The Challenges and Solutions for Renewable Energy Development In China
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1 The Challenges and Solutions for Renewable Energy Development In China Chinese Renewable Energy Industries Association(CREIA) WANG Weiquan Seoul December 12,2017
2 Establishment of CREIA Established in 2002 with the support of UNDP, the GEF and the State Economic and Trade Commission (SETC) Registered at the Ministry of Civil Affairs on March 25, 2002 Has 200 members from industry, academics, organizations, include bio energy, wind energy, solar PV sector. 2
3 Mission of CREIA CREIA promotes the adoption of advanced renewable technologies and the commercialization of the Chinese renewable energy. 3
4 Functions of CREIA serves as a bridge CREIA is a window provides a platform 4
5 Research and Study(1) China Wind Power Report 2016 China Wind Power Report 2014 China Wind Power Report 2014 China Solar PV Report 2016 China Solar PV Report 2014 China Solar PV Report
6 Research and Study(2) Green Finance for Low-Carbon Cities Energy Clean Production of Solar PV in China Studies on Investment and Financing Mechanism that Support Distributed Solar PV Industry China Roadmap of PV Development A Pathway to Grid Parity China Solar PV Power Policy Report: Differential Feed-in Tariffs Who Is the Leader in Green Energy Competition? The Study of Distributed Power Generation Technology Roadmap in China Making Renewable energy planning for local government such as Xingtai 6 city, Changzhi City, etc.
7 Conferences and Exhibitions China PV Summit Offshore Wind Summit SNEC International PV Summit International Forum on energy transition The 10th anniversary celebrations of RE Law PVCEC 7
8 Contents 1.The current situation of RE in China 2. The challenges of RE in China 3. The solutions for RE development in China
9 1 The current situation of RE in China
10 Renewable Energy Facilitates Energy Revolution China is leading the world in wind (150GW), solar (77GW) and hydro (331GW) installations. Wind 9.3% Solar 4.9% GW Hydro 20.7% Coalfire 65.1% Solar 28.7% Nuclear 6.0% Wind 15.5% Hydro 9.7% GW Coalfire 40.1% 2016 China s cumulative installation 2016 China s new-added installation
11 Renewable Energy Facilitates Energy Revolution In 2016, China installed 19.3GW of wind, with cumulative installed capacity of 149GW, generated 241billion kwh New-added(10MW) Cumulative(10MW) 2016 China s wind power installation
12 Renewable Energy Facilitates Energy Revolution 8000 In 2016, China installed 3.45GW of Solar PV, and the country s cumulative installed solar capacity reached 7.7GW, generated 66.2billion kwh Utility Distributed 2016 China s solar pv installation
13 China s National Targets Support Renewable Energy China s Power Sector 13th Five Year Plan China s electric power consumption will reach 6,800-7,200 TWh of electricity, increasing on average by % each year. China s electric generation capacity will reach 2,000 GW by 2020, with an average increase of 5.5% each year.
14 China s National Targets Support Renewable Energy China s Power Sector 13th Five Year Plan According to the plan, China will achieve its 15% non-fossil energy consumption target by Nonfossil power capacity will reach 770GW, accounting for 39% of total power installation, generating 31% of the country s electric power. Bio 1% Hydro 17% Wind 10% Solar 5% Gas 5% Nuclear 3% Others 4% GW Coal-fire 55% 2020 China s electric power installation
15 China s National Targets Support Renewable Energy China s Wind Power Development 13th Five Year Plan China aims to have total installed wind capacity of 210 GW by 2020, of which 5 GW will be off-shore wind projects.
16 China s National Targets Support Renewable Energy China s Wind Power Development 13th Five Year Plan 420 TWh of electricity will be generated from wind, accounting for 6% of total electric power supply.. Wind curtailment is targeted to be solved.
17 China s National Targets Support Renewable Energy China s Wind Power Development 13th Five Year Plan From 2016 to 2020, newly installed on-shore and off-shore wind capacity in China s eastern and southern area will reach 57% of the country s total newadded wind installation. The eastern and southern area will account for 1/3 of the country s cumulative wind capacity.
18 China s National Targets Support Renewable Energy China s Wind Power Development 13th Five Year Plan From 2016 to 2020, wind power investment will reach 700 billion CNY, reduce 380 million tons of CO2 emissions per year, generate 420 TWh of electricity, and create 300 thousand jobs.
19 China s National Targets Support Renewable Energy China s Solar Development 13th Five Year Plan The 2020 solar target is more than 110GW, split into 105 GW of solar PV and 5 GW of Concentrating Solar Power (CSP).
20 China s National Targets Support Renewable Energy China s Solar Development 13th Five Year Plan PV generation cost is committed to reduce over 50% on the basis of 2015 level, reaching grid parity by 2020.
21 China s National Targets Support Renewable Energy China s Solar Development 13th Five Year Plan Distributed PV enjoys a very prominent position in the plan. 100 DG demonstration parks are expected to set up by Innovative business models and PV power market shall be created to stimulate demand in the DG segment.
22 China s National Targets Support Renewable Energy China s Solar Development 13th Five Year Plan Improve the planning of scaled groundmounted PV power bases, and increase renewable energy electricity share in the capacity of transmission channels. Implement the competitive bidding mechanism based Top-Runner-Program. In 2016, Top-Runner-Program expanded to 5.5 GW, accounting for 30% of last year s guiding target.
23 China s National Targets Support Renewable Energy China s Solar Development 13th Five Year Plan PV Poverty Alleviation Projects CSP Demonstration Projects New Energy Micro-Grid Pilots Solar Heating Projects
24 China s National Targets Support Renewable Energy China s 13th Five Year Plan other renewable energy technologies Add 40 GW hydropower capacity, with total installation reaching 340 GW by Reach 15 GW of bioenergy generation capacity by 2020.
25 2 The challenges of RE in China
26 Curtailment 黑龙江 黑龙江 0%~5% 5%~15% 15%~30% 30% 以上 新疆 西藏 青海 吉林辽宁北京内蒙古河北天津宁夏山西山东甘肃陕西河南江苏安徽四川上海湖北重庆浙江湖南江西贵州云南福建广西广东台湾香港澳门海南 0%~5% 5%~15% 15%~30% 30% 以上 新疆 西藏 青海 吉林 辽宁北京内蒙古 河北 天津 宁夏山西山东 甘肃 陕西 河南 江苏 四川 重庆 湖北 安徽上海浙江 湖南江西贵州 云南福建广西广东 台湾 香港 澳门 海南 Wind power curtailment in 2016 Solar PV curtailment in 2016 Wind curtailment mainly in Northwest and Northeast. Solar PV curtailment mainly in Northwest.
27 Subsidy deficit (10 8 Yuan) The light blue column is the gap. The accumulated gap is getting larger and larger. The subsidy has slow down the renewable energy development. The gap of the subsidy between
28 FIT decreasing (Yuan/kWh) 13 th Energy Development Plan:Grid Parity for PV by th Renewable Energy Development Plan:Grid Parity for PV by The change of FIT for solar PV 13 th Solar Energy Development Plan: The cost of Solar PV would be reduced by 50% on the basis of Grid Parity will be realized.
29 3 The solutions for RE development in China
30 Development Planning The 13 th five-year plan on renewable energy : Set the total target for wind power, solar PV, biomass power, through which the step will slow down and the project landscape will be optimized. The number of new projects is strictly controlled in the area with serious curtailment. Improve the project management mechanism and the installed capacity is managed according to the different provinces by year. The provinces will report the annual target during the 13 th five-year plan to NEA.
31 Full guaranteed purchase Mechanism The 13 th five-year plan on renewable energy : The operating hours should meet the requirements by the full guaranteed purchase policy in curtailment area by The Measures for Full Guaranteed Purchase of Renewable Energy was issued in March, The minimum operating hours for wind power and solar PV were issued in May, 2016.
32 Expand the consumption market of Renewable Energy Currently, the RE is mainly consumed locally. The government is trying to enlarge the market. 东北 16TWh was transmitted across provinces, mainly the wind power. 西北 The amount and percentage of RE through Extra-high Voltage lines is monitored now. And it will be appraised in the future. 西南 东部负荷中心
33 Promote the consumption market mechanism for RE The reformation of electric power system put the RE in priority, including generation, grid connection, purchase. Promote direct transaction of RE. --Direct transaction with the end users. --Ancillary service transaction of peak-shaving Reducing the operating hours of thermal power plants according to the reformation of electric power system.
34 Promote the peak shaving of thermal power plants Enhance the flexibility and capability of coal-fire power plants through technological retrofitting. The minimum load of pure condensing unit can reach 30-35%, even 20-25%. The minimum load of CHP unit can reach 40-45%. Promote the peak shaving of gas turbines and captive power plants.
35 Promote the peak shaving of thermal power plants According to the 13th Five-Year Planning for the Electric Power Development, 133 GW of CHP units and 82 GW pure condensing units will be retrofitted to increase the flexibility in Northwest China, Northeast China, and North China. And peak shaving ability will increase by 45 GW. 8 projects has been retrofitted by the end of September, 2017, with total capacity of 6.2 GW.
36 Promote the development of distributed energy According to The Notice on the Pilot of Distributed Generation Market Transaction, the projects can participate the power trading. The projects should meet: No more than 20MW for individual project. In principle, the voltage grade is 35kV. 60 kv or 110 kv is also accepted if 35 kv is not available. The percentage of DG installation should less than 80% within the area of power transformation.
37 Electric energy substitution It includes heating with electricity, electric boilers, replacing coal with electricity in rural area, ect TWh electricity has been used in the Electric energy substitution. Coal fired boilers Electricity substitution Oil-fired vehicles Electric boilers Electric vehicles
38 Develop energy storage technology There are many energy storage technology. Pumping storage and Chemical storage are developing quickly.
39 Pumping storage technology It is the most reliable, economic, mature energy storage technology, with the longest lifetime and the largest capacity. The comprehensive efficiency can reach 70-80%, even 87%.
40 Pumping storage projects by National Grid Company In Operation: 21,19.16GW Under Construction: 14,21.75GW In the Planning: 24,29.50GW 吉林 黑龙江 新疆 内蒙古 北京 辽宁 西藏 青海 四川 宁甘肃夏 重庆 陕西 山西 湖北 河南 河北 安徽 山东江苏浙江 operation construction Planned 云南 贵州 广西 湖南 广东 江西 福建 台湾
41 Quota system and green power certification Notification on the trial of renewable energy green electricity certificate issuance and voluntary subscription trading system was issued in January, Voluntary subscription is tried in Quota system for RE and mandatory purchase will be started at the right Voluntary subscription ---The wind power and Solar PV projects in the subsidized list can be issued the green power certification, excluding the distributed PV, off-shore wind power, Solar thermal power, biomass power. ---Once the wind power and solar PV project owners get the benefit from the green power certification, they can't get subsidy from the renewable energy special fund. ---The price of the green power certification should be no more than the subsidy from the renewable energy special fund. ---The green certification can be traded only once. The purpose of voluntary subscription ---Lay a found for mandatory subscription system ---Reduce the pressure of the subsidydeficit somehow Compulsory subscription ---The power sources side ---The power grid side
42 Reducing the cost of electricity The FIT declining is general trend. It should decrease gradually based on the real cost Reducing the cost through technology progress and industry upgrading. ---Decrease the cost of wind turbines, solar panels, inverters, etc. ---Adopt the big data technology, smart grid technology, etc to raise the efficiency and reduce the operational cost of power stations.
43 Promote clean heating with RE Biomass heating ---wood pellets ---biogas ---biomass CHP Geothermal Solar thermal Wind power..
44 Biomass heating The total consumption of biomass solid fuel in China is 8,000,000 tons. It can be used in industrial boilers for individual plant, residential house, commercial area, hospital, universities, etc.
45 Geothermal heating Xiong County, Hebei province Heating by 100% geothermal 一级网 二级网 生产井 地热站换热站热用户 回灌井
46 4 Thank You! WANG
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