Page 226 - 2020 White Paper on the Business Environment in China
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0 White Paper on the Business Environment in China
what will become the largest transmission line in and initiatives are bearing fruit. While the last
the world, a 1.1 million volt giant line capable of decade has seen strong investment across the
delivering huge amounts of power over thousands entire renewable energy sector, estimates point to
of miles. The Changji-Guquan transmission line is Chinese wind farms producing less electricity than
a colossal feat that will be able to transmit 2,000 they potentially could. Grid connection, constraints
MW of electricity, enough for 26.5 million people, in grid management, less than optimal turbine
across China. While this and similar lines will be models, and siting of wind farms have all lowered
used to transport renewable energy, most of the actual use of energy generated by wind turbines. As
electricity transported through them will still come a result, the amount of electricity fed into the grid
from traditional power sources. Traditional power to displace conventional, polluting power sources,
plants are more stable energy sources. However, such as coal and oil, has been limited. One study
the picture is changing rapidly thanks to another shows that wind energy units (individual windmills)
solution transforming the energy sector: battery in China were producing much less electricity per
storage. By the end of 2018, China had a combined unit of installed wind capacity than their American
640 MW of operational battery storage capacity, counterparts (Prosser). China is trying to change
laying a foundation for store-able electricity the “rhythm” of renewable power construction
production based on renewable energy sources to give grid operators time to raise transmission
(Prosser). China will continue to advance its new capacity and ensure clean electricity generation is
strategy focused on energy security. With the aim not wasted. Li Chuangjun, deputy head of the NEA’s
of generating 15 percent of its energy from non- new energy section, said overall rates of waste in
fossil fuel sources by 2020 and 20 percent by 2030, the wind power sector had fallen to 7 percent in
the country plans to take proactive measures to 2018, down 5 percentage points on the year. The
further the expansion of facilities that can deliver major wind generation regions of Xinjiang and
high-quality renewable energy (Liu). Gansu in the far northwest, however, still failed to
get around a fifth of potential wind power onto the
Wind Power grid over the period (Reuters, China Powers up).
China is approaching the end of its 13th China’s energy regulator has ordered local
Energy Technology Innovation Five-Year Plan. authorities to take heed of the grid capacity
The plan specifically mentions wind energy as a when selecting new wind power projects in an
focus point, identifying wind turbines with a MW attempt to ensure that no more than five percent
production capacity of between 8 and 10 MW as of the electricity they generate is wasted. China’s
a key technology. By the end of 2020, China aims renewable energy law compels grid firms to absorb
to have 210 gigawatt (GW) of grid-connected wind the power generated by clean sources such as wind
energy capacity. Its capacity at the beginning of and solar. However, many projects have been left
2018 already led the world with about 187 GW, with inadequate grid access, a problem commonly
compared to 89 GW for the US in second place known as “curtailment”. Regulators have sought to
and 56 GW for Germany in third. In 2018 alone, manage the pace of construction to give grids more
China installed 21 GW of onshore wind capacity time to expand transmission capacity. The new
(representing 46 percent of the world market) and guidelines published by China’s National Energy
1.6 GW of offshore wind capacity (representing 40 Administration said priority should now be given
percent of the world market). As a nation, China has to cross-regional wind power bases that can deliver
many good reasons for focusing on renewables like electricity to different regional grids. From 2019,
wind. The country’s growing middle class is fueling all large-scale onshore and offshore wind power
higher energy use and both its land and long plants must be subject to a competitive tender
coastline are excellently suited for wind power. process, with bids based on construction costs as
Furthermore, a leading position in green energy is well as power prices. The tariff for each project must
conducive to exports of solutions and technology not exceed the benchmark set by the government
that the country is actively pursuing including the (Reuters, China Tightens).
Belt and Road project. Not all of China’s efforts
226
what will become the largest transmission line in and initiatives are bearing fruit. While the last
the world, a 1.1 million volt giant line capable of decade has seen strong investment across the
delivering huge amounts of power over thousands entire renewable energy sector, estimates point to
of miles. The Changji-Guquan transmission line is Chinese wind farms producing less electricity than
a colossal feat that will be able to transmit 2,000 they potentially could. Grid connection, constraints
MW of electricity, enough for 26.5 million people, in grid management, less than optimal turbine
across China. While this and similar lines will be models, and siting of wind farms have all lowered
used to transport renewable energy, most of the actual use of energy generated by wind turbines. As
electricity transported through them will still come a result, the amount of electricity fed into the grid
from traditional power sources. Traditional power to displace conventional, polluting power sources,
plants are more stable energy sources. However, such as coal and oil, has been limited. One study
the picture is changing rapidly thanks to another shows that wind energy units (individual windmills)
solution transforming the energy sector: battery in China were producing much less electricity per
storage. By the end of 2018, China had a combined unit of installed wind capacity than their American
640 MW of operational battery storage capacity, counterparts (Prosser). China is trying to change
laying a foundation for store-able electricity the “rhythm” of renewable power construction
production based on renewable energy sources to give grid operators time to raise transmission
(Prosser). China will continue to advance its new capacity and ensure clean electricity generation is
strategy focused on energy security. With the aim not wasted. Li Chuangjun, deputy head of the NEA’s
of generating 15 percent of its energy from non- new energy section, said overall rates of waste in
fossil fuel sources by 2020 and 20 percent by 2030, the wind power sector had fallen to 7 percent in
the country plans to take proactive measures to 2018, down 5 percentage points on the year. The
further the expansion of facilities that can deliver major wind generation regions of Xinjiang and
high-quality renewable energy (Liu). Gansu in the far northwest, however, still failed to
get around a fifth of potential wind power onto the
Wind Power grid over the period (Reuters, China Powers up).
China is approaching the end of its 13th China’s energy regulator has ordered local
Energy Technology Innovation Five-Year Plan. authorities to take heed of the grid capacity
The plan specifically mentions wind energy as a when selecting new wind power projects in an
focus point, identifying wind turbines with a MW attempt to ensure that no more than five percent
production capacity of between 8 and 10 MW as of the electricity they generate is wasted. China’s
a key technology. By the end of 2020, China aims renewable energy law compels grid firms to absorb
to have 210 gigawatt (GW) of grid-connected wind the power generated by clean sources such as wind
energy capacity. Its capacity at the beginning of and solar. However, many projects have been left
2018 already led the world with about 187 GW, with inadequate grid access, a problem commonly
compared to 89 GW for the US in second place known as “curtailment”. Regulators have sought to
and 56 GW for Germany in third. In 2018 alone, manage the pace of construction to give grids more
China installed 21 GW of onshore wind capacity time to expand transmission capacity. The new
(representing 46 percent of the world market) and guidelines published by China’s National Energy
1.6 GW of offshore wind capacity (representing 40 Administration said priority should now be given
percent of the world market). As a nation, China has to cross-regional wind power bases that can deliver
many good reasons for focusing on renewables like electricity to different regional grids. From 2019,
wind. The country’s growing middle class is fueling all large-scale onshore and offshore wind power
higher energy use and both its land and long plants must be subject to a competitive tender
coastline are excellently suited for wind power. process, with bids based on construction costs as
Furthermore, a leading position in green energy is well as power prices. The tariff for each project must
conducive to exports of solutions and technology not exceed the benchmark set by the government
that the country is actively pursuing including the (Reuters, China Tightens).
Belt and Road project. Not all of China’s efforts
226
