Blue Book for Industry Development of Chinese Concentrated Solar Power and Solar Heating in 2016 China National Solar Thermal Energy Alliance March, 2017, Beijing，CHINA Editor IN Chief: Zhifeng Wang, Institute of Electrical Engineering, Chinese Academy of Sciences Editors: Zhifeng Wang, Institute of Electrical Engineering, Chinese Academy of Sciences (Concentrated Solar Power) Ming Yang, Institute of Electrical Engineering, Chinese Academy of Sciences (Solar Heating) Jing Zhan, Institute of Electrical Engineering, Chinese Academy of Sciences (Industrial Policy and Data Statistics of CSP) Proofreader: For English Version Alina Gilmanova, UNICAMP, Brazil Bei Yang, Institute of Electrical Engineering, Chinese Academy of Sciences For Chinese Version Jianhan Zhang, Institute of Electrical Engineering, Chinese Academy of Sciences This book can be free downloaded from the following website: http://www.cnste.org/ Contents A introduction About China National Solar Thermal Energy Alliance. ................ 2 1. Development of Concentrated Solar Power in China ........................................ 3 1.1 Overview of enterprises and production capacity in CSP sector .............. 7 1.1.1 Overview of enterprises related to CSP industry ............................ 7 1.1.2 Newly emerged enterprises during the 12th FYP period ............... 10 1.1.3 Number of production lines .......................................................... 12 1.2 Economic overview ................................................................................ 13 1.2.1 Total assets of CSP Industry ......................................................... 13 1.2.2 Realized profits ............................................................................. 14 1.2.3 Industrial scale .............................................................................. 14 1.2.4 The structure of industrial sector .................................................. 14 1.2.5 Analysis of production lines during 2010-2016 ............................ 14 1.3 Large-scale enterprises ............................................................................ 14 1.3.1 Production capacity ....................................................................... 14 1.3.2 Overview of total assets ................................................................ 15 1.3.3 Results of independent innovation in recent five years ................ 16 1.3.4 Global suppliers ............................................................................ 16 1.3.5 Analysis of Chinese enterprises .................................................... 17 1.3.6 Implementation of the 12th FYP ................................................... 20 1.4 Industrial trends ...................................................................................... 23 1.4.1 Decentralization of the market ...................................................... 23 1.4.2 The production capacity of concentrators ..................................... 24 1.4.3 Export of products ......................................................................... 24 1.4.4 Intellectual property rights ............................................................ 25 1.4.5 Energy consumption of equipment production ............................. 25 1.4.6 Technical Support ......................................................................... 25 2. Expectation of CSP development during the 13th FYP period ........................ 28 2.1 Domestic and international influence on CSP development ................... 28 2.2 Opportunities Faced in Development ..................................................... 30 2.2.1 Grid stability demand .................................................................... 30 2.2.2 Literature overview of CSP cogeneration systems ....................... 31 2.2.3 Demand for construction of low carbon cities in Western China . 36 2.2.4 CSP and Belt and Road initiative .................................................. 38 2.2.5 Industrial upgrade ......................................................................... 40 2.3 Challenges ............................................................................................... 43 2.3.1 Rapid decrease of PV price ........................................................... 43 2.3.2 Lack of experience in CSP sector ................................................. 44 2.3.3 Overcapacity in manufacturing industry ....................................... 45 2.3.4 Capacity of human resources ........................................................ 45 2.3.5 Unequal competitive opportunities between foreign and Chinese companies ...................................................................................................... 45 2.3.6 Insufficient capital investment in research and pilot testing ......... 46 2.3.7 Standards and certification ............................................................ 46 2.4 Analysis and forecast of future demand ........................................... 46 3. The forecast of CSP industry development within the 13th FYP .................... 48 3.1 Financial Objectives................................................................................ 48 3.1.1 Gross output value scale of CSP industry ..................................... 48 3.1.2 Outlook of production costs and capital investment ..................... 48 3.2 Objectives for CSP equipment production .............................................. 48 3.2.1 Gross income of domestic key equipment production .................. 48 3.2.2 Service providers .......................................................................... 49 3.2.3 Development of EPC companies .................................................. 49 3.3 Objectives for technical improvements .................................................. 49 3.4 Suggestions on measures to be taken ...................................................... 49 3.5 Export opportunities ................................................................................ 50 4. Guidelines for decisions makers ...................................................................... 52 4.1 Planning for sustainable development of CSP industry .......................... 52 4.2 Quality Supervision System .................................................................... 52 4.3 Building industrial early-warning system ............................................... 53 4.4 Government supports .............................................................................. 53 4.5 Promotion of technology innovation ...................................................... 53 4.6 Implementation of solar-based system .................................................... 54 4.7 International cooperation ........................................................................ 54 4.8 Enabling larger roles for Alliances and Associations ............................. 55 4.9 Fiscal incentives ...................................................................................... 55 5. Rising the awareness through educational process .......................................... 56 6. Development of Chinese solar heating sector .................................................. 58 6.1 Technological overview and challenges ................................................. 58 6.1.1 Chinese solar heating industry ...................................................... 58 6.1.2 Future development of solar space heating ................................... 65 6.2 Projects of SDH in China ........................................................................ 66 6.2.1 Demonstration project of large-scale solar energy and industrial waste cogeneration thermal plant for urban district heating .......................... 66 6.2.2 Demonstration project of seasonal heat storage for SDH system in Hebei University of Economics and Business ............................................... 71 6.2.3 Main parameters ............................................................................ 73 Abbreviation list China National Solar Thermal Energy Alliance Alliance BP British Petroleum BRI Belt and Road initiative BTES Borehole-duct Thermal Energy Storage CC Combined Cycle CHP Combined Heat and Power CSP Concentrated Solar Power DNI DNI direct normal irradiance (W/m2) DSG direct steam generation EPC Engineering, Procurement and Construction FIT Feed in Tariff FYP Five-Year Plan HTF Heat Transfer Fluid IEA International Energy Agency IEC International Electro-technical Commission IoE Internet of Energy IRENA International Renewable Energy Agency IRR Internal rate of return ISCC Integrated Solar Combined Cycle ITC International Electro-technical Commission LCOE Levelized Costs Of Electricity NEB National Energy Board ORC Organic Rankine Cycle PTC parabolic trough collector PV Photovoltaic technology R&D Research and Development RMB Chinese currency SDH Solar District Heating SDRC State Development and Reform Commission SRC Solar Rankine Cycle ST Solar Tower STS Solar thermal systems TES Thermal Energy Storage UHVDC Ultra-High-Voltage Direct-Current USD The United States dollar VCC Vapor Compression Cycle 1 An introduction About China National Solar Thermal Energy Alliance. The Alliance was proposed and established by the Ministry of Science and Technology (MOST), Ministry of Finance, Ministry of Education, State-owned Assets Supervision and Administration Commission of the State Council, All China Federation of Trade Unions, and China Development Bank in 2009 to lead the R&D