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Azure China Energy Transition Update-July 5th

Azure China Energy Transition Update-July 5th Azure International
2022-07-05
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导读:China’s industry will represent a major consumer of renewable power.

Shandong has recently released one of the most ambitious provincial offshore wind plans to date. By 2030, it plans to have 35 GW of installed offshore wind power capacity and 8 GW by 2025. This would represent a more than fifteenfold increase compared to the end 2022, as it plans to have 2 GW installed by then. Such ambitious plans might be achievable given China’s current capacity growth – CREEI expects China will install 56 GW of wind power in 2022, including 6 GW of offshore wind.


China’s industry will represent a major consumer of renewable power. A recent action plan released by six central government departments encourages keys industries to increase their share of renewable power consumption, including through the power market. The plan expects that by 2025, power will represent 30 % of industrial final energy consumption.


The Azure Research 
and Strategy team

News summary:

1. Shandong province plans to have 35GW offshore wind grid connected by 2030

2. China could install 56 GW of new installed wind capacity in 2022 according to CREEI

3. Shanghai has carried out research on technologies related to hydrogen production from deep-sea wind power

4. The largest single-unit capacity onshore wind turbine project was put into operation

5. Corporate Net Zero pathwaysSix central government departments promote green electricity and energy efficiency for industry





Shandong province plans to have 35GW offshore wind grid connected by 2030

The “Seven Networks” infrastructure action plan released by Shandong government mentioning that Shandong will gradually promote the development of deep-sea offshore wind projects. 
The plan indicates that 2GW, 8GW and 35GW of offshore wind power will be connected by the end of 2022, 2025 and 2030 respectively. 
Most offshore wind projects will be constructed on the three major areas of Bozhong and to the south and north of the Shandong peninsula. 
(SD GOV)




China could install 56 GW of new installed wind capacity in 2022 according to CREEI

The China Renewable Energy Engineering Institute (CREEI) released its "China Renewable Energy Development Report 2021". 

According to the report, China could install 56 GW of new wind power generation capacity in 2022, including 6 GW of offshore wind. In 2021, China added 47.5 GW of new wind capacity, including 17 GW of offshore wind.

The report describes that costs have declined steadily in the past years. The CAPEX of onshore wind projects situated in open plain areas is roughly 5,800 CNY/kW compared to 7,200 CNY/kW for mountainous areas and 18,500 to 23,500 CNY/kW for offshore wind. 

(Fengmang Energy)




Shanghai has carried out research on technologies related to hydrogen production from deep-sea wind power

The Shanghai DRC issued a medium and long-term plan for the development of the hydrogen energy industry (2022-2035). The plan includes to build a deep-sea wind power hydrogen production demonstration base. 
Combined with the overall layout of Shanghai deep-sea wind power, it suggests carrying out relevant technical research, reducing the cost of seawater hydrogen production, and building a world-class large-scale deep-sea wind power hydrogen production base. 
Large scale hydrogen production from offshore wind power would enable Shanghai to produce local and low cost hydrogen while supporting grid stability. However, no numbered targets have been included. 
(Shanghai DRC)




China’s largest single-unit capacity onshore wind turbine project was put into operation

The SDIC Guazhou County Beiqiao No. 7 Wind Farm Area B 200 MW project was recently put into commercial operation. The project is located in Guazhou County, Gansu Province, where 32 SI-172625 wind turbines have been installed. 
These wind turbines have a unit capacity of 6.25 MW and an rotor diameter of 172 meters, and are stated to be the largest onshore wind turbine in China so far. 
(BJX)




Corporate Net Zero pathways: Six central government departments promote green electricity and energy efficiency for industry

The National Development and Reform Commission (NDRC), the Ministry of Industry and Information Technology (MIIT), the Ministry of Finance (MOF), the Ministry of Ecology and Environment (MEE), the State-owned Assets Supervision and Administration Commission (SASAC), and the State Administration for Market Regulation (SAMR) have jointly issued the ‘Action Plan for Industrial Energy Efficiency Improvement’.
The action plan aims at improving the energy efficiency and increasing the green power consumption of key industries such as steel production, petrochemicals, data centres, buildings, etc. In order to accomplish such objectives, the plan lays down the following actions and targets:
  • Support companies and industrial parks to build green microgrids, accelerate the development and operation of integrated systems including distributed photovoltaics, and wind power, high-efficiency heat pumps, waste heat and pressure utilization, etc. Encourage development of "photovoltaic +" models.
  • Encourage the purchase of green electricity through the electricity market, and the use of nearby renewable energy sources on a large scale and at a high rate.
  • Encourage the priority use of renewable energy to meet the additional electricity demand of ‘replace with electricity’ projects. By 2025, electricity will account for about 30% of  industrial final energy consumption.
  • Vigorously develop new energy equipment such as high-efficiency photovoltaics, large-scale wind power, smart grids and high-efficiency energy storage.



This content is prepared by the Research and Strategy Team of Azure International.  Please contact us via our official account or email for any enquiry.

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