There have been interesting developments in the energy storage sector this week. According to project announcement data, more than 100 pumped hydro storage projects have made progress towards construction in the first half of 2022, representing 125 GW in capacity. In addition, a 2400 MWh shared storage battery project representing a CNY 5.5 billion investment has been approved in Inner Mongolia. Policy-wise, Jiangsu has released its 14^th FYP for renewable energy development. The province plans to add 30 GW of wind and solar capacity by 2025.

The Azure Research 

and Strategy team

1. Jiangsu releases its 14th FYP for energy, plans to add 30 GW of wind and solar by 2025
2. 2,400MW shared energy storage power station project filing approved in Inner Mongolia
3. More than 100 pumped hydro projects have made progress towards construction during H1 2022
4. Zhoushan to provide 10-year subsidies for offshore wind power 
5. Dalian Zhuanghe offshore wind project zone V competition result released by local DRC
6. Azure International participates in the Sino-European Floating Offshore Wind Summit
   
   
      

Jiangsu releases its 14th FYP for energy, plans to add 30 GW of wind and solar by 2025

The Jiangsu Provincial Development and Reform Commission recently issued the "Jiangsu Province's 14th Five-Year Plan" Special Plan for Renewable Energy Development. 

According to the plan, in 2025, the province's renewable energy will account for more than 15% of its total energy consumption, and its installed renewable energy capacity will reach more than 66 GW, accounting for more than 34% of total installed capacity. 

Among them, the installed capacity of wind and solar power will reach more than 28 GW and 35 GW, respectively, while biomass will reach 3 GW. This would represent 12.53 GW and 18.16 GW of new wind and solar installed capacity, respectively.

(Fengmang)

2,400MW shared energy storage power station project filing approved in Inner Mongolia

The project filing for the Hohhot independent shared energy storage power station invested by Inner Mongolia Zhongdian Energy Storage Technology Co., Ltd. has been approved. 

The project will have a total energy storage capacity of 2,400MWh for a CNY 5.5 billion (USD 820 million) investment, representing a unit cost of 2300 CNY/kWh. The project will adopt a DC 1,500V energy storage system scheme divided into 480 energy storage units with individual capacity of 5 MWh. 

(BJX)

More than 100 pumped hydro projects have made progress towards construction during H1 2022

According to data collected by BJX, more than 100 pumped hydro storage projects have made progress towards construction.This includes projects at various stages, from contract signature to beginning of construction. Not all projects will finally be built, but such levels of activity show the main role pumped hydro storage will play in the future.

The total capacity of these projects reaches a record 125 GW (only adding the capacity of projects for which it is known) while China’s pumped hydro storage installed capacity was 31.5 GW at the end of 2020. The most active provinces are those that combine large load centers in central/eastern China with hydro resources, such as Hubei or Zhejiang.

Such an acceleration of project activity follows the release of two major policy documents in 2021. First, in April 2021, the National Development and Reform Commission (NDRC) issued the "Opinions on Further Improving the Price Formation Mechanism for Pumped Storage", which included pricing and cost sharing mechanisms. Second, in September of the same year, the "Medium and Long-Term Development Plan for Pumped Storage (2021-2035)" was issued, which targets to reach 62 GW and 120 GW of installed capacity by 2025 and 2030, respectively.

As China aims to increase the penetration of renewable energy in its energy system while maintaining energy security, pumped hydro storage represents a main tool to ensure grid stability. The latest policy and industrial activity indicate that pumped hydro storage will develop at a rapid pace in the coming years. 

(BJX)

Zhoushan to provide 10-year subsidies for offshore wind power

Zhoushan Development and Reform Commission released the 2022 wind and photovoltaic power project development and construction plan for Zhoushan city, Zhejiang. The plan targets to start the construction of and approve 300MW and 1,000MW of offshore wind capacity, respectively. 

Projects approved in 2022 should start construction in 2023 and be grid connected before the end of 2024. Projects grid connected in 2022 and 2023 will get a 0.03 CNY/kWh and 0.015 CNY/kWh subsidy for 10 years, respectively. The subsidy is based on the equivalent annual utilization hours of 2,600 hours. 

(Zhoushan DRC)

Dalian Zhuanghe offshore wind project zone V competition result released by local DRC

The Dalian Zhuanghe offshore wind project zone V competition results were released by the Dalian Development and Reform Commission. A total of 5 companies participated in this competition. Dalian Taipingwan new energy was finally chosen as the winning project developer. Dalian Taipingwan was setup in January 2022. 3-Gorges and China Merchants group each own a 50% share in the company. 

(Dalian DRC)

Azure International participated in the Sino-European Floating Offshore Wind Summit

The Sino-European floating offshore wind summit hosted by the China Renewable Energy Engineering Institute (CREEI) was successfully held in the beautiful city of Wanning, Hainan province, gathering senior representatives from China and Europe including:

• Chinese government officials including Mrs. Pan Huimin, deputy director of international cooperation at the NEA, Mr. Chen Wanxin, deputy secretary general of Hainan Government, Mr. Wang Sanfang, mayor of Wanning city
• European government officials from the EU Delegation and the British, French, Dutch, and Norwegian embassies
• Representative of Chinese offshore wind industrial players such as Power China, Huaneng, Haizhuang and Mingyang
• Representatives of international companies such as Shell, Total, Principia, Bourbon, and Azure International.
  
  

Hubert Beaumont, CEO of Azure International, participated in the round table session, discussing the opportunities and challenges for cooperation between China and Europe in the floating offshore wind sector.

   

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