Page 230 - 2020 White Paper on the Business Environment in China
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0 White Paper on the Business Environment in China
growth market globally—although it is likely to be Pumped hydro storage plants could be used as
overtaken by India in the not-too distant future. reservoirs when demand is low and as power
China already has more solar capacity than any stations to generate electricity when consumption
other country in the world, and is home to several picks up (Reuters, China Plans Massive).
massive solar farms, including the world’s largest
one in the Tengger Desert. The country—the China’s state planner gave the green light in 2019
biggest clean energy investor in the world—is for a towering 239-meter (784 feet) hydropower dam
looking to dramatically increase the proportion of on the mountainous Tibet-Sichuan border as plans
renewable energy in its power mix (Edmond). to dam the Yangtze’s upper reaches gather pace,
concerning environmentalists. Greater concern over
Hydroelectric Power hydropower’s environmental impact has slowed
development over the last four years. The newly-
As China pivots on renewable energy to reduce approved 2-GW Lawa hydroelectric plant will be built
its greenhouse emissions and fight pollution, on the main course of the Jinsha River, a Yangtze
hydropower continues to be the foundation of tributary that runs between China’s southwestern
its renewable energy industry. According to the Sichuan province and the Tibet, before flowing
National Energy Administration, at the end of 2018, south into Yunnan province. Environmental groups
China’s hydropower installed capacity was about have warned several times in the last few decades
350 million KW, and its annual power generation that the projects threaten the region’s delicate
was about 1.2 trillion kWh, both ranking first in ecological balance and could exacerbate landslides.
the world. Developing hydropower is essential Developers claim such concerns have been taken
for China. Hydropower stations are a source of on board in recent plant designs and environmental
clean, low-carbon, safe, efficient and renewable assessments, with the local government arguing
energy. Exploiting hydropower doesn’t consume that such projects will provide employment in the
water and barely emits any greenhouse gases. As underdeveloped region. Yet such claims were put
hydropower is increasingly marketized, it delivers to the test in June 2018 when it emerged that the
greater economic, social and environmental value. sluice gate, which helps control the flow of water,
It has also embarked upon a sound, sustainable at Huadian’s 21.9 billion yuan Ludila plant on the
development path within existing policies. Jinsha had been washed away a year earlier because
of design faults. Problems on plants on the Jinsha
China’s State Grid Corp will invest US$5.66 have caused “irreversible damage” to the river. The
billion to build five pumped hydro storage plants incident did not stop the company from pursuing
across the country in an effort to ease stranded further development in the region. In 2018, it began
power systems amid Beijing’s push to boost clean work on the 18 billion yuan, 5.4-GW Suwalong
energy consumption. The five plants, located hydropower project on the Jinsha’s river’s upper
in the provinces of Jilin, Hebei, Shandong and reaches, which will be the biggest dam in Tibet when
Zhejiang, and far west region of Xinjiang, will have completed in 2021 (Kirton).
a combined capacity of 6 gigawatts (GW) and are
expected to be launched by 2026. The state-backed China has also been stepping up efforts in small
company currently has 19.23 GW of pumped hydro hydropower development. Some 46,500 small
storage capacity and 30.15 GW under construction. hydropower stations had been built in rural areas
The investment came as China has vowed to boost by the end of 2018, with an annual capacity of more
large-scale energy storage capacity over the next than 230 billion kWh and a complete standard
decade and launch at least 40 GW of pumped system on planning, designing, construction and
hydro storage plants by 2020. Energy storage management, according to the Ministry of Water
facilities, including pumped hydro storage plants, Resources. To further encourage the development
compressed air energy storage and bulk storage of the hydropower sector, China’s top economic
with batteries, could help prevent renewable power planner unveiled new measures in 2019 to cut
from being wasted when there is not enough electricity costs for industrial and commercial users.
transmission capacity to absorb the electricity. Fees for funding major hydropower projects were
reduced by 50 percent (Zheng, Hydropower).
230
growth market globally—although it is likely to be Pumped hydro storage plants could be used as
overtaken by India in the not-too distant future. reservoirs when demand is low and as power
China already has more solar capacity than any stations to generate electricity when consumption
other country in the world, and is home to several picks up (Reuters, China Plans Massive).
massive solar farms, including the world’s largest
one in the Tengger Desert. The country—the China’s state planner gave the green light in 2019
biggest clean energy investor in the world—is for a towering 239-meter (784 feet) hydropower dam
looking to dramatically increase the proportion of on the mountainous Tibet-Sichuan border as plans
renewable energy in its power mix (Edmond). to dam the Yangtze’s upper reaches gather pace,
concerning environmentalists. Greater concern over
Hydroelectric Power hydropower’s environmental impact has slowed
development over the last four years. The newly-
As China pivots on renewable energy to reduce approved 2-GW Lawa hydroelectric plant will be built
its greenhouse emissions and fight pollution, on the main course of the Jinsha River, a Yangtze
hydropower continues to be the foundation of tributary that runs between China’s southwestern
its renewable energy industry. According to the Sichuan province and the Tibet, before flowing
National Energy Administration, at the end of 2018, south into Yunnan province. Environmental groups
China’s hydropower installed capacity was about have warned several times in the last few decades
350 million KW, and its annual power generation that the projects threaten the region’s delicate
was about 1.2 trillion kWh, both ranking first in ecological balance and could exacerbate landslides.
the world. Developing hydropower is essential Developers claim such concerns have been taken
for China. Hydropower stations are a source of on board in recent plant designs and environmental
clean, low-carbon, safe, efficient and renewable assessments, with the local government arguing
energy. Exploiting hydropower doesn’t consume that such projects will provide employment in the
water and barely emits any greenhouse gases. As underdeveloped region. Yet such claims were put
hydropower is increasingly marketized, it delivers to the test in June 2018 when it emerged that the
greater economic, social and environmental value. sluice gate, which helps control the flow of water,
It has also embarked upon a sound, sustainable at Huadian’s 21.9 billion yuan Ludila plant on the
development path within existing policies. Jinsha had been washed away a year earlier because
of design faults. Problems on plants on the Jinsha
China’s State Grid Corp will invest US$5.66 have caused “irreversible damage” to the river. The
billion to build five pumped hydro storage plants incident did not stop the company from pursuing
across the country in an effort to ease stranded further development in the region. In 2018, it began
power systems amid Beijing’s push to boost clean work on the 18 billion yuan, 5.4-GW Suwalong
energy consumption. The five plants, located hydropower project on the Jinsha’s river’s upper
in the provinces of Jilin, Hebei, Shandong and reaches, which will be the biggest dam in Tibet when
Zhejiang, and far west region of Xinjiang, will have completed in 2021 (Kirton).
a combined capacity of 6 gigawatts (GW) and are
expected to be launched by 2026. The state-backed China has also been stepping up efforts in small
company currently has 19.23 GW of pumped hydro hydropower development. Some 46,500 small
storage capacity and 30.15 GW under construction. hydropower stations had been built in rural areas
The investment came as China has vowed to boost by the end of 2018, with an annual capacity of more
large-scale energy storage capacity over the next than 230 billion kWh and a complete standard
decade and launch at least 40 GW of pumped system on planning, designing, construction and
hydro storage plants by 2020. Energy storage management, according to the Ministry of Water
facilities, including pumped hydro storage plants, Resources. To further encourage the development
compressed air energy storage and bulk storage of the hydropower sector, China’s top economic
with batteries, could help prevent renewable power planner unveiled new measures in 2019 to cut
from being wasted when there is not enough electricity costs for industrial and commercial users.
transmission capacity to absorb the electricity. Fees for funding major hydropower projects were
reduced by 50 percent (Zheng, Hydropower).
230
