New Policy Ensures 1.6TW RE Capacity by 2030 –China Clean Energy Syndicate

Happy Chinese New Year!

Due to the lunar calendar new year, it was a relatively quiet week for news. Nevertheless, we still saw some major progress in the wind and hydrogen market:

  • POLICY: National Energy Administration sets for the first time renewables targets for 2021 and 2030: 12.7% and 25.9% in the power mix.
  • WIND: China’s first 100-meter blade rolled off production line while the CSIC Haizhuang 10mw prototype plans to soon go online.
  • HYDROGEN: Horizon Fuel Cell Group became the first Chinese H2 enterprise going public on the US stock market through a SPAC deal.
  • BATTERY: China’s first offshore wind battery storage project moves to reality

Please scroll down for the 7 updates from last week.

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RE Policy

Beijing Sets–for the first time–Binding RE Targets for 2030

National Energy Administration (NEA) recently published a policy document proposing to revise the minimum renewable power purchase requirement (Feedback invitation version). Five key message and relevant measures to pay attention to: 

  1. The policy proposal aims to ensure the target of non-fossil energy accounting for 25% of primary energy consumption by 2030. The consumption target of renewable in 2021, thus, shall be rearranged. 
  2. In 2021, non-fossil energy shall aim to account for 16% of primary energy consumption.
  3. In 2021, the total recommended local consumption of wind power is 569.1 TWh, accounting for 7.11% of the total electricity consumption; Notably, Inner Mongolia has the largest recommended local consumption amount of 85 TWh.
  4. The share of renewable (in power consumption mix) of each province (except for Tibet) would be raised to 40% by the end of 2030.
  5. Non-hydropower renewable percentage (in the power mixes) targets are set at 12.7% by 2021 and 25.9% by 2030. 

Energy Iceberg Note: these targets imply at least 1.6TW of wind and solar capacity to be installed by 2030–that is in line with our estimation in this report on China’s Carbon Neutrality target.

Wind

10MW-SR210

China’s First 100-Plus Meters Blade Off Production Line; CSIC Haizhuang 10MW Prototype Soon to Go Online

Last week Sunrui Wind Power’s 10MW-SR210 blade rolled off the production line in their Yancheng blade factory in Jiangsu Province. The blade, with a length of 102m, became the longest wind turbine blade in China and the second-longest in the world. (LM owns the record of 107m blade).

The SR210 blade would embark on CSIC Haizhuang 10MW prototype. The prototype plans to complete the production and assembly of parts and components in mid-July, and the prototype hoisting in mid-September 2021.

Energy Iceberg Note: we will need to update our review of China’s 10+ offshore wind turbine R&D development again.

China Three Gorges Wind Power Result 2020

China Three Gorges New Energy, the clean energy arm (with wind power the major) of China Three Gorges Corporation (CTG), last week announced the 2020 performance data as follow:

  • The firm commissioned 5 GW incremental installed capacity in 2020, bringing its total installed capacity to 15 GW.
  • The scale of self-built projects throughout the year set a new record at about 7 GW. The installed capacity of offshore wind power put into production ranks among the top in China.
  • Additional project reserve hits 51 GW, which is more than the sum of resources acquired from the previous years. Among them, 11.1 GW were offshore wind source, and over 40 GW were onshore sources.
  • The firm has acquired and kicked off the world’s largest project (3GW) that integrated “power generation, grid transmission, load dispatch, and energy storage”.

Energy Iceberg Note: our report on the background of CTG New Energy

Hydrogen Storage & Fuel Cells

Hyzon Motors to Go Public via a $2.7b SPAC Deal

Hydrogen vehicle manufacturer Hyzon Motors will soon become a publicly listed company as a result of a $2.7b (about ¥17.4b) special purpose acquisition company (SPAC) deal with Decarbonization Plus Acquisition Corporation.

HYZON was established as a new business of Horizon Fuel Cell. Headquartered in Rochester, NY and with operations in Europe, Singapore, Australia and China, HYZON is a global supplier of zero-emissions hydrogen fuel cell-powered commercial vehicles, including heavy-duty trucks, buses and coaches.

Investment bankers pointed out that going public in higher premiums and mature capital markets such as the U.S. stocks market would be another way out for Chinese hydrogen companies since:

  • Chinese hydrogen companies have been struggling to list in the Chinese stock market due to various financial or policy regulatory limitations.
  • The U.S. stock investors are eagerly pursuing innovative clean technologies.

DATA: More Than 6000 FCEVs Have Been Put in Operation

2020 national fuel cell vehicle (FCV) data from National Big Data Alliance of New Energy Vehicles (NDANEV) revealed that:

  • As of the end of 2020, there were 6,002 FCVs have been connected to the national monitoring platform of electric vehicles.
  • Fuel cell buses and logistics vehicles (2,222 and 3,153 units respectively) have accounted for 37.02% and 52.53%, respectively, of the total connected FCVs.
  • There were 17 provinces have FCVs connected to the platform. Notably, Guangdong Province has the largest number (2,415 units) of FCVs connected to the platform. With 1,376 and 370 connected units of FCVs, Shanghai and Beijing came in second and third.

EV & Battery

First Offshore Wind Storage Project in China Completed Battery Tender

The battery storage tender for Zhugensha H1# offshore wind farm of China Energy Investment Corp (CEIC) last week opened bids. This project is the first battery storage unit for an offshore wind farm in China. Sungrow won the bid with a unit price of ¥1.674/Wh.

Tender documents revealed that new offshore projects should equip with a certain proportion of energy storage capacity. Estimably, the scale of the offshore wind power supporting energy storage market in Jiangsu Province could achieve 1.1GW during the 14th Five-Year Plan period. 

More info about this project.

Clean Energy Related

First Batches of Carbon-neutral Bonds Totalling ¥6.4b issued

Last week, five Chinese state-owned power companies and one airline operator had issued the country’s first batch of carbon-neutral bonds, as part of efforts to achieve President Xi Jinping’s pledge to become carbon neutral by 2060.

The issuers of the bonds are China Three Gorges Corp, China Huaneng Group, State Power Investment Corp, China Southern Power Grid, Yalong River Hydropower Development, and Sichuan Province Airport Group.

The six issuers have started raising a combined ¥6.4bn to finance clean energy and low-carbon projects such as hydro-, wind-, and solar P.V. power; energy storage; and green buildings.

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