Welcome back. This is our first issue in 2021.
Our top picks of China clean energy market updates from last week:
- WIND: Unexpectedly high wind installed capacity of 70GW in 2020 aroused heated repercussions.
- Hydrogen: CEIC set up ¥10bn new energy fund for hydrogen energy projects; meanwhile, Sinopec took further actions to push into renewables-to-hydrogen.
- Battery: CATL became the world’s largest battery producer for the fourth consecutive year in 2020.
- Company: SPIC sets record renewables growth in 2020 and remain the world’s largest RE developer.
Please scroll down for the nine updates last week.
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The National Energy Administration (NEA) last week revealed statistics of China’s power installation in 2020. New clean power installation (hydro, solar, wind) topped 190GW last year, of which wind contributed 71.67, solar 48.2GW and hydro 13.23GW.
Notably, 2019 wind installation was only 25.74GW. 2020 result means the market tripled 2019’s record and marked a historical high.
Energy Iceberg’s Note: The wind installation figure was unexpectedly high, resulting in debates. NEA had previously reported that, as of the end of November, China had installed just 24.6 GW of wind and 25.9 GW of solar for the year, meaning that as much as 47.05 GW of wind turbine was installed in December alone.
The Chinese Wind Energy Association (CWEA) preliminary estimated that the installed capacity of wind power (onshore hoisting) in 2020 should be around 50GW.
The world’s largest renewable developer, State Power Investment Corporation (SPIC), was reported to have installed 60.49 GW of renewable capacity in 2020.
- About 29.61GW was from the solar. The firm continues to be the world’s largest PV plant asset owner.
- Circa 30.88 GW was from wind power, raking the second place in the world.
The world’s largest wind power developer, China Longyuan, is seeking to go public on the Shenzhen Stock Exchange through a backdoor listing, according to a statement filed to the bourse last week.
China Longyuan is currently listed in the Hong Kong Stock Exchange. The company expects to obtain a higher valuation on the A-share market than it can get in Hong Kong. The move will also benefit the company with a market value surpassing ¥100 bn.
China Longyuan was founded in 1993. As of 2019, the company had a cumulative installed capacity surpassed 22.15GW, more than 90% (at 20.03 GW) of which is from the wind sector.
An unofficial report from a local industry media revealed that, in 2020, bidding results of 233 wind turbine tenders of state-owned wind power projects (including 198 onshore and 35 offshore) were announced, with a cumulative capacity reached about 23.32GW. Among them, around 16.09GW, accounting for 69.01%, were onshore; and circa 7.1GW, accounting for 30.97%, were offshore. The procurement ratio of onshore and offshore wind turbines was about 7:3. Notably,
- Envision Energy, Goldwind, and Mingyang Smart Energy (MYSE), again, secure the top-3 slots among China’s OEMs.
- Envision Energy sit on top among OEMs in the wind turbine procurement market for state-owned wind power developers, with a winning capacity totalling about 5.61GW (accounted for 24.06% of the total cumulative capacity).
- Power Construction Corporation of China opened around 4.06GW bids in wind turbine procurement projects in 2020, accounted for 17.41% of the total bid opening scale.
Shanghai Investigation Design & Research Institute (SIDRI) last week launched a special tender to solicit contractors for the hydrological test of the Shanghai Far & Deep-Sea Floating Offshore Wind Farm.
The Shanghai Far & Deep-Sea Floating Offshore Wind Farm is the first floating demonstration project in China. SIDRI, an affiliate of China Three Gorges (CTG), has assumed a leading role in the project R&D since 2016.
Energy Iceberg’s Note: Currently, China has three floating offshore wind projects. The other two are the Yangjiang floating offshore wind project developed by CTG and the Zhanjiang floating offshore wind project developed by China Shipbuilding Industry Corp.
Check out our previous article related to this issue: China’s Floating Offshore Wind Outlook.
Hydrogen Storage & Fuel Cells
Led by the state-run China Energy Investment Corp (CEIC) and China Reform Holdings Corp (CRHC), a ¥10.02 bn new energy fund was set up last week.
The fund will finance clean and renewable energy projects in various sectors including wind, solar, hydrogen, energy storage, smart energy system.
Partners of the new fund include CEIC’s subsidiaries Shenhua Energy and Guohua Energy Investment, and CRHC’s subsidiaries China Reform Assets Management and Orient Asset Management.
ZHANG Yuzhuo, Chairman of China Petroleum & Chemical Corp (Sinopec), recently said on the ChineEV100 Forum that Sinopec will push deeper into China’s fast-growing hydrogen energy sector by:
- Formulating development plans for renewables including oil, gas, hydrogen, electricity, and wind energy for renewables-to-hydrogen projects.
- Devoting to the construction of charging and battery replacement infrastructure networks.
Sinopec’s current H2 gameplay:
- an annual hydrogen production capacity of 3.5 million tons;
- more than 30,000 gas stations with potential to add H2 filling services;
- rich hydrogen resources from its petrochemical refineries. The company has established a high-purity hydrogen supply capacity of 9,000 kg/day in areas such as Beijing, Guangdong, and Shanghai;
- actively exploring power-to-gas;
- 42 kilometres of “Baling-Changling” hydrogen pipeline has been built and put into operation for 6 years;
- has built 10 oil-hydrogen hybrid refuelling stations, 9 of which have been put into operation and the other will be realized soon.
Energy Iceberg Note: Check out our previous review on the renewable-to-H2 projects in China https://energyiceberg.com/china-hydrogen-market-2019/
Fuzhou City of Fujian Province recently issued a notice on the measures for promoting the investment in hydrogen projects. The notice set standards for subsidies to hydrogen refuelling stations:
- For 35Mpa hydrogen refuelling stations with a daily refuelling capacity of 500kg/d, 30% (<¥3mn) of the amount of equipment invested in the construction shall be subsidized.
- For 70Mpa hydrogen refuelling stations with a hydrogen refuelling capacity of 500kg/d or 35Mpa hydrogen refuelling stations with a daily capacity of 1,000kg/d, 30% (<¥5mn) of the amount of equipment invested in the construction shall be subsidized.
Battery & Storage
Electric Car Maker BYD Raises $3.9 Billion in Upsized Sale
BYD Co., a Chinese electric-vehicle manufacturer backed by Warren Buffett, raised HK$29.9 billion ($3.86 billion) from an upsized sale of its Hong Kong-listed shares, capitalizing on rising demand for new-energy vehicles and a blistering stock rally.
2020 global power battery market data from SNE Research revealed that:
- Installed capacity of Contemporary Amperex Technology (CATL) in 2020 reached 34GWh, up 2% YoY. CATL, thereby, became the world’s largest battery producer in terms of shipments for the fourth consecutive year.
- Globally, installed capacity of power battery on electric vehicles in 2020 reached 137GWh, up 17% YoY.
CATL’s market share achieved 24.82%, however, its growth rate of installed capacity is far lower than the global counterpart.