# Presentation: 923749

## Clean and Renewable Energy in China

- Prepared by Michael Mei, Janet Zhu, and Stacy Du of CS China

## Directives from China’s Eleventh Five Year Plan

**To encouraging International cooperation.**
**To development of substitute energy sources for oil, especially in wind, hydro, bio and other renewable energy sources**
**To form price and tax policies that encourage conservation.  **
**To support sustainable economy. **
**To reduce energy consumption by 20 percent by 2010.**
**To make building more energy efficient, China will invest $200 billion by 2020**

## Policy Makers and Major Players

**National Development and Reform Committee (NDRC)**
**Ministry of Science and Technology (MOST)**
**Ministry of Finance (MOF)**
**Ministry of Construction (MCon)**
**State Environment Protection Agency (SEPA)**
**Major oil companies: CNNC, Sinopec, CNOOC, and Sino-Chem.**
**Major power generation companies: Huaneng, Datang, Huadian, Guodian, China Power Investment Group, and Guohua Electric.**
**Major power grid companies: State Grid and Southern Grid.**
**Major coal producers: Shenhua, China Coal, Yankuang, Datong.**

## Power Industry

**China’s total installed capacity reached 622GW by 2006, and 484GW comes from thermal power, 77.8%.  From 2006 to 2010, China’s economic growth rate will be around 7.5-8%.  From 2010 to 2020, the growth rate will be 6-7% annually.  **

##  Thermal Power 

**Coal-fired power plant**
- 77% of total capacity.  Will remain dominant position.  China will continue rely on coal for a long time.
- The percentage in China’s power generation portfolio will decline. It may still account for 65% of power generation capacity by 2020.
**Closing down small units and replacing them with larger, cleaner, and more efficient units**
**Opportunities**

-  Thermal Power

## Thermal Power

**Green Coal Generation**
**DeSOx and deNOx equipment and services**

## Hydro Power

**China’s hydro power capacity has reached 128GW by 2005, 20% of total capacity, NO. 2 in the world.  **
**China’s long term goal: By 2010, the capacity reaches 194GW, 26% of total capacity, 35% of exploration rate.  By 2015, it will be 271GW, 28% of total capacity, 50% of exploration rate.  By 2020, it will be 328GW, 28% of total capacity, 60% of exploration rate. **
**China has 13 large hydro power bases.  By 2010, 2015, and 2020, the exploration rate will be 35%, 55%, and 70%. **
**By 2004, there were 25 hydro power stations beyond 1GW level of capacity, excluding pump-storage stations.  40 stations above 500MW level.  Large units accounted for 67% of total hydro power capacity.    **

## Wind Power

**China has abundant wind resources.  By 2006, China has built 80 wind farms with 2.3GW of capacity.  1GW of new capacity in 2006, an increase of 80%.  **
**Target: By 2010: 5GW.  By 2020: 30GW.  Total investment in next 15 years: USD25 billion.  30 100MW level wind farms will be built by 2010.  Four 1GW level wind farms in Inner Mongolia, Hebei, Jiangsu, and Gansu.  **
**Cost of wind power is 1.7-2 times of coal-fired power.  By 2020, wind power can compete with clean coal power.**
**The Renewable Energy Law enforced Jan 1****st****, 2006.  Full amount purchase by power grid company.**
**70% domestic content in new wind farm equipment purchase.**
**Active foreign companies: Vestas of Denmark, GE of U.S., Nordex of Germany, Gamesa of Spain and Suzlon of India.**

## Solar Energy

**The cost of solar power is 10-15 times on conventional coal-fired power.**
**China plans to increase solar power capacity to 300MW by 2010, and 1.8GW by 2020.**
**China has 300MW of manufacturing capacity of solar PV panels, but mainly for export purpose.  Domestic market is still too small.  90%silicon imported and 90% panels for export.  **

## Bio Energy

**Biomass power**** **
- China is rich in biomass resources.  Every year: 600 million tons of stalks and 300 million tons of forestry waste can be converted into energy.
- By 2006, 2GW of capacity.  By 2010: 5.5GW.  By 2020: 30GW.
- Renewable Energy Law stipulates favorable subsidy to biomass power on the basis of benchmark power tariff of coal-fired power after deSOx, 0.25yuan/kwh more.
- Stalk-fired power: By 2006: 34 projects with 1.2GW of capacity under construction.
**Bio Fuels:**
**Ethanol**
**Bio Diesel**

## Nuclear Power

**Current capacity: 6.84GW. ****9 nuclear units in commercial operation and 2 units under construction. **
**China will build 30-35 1 GW level nuclear units and increase its installed capacity to 10GW by 2010 and 40GW by 2020,  when, nuclear power will provide 4.5% of China’s total power, up from the current 1.4%. **
**With U.S. government’s support, Westinghouse is in the driver’s seat to supply four 1GW advanced 3****rd**** generation PWR units to China.**

## Natural Gas Power

**Many gas power plants at the downstream of West-To-East natural gas pipeline project, such areas as Zhejiang, Jiangsu, Shanghai.**
**Almost every coastal province will build LNG receiving terminal and LNG power plants.   **
**Current capacity: 10GW.  By 2010, target:  36GW. **
**In 2006, due to gas supply shortage, 6GW units standby.  Gas supply shortage and expensive, imported LNG are bottlenecks.**

## Co-generation

**By 2003, China has built 2121 above 6MW CHP units.  The capacity reached  44GW, which stands for 16% of coal-fired power capacity, and 11% of the total power generation capacity at the same time.**
**The average unit capacity is 12-25MW.**
**CHP has high energy efficiency compared with centralized power generation.  Its efficiency can reach 60-80% or even 90%.  The latter is only around 35-45%.**
**Combining the CHP application in city centralized heating and the industrial heating, by 2020, China’s CHP capacity will reach 200GW.  The CHP capacity will stand for 30% of China’s coal-fired power capacity.**

## Clean Development Mechanism (CDM)

- The Clean Development Mechanism (CDM) allows developed countries to achieve part of their binding Kyoto GHG emission targets by purchasing Certified Emission Reductions (CERs) from qualifying GHG emission reduction projects in developing countries such as China.
- CDM has engendered considerable interest in China and the process is actively supported by government, especially NDRC.
- By 2006, 32 of China’s 208 CDM projects have been successfully registered with related international institutions.  Those projects can help reduce greenhouse gas emission by more than 300 million metric tons.  Renewable energy projects constitute a large proportion of CDM projects in China.
- European countries and Japan are active in carbon credits trading.
- China and UN are working to set up a carbon trading exchange in Beijing.  According to UN, China is expected to account for 41% of all carbon credits issued by UN by 2012.  Huge potential on CDM related project development and carbon credits trading in China.

## Economic Overview of Jiangsu 

**About the city of Nanjing ( 2005) **
**City Population: 7.7million**
**City GDP:  USD 30.16billion **
**Avg. Per Capita GDP: 5000USD **
**City Export Value: USD14.25billion**
**City Import Value:  USD12.84billion**** **

## Jiangsu’s Energy Consumption

-  **China’s number major economic contributor and energy consumer**
** ****Peak Load : 49GW, 13% growth of consumption in 2006**
** ****20% of self reliance of coal & oil  **
** ****Strong load management history**

## New trend in power industry in Jiangsu

-  **RMB 150 billion investment to boost clean energy industry**
** ****Renewable and new energy projects**
**   ****Biodiesel fuel cell commercialized in Wuxi**
**   ****Straw-fired power generation project in Donghai **
**   ****Windmills in Rudong**
**  ****Targets for clean environment**
**   ****Investment on 140 renovation on clean production**
**   ****by 2010, 75% water recycling, 96% reuse of industrial         solid waste, 18% of SO****2**** **

## Efficiency Power Plant in Jiangsu

**A demand side management project – most influential in China**
**Industrial efficiency opportunities (all end-uses including motor-drive systems, non-motor process, and building end uses)**
** ****Industrial and commercial transformers**
** ****Residential and commercial new construction**
** ****Existing residential and commercial building cooling, heating and lighting**
** ****Residential appliances**

## Efficiency Power Plant in Jiangsu

-    **Survey of 17000 enterprises in Jiangsu**
**   ****300 terminal project started **
**   ****RMB100 million investment**
**   ****equivalent of building new power plants with**** 579MW capacity**
**   ****1⁄4 cost of building a conventional power plant**
**   ****Reduction of 39,765,945 tons of CO****2****, 826,735 tons of SO****2**** **
**    ****28,109 tons of NOx**