, etc. Assistance to NEA to draft the report of "new energy enterprises going out" and support the foreign affairs CNREC assisted the new energy department of NEA to draft the " new energy enterprises going out" related documents, including the status quo of new energy enterprises going out, and put forward suggestions on how to speed up new energy enterprises internationalization. Another task focusing on the south and the west of China was to study the renewable energy development present situation, the policies and key areas in future cooperation and cooperation mechanism in these areas. This task was done by CNREC, CREEI, the Wind Energy Association and CREIA jointly. In addition, in accordance with requirements of the NEA new energy department, CNREC supported the foreign affairs activities with Saudi Arabia, Holland, Great Britain, Italy, etc. regarding RE.

22 Pg. 20 CNREC organisation and partners CNREC - organisation and partners Mission and vision Established in February 2012 based on Energy Research Institute of National Development and Reform Commission, China National Renewable Energy Centre (CNREC) is the national institution for assisting China s energy authorities in renewable energy (RE) policy research, and industrial management and coordination. CNREC s mission is: To conduct comprehensive policy, strategy and planning research, in support of national and regional governmental decision-making, and as a service to the renewable energy industry To conduct research in the field of RE industry establishment and development, as well as implementing public systems for standardisation, testing and certification To manage and implement national energy demonstration project, taking the responsibility of program design, call for proposals, supervision and assessment of implementation as well as promotion and dissemination To capture national and international sector data for analysis and provide researchbased information services on renewable energy matters to stakeholders and users nationally and internationally and thereby act as a hub for international exchange and collaboration in the field of RE policy research To carry out extensive international exchanges and cooperation and assist in the management of the international renewable energy cooperation projects. The vision of CNREC is to become a leading science based think tank and knowledge hub working for the rapid uptake and integration of renewable energy in China s energy system. CNREC should be a non-profit organization with high reputation nationally and internationally, and it should provide innovative solutions to overcome the barriers and challenges for the RE development. Organization CNREC consist of the management and 6 departments: Policy Research Industry Development Project Management Information International and Regional Cooperation Administration.

23 Pg. 21 CNREC organisation and partners In people were employed in the centre. CNREC is governed by the Steering Committee with Vice Director Liu Qi, National Energy Administration as chairman and with representatives from MOFCOM, Ministry of Finance, National Development and Reform Committee, Ministry Of Science and Technology and the Royal Danish Embassy. The Management Committee supervise the daily management of CNREC. Chairmen are Shi Lishan, NEA, and Director General Han Wenke, Energy Research Institute, NDRC. The daily management is entrusted Director Wang Zhongying and the management team Ren Dongming and Gao Hu as Vice Directors, Zhao Yongqiang as Assistant Director and Kaare Sandholt as Chief Expert. Partners CNREC have a close working relationship with a large number of institutions in China and abroad. In 2013 CNREC s main partners have been China Electric Power Research Institute China Renewable Energy Industry Association, CREIA China Renewable Energy Society, CRES China Wind Energy Association, CWEA Danish Energy Agency Energy Foundation China EU-China Trade project German International Cooperation, GIZ Global Green Growth Forum, 3GF International Centre for Trade for Sustainable Development, ICTSD International Institute for Sustainable Development, IISD International Renewable Energy Agency, IRENA Lawrence Berkley Laboratory National Development and Reform Commission, NDRC National Institute for Environmental Studies, Tsukuba, Japan New Energy Department, National Energy Administration, NEA North China Electric Power University RE division at International Energy Agency, IEA State Grid Energy Research Institute, SGERI State Power Economic Research Institute, SPERI Tsinghua University US National Renewable Energy Laboratory, NREL

24 Pg. 22 CNREC organisation and partners Selected publications 1. China RE industry development report 2012, China economic publishing house, Global RE development report 2012, China economic publishing house, World RE policies and regulations compilation, China economic publishing house, Green Revenues for Green Energy: Environmental fiscal reform for renewable energy Technology deployment in China 5. China RE data handbook China RE data overview The medium-term review report China 12th five year RE development 8. The research reports for the implementation regulations for RE quota and the measurement and assessment of RE quota implementation 9. The research reports for demand analysis and product system design for the highpolymer clean energy remote-sense application 10. Economic assessment and policy design reports for the distributed RE power technologies 11. RE heating development strategy research report 12. The draft RE heating supply guide manual 13. Jiangxi provincial new energy industry development planning research report 14. Ningxia new energy demonstration region research report 15. The economic assessment report of Yilan RE district heating technologies 16. Offshore wind power pricing policy design research report 17. China s offshore wind power development status and power pricing policy research report 18. Offshore wind power development strategy survey report 19. Wind power cost evaluation and optimizing subsidy mechanism research report 20. CSP technology and policy development barrier analysis report 21. Geothermal energy application technology guideline 22. Curtailment of RE, guaranteed purchase of RE electricity, and coordination of RE integration, report for EU-China Trade Project (II) 23. Grid certification and conformity assessment procedure for wind farm grid integration, report for EU-China Trade Project (II) Public available publication can be found on CNRECs web site.

25 Pg. 23 CNREC Staff CNREC Staff Mr. Wang Zhongying ERI Deputy Director General CNREC Director Mr. Ren Dongming Director Mr. Gao Hu Professor Deputy Director Mr. Zhao Yongqiang Assistant Director Mr. Kaare Sandholt Chief Expert Ms. Shi Jingli Head for Policy Research Dep Mr. Tao Ye Associate Assistant Mr. Xie Xuxuan Mr. Zhang Qingfen Ms. Yuan Jingting

26 Pg. 24 CNREC Staff Mr. Lei Yanpeng Mr. Yang Shaonan Ms.Hu Runqing Head for Industry Development Research Dep Mr. Sun Peijun Mr. Dou Kejun Mr. Zhang Chengqiang Ms. Wang Hongfang Mr. Zhu Shunquan Mr. Liu Jian Mr. Qin Shiping Professor

27 Pg. 25 CNREC Staff Ms. Han Cuili Ms. Fan Lijuan Head for International and Regional Cooperation Dep Ms. Han Yu Ms. Qi Linlin Mr. Liu Jiandong Head for REIAC Dep Mr. Wang Wei Chief Editor Mrs. Zhang Aling Professor Ms. Chang Zhifang Analyst Ms. Zhang Pei Analyst Ms. Lu Lisha Analyst

28 Pg. 26 CNREC Staff Ms. Guo Xiaoxiong Analyst Mr. Hou Wensen Analyst Mr. Tu Liang Head for Administration Dep Mrs. Liu Yingqin Secretary Ms. Liu Qin Ms. Hang Yu Ms. Gao Lianna