Planning Report On the PV Scale-up Use in Hohhot City Institute of Electrical Engineering, CAS Hohhot Research Center for Economic & Social Development Inner Mongolian Institute of Electric Power Sciences March 2010 Group leader: Ma Shenghong Vice group leader: Li Shaoqiang Liu Jinguo Chief Editor of report: Liu Xin Editors of report: Chen Guangming Shang Yonghong Sun Liping Yin Baiqing Liu Haitao Yu Zhixin Chen Dongbing Zhang Yabin Xiong Yan Other members of Lin Li, Feng De, Zhao Guiting, research group: Li Bin, Bai Sheng, Yang Maorong, Xu Shuangxin 1 Acknowledgement With being assigned by National Energy Administration, and funded by U.S. Energy Foundation, Institute of Electrical Engineering, CAS, Hohhot Research Center for Economic & Social Development and Inner Mongolian Institute of Electric Power Sciences teamed up a research group; and with nearly one year jointly working, the Planning Report on the Scale-up Use of PV Power in Hohhot was finalized cooperatively. During the implementation of the project, it has been greatly supported by leaders and experts from Inner Mongolia Development and Reform Commission, Hohhot municipal government, Hohhot Development and Reform Commission, Hohhot Investment Promotion Bureau, Hohhot Planning Bureau, Hohhot Construction Bureau, Hohhot Environmental Bureau, Inner Mongolia Power Group Co., Ltd, Inner Mongolia Huade New Technology Co., Inner Mongolia University of Science and Technology, etc. U.S. Energy Foundation not only funded the research, but also arranged the international experts to provide high-level consultation, and particularly, the members of the research group and some Chinese experts were arranged to visit in Germany and Italy, so as to ensure the successful implementation of the project. The comprehensive studies and profound analysis of the contents of project were done and the valuable advice and suggestions from many experts were obtained, which had the research and the report much more efficient and perfect. Hereinto, we would like to express our sincere gratitude to U.S. Energy Foundation, all the authorities and institutes which offered instructions and support to the project, and all the people having worked hard for this report! Also we are sorry that it is impossible for us to list out all the names of the supporters here. Any errors or deficiency herein will be due to the research group. 2 Content 1. BACKGROUND AND TARGETS -----------------------------------------------------------------1 1.1 PROJECT NAME --------------------------------------------------------------------------------------------------- 1 1.2 BASIS FOR RESEARCH------------------------------------------------------------------------------------------- 1 1.3 REASON AND PROCESS OF PROJECT PRESENTING --------------------------------------------------------- 1 1.3.1 Status of energy, electric power and environment of China -------------------------------- 1 1.3.2 Prediction of solar power generation ------------------------------------------------------------- 6 1.3.3 Significances of urban scale-up application of PV power----------------------------------- 7 1.3.4 Conditions for urban scale-up PV application-------------------------------------------------12 1.4 TARGETS AND OUTCOME OF THE PROJECT IMPLEMENTATION--------------------------------------------22 1.4.1 Implementation target--------------------------------------------------------------------------------22 1.4.2 Anticipating output ------------------------------------------------------------------------------------22 2. PROFILE OF HOHHOT---------------------------------------------------------------------------- 24 2.1 SOCIAL AND ECONOMIC CONDITIONS IN HOHHOT ----------------------------------------------------------24 2.2 CLIMATE AND SOLAR ENERGY RESOURCES -----------------------------------------------------------------26 2.3 ROOF CONDITIONS, SUBURBAN DESERTED LAND AND EMERGENCY REFUGES -----------------------29 2.4 INFRASTRUCTURES----------------------------------------------------------------------------------------------30 2.5 HUMAN RESOURCE ----------------------------------------------------------------------------------------------30 2.6 POWER SUPPLY AND CONSTRUCTION ------------------------------------------------------------------------31 2.6.1 Current power grid in west Inner Mongolia-----------------------------------------------------31 2.6.2 Status of power grid in Hohhot --------------------------------------------------------------------31 2.6.3 Prediction of load and electricity demand ------------------------------------------------------32 2.7 LOCAL ENVIRONMENT AND EMISSION-------------------------------------------------------------------------36 2.7.1 Local environment state-----------------------------------------------------------------------------36 2.7.2 Planning of the energy saving and emission reduction -------------------------------------37 2.8 APPLICATION OF PV POWER TECHNOLOGY AND THE POLICIES ------------------------------------------38 2.8.1 Application of PV power generation in Hohhot------------------------------------------------38 2.8.2 Policies --------------------------------------------------------------------------------------------------39 3. GENERAL PLAN OF PROJECT IMPLANTATION ----------------------------------------- 41 3.1 GENERAL DESIGN------------------------------------------------------------------------------------------------41 3.2 DEMONSTRATION PROJECTS OF PV POWER GENERATION（2010-2012） --------------------------41 3.2.1 Building PV power system--------------------------------------------------------------------------41 3.2.2 Suburban PV power system -----------------------------------------------------------------------45 3.2.3 PV power supply in emergency system---------------------------------------------------------49 3.2.4 Project implementation plan------------------------------------------------------------------------54 3.3 COMPARISON ON THE PROJECT IMPLEMENTATION AND SCHEMES --------------------------------------56 3 3.3.1 Principal operation mode of power grid ---------------------------------------------------------56 3.3.2 Principal operation mode of power generation companies --------------------------------57 3.3.3 Independent investment mode by roof owner -------------------------------------------------58 3.3.4 Comparison of operation modes------------------------------------------------------------------58 3.4 SUPPORTING POLICIES, MECHANISM AND TECHNICAL STANDARD FOR URBAN DISTRIBUTED PV POWER PROJECT-------------------------------------------------------------------------------------------------60 3.4.1 Instruction for application ---------------------------------------------------------------------------60 3.4.2 Implementation code for building PV power system in Hohhot ---------------------------61 3.4.3 Requirement for open-field PV power station in the suburb of Hohhot-----------------61 3.4.4 Implementation procedure of emergency PV power project in Hohhot -----------------62 3.4.5 Framework of technical standards ---------------------------------------------------------------63 3.5 TRAINING ON APPLICATION TECHNOLOGY OF PV POWER-------------------------------------------------63 3.5.1 Necessity and significance of PV power training ---------------------------------------------63 3.5.2 Scenarios on establishing training bases-------------------------------------------------------64 3.5.3 Implementation plan for education and training-----------------------------------------------65 3.6 SCENARIOS ON PV INDUSTRY DEVELOPING ----------------------------------------------------------------67 3.6.1 High-purity silicon material-------------------------------------------------------------------------67 3.6.2 Manufacture of solar cells and modules encapsulation-------------------------------------68 3.6.3 Supporting industries for PV power --------------------------------------------------------------68 3.6.4 Construction and maintenance of PV power system ----------------------------------------68 3.6.5 Implementation plan----------------------------------------------------------------------------------69 4. ESTIMATION OF INVESTMENT IN PROJECT CONSTRUCTION--------------------- 71 4.1 ESTIMATION OF INVESTMENT OF PROJECT ------------------------------------------------------------------71 4.1.1 Estimation of investment in building PV power grid-connected system----------------71 4.1.2 Estimation of investment in suburban PV power system -----------------------------------71 4.1.3 Estimation of investment of PV power in emergency system -------------------------------72 4.2 FINANCIAL ANALYSIS --------------------------------------------------------------------------------------------73 4.2.1 Financial analysis of building PV power system ----------------------------------------------73 4.2.2 Financial analysis on suburban grid-connection PV power project ---------------------74 4.2.3 Financial analysis on emergency PV power ---------------------------------------------------74 4.2.4 Conclusion of financial analysis-------------------------------------------------------------------74 5. ANALYSIS OF BENEFIT OF THE PROJECT ----------------------------------------------- 76 5.1 ENVIRONMENTAL BENEFITS ------------------------------------------------------------------------------------76 5.2 SOCIAL BENEFITS ------------------------------------------------------------------------------------------------76 5.3 APPLICATION FOR CDM ----------------------------------------------------------------------------------------78