Page 204 - 2018 White Paper on the Business Environment in China
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8 White Paper on the Business Environment in China
integrated planning of China’s energy system in order to and 2016, Yunnan’s hydropower capacity grew more than
make it more efficient and reliable. A major west-to-east tenfold to 62 gigawatts, not far off that of the U.S. and
transmission expansion is a key feature of a strategy to Canada and greater than Russia and India. The flood of
bring hydropower from inland resources to load coastal new hydropower certainly lives up to the current Five
centers. The country largely met the goals set out in its Year Plan, but that plan also sets out commitments to
previous five-year plan, which covered 2011–15. Pumped emphasize ecological and environmental protection
storage capacity, however, has not been developed at in the development of hydropower, to strengthen
such a rapid rate as conventional hydropower. With the international cooperation, and to advance the alleviation
required policy frameworks now in place, the new plan of poverty. Yunnan and its downstream neighbors now
focuses on increasing pumped storage capacity, with boast around 91 gigawatts of installed hydropower
its total volume representing just 1.5 percent of China’s capacity, a figure surpassed only by China as a whole,
installed electricity capacity at the beginning of 2016. In and Brazil. Much of the recent hydropower construction
order to address this shortage, the country aims to reach in Yunnan was facilitated by improvements in road and
40 gigawatts total pumped storage capacity by 2020. other infrastructure in the mountainous province. While
China commissioned three pumped storage projects, predicted demand growth in the then newly-minted
Xianju, Hongping, and Qingyuan, totaling 3.66 gigawatts Greater Mekong Subregion led to supportive policies like
in 2016. Furthermore, over 30 gigawatts of pumped “Send Yunnan Electricity Outward”, anticipated demand
storage capacity was under development in China at the growth was slow to materialize in Thailand and Vietnam.
end of 2016 (China). However, demand in China continued to grow, and
power shortages across southern China, including in the
China’s Ministry of Water Resources adopted new Pearl River Delta manufacturing hub, persisted through
guidelines on promoting the development of small the mid-2000s. That growth helped spur development
hydropower plants in December 2016. The document of hydropower in the mountainous southwest and the
outlines plans to develop and grow the small hydropower long-distance transmission lines to move that electricity
industry in China by 2030 with a respect to environmental eastward (Magee and Hennig).
protection, focusing on technology improvements
and best practices for plant construction, operation Electricity production in Yunnan far exceeds
and management. The document calls for standards to consumption within the province. The rest mostly floats
improve small hydropower management, a system of to Guangdong and then downstream to neighbors in
incentives promoting small hydropower installations, Southeast Asia. Yunnan Power Grid indicated that an
and establish a number of small hydropower projects additional 95 terawatt hours were potentially available
by 2020. China commissioned several new run-of- but not utilized, a staggering amount of wasted
river hydropower plants in 2016, including: Tongzilin, electricity comparable to the entire hydroelectric
Lizhou, Huangfeng, and Qireha tal (China). Run-of-river generation in Southeast Asia. Within Yunnan there is
hydroelectricity is a type of hydroelectric generation now a power struggle over the fate of its hydroelectricity.
plant whereby little or no water storage is provided. They Some actors, such as grid operators want to export power
are subject to seasonal river flows and are thus used as to other provinces and countries while others such as
intermittent energy sources. local electricity-intensive smelters want preferential
access to it within the province. Given the economic
China had only three dams in 1949. Now it has over slowdown and shift in the Chinese economy toward
22,000. For the past two decades, China has been in greater reliance on services, it is likely that the growth
the midst of an unprecedented dam-building boom, in electricity demand will continue to flatten. Even so, it
developing over 300 gigawatts of hydropower. China has may be slower in Yunnan given its heavy dependence
the world’s largest potential hydropower resource and on electricity-intensive industry and the continued
could develop around 540 gigawatts. Much of China’s interest in electricity planners in the region to bolster
hydro boom has occurred in the southwest where steep the province’s export capabilities. World-class, ultra-high-
rivers, narrow gorges, and heavy runoff create the perfect voltage direct current lines already bypass local grids and
hydro sites. Indeed, for nearly three decades, China’s connect Yunnan’s hydropower stations directly to load
Yunnan Province has been billed as a “battery” not only Guangdong centers. The long-delayed Nu/Salween River
for southern China but also for downstream neighbors cascade must also be seen as part of Guangdong and the
Vietnam, Laos, Cambodia and Thailand. Between 2000 Pearl River Delta’s power shed, although actual work on
204
integrated planning of China’s energy system in order to and 2016, Yunnan’s hydropower capacity grew more than
make it more efficient and reliable. A major west-to-east tenfold to 62 gigawatts, not far off that of the U.S. and
transmission expansion is a key feature of a strategy to Canada and greater than Russia and India. The flood of
bring hydropower from inland resources to load coastal new hydropower certainly lives up to the current Five
centers. The country largely met the goals set out in its Year Plan, but that plan also sets out commitments to
previous five-year plan, which covered 2011–15. Pumped emphasize ecological and environmental protection
storage capacity, however, has not been developed at in the development of hydropower, to strengthen
such a rapid rate as conventional hydropower. With the international cooperation, and to advance the alleviation
required policy frameworks now in place, the new plan of poverty. Yunnan and its downstream neighbors now
focuses on increasing pumped storage capacity, with boast around 91 gigawatts of installed hydropower
its total volume representing just 1.5 percent of China’s capacity, a figure surpassed only by China as a whole,
installed electricity capacity at the beginning of 2016. In and Brazil. Much of the recent hydropower construction
order to address this shortage, the country aims to reach in Yunnan was facilitated by improvements in road and
40 gigawatts total pumped storage capacity by 2020. other infrastructure in the mountainous province. While
China commissioned three pumped storage projects, predicted demand growth in the then newly-minted
Xianju, Hongping, and Qingyuan, totaling 3.66 gigawatts Greater Mekong Subregion led to supportive policies like
in 2016. Furthermore, over 30 gigawatts of pumped “Send Yunnan Electricity Outward”, anticipated demand
storage capacity was under development in China at the growth was slow to materialize in Thailand and Vietnam.
end of 2016 (China). However, demand in China continued to grow, and
power shortages across southern China, including in the
China’s Ministry of Water Resources adopted new Pearl River Delta manufacturing hub, persisted through
guidelines on promoting the development of small the mid-2000s. That growth helped spur development
hydropower plants in December 2016. The document of hydropower in the mountainous southwest and the
outlines plans to develop and grow the small hydropower long-distance transmission lines to move that electricity
industry in China by 2030 with a respect to environmental eastward (Magee and Hennig).
protection, focusing on technology improvements
and best practices for plant construction, operation Electricity production in Yunnan far exceeds
and management. The document calls for standards to consumption within the province. The rest mostly floats
improve small hydropower management, a system of to Guangdong and then downstream to neighbors in
incentives promoting small hydropower installations, Southeast Asia. Yunnan Power Grid indicated that an
and establish a number of small hydropower projects additional 95 terawatt hours were potentially available
by 2020. China commissioned several new run-of- but not utilized, a staggering amount of wasted
river hydropower plants in 2016, including: Tongzilin, electricity comparable to the entire hydroelectric
Lizhou, Huangfeng, and Qireha tal (China). Run-of-river generation in Southeast Asia. Within Yunnan there is
hydroelectricity is a type of hydroelectric generation now a power struggle over the fate of its hydroelectricity.
plant whereby little or no water storage is provided. They Some actors, such as grid operators want to export power
are subject to seasonal river flows and are thus used as to other provinces and countries while others such as
intermittent energy sources. local electricity-intensive smelters want preferential
access to it within the province. Given the economic
China had only three dams in 1949. Now it has over slowdown and shift in the Chinese economy toward
22,000. For the past two decades, China has been in greater reliance on services, it is likely that the growth
the midst of an unprecedented dam-building boom, in electricity demand will continue to flatten. Even so, it
developing over 300 gigawatts of hydropower. China has may be slower in Yunnan given its heavy dependence
the world’s largest potential hydropower resource and on electricity-intensive industry and the continued
could develop around 540 gigawatts. Much of China’s interest in electricity planners in the region to bolster
hydro boom has occurred in the southwest where steep the province’s export capabilities. World-class, ultra-high-
rivers, narrow gorges, and heavy runoff create the perfect voltage direct current lines already bypass local grids and
hydro sites. Indeed, for nearly three decades, China’s connect Yunnan’s hydropower stations directly to load
Yunnan Province has been billed as a “battery” not only Guangdong centers. The long-delayed Nu/Salween River
for southern China but also for downstream neighbors cascade must also be seen as part of Guangdong and the
Vietnam, Laos, Cambodia and Thailand. Between 2000 Pearl River Delta’s power shed, although actual work on
204
