Accelerate the Asian Energy Interconnection for Energy Transition and Sustainable Development
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1 Accelerate the Asian Energy Interconnection for Energy Transition and Sustainable Development Liu Zhenya Global Energy Interconnection Development and Cooperation Organization Jan 17, 2017 Bangkok, Thailand 1
2 China Initiative On September 26, 2015, Chinese President Xi Jinping proposed discussions on establishing Global Energy Interconnection, or GEI, to facilitate efforts to meet global power demands with clean and green alternatives at the UN Sustainable Development Summit. A Chinese Solution to global energy issues Highly acknowledged and actively responded by the international community 2
3 GEIDCO Established in: March, 2016 Mission: Promote GEI to meet global power demands with clean and green alternatives Chairman: Vice Chairmen: LIU ZHENYA STEVE CHU, former U.S. Secretary of Energy and Nobel Prize winner in physics; SHU YINBIAO, Chairman of State Grid Corporation of China (SGCC); MASAYOSHI SON, Chairman & CEO of SoftBank Group Corp. 3
4 The UN s Support Meeting with UN Secretary-General António Guterres in UN New York Headquarter on Jan.9, 2017 GEI, as a Chinese solution to addressing such issues as global warming, should be considered to be incorporated into 2030 Agenda for Sustainable Development, guiding the engagement of UN state members UN Secretary-General António Guterres MoU signing with UN Under Secretary-General Shamshad Akhtar on July 7, 2016 The United Nations is willing to coordinate and strengthen intergovernmental cooperation to advance progress of GEI in Asia-Pacific regions UN Under-Secretary-General Shamshad Akhtar 4
5 1. GEI concept and vision 2. Layout and significance of building the Asian Energy Interconnection 3. The overall design and prioritized projects of the power grid interconnection in Asia 5
6 1. Global Energy Transition, NOW! Three challenges in global energy development: 1 ton of fossil energy 2 tons CO2 CO 2 concentration Surface temperature rise co 2 concentration Surface temperature rise CO 2 ( 10 0 mi llion tons) 排放值 ( 亿吨 ) % 二氧化碳排放 % 3.30% 3% 增长率 6.00% % 5.00% 3.40% 0.70% 0% 2.80% 1.20% % 4.00% 3.00% 2.00% 1.00% 0.30% 0.00% GlobalCO 2 Emissions 6
7 2. Principles of Energy Transition Law : evolving from the highcarbon, inefficient development model to a low-carbon, and highly efficient one with the focus shifting from local balance to large-scale allocation. Path: Two Replacements, One Restore and One Increase Platform: GEI Pattern : clean energy as the priority, electricity as the center, global allocation as the feature Objective: ensure a safer, cleaner and more sustainable energy supply for the world. Illustration of Global Energy Interconnection 7
8 2. How to realize Energy Transition Two Replacements Clean replacement in energy production Electricity replacement in energy consumption 200% 150% 100% 50% 0% One Restore Restore fossil fuel s basic attribute as an industrial raw material to create even greater value in socioeconomic development 100% Fuel 燃料 160% Raw Material 原料 Economic 单位原油创造的经济价值 value of petroleum per unit 电能 石油 煤炭 One Increase Increase electrification, which enlarges the proportion of electric power in energy consumption and reduces the total amount on the grounds of meeting energy demand. Electrici ty Oil Coal 5.80% 31.20% 100% 0% 50% 100% 150% Economic 等当量能源产生的经济价值 value of equivalent energy 8
9 3. What is Global Energy Interconnection GEI is a globally interconnected strong and smart grid with UHV grids as the backbone; it is an infrastructure platform on which clean energy can be developed, transmitted and used massively worldwide. Smart Grid UHV Grid Clean Energy 9
10 4. Why GEI GEI is the key to implement Two Replacements. Abundant clean energy resources worldwide are unevenly distributed from power load centers. Intermittent and volatile wind and PV power needs to be integrated into a bulk power grid to advance its development. Unit: 1,000TWh/Year 单位 : 万亿千瓦时 / 年 water 水能 39 wind 风能 2000 太阳能 solar Global reserve of hydro, wind and solar power (Unit: 1,000TWh/Year) 10
11 5. Conditions for GEI have been met More cost-efficient renewable energy Technological progress will make wind and PV power generation more economically competitive than fossil energy by Economy Technology More mature technologies Practices ±1100kV HVDC transmission can run over 6000 km with a transmission capacity of 12GW to 15GW. More favorable political environment Paris Agreement came into effect; Endorsements from the UN, the World Bank and IEA. Politics Successes in China 22 UHV AC/DC projects under operation and construction The world s most installed capacity of clean energy generation 36% installed capacity from non-fossil fuel power 11
12 6. GEI Prospects Domestic Domestic Interconnection Interconnec tion Intercontinental Interconnection Intracontinental Interconnection By 2050, GEI will basically come into being. 12
13 1. GEI concept and vision 2. Layout and significance of building the Asian Energy Interconnection 3. The overall design and prioritized projects of the power grid interconnection in Asia 13
14 Unit;Mtce 1. Asian Energy Transition is More Urgent 1 great demand, huge consumption, rapid growth 2Prominent environmental issues Asia others CO PM2.5 NOX SO2 0% 50% 100% Energy Demand Growth in Asia from Proportion of Pollutants Emission in Asia of the World s Total 14
15 1. Asian Energy Transition is More Urgent 3great challenge of securing energy supply to the public Power Universal Service in Asia in 2014 Population without electricity Proportion in total population Total in Asia 512 million 14% India 244 million 19% 4High reliance on energy imports Primary Energy imports Japan:93% The Republic of Korea:81% Bangladesh 60 million 38% Pakistan 51 million 27% Nepal 7 million 24% DPRK 18million 74% World s total 1186 million 16% Imports of oil China:63% India:80% 15
16 2. The key to promoting energy transition in Asia lies in the massive development and distribution of clean energy Hydro: 7,000TWh/Year Wind: 160,000TWh /Year Solar: 240,000TWh /Year The uneven distribution of clean energy resources and demands in Asia makes it an inevitable way to promote energy transition and realize sustainable development. 16
17 3. Layout for the Asian Energy Interconnection Layout: form a 1+5 interconnecting pattern comprised of grids from China, Northeast Asia, Southeast Asia, South Asia, Central Asia and West Asia. Northeast Asia Northeast Asia: accelerate the development of clean energy in North China, Mongolia and Russia, and transmit the electricity to East China, the Republic of Korea and Japan to realize energy interconnection in the region. West Asia Central Asia China South Asia and Southeast Asia: speed up power grid construction so that they are connected within the South Asia region to accommodate clean energy from China, Central Asia and West Asia to meet the demand in India, Pakistan, Bangladesh and Southeast Asian countries. Southeast Asia 17
18 ( 三 ) 构建亚洲能源互联网的总体思路 Central Asia: build large wind and solar power bases and transmit wind and solar power to China, South Asia and Southeast Asia. In the case of clean power generation curtailment, thermal power would be transported instead through the same transmission channels. Northeast Asia Northeast Asia: The Republic of Korea and Japan are load centers with limited clean energy potential; they need to increase clean energy imports from Russia, Mongolia and China. West Asia West Asia: build large solar power bases to transmit electricity east to South Asia and west to Europe; transform the fossil fuel base to a clean energy base. Central Asia South Asia South Asia: it is hard to realize self-reliant for clean energy supply; power transmission from China, Central Asia and West Asia could tackle the power shortage problem. China Southeast Asia: the difficulty of massively developing hydropower in the seen future and balancing demand and supply makes it necessary Southeast to import power Asia from neighboring countries. 18
19 3. Layout for Asian Energy Interconnection China s role: a hub and a platform To the North: accommodate electricity from Mongolia, Russia and even the Arctic; to the West: import surplus power from Central Asia; to the South: transmit power to South Asia and Southeast Asia China can be a power reservoir relying on a nationally interconnected strong and smart grid to regulate power supply and demand, providing a strong pillar for the Asian Energy Interconnection. 2 特高压重点工准东哈密程 扎鲁特胜利锡盟 240 锡盟 东北华北背靠背 1620 蒙西北京东 北京西 210 酒泉晋北 178 上海庙天津南榆横 164 太阳山 316 晋中 199 青州 石家庄济南 228 潍坊 1720 晋东南 1119 临沂郑州 362 泰州南阳 淮南南京苏州皖南上海 63 荆门苏南 165 南汇 浙北绍兴 6 ACand 7 DC UHV transmission lines in operation 雅砻江梯级 :AC lines including Southeast of Shaanxi -Nanyang-Jinmen, South of Anhui- 浙中 2059 浙西 120 North of Zhejiang-Shanghai, North of Zhejiang -Fuzhou, Ximeng-Shandong, 金沙江 I 期 South 1907 of Anhui-Nanjing -Shanghai,, Xiluodu -West of Zhejiang, 浙南 Ea st of Ningxia-Zhejiang, Yunnan-Guangdong, Nu ozhadu -Guangzhou, and 1653 West of Inner Mongolia-South of Tianjin; 湘潭 DC lines including 279 Xiangjiaba-Shanghai, Jinpin-South of Jiangsu, and South of Hami-Zhengzhou 福州 2 A C a nd 7 DC UHV t ransmission lines under construction: AC lines including Shengli-Ximeng, and Yuheng-Weifang; DC lines in cluding North of Shaanxi-Jiangsu, Ximeng-Jiangsu, Shanghaimiao-Shandong, Jiuquan-Hunan, Huaidong-South of Anhui, and Zhalute- Qin gzhou 图例 1000 千伏交流 ±800 千伏直流 ±1100 千伏直流直流换流站分层接入 19
20 4. Significance of Asian Energy Interconnection Promote Asian energy transition bring upon the realization of clean development in Asia sooner and drive global energy transition. Ensure sustainable energy for all better guarantee power supply in South Asia and Southeast Asia, reduce the population without access to electricity by a large margin, and improve the quality of power consumption. Promote economic integration strengthen the commercial and trade ties; create a favorable economic and geopolitical environment for balanced economic development inthe region. 20
21 1. GEI concept and vision 2. Layout and significance of building the Asian Energy Interconnection 3. The overall design and prioritized projects of the power grid interconnection in Asia 21
22 1. Current Status and Foundations of Asian Grids Total installed capacity in Asia: 3TW, 48% of the world s total; Installed capacity of clean energy in Asia: 600GW, 40% of the world s total. The per capita installed capacity in Asia:0.75 KW; the annual consumption: 2,032 kwh, 88% and 67% of the world s average, respectively, and merely 1/3 and 1/4 of that of OECD countries. Total length of all 200kV and above power lines: >1,500,000km, 60% of the world s total. UHV AC/DC applied in China. transmission technologies have been widely In respect to cross-border power grid interconnection, while power grid interconnections have already taken shape in Europe and North America respectively, Asia has been obviously left behind where the Asian power network has not been formed yet. 22
23 2. Overall Outline for Asian Grid Interconnection Fasten the pace to connect Asian countries power grids based on UHV AC/DC technology and smart grid technology with clean energy development as the priority. The Asian interconnected power grid will serve as a low-carbon, safe, reliable and flexible platform for allocation of clean energy on a large scale to meet the power demand in a clean and green way. To North America To Europe Central Asia Grid Northeast Asia Grid Astana To Europe Jerusalem To Africa Sumo Er China Grid Medina West Asia Grid Legend Interconnection Plan Power Flow Direction South Asia Grid South Asia Grid Djakarta Southeast Asia Grid 23 To Oceania
24 3. Prioritized Projects in Asian Grid interconnection Xinjiang (China) -Lahore (Pakistan) transmission project; Kazakhstan-Xinjiang (China)-Pakistan UHV transmission project Northeast Asia Mongolia-China-Republic of Korea- Japan power transmission project West Asia Central Asia China South Asia Southeast Tibet (China)-Bangalore (India) UHV transmission project; Southeast Tibet (China) -Mumbai (India) UHV transmission project; Southeast Tibet (China) -Bangladesh transmission project Yunnan (China)--Myanmar-Thailand UHV DC transmission project ;Yunnan (China)-Vietnam UHV DC transmission project; Yunnan-Myanmar-Bangladesh UHV DC transmission project 东南亚 24
25 3. Prioritized Projects in Asian Grid interconnection Significant benefits of grid interconnection projects 1 Interconnected power purchasing & integration rate is around 3.5 cents/kwh lower than local power integration rate alone. All the power receiving countries could save power purchasing cost of more than 10 billion USD per year. Bring Economic gains 2 Power load centers receive more than 360TWh of clean power from foreign countries to make their power sources more diversified. Guarantee power supply and security 3 Replace 150 million tons of raw coal, and reduce CO2 emission by 300 million tons, and NOx, SO2 and smoke and dust by 1.65 million tons every year. Promote clean and low-carbon development 25
26 Three Proposals 1 Governments are expected to play their leading role to the full to establish relevant mechanism. Build an inter-governmental cooperative framework and working mechanisms for energy infrastructure connectivity to induce supportive policies from different countries for clean energy development and grid connectivity. 2 International organizations and research institutes are expected to take an active part in jointly pushing forward the fundamental research. Strengthen research for construction plans of large-scale energy bases in Asia, grid interconnection proposals, and key technologies and equipment to guide and drive the scientific development of the Asian Energy Interconnection. 3 Relevant sectors and enterprises are expected to work together for the project implementation. prioritize a batch of mature and profitable renewable energy bases and transnational grid interconnection projects, and incorporate them into related nations power planning in order to materialize their implementation as soon as possible. 26
27 Closing Remarks Building the Asian Energy Interconnection and developing renewable energy is in common interest for all Asian nations. Let s all work together with a pioneering and innovative spirit and look towards the future, so we can bring the Asian energy transition to us earlier and make a positive contribution to its sustainable development. 27
28 Thank you!
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