China - Sustainable Energy Sector
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China - Sustainable Energy Sector Summarized Fiche Date 24 October 2011 China - "Sustainable Energy Sector" by Embassy of the Kingdom of the Netherlands in Beijing, Consulate General in Shanghai, Guangzhou & Hong Kong, NBSO in Nanjing, Wuhan, Tianjin, Qingdao, Dalian & Jinan and NABSO Kunming - 24 October 2011 Colophon Contact Bij Ambassade Beijing : Nga Ho Lam, Trade Assistant T +86 10 8532 0201 [email protected] www.hollandinchina.org Liangmahe Nanlu no. 4 | Chaoyang District | 100600 Beijing China Bij NL EVD Internationaal : Kamal Afarmach, marktadviseur China T +31 088 602 80 00 T +31 070 778 88 89 [email protected] www.agentschapnl.nl/evdinternationaal NL EVD Internationaal Juliana van Stolberglaan 148 | 2595 CL Den Haag P.O. Box 20105 | 2500 EC Den Haag Author(s) Focal point: Embassy of the Kingdom of the Netherlands in Beijing Other participating offices: Consulate General in Shanghai, Guangzhou & Hong Kong, NBSO in Nanjing, Wuhan, Tianjin, Dalian & Jinan and NABSO Kunming Pagina 3 van 38 China - "Sustainable Energy Sector" by Embassy of the Kingdom of the Netherlands in Beijing, Consulate General in Shanghai, Guangzhou & Hong Kong, NBSO in Nanjing, Wuhan, Tianjin, Qingdao, Dalian & Jinan and NABSO Kunming - 24 October 2011 Index Colophon 3 Index 5 1 Summary of general developments and opportunities for the Dutch energy sector 6 2 Investment and development plans of Chinese local governments in the energy sector 8 3 Investment and development plans of Chinese companies in the energy sector 9 3.1 Renewable energy 9 3.1.1 Wind energy 9 3.2 Solar energy 11 3.2.1 PV solar 12 3.2.2 Solar thermal 12 3.2.3 Solar Energy development in Wuhan 14 3.2.4 Solar heating 14 3.2.5 Photovoltaic industry 14 3.3 Smart grid 21 3.4 Hydro energy 24 3.5 Biomass 25 3.6 Fossil Energy 27 3.7 Shale gas 28 4 Trade Fairs & Exhibitions 30 5 Dutch Government Economic Network 33 5.1 Contact details 33 6 Annexes 1 - 6 35 6.1 Annex 1 Total energy consumption by China 35 6.2 Annex 2 China´s wind market share 35 6.3 Annex 3 China Wind Power Consumption 36 6.4 Annex 4 Investment in power generation and grid construction 36 6.5 Annex 5 National Grid Plan 37 6.6 Annex 6 Municipal Solid Waste and food waste biogas plants currently under consideration in China 38 Pagina 5 van 38 China - "Sustainable Energy Sector" by Embassy of the Kingdom of the Netherlands in Beijing, Consulate General in Shanghai, Guangzhou & Hong Kong, NBSO in Nanjing, Wuhan, Tianjin, Qingdao, Dalian & Jinan and NABSO Kunming - 24 October 2011 1 Summary of general developments and opportunities for the Dutch energy sector During the United Nations Framework Convention on Climate Change (UNFCCC) in Copenhagen in 2009, China's State Council stated that carbon dioxide emissions per unit of GDP will be reduced by 40 to 45 percent by 2020, compared with 2005 levels. The second statement was for alternative energy to meet 15 percent of the country's energy needs by 2020. To meet these targets, the National Energy Administration (NEA) has compiled a development plan for emerging energy industries from 2011 to 2020 that will require direct investments totalling 5 trillion RMB. This plan will contribute 1.5 trillion RMB in added-value per year and create 15 million job opportunities. The plan has specified major policy measures for the development and utilization of nuclear, wind, solar, biomass, geothermal, unconventional natural gas and other new energies. It also detailed the industrialized application of clean coal, smart grid, distributed energy and alternative- fuel vehicle technologies. China’s energy consumption per unit of GDP was reduced by 20 percent between 2005 and 2010. China's installed power capacity hit 962 GW at the end of 2010 and its installed power capacity rose 10 percent year on year. Installed thermal power capacity was 706 GW and installed hydropower capacity had reached 213 GW. Installed nuclear power capacity had increased to 10 GW, with 29 GW of nuclear power capacity under construction. Wind power capacity connected to power grids increased by 14 GW to a total of 31 GW. In 2010, China's power consumption reached 4,190 tWh, reflecting a steady growth of 14.5 percent year on year. This year, China has been listed number 1 in the ‘Nation’s Renewable Energy Attractiveness Index,’ published by Ernst & Young. This index, which covers 30 nations, emphasized that China has become the leader of renewable energy. China’s record-breaking investment in wind power in the 3rd quarter of 2010 accounted for half of the world’s gross investment in new wind power programs. Half of the solar panels produced in 2010 globally are made in China and total capacity is above 8 GW. For Dutch innovative niche sectors this trend implies challenges and opportunities. The challenges are presented by lower costs, unfair competition and IP protection. The opportunities are inspired by potential demand in China for Dutch innovation, joint research & development and reconfiguration of production chains. The sale of high-tech products and technology to Pagina 6 van 38 China - "Sustainable Energy Sector" by Embassy of the Kingdom of the Netherlands in Beijing, Consulate General in Shanghai, Guangzhou & Hong Kong, NBSO in Nanjing, Wuhan, Tianjin, Qingdao, Dalian & Jinan and NABSO Kunming - 24 October 2011 Chinese companies generates the profits that are needed to finance new R&D in the Netherlands. Pagina 7 van 38 China - "Sustainable Energy Sector" by Embassy of the Kingdom of the Netherlands in Beijing, Consulate General in Shanghai, Guangzhou & Hong Kong, NBSO in Nanjing, Wuhan, Tianjin, Qingdao, Dalian & Jinan and NABSO Kunming - 24 October 2011 2 Investment and development plans of Chinese local governments in the energy sector On a national level, the National Development and Reform Commission (NDRC) launched 15 national energy research centers. The central government spent 1.5 trillion Yuan on the 11th Five Year Plan, and it will need to increase spending by 45 percent to achieve the carbon intensity goals. Regionally, three geographical centers stand out as green energy hubs: Wuxi, in southwestern China's Jiangsu province, is believed by experts to have the strongest R&D capabilities; Baoding City in Hebei, is regarded as the center of clean energy manufacturing; Inner Mongolia is viewed to have natural attributes for projects such as wind-power. Within the coming 12th Five Year Plan, sustainable development will be enhanced and resource utilization will be optimized. Attention will be given to improving renewable energy, efficient coal use (China’s main fossil fuel source), decreasing wasteful water consumption and major pollutants to purify air and water quality, cultivating farmland, containing environmental degradation, increasing carbon credits, combating desertification, controlling greenhouse gas emissions and enhancing disaster relief efforts. For 2010 China remained the world's leading investor in clean energy with an investment of 54.4 billion USD, an increase from the 39.1 billion USD for 2009, according to a report released by US-based Pew Environment Group. China was followed by Germany and the United States in the ranking, which invested 41.2 billion USD and 34 billion USD in the sector respectively last year. Worldwide, the clean energy sector achieved a record of 243 billionn USD worth of finance and investment in 2010. Pagina 8 van 38 China - "Sustainable Energy Sector" by Embassy of the Kingdom of the Netherlands in Beijing, Consulate General in Shanghai, Guangzhou & Hong Kong, NBSO in Nanjing, Wuhan, Tianjin, Qingdao, Dalian & Jinan and NABSO Kunming - 24 October 2011 3 Investment and development plans of Chinese companies in the energy sector Focus areas China is seeing the world’s largest increase in electricity capacity with an average of 2 coal plants being built in one week. The rate of power capacity increase is more than 100 GW capacity being built in a year. China has long relied on coal, most of the power is using coal energy as a source (see annex 1). It consumes 3 billion tons of coal per year and is importing 180 million tons per year. Due to the carbon emissions and shortage of coal production, China is rapidly developing in renewable energy. Nuclear and solar energy are getting a boost, while wind energy has been the fastest growing market in energy. Wind energy will increase to 50 percent of the global capacity. Hydro capacity is being built again as China is missing its target on energy efficiency. In this fiche for promising sectors in Energy, a division in renewable energy and fossil energy is made. Nuclear energy will not be discussed as for the moment it has no business opportunities due to the non- proliferation agreement between both countries. 3.1 Renewable energy 3.1.1 Wind energy The Global Wind Energy Council (GWEC) report showed global wind power capacity growth by 31 percent, a 37.5 GW increase to 157 GW in 2009. A third of the increase came from China, which doubled its capacity from 12 GW to 25 GW. China's electrical grids will connect 90 million kW of wind power capacity by 2015. The figure will rise to 150 million kW by 2020, according to the State Grid Corporation of China (SGCC). China's wind power installation has doubled every year for the past five years. It totalled 40 million kW in 2010, ranking first in the world. China's installed wind power capacity connected to national grids is above 30 million kW. By the end of 2010, China had 29.5 GW wind turbines integrated to the grid. The annual growth of wind power grid admission was nearly 100 percent in the country over the past 5 years.