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ENERGY REVOLUTION
&
RENEWABLE ENERGY
IN CHINA
LI JUNFENG
MAY, 2015
• Energy Revolution in China
• Renewable Energy in China
ENERGY REVOLUTION IN CHINA
China Urges Energy Revolution
• China is the largest energy consumer
and producer in the world, thanks in
large part to its reliance on coal.
2014 China primary energy
consumption (percentage)
0.9% 2.3%
8.0%
5.7%
Coal
Fossil Oil
Natural Gas
• In 2014, China's coal consumption
accounted for 66% of primary energy
consumption, while non-fossil energy
reached 11.2%.
• In 2014, China has accounted for half
of global coal consumption.
17.1%
Hydro
66.0%
Nuclear
Wind/Solar/Bio
ENERGY REVOLUTION IN CHINA
China Urges Energy Revolution
• China’s fast-growing economy has led
to its rapidly increasing energy
demand.
• In the wake of the severe air pollution,
China faces tough task to meet
soaring energy demand as well as cut
pollution problems.
ENERGY REVOLUTION IN CHINA
• In the wake of air pollution's threat
to public health, the environment,
competitiveness and social stability,
the country's leadership appears to
be more resolute in dealing with the
problem.
• President Xi Jinping -- Revolution
in both energy production and
consumption is called by the
country.
• Ambitious Target: Increase the
share of non-fossil fuels in primary
energy consumption to 20% by
2030.
ENERGY REVOLUTION IN CHINA
Energy Revolution Strategy
Energy Consumption
Energy Production
Reform
Reform
Control national energy
consumption
Implement energysaving policies
Focus on “clean coal”
technologies, upgrade coal
plants
Ramp up electricity
generation from diverse
clean energy sources
• Energy Revolution in China
• Renewable Energy in China
RENEWABLE ENERGY IN CHINA
2006-2014 China’s renewable energy
share of total power installed capacity
Renewable Energy Market in China
• China’s renewable energy market has
30%
experienced rapid growth due to
29%
continuously growing demand and
28%
effective policy support.
27%
• In 2014, China's renewable power
25%
reached 430GW, accounted for 32% of
24%
total power capacity.
23%
• In 2014, electricity generated by
renewables exceeded 1.21 trillion kwh,
made up over 22% of total electric
power generated from all sources.
31.6%
2013
2014
28.50%
27.70%
26.60%
26%
accumulated installed capacity
30%
25.50%
24.00%
22.40%
22.60%
22%
21%
20%
2006
2007
2008
2009
2010
2011
2012
CHINA’S RENEWABLE ENERGY OVERVIEW
Renewable Energy Market in China
• In 2014, renewables made an
1978-2014 China’s non-fossil energy share
of total final energy use
10%
9.2%
7.8%
estimated 10.3% of total primary
• In 2014, electric power generated from
8%
7.5%
6%
wind reached 156 TWhs . From 2012
on, wind overtook nuclear and became
5.1%
4.9%
4%
China's 3rd largest energy source just
behind coal and hydro power
6.7%
6.4%
4.0%
3.4%
2%
0%
1978
1980
1985
1990
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
energy consumption in China.
CHINA’S RENEWABLE ENERGY OVERVIEW
Renewable Energy Investment in
China
2004-2014 China’s New Investment in
Renewable Energy
• China’s total investment in
renewables was USD 71.3 billion incl.
R&D in 2014 which take almost one
third of world clean energy investment.
• Investment in renewables surpassed
fossil fuel capacity additions.
• The decline in investment mainly
comes from significant cost reductions
of technologies.
Source: REN21 GSR 2014
CHINA’S RENEWABLE ENERGY OVERVIEW
Renewable Energy Market in China
• The accumulated capacity of hydro, wind and solar PV as major renewable power sources
are shown in the following charts.
350
2006-2014 Hydro power accumulated capacity
2006-2014 Wind power accumulated capacity
GW
GW
120
280
300
250
200
150
173
130
196
216
231
302
96.37
100
249
148
75.5
80
63
60
46
40
100
30
18
20
50
0
2
4
2006
2007
8
0
2006 2007 2008 2009 2010 2011 2012 2013 2014
2008
2009
2010
2011
2012
2013
2014
CHINA’S RENEWABLE ENERGY OVERVIEW
Renewable Energy Market in China
• The accumulated capacity of hydro, wind and solar PV as major renewable power sources
are shown in the following charts.
2006-2014 PV power accumulated capacity
3000
10MW
2805
2500
2000
1479
1500
1000
650
500
0
300
8
10
14
28
86
2006
2007
2008
2009
2010
2011
2012
2013
2014
CHINA’S RENEWABLE ENERGY OVERVIEW
Renewable Energy Growth in China
Hydro
Wind
• New installed capacity was 21.83GW in 2014 and the
accumulated capacity was over 300 GW
• New installed capacity reached 20.87GW in 2014 and the
accumulated capacity was over 100 GW.
• New installed capacity reached 13.26 GW in 2014, including
Solar PV
both large-scale and distributed power plants. The
accumulated capacity was over 28 GW
• China’s first 10 MW solar thermal power Plant was connected
CSP
to the grid in Qinghai province in 2013 and the FiT of
CNY1.20/kWh was approved in 2014.
Biomass
• New installed capacity was 1GW, and accumulated Bio-
power capacity reached 9.48 GW by 2014.
CHINA’S RENEWABLE ENERGY OVERVIEW
Policy Instruments: Chinese government has determined to optimize its energy mix
with high share of renewables. A series of policy instruments have been taken into
place to support such transition.
Renewable
Energy
Surcharge
Wind
• 0.015 Yuan (0.25 U.S. cent) per kwh.
• The surcharge pays for the China Renewable Energy Development
Fund, which goes to subsidies to developers of renewable-energy
projects.
• Classified FiT rates in the range of CNY 0.51-0.61($0.08-0.10)/kWh for
4 areas.
• Large, transmission grid connected PV projects :Classified rates
CNY0.90, 0.95, 1.00 ($0.15-0.16)/kWh for 3 areas.
• Distributed PV projects: New policy issued on 9.4.2014 allows either
Solar PV
all-to-the-grid with FiT rates or self-consumption mode
(CNY0.42($0.07)/kWh plus coal-fire power price which is around
CNY0.20 - 0.36($0.03 – 0.06)/kWh if surplus electricity feeds back to
the grid.).
CHINA’S RENEWABLE ENERGY OVERVIEW
CHINESE RENEWABLE ENERGY
INDUSTRIES ASSOCIATION
Distribution grid connected PV project
• Self-consumption mode
Self-consumption
(savings on electricity bill)
Sent to the grid
(purchased by the grid company)
Premium FiT of CNY0.42($0.07) /kWh
plus local electricity price
Premium FiT of CNY0.42($0.07) /kWh
plus the local coal-fired power tariff
• All-to-the-grid mode
All electricity generated feeds to the
grid (purchased by the grid company)
Applies FiT of CNY0.90, 0.95, 1.00
($0.15-0.16)/kWh given different areas
CHINA RENEWBLE ENERGY OUTLOOK in 12th by 2015
12th Five-Year Plan: Non-fossil fuels reach 11.4% of total primary energy
consumption by 2015. A further goal of 20% by 2030 was determined in 2014.
• 4 billion tce of national energy consumption
Energy
consumption
• 6150 TWhs electricity consumption
• 17% carbon intensity reduction
• 16% cut in energy intensity ( energy consumption per capita)
• 8% of electricity consumption annual growth
Energy
Transition
• Cap coal share under 65%, with no more than 3.9 billion tons
of production
• Non-fossil fuel share reaches 11.4%
CHINA RENEWBLE ENERGY OUTLOOK by 2015
China’s 12th Five-Year Plan : Renewable Energy is targeted to reach 33% of total
electric power capacity by 2015, hydro and wind still dominating
Hydro
• Installed capacity of 420 GW, up from 211GW in 2010.
• Installed capacity of 100 GW, with annual electricity
Wind
generation over 190 TWh.
• 5GW off-shore
• PV Power: Installed capacity of 35 GW, including both large-
Solar
scale and distributed power plants.
• CSP: Installed capacity of 1 GW by 2015, 3 GW by 2020
Biomass
• 13 GW installed capacity by 2015, with annual electricity
generation over 7.8 TWhs
CHINA RENEWBLE ENERGY OUTLOOK by 2015
CHINESE RENEWABLE ENERGY
INDUSTRIES ASSOCIATION
China’s 12th Five-Year Plan : Integrated Demonstration Projects
• New energy makes over 3% of city’s primary
100 new energy cities
energy consumption, no less than 6% by 2015.
• At least 2 kinds of new energy have to be
deployed.
200 green energy
• Over 100 green counties granted so far
counties
• A subsidy of CNY 25 million per county
30 new energy micro-grid
projects
18 distributed PV power
generation demonstration
areas
• An integration of cogeneration (rooftop PV,
Distributed Wind power, gas turbine), energy
storage and transmission grid
• 18 projects with the total capacity of 1.8GW
• Scheduled to complete in 2015
CHINA’S RENEWABLE ENERGY OUTLOOK by 2015
Integrated Demonstration Project
• According to the demonstration project plans, full use of local renewable energy
sources like solar, wind, geothermal and biomass, is of great importance and
defined as key performance indicator.
• With a series of renewable energy integrated demonstration projects, China
shows strong will to kick out domestic market by encouraging local usage of
renewbles.
• A focus transition from manufacturing to end use is taking place, according to
which energy consumption structure would be dramatically changed.
CHINA’S RENEWABLE ENERGY OUTLOOK Beyond 2015
•Premier Li Keqiang's Internet Plus
Strategy – China’s economic
transformation scheme.
• Energy Internet –Future energy
system features high penetration of
clean energy sources and
innovative internet technology, with
efficient macro and micro grid
integration .
•Energy Internet will reconstruct the
energy system, significantly
increase the efficiency of energy
production and consumption, and
encourage the use of renewable
energy and energy storage
technologies.
The Ideas of 13th Five-years Plan
•
•
•
•
•
•
Share of all the non-fossil fuels 15%
Wind will be 200 GW
Solar PV will be 100 GW
Solar thermal power 1 to 3 GW
Biomass for power 30 GW
Hydro power 400 GW
Discussion beyond 2020
• 20% of all non-fossil fuels in total energy use
–
–
–
–
500 GW hydro power, maximum
200 GW nuclear power
400 GW wind
500-600 GW solar, PV plus solar thermal
• Un-certainties
– Hydro-power potential
– Nuclear power, manufacture & management capabilities
– And how much total energy consumption
• For ensuring the target of non-fusil fuels, may by more
solar and wind should be needed
THANK YOU
LI JUNFENG
EMAIL: [email protected]
National Center For Climate Change Strategy
and International Cooperation