Azure China Energy Transition Update-Jun 21st

Azure International

2022-06-21

导读：China’s wind pipeline has made progress this week.

China’s wind pipeline has made progress this week. Fujian has opened the competitive allocation tender for two offshore wind farms representing 1 GW in capacity while the feasibility study for the 850 MW Dafeng project in Jiangsu has been approved. SPIC has released results for wind turbines tenders representing 3.9 GW in capacity with prices are still reaching new records.

NEA’s latest policy concerning independent energy storage systems (ESS)has prompted the Guangdong government to issue a strategy for the development of ESS during the 14^th FYP. We look at this strategy in our Corporate Net Zero Pathways column.

The Azure Research and Strategy team

News summary:

1. Fujian province launched the first 2022 offshore wind power project competitive allocation batch

2. CHN Energy invests USD 2.4 billion in 1.7GW wind, solar, and energy storage base in Liaoning

3. Dafeng 850MW offshore wind power project feasibility study report successfully passes technical review

4. SPIC releases results for 3.9 GW worth of wind turbines, Sany bid reaches record 1420 CNY/kW

5.Corporate Net Zero pathways: Guangdong releases its ESS development for the 14th FYP, targets 2 GW by 2025

Fujian province launched the first 2022 offshore wind power project competitive allocation batch

The Fujian Provincial Development and Reform Commission organized the pilot work for the first batch of 2022 offshore wind power projects competitive allocation in Fujian Province.

This first batch includes two projects for a total capacity of 1 GW: the Lianjiang Offshore Wind Farm (700MW) and Matsu Island Offshore Wind Farm (300MW), both located in the waters east of Lianjiang, Fuzhou City.

Candidates can participate individually or form consortia. Candidates (at least one member of the consortium) should have a track record with domestic offshore wind power and assets superior to CNY 10 billion.

(Fujian DRC)

CHN Energy invests USD 2.4 billion in 1.7GW wind, solar, and energy storage base in Liaoning

The People's Government of Suizhong County, Huludao City, Liaoning Province and Guoneng (Suizhong) Power Generation Co., Ltd. signed a cooperation framework agreement concerning the integrated comprehensive "wind-solar-storage" energy base of Suizhong .

The project represents a CNY 16 billion (USD 2.4 billion) investment and will be completed and put into operation at the end of the 14th Five-Year Plan period.Its total capacity will reach 1.7GW, including 600MW of offshore wind power, 400MW of onshore wind power, 200MW of solar power, and 500MW of pumped hydro energy storage capacity.

(BJX)

Dafeng 850MW offshore wind power project feasibility study report successfully passes technical review

The technical review meeting of the feasibility study report for the Dafeng 850MW offshore wind power project was held in Beijing.

The Dafeng offshore wind power project is located in the southeast of Xinyang Port and the northeast of Dafeng Port, in Jiangsu province.

The project center is about 33 kilometers offshore. It includes Dafeng H1# (200MW) and Dafeng H2# (300MW), Dafeng H10# (150 MW) and Dafeng H16# (200 MW), representing a total investment of about CNY 10.5 billion (1.57 billion USD), and an expected power generation of about 2.88 TWh.

(JSGX)

SPIC releases results for 3.9 GW worth of wind turbines, Sany bid reaches record 1420 CNY/kW

The results of the first batch for the procurement of wind turbines by State Power Investment Corporation (SPIC) were released.

The batch is divided into 24 tenders with a total of 3.9185 GW. Among them: Mingyang SE won 9 bids with a total installed capacity of 1820MW; Sany Heavy Energy won 10 bids with a total installed capacity of 1298.50MW.

A record low price of 1420 CNY/kW was reached by Sany Heavy Energy for a 300 MW project in Inner Mongolia requiring wind turbines with a capacity superior to 6 MW.

(Fengmang Energy)

Corporate Net Zero pathways: Guangdong releases its ESS development for the 14th FYP, targets 2 GW by 2025

Since the release of NEA’s policy to promote the development of independent energy storage systems (ESS), Guangdong Energy Bureau announced several actions to promote energy storage development during the 14^th FYP:

Power generation side:
Continue to promote the construction planning of joint frequency regulation of “thermal power + energy storage” projects, carry out research on bundled energy storage facilities for offshore wind power and solar PV. In large-scale offshore wind power development bases such as Yangjiang, Shantou, and Jieyang, as well as areas with a large number of utility-scale solar PV projects, deploy multi-energy complementary pilot projects relying on coastal stocks of coal power, and give full play to the regulation capacity of thermal power units and new energy storage facilities to promote the efficient consumption and utilization of new energy.

Power grid side:
Lay out power grid-side energy storage stations in key transmission channels of the power grid and key locations such as those with high load density or large-scale new energy connection, and areas with challenges regulating peak load, frequency, and voltage. Promote ESS’s peak, frequency, and voltage regulation, accident backup, and black start to reinforce local power grids in the Pearl River Delta and areas with strong wind resources, as an important means to improve the system's ability to resist emergencies and recovery after failures.

Power user side:
Promote the integrated construction of “power generation-grid-load-energy storage” (源网荷储) in urban commercial and office areas and residential areas, relying on solar PV power generation, microgrids and charging infrastructure. Guide users to participate in building a distributed energy supply system. Encourage enterprise users or integrated energy service enterprises to independently build energy storage facilities according to the characteristics of user loads, explore new models such as shared energy storage, interaction between electric vehicles and smart grids. Explore the development of new trends such as smart energy and virtual power plants.
Large-scale independent energy storage system:
Encourage the construction of independent energy storage stations and explore commercial models for independent ESS projects to generate revenues through ESS leasing and service offerings and optimize their operation and regulation capacity.
Flexible load aggregation platform:
Build a flexible and centralized load control module, remotely monitoring and managing various types of response resources on a "considerable, measurable, adjustable, and controllable" basis. Coordinate energy storage, charging stations, interruptible industrial loads, and air conditioning loads in the province to achieve demand-side response, and provide frequency regulation, peak shaving, backup, rotation inertia and other ancillary services for new power systems.

As one of the provinces with the largest grid flexibility challenges, the development of energy storage in Guangdong is anticipated to accelerate. According to Guangdong Energy Bureau, the total installed capacity of energy storage system amounted to 456MW/388MWh in Guangdong by the end of 2021 while the government aims reach more than 2GW by the end of 2025.

(Guangdong DRC)