Azure China Energy Transition Update-August 10th- 大数跨境

Azure China Energy Transition Update-August 10th

Azure International

2022-08-10

导读：China has installed a record 30.87 GW of new solar power generation capacity during the first six mo

China has installed a record 30.87 GW of new solar power generation capacity during the first six months of 2022. Distributed projects represented 64 % of new capacity, spurred by supporting policies and a need for renewable power generation close to load centers.

The country’s power market development continues to make progress. Fujian launched its first green power transaction, under which 28.5 GWh of power produced by 3 onshore wind projects was sold to 171 power users.

Finally, the trial operation of the unified Southern Region Power Market has made the headlines as it could represent a major step for the development of China’s national power market. In our Corporate Net Zero Pathways, we provide you with a detailed analysis on how this market might be designed and what implications it could have for power generators and users.

The Azure Research

and Strategy team

News summary

More than 30GW of new solar capacity was connected to the grid in the first half of the year
Fujian Province completes first green power transaction
China releases implementation plan to reach carbon emissions peak in the industrial sector
Hydrogen vehicles will receive a 10 CNY/kg subsidy for refuelling in Shiyan city
Corporate Net Zero Pathways: Prospects and implications of a Unified Southern Region Power Market

More than 30GW of new solar capacity was connected to the grid in the first half of the year

The construction and operation statistics of solar power generation in the first half of 2022 was released by the National Energy Administration (NEA). In the first half of the year, 30.87 GW of new solar projects were connected to the grid, compared to 11.5GW and 13GW in 2020 and 2021, respectively.

The new installed capacity includes 11.2 GW of centralized solar and 19.7 GW of distributed solar (business and household). Distributed solar capacity has grown dramatically since the launch of the "Countywide Promotion" policy in 2021, encouraging the development of distributed solar plans at the county level.

Most of the new installed capacity is in densely populated areas in the east of China, in provinces such as Shandong, Jiangsu, or Hebei.

(NEA)

Fujian Province completes first green power transaction

Fujian Province organized its first green power transaction according to the Fujian Energy Bureau. This green power transaction was carried out in the form of a bilateral negotiation, with a cumulative transaction volume of 28.43 GWh in 19 transactions. The transaction price was lower than the monthly centralized bidding price.

In terms of participants, there were 3 centralized onshore wind power enterprises on the selling side, 2 wholesale users, and 171 retail users (represented by electricity retailing companies) on the buying side.

In the next step, Fujian may introduce other renewable energy sources, such as centralized solar, distributed solar, and offshore wind power to participate in the transactions.

(NEA)

China releases implementation plan to reach carbon emissions peak in the industrial sector

Three government bodies, namely the National Reform and Development Commission (NDRC), the Ministry of Information and Technology (MIIT), and the Ministry for Ecology and Environment (MEE) have released a roadmap for the industrial sector to reach peak carbon emissions.

The energy consumption per unit of added value of industrial enterprises above designated size should drop by 13.5% in 2025 compared with 2020 and emissions should peak before 2030.

To achieve this goal, the plan suggests promoting the electrification of industrial energy consumption, strengthening power demand side management, and increasing the proportion of green power consumption.

(China GOV)

Hydrogen vehicles will receive a 10 CNY/kg subsidy for refuelling in Shiyan city

Shiyan City (Hubei province) released an action plan for the promotion of new energy vehicles.

Financial support for new public and dedicated non-profit charging stations (including reconstruction and expansion), battery swap stations, and hydrogen refueling stations in urban areas shall be given financial assistance up to 20% of the main equipment investment.

In addition, to reduce the cost of hydrogen use, a financial subsidy of 10 CNY/kg H2 will be given to end users of fuel cell vehicles for hydrogen refueling.

(Shiyan GOV)

Corporate Net Zero Pathways: Prospects and implications of a Unified Southern Region Power Market

Recently, the news of the trial operation of the Southern Electricity Market has attracted much attention. According to CCTV, on the day of the launch, more than 157 power generators and users traded 2.7TWh in the inter-provincial electricity spot market. Does this mean that electricity users can buy green electricity directly across provinces? What is the implication of such a unified regional power market on power generators and users?

Sharon Feng from Azure Research and Strategy team has analyzed the prospects and implications of the Unified Southern Region Power Market.

Original link：Prospects and implications of a Unified Southern Region Power Market

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.

E-mail address：

sharon.feng@azure-international.com

olivier.ferrrage@azure-international.com

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