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Azure China Energy Transition Update-September 13th

Azure China Energy Transition Update-September 13th Azure International
2022-09-13
2
导读:Liaoning province and State Grid have announced that six 10 GW-scale energy bases have started const


Liaoning province and State Grid have announced that six 10 GW-scale energy bases have started construction in the province. The first base, to be completed during the 14th FYP, is composed of pumped hydro storage projects representing a total capacity of 10 GW.
China’s offshore wind pipeline made headway last week. The first foundation installation was completed at the Yangjiang Qingzhou 4 offshore wind project in Guangdong. Meanwhile, the State Council has shown support for Shandong’s ambition to develop a GW-scale deep sea offshore wind power base along its coasts.
Finally, seven central government ministries recently provided the sustainability targets and guidelines for internet data centers (IDCs) towards 2025. We look at these new requirements in our Corporate Net Zero Pathways column.

The Azure Research 

and Strategy team

News Summary


  1. Several 10 GW scale energy bases representing USD 87 billion investment start construction in Liaoning province

  2. First foundation installation completed at Yangjiang Qingzhou 4# Offshore Wind Farm
  3. The State Council supports Shandong to build a deep-sea offshore wind power base
  4. Henan strengthens tax and financial subsidy support for hydrogen energy industry
  5. Corporate Net Zero Pathways: New large-scale IDCs in China shall meet a PUE below 1.3 by 2025. Will carbon footprint become the next reference indicator?

Several 10 GW scale energy bases representing USD 87 billion investment start construction in Liaoning province

According to State Grid Corporation of China (SGCC), the construction of six 10 GW energy bases in Liaoning have been launched. These bases represent a total investment of CNY 600 billion (USD 87 billion) and will provide power to the Northeast and Northern regions of China. 
The first energy base, to be completed during the 14thFYP, will be composed of several pumped hydro storage projects representing 10 GW in capacity. The remaining five 10 GW energy bases will include two new energy bases (likely onshore wind and solar), one offshore wind base, one nuclear base, and one virtual power plant/new energy storage ‘smart energy base’. Their expected completion date remains unclear. 
(Sina)

First foundation installation compleated at Yangjiang Qingzhou 4# Offshore Wind Farm

The first pile installation of the Yangjiang Qingzhou 4# Offshore Wind Farm has been completed. The project is located in the sea area near Shapa Town, Yangxi County, Yangjiang City, with a total installed capacity of 500MW. Twenty-five MySE11-23 units, eighteen MySE12-242 units and a 16.6MW floating wind turbine will be deployed. 
It is expected that after the project is completed and put into operation at the end of 2023, it will provide about 1.83TWh of clean power every year. 
(BJX)

The State Council supports Shandong to build a deep-sea offshore wind power base

The ‘Opinions of the State Council on Supporting Shandong in Deepening the Conversion of Old and New Growth Drivers to Promote Green, Low-Carbon, and High-Quality Development’ was released recently. The document supports Shandong to
  • build a 10GW scale deep-sea offshore wind power base.

  • explore development pathways for distributed photovoltaic

  • orderly develop nuclear power on the Jiaodong Peninsula

  • speed up the construction of Shandong UHV transmission channels with the proportion of renewable energy transmitted being superior to 50%.

(Central GOV)

Henan strengthens tax and financial subsidy support for hydrogen energy industry

The Henan Development and Reform Commission (DRC) released the ‘Medium and long-term plan for the development of hydrogen energy industry in Henan Province (2022-2035)’. The document sets the following targets for 2025:
  • create more than 100 related enterprises in the industry chain,
  • the annual output value of the hydrogen energy industry will reach CNY 100 billion (USD 14 billion)
  • 5,000 hydrogen fuel cell vehicles of various types will be on the roads,
  • the hydrogen supply capacity for vehicles will reach 30,000 tons/year,
  • the terminal price of hydrogen will drop below 30 yuan/kg,
  • the proportion of green and low carbon hydrogen will continue to increase, and 3-5 green hydrogen demonstrations projects will be built.
(Henan DRC)



Corporate Net Zero Pathways




New large-scale IDCs in China shall meet a PUE below 1.3 by 2025. Will carbon footprint become the next reference indicator?

On August 25, the Ministry of Industry and Information Technology (MIIT), NDRC, and five other ministries jointly issued the Action Plan of Green and Low-Carbon Development of the Information and Communications Industry(2022-2025) (hereafter Action Plan). The Action Plan underlines the green and low carbon requirements for internet data centers (IDC) and information and communications technology (ICT) industries in China. Some interpretations on the key messages for IDCs in China:

a)  IDC PUEs (Power Use Efficiency) and WUEs (Water Use Efficiency) must be improved:

  • By 2025,the power utilization efficiency (PUE)of new large and super large data centers nationwide will be reduced to less than 1.3.

  • Advanced technologies for energy efficiency and water conservancy shall be adopted, such as liquid cooling.

IT equipment’s energy efficiency shall be further enhanced.

b)  The national strategic layout of IDCs is reiterated: 

The “Eastern data – Western computation” national strategic layout, integration and coordination of IDCs in cluster provinces and remote centers are all reiterated. Specific requirements include:

  • The areas surrounding 1st tier cities are encouraged to construct hot data (frequently used data) clusters to support the cities’ needs.

  • The data centers for high latency services shall be deployed in national computing hubs with suitable climate and rich renewable energy sources.

c)  IDCs should boost their green energy consumption:

  • Enterprises will be encouraged to actively use green electricity. The channels of green electricity procurements will be improved.

  • Relevant regulators will establish a green electricity carbon emission offset mechanism

  • Power users will be encouraged to consume green electricity through onsite captive new energy, self-built direct lines with nearby projects (see previous article: The key takeaways of the New Energy Direct Power Supply policies), bilateral transactions, purchase of green electricity certificates, etc. Proportion of green electricity will be gradually increased in the overall energy consumption.
  • The intergration and application of new energystorage technologies and powersupply and distribution technologies will be promoted in IDCs. 

Starting from 2022, CO2 emissions reporting and verification in the IDC industry is required by the Beijing Bureau of Ecology and Environment. For the time being, Beijing government will allocate carbon emissions quota for datacenters based on the IDC industrial emissions benchmark.





END


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