Some exciting news in the offshore wind space, as Hainan has allocated all 12.3 GW of planned offshore wind projects announced earlier this year. Furthermore, Guangxi has launched the competitive allocation for 2.7 GW offshore wind projects. Finally, CGN recently announced that its offshore wind pipeline reached 23 GW, with 14 GW of approved projects, ranking number one in China.
In our Corporate Net Zero Pathways, welook at green electricity trading in Gansu, as the local branch of State Grid has recently signed 6.3 TWh of long-term green power procurement contracts with local power users.
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The Azure Research and Strategy team
News summary:
1. Hunan province publishes 22.83 GW wind and solar project list
2. Hainan’s 12.3 GW planned offshore wind projects have been fully allocated
3. CGN’s total offshore wind pipeline in China reaches 23GW
4. Guangxi opens competitive allocations for 2.7 GW offshore wind projects
5.Corporate Net Zero pathways: Chinese local companies start to covet 10-year green electricity procurement contracts
Hunan province publishes 22.83 GW wind and solar project list
The Hunan Provincial Development and Reform Commission issued the "Reply Letter on Approving the Development and Construction of the First Batch of Wind Power and Centralized Photovoltaic Power Generation Projects in the "14th Five-Year Plan".
The document includes 303 projects, representing 22.83 GW in capacity. Hunan DRC requires municipal cities to determine project investors and developers as soon as possible, and to apply for project approval in a timely manner.
After a project is approved, developers should start construction within 6 months; the project must then be grid connected within a year.
(BJX)
Hainan’s 12.3 GW planned offshore wind projects have been fully allocated
Hainan Development and Reform Commission, in response to enquiries concerning the allocation of planned offshore wind projects, clarified that: "According to the deployment of the provincial government, all the offshore wind power resources in our province have been allocated."
According to the Invitation (Competitive Configuration) Plan for Offshore Wind Power Projects in Hainan Province, the province has planned 11 offshore wind farm sites representing a total of 12.3 GW in capacity. Among them, there are 3 demonstration projects representing 4.2 GW, and another 8.1 GW projects allocated to various development companies through investment promotion (competitive allocation).
As of today, the list of winning companies for the “competitive projects” is still unknown.
(Hainan DRC)
CGN’s total offshore wind pipeline in China reaches 23GW
During a press conference regarding the signing of the development and cooperation of offshore wind power resources framework agreement in Guangxi, CGN announced that its offshore wind pipeline in China exceeds 23 GW in capacity and that its approved projects reach 14.016GW, ranking first in the country.
CGN has already completed 1.068 GW offshore wind projects and has another 1.79 GW of capacity currently in construction.
(Fangchenggang GOV)
Guangxi opens competitive allocations for 2.7 GW offshore wind projects
The Development and Reform Commission of Guangxi Zhuang Autonomous Region organized the competitive allocation for the Fangchenggang and Qinzhou Offshore Wind Power Demonstration Projects.
The scope includes the A, F1, F2, C1, and C2 sites of the Guangxi offshore wind power planning approved by the National Energy Administration representing 2.7 GW in capacity.
The on-grid electricity price of the projects is based on the coal-fired power generation base price in Guangxi, while later pricing policy adjustments will be implemented according to national policies.
The notice encourages bidders to form consortiums combining developers and supply chain actors. The deadline for bid submission is July 15.
(Guangxi DRC)
Corporate Net Zero pathways: Chinese local companies start to covet 10-year green electricity procurement contracts
SGCC (State Grid Corporation Co.) Gansu Integrated Energy Service Company signed framework agreements with three big power users in Gansu to supply 6.3 TWh of green electricity in the next 10 years. SGCC Gansu also announced that it has concluded 21.04 GWh of green electricity transactions for the year 2022.
These three companies are namely Tengda North West Iron Metal Co.,Ltd., Gansu Hexi Silicon New Material Co.,Ltd., and Gansu Songrun Agricultural Science and Technology Co.,Ltd. Two companies belong to the scope of two-high (high power consuming and high carbon emissions) industries in Gansu (Iron and steel, electrolytic aluminum, cement, flat glass, oil refining, ethylene, synthetic ammonia, calcium carbide and other key industries and data centers).
The SGCC Gansu has not disclosed the details of the 10-year procurement price of the three power users. Based on the inter-provincial green electricity transaction details disclosed by Gansu power exchange, the average selling price was 327.27 CNY/MWh in the first quarter of 2022, which is ~20 CNY/MWh higher than the local coal-fired power base price of 307.8 CNY/MWh. According to the results released by the Beijing power exchange, since launch of green electricity trading last September, green electricity has a premium of 30-50 CNY/MWh over the usual on-grid price.
According to 2022 Q1 data released by the Gansu Power Exchange, from January to March the average price of annual contracts was 354.56 CNY/MWh, driven up by thermal power whose average price reached 384.37CNY/MWh, accounting for 78% of the total transaction volume. Two-high industrial power users may sometimes need to pay more than the ordinary power user as they are not protected by a price cap of 369.36 CNY/MWh set at 20% above the local coal-fired power base price.
New energy power has participated in power market trading with other sources for several years in Gansu. As most new energy projects traded in the ordinary power market are entitled to subsidies, the traded power is usually not bundled with green electricity certificates, in contrast with the green electricity trading which allows power buyers to obtain GECs for every MWh of power purchase.
Gansu is one of the largest renewable energy exporting provinces. However, it has failed in meeting the hydro-inclusive RPS targets in 2021. Gansu is very likely to start actively promoting renewable energy consumption within its borders. More policies are expected to be released soon.
(cnenergy)
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