Expand Win-Win Cooperation; Promote Sino-African Mutual Development

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1 Expand Win-Win Cooperation; Promote Sino-African Mutual Development Wei Zhaofeng, Vice President, China Electricity Council Ladies and Gentlemen, Good afternoon! It is my pleasure to be a part of the 17 th Africa Energy Forum and wish this forum a great success. In today s world where economy globalizes deeply, international trade, finance and investment mingle, and countries depend on each other for their interests. The friendship between Chinese and African people dates back a long time, and our cooperation in energy and electric power has made great progress and contribution. We hope that our collaboration could go further and deeper to promote better and more rapid development of power industry both in China and in Africa. Since the beginning of the 21 st century, China s power industry has been growing rapidly and continuously, making great contribution to the economic and social development. 1. The scaling up of power industry strengthens its ability to support 1

2 economic and social development. China has become the largest economy in terms of total installed capacity and transmission capacity. By the end of 2014, its installed capacity reached 1.36TW; circuit length of transmission lines of 220KV and above reached 572 thousand km; utility substation capacity reached 3.03 billion KVA. Total power consumption was 5520TWh, and per capita consumption exceeded world average. 2. The power restructure ensures environmentally friendly growth. Over one fourth of total power generation came from non-fossil fuel in 2014; nearly three fourths of generation investment went to non-fossil energy source; non-fossil generating capacity accounted for one third of total generating capacity. Hydropower capacity is currently over 300GW in China and wind 100GW. Standard coal consumption for power supply was 318g/KWh and line loss was as low as 6.34% in Power technology advances. Multiple Ultra High Voltage (UHV) AC/DC transmission lines went into operation successfully, realizing created in China and lead in China ; the pilot project for DC flexible transmission with full independent intellectual property rights went into operation. Large-scale hydropower unit manufacturing, engineering and operation continue its leading position in the world. With the largest number of ultra super 2

3 critical (USC) coal-fired unit of GW-level, China also has Integrated Gasification Combined Cycle (IGCC) power plant, the world first 1GW USC air- cooling unit and the world first 600MW super critical (SC) circulating fluidized bed (CFB) boiler in operation. China is also one of the first countries constructing the third generation nuclear unit. Its wind and PV industry chain is the largest in the world with high price-performance ratio; its off-shore wind farm pilot project is integrated into the grid; its national wind-pv-storage-smart transmission pilot project is commissioned. China s economy has entered into the New Normal where growth rate decreases from high to medium-high, growth pattern transforms from extensive growth focused on scale and speed to intensive growth focused on quality and efficiency, and driving force changes from capital investment to innovation. The development of China s energy industry sticks to the strategic principles of economical, clean and secure, with the goal of pushing forward the energy production and consumption revolution and building a clean, efficient, safe and sustainable modern energy system. By 2020, China intends to keep total primary energy consumption under 4.8 billion tons of coal equivalent, in which non-fossil 3

4 fuel accounts for 15% and coal accounts for lower than 62%. China s power industry has moved into a new era of modern power industry development characterized by green and smart development. By 2020, national consumption will switch to a medium-high growth rate of 4%-6% from the high speed of the past years. Green restructuring will speed up, with ratio non-fossil fuel production growing each year to an expected 40% by 2020, realizing the transformation of power source from coal to non-fossil fuel. Regional reallocation accelerates: concentrating conventional hydropower to the southwestern and northwestern hydropower base and coal-fired power to western and northern coal base while promoting interregional and interprovincial transmission such as the project to transmit electricity from west to east. The pattern of power development is also adjusted: while continuing the path on large scale base and interregional transmission, China also works on new forms such as electric vehicles and micro storage facilities. The interaction between the power system and its customers and the society deepens, moving from one-way flow from system to customer to bi- or multi-directional flow. The future of power industry in China will see the active development of hydropower, vigorous expansion of wind power, accelerated development of solar power, active deployment of geothermal, biomass and marine power, safe development of nuclear power, clean and efficient 4

5 development of coal-fired power, moderate deployment of natural gas power generation, and the accelerated construction of smart grid. While satisfying domestic power demand, China s power enterprises also carry out the Going Out strategy actively, participating in international competition, sharing experience in technological and managerial innovation through various means such as foreign direct investment, project contracting, labor service cooperation. According to incomplete statistics, accumulative overseas investment from China s power enterprises totaled billion USD by the end of And Chinese-African investment cooperation has made great progress. 1. Projects contracted by China s power enterprises in Africa increase continuously. Power project contracting is the major form of cooperation between China and African countries. According to incomplete statistics, there have been 21 projects of 300 million USD or higher contracted by China power enterprises in Africa, covering thermal power, hydropower, wind power and dams in different countries such as Uganda, Ethiopia, Cameroon, Ghana, Kenya, Guinea, Zambia, Nigeria, Angara, Equatorial Guinea. The ENR 2013 Top 250 International Contractors include five China power enterprises. 2. Investment in African power construction is promising. The 5

6 Kpone power plant in Ghana, the first FDI project by China s power enterprise in Africa, went into operation in Its generation is over 1TWh each year, providing 15% of the national power supply, making great contribution to moderate power shortage and promote economic development. At the end of October, 2013, China Longyuan Power Group Corporation Limited won the bid for two wind power projects in South Africa, with a total capacity of 244.5MW. This will provide a good number of job opportunities for local people, promote the economic and social development in South Africa, and strengthen Sino-South African cooperation in the energy sector. 3. China shares its power technology more and more in its cooperation with African countries. China s power enterprises pay great attention to their integration into the local market. They share experience in order for win-win cooperation and sustainable development. SEPCOIII has established a power personnel training center in Ogun State, south Nigeria, contributing to power development of the local community. Daya Bay Nuclear Power Plant, China General Nuclear Corporation and Koeberg Nuclear Power Plant, Eskom has become sister plants and has formed a mechanism for regular communication, reciprocal visits, and technological discussion, carrying out practical cooperation in nuclear unit operation. 6

7 The Chinese government attaches great importance to its economic and trade cooperation with African countries. Started from 2013, President Xi Jinping and Prime Minister Li Keqiang visited Africa successively. We see an unprecedented opportunity for Sino-African cooperation. This January, China and the African Union signed an MOU on infrastructure cooperation, which will further push the integration of the continent and its infrastructure interconnection. Enhancing Sino-African cooperation is our common aspiration. China power industry has the world leading technology in power engineering, production and manufacturing; it also has rich experience and abundant funds to support its overseas project contracting. We are willing to further our energy talks and enlarge our cooperation on thermal power, hydropower, nuclear power, power grid and clean energy technology under the principles of mutual respect, equality and mutual benefit, so as to improve the infrastructure in Africa, to make our contribution to the mutual development of power industry in both China and Africa, and to make our contribution to the integration and sustainable development of the African continent. Thank you very much for your attention. 7