The Situation of Heat Pump Technology inChina

China Academy of Building Research2019.05

Content
1Background

2Policy

3Market4R&D strategy

5Summary1. Background

2800
2600
2400
2200

Hydro,Nuclear&Wind
Natural Gas
Oil
Coal

2000

MTOE

1800
1600

1400
1200
1000
800
600
400
200
078 80 85 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17
Year

Domestic supply of primary energy

1. Background65,000

Thermal Power

Hydro Power

Nuclear PowerWind Power

Solar Power60,00055,00050,000Hundred million kWh

45,00040,00035,00030,00025,00020,00015,00010,0005,000
080 85 90 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16YearTotal Electric Power Generation by energy source1. Background
Building area(100million m2)

35

public30residence

25
20
15
10
5001

02

030405

06

0708

09

101112

13

1415

16

Completed Area of Civil Buildings in China
Building area(100million m2)

700

Urban residential building

Rural residential building

17

Year

Public building

600
500
400
300
200
1000010203040506

0708

09

1011The total building area in China

121314151617Year

1. Background
3,000

building energy consumption (MTOE)

600

2,500

building electrical consumption (billion kwh)
500

2,000
400
1,500
300
1,000
200
500

100
00010203

0405

06

0708

09

101112131415

1617➢ energy consumption : 673.4MTOE;Electrical consumption :1505 billion kWh；

Building energy consumption in China

Building electrical consumption (billion kwh)

Building energy consumption (MTOE)

700

2. Policy Carbon emission
 In 2015, China officially submitted documents to the Secretariat of the United
Nations Framework Convention on Climate Change, proposing that China’s
goal is to reach the peak in carbon emissions by 2030, and the carbon
intensity per unit of GDP will fall by 60% to 65% compared with 2005. Nonfossil energy accounts for about 20% of primary energy consumption, andforest reserves increase by about 4.5 billion m3 compared with 2005.
 In November 2016, the State Council issued the “Notice on the Work Plan forControlling Greenhouse Gas Emissions in the “13th Five-Year Plan”, clearlystating that by 2020, the carbon dioxide emissions per unit of GDP will fall by
18% compared with 2015, and Strive for some heavy chemical industry toachieve the peak in 2020.
 In December 2017, the National Development and Reform Commission
officially issued the “National Carbon Emissions Trading Market Construction
Plan (Power Generation Industry)”, This indicates that China has entered thestage of controlling and reducing carbon emissions through market
mechanisms.

2. Policy Energy structure transformation
 In November 2014，The stateissued“ Strategic Action Plan for
Energy Development 2014-2020”
to accelerate the construction ofmodern energy system.
 In April 2017，the NationalDevelopment and Reform
Commission issued the“Revolutionary Strategy of EnergyProduction and Consumption
2016-2030”to optimize the energy
structure and reduce theproportion of coal consumption.

Modern energy system➢ Saving➢ Efficient➢ Clean➢ Multivariate➢ SafeReduced to below
40%

CoalPetroleum
Natural gas
HydropowerNuclear power
Other renewableenergyChina's primary energy consumption structure2. Policy
 Construction of ecological civilization
 In 2013, President Xi proposed to saveresources and protect the environment,
move towards a new era of ecologicalcivilization.
 In May 2015, the State Council issued the"Opinions on Accelerating the Constructionof Ecological Civilization", proposing toensure national ecological security,
improve environmental quality, and improve
resource utilization efficiency.
 In October 2015, “the National 13th FiveYear Development Plan” clearly proposed
to strengthen the construction of ecologicalcivilization.
 In March 2018, the 13th National People's
Congress wrote the construction ofecological civilization into the Chinese
Constitution.

➢ Promote harmony between
man and nature➢ Sub-regional construction
according to function➢ Promote the development oflow carbon cycle➢ Comprehensive and efficientuse of resources➢ Increase environmental
governance➢ Ensure ecological security

2. Policy
 China's policy priorities

 Advantages of heat pump

➢ Carbon emission reduction➢ Effective use of renewable energy➢ Save resources➢ Energy efficient➢ Improve energy efficiency➢ Good method of carbon emission➢ Protect the environment

reduction➢ Reduce the coal consumption➢ Easy to promote and sustainable➢ Use of renewable energy➢ Clean heating➢ Clean heating

Heat pump technology

A good choice to meet policy needs

2. Policy
 ASHP◆In May 2016, the National Development and Reform Commission and sevenother ministries jointly issued the “Guidance on Promoting Electric Power
Substitution” to promote Air Source Heat Pump Heating to replace Coal-fired
Heating◆On February 2017, the Ministry of Environmental Protection and ten otherdepartments jointly issued the “Work programe on air pollution prevention andcontrol in Beijing, Tianjin, Hebei and surrounding areas in 2017”, the air source
heat pump should be the main heating system for new residential buildings,
and coal-fired boilers should not be built in it.
Relevant financial subsidies for ASHP projects:

Beijing: 24,000 yuan/household.
Tianjin: 29,000 yuan/household.
Shanxi:27,400 yuan/household.
Hebei: 7,400 yuan/household .

Shandong: 8,000 yuan/household.

2. Policy
 GSHP◆In January 2017, the National Development and Reform Commission, theNational Energy Administration, and the Ministry of Land and Resources jointly
issued the “13th Five-Year Plan for GSHP Energy Development and Utilization”,
proposing to complete GSHP energy heating development target of 700 million
square meters.
◆On December 29, 2017, the State issued the “Notice on Accelerating theDevelopment and Utilization of Shallow Geothermal Energy to Promote CoalReducing Substitution in the North Heating Area”, which injected new impetus
into the application of ground-source heat pump technology. It presents newrequirements and challenges for ground source heat pump technology
especially in rural area.
Relevant financial subsidies for GSHP projects:
Beijing: 30% of the initial investment in compensation engineering.
Jilin: 60 yuan/㎡ in accordance with the energy supply area.
Chongqing: 30-40 yuan/ ㎡ in accordance with the energy supply area.
Nanjing: Compensation for energy supply area is 35-70 yuan/ ㎡.

3. Market ASHP
Growth rate

680

400 %

600
500300 %40030087.1%

2001000200 %215.6%
216100 %2014

2016

500 %

8400 %
6300 %
42.81

222.1%

200 %

70.8%

2100 %02017

600 %
9.0402015584.6%

Growth rate

1039

21

700 %

Domestic sales

0.240.41

2014

2015

2016

2017

0yearsyears

Comparison of ASHP (Air/Water) sales scale in 2014-2017
2930

2724

25

250

20200
15150
103

100

7.4

85850

24

10
5800
Beijing

Tianjin

Hebei

Shanxi Shandong

Coal-to-ASHP situation in 2017

Number of units (Thousand)

35Subsidy

350
300

Number of units

380

Subsidy (Thousand yuan)

Number of units (Thousand)

2000
400

Number of units

1600
1200

1500
30 times

800
400
0502018(f)2017

ASHP (Air/Air) sales scale in 2017-18
years

Year-on-year growth700

12500 %
448.4%

Sales (Billion yuan)

Number of units

Year-on-year growth

Number of units (Thousand)800

3. Market
4.4%
8.6%

 ASHP market analysis
 ASHPsalesinNorth

86.1%

China

2017

2016

accounted for 86.1%.
 Household heating accounts for64.8%

35.2%

Fixed frequency

1400

Number of units (Thousand)prospects is expected to reach

54.9%
Frequency conversion

Number of Commercial ASHP

1200200 %1245

Growth rate

150 %

1000

124.7%
770

800

100 %
600
400
200088.3%

409

61.7%

50 %
182

2017

2018 (f)years2019 (f)2020 (f)0Year-on-year growth Commercial ASHP has broad

45.1%

2016

 Frequency conversion units are
becoming mainstream.

92.1%
7.9%
93.0%
7.0%
HouseholdCommercial

2017

92.1% in 2017.

1.245 million units by 2020.

North China
Central and East China
Western China
Others3. Market GSHP
60000

Area （10 thousand ㎡）

50000

40000

At of the end of 2017, China's GSHP
application area reached 500 million square
meters.

30000

20000

1000001998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Application Area of Ground Source Heat Pump

3. Market
14

 GSHP

Borehole

100 million RMB

12
1086423002011

2012

2013

2014

2015

2016

2017

14

Ground water12

100 million RMB

20
15

10
5

10
8
6
42002011

2011

2012

2013

2014

2015

2016

2012

2013

2014

2015

2016

2017

2017
5Sales of GSHP units

100 million RMB

100 million RMB

25Water ring

432102011

2012

2013

2014

2015

2016

2017

3. Market GSHP
Sales of GSHP in China are decreasing

9%

East China

6%27%South China

decline are as follow,

North China
Central China

10%year by year. The main reasons for the➢ Application of groundwater heat

Southwest
10%

18%
20%

Northwest
Northeastpump was reduced greatly➢ Influences of construction market➢ Some technical problems ofGSHP affect user’s confidence

The market distribution of GSHP

3. Market
 New opportunities for GSHP
1

Village name
海淀区四季青镇佟家坟村

Number of users
314areas（㎡）1084732

海淀区四季青镇西冉村

169533183

海淀区四季青镇东平庄村

198764874

海淀区四季青镇西平庄村

295

1208095

海淀区四季青镇南平庄村

275

1187436

海淀区西北旺镇韩家川村

546

1502647

海淀区清河四街

835

1426098

门头沟区龙泉镇龙泉务村

1476

1815539

海淀区上庄镇西闸村

211

46551

10

海淀区上庄镇李家坟村

229

43019

14

海淀区上庄镇罗家坟村

108

22900

15
16
17
18

海淀区上庄西北旺镇亮甲店村延庆县旧县镇旧县村
海淀区西北旺镇永丰屯村合计

43920
548
6756

9200
1279871291901422723

The area of groundsource heat pump usedin farm
11
246
47820
大兴区长子营镇留民营村houses in Beijingreached 1.42 million ㎡ 81
in Beijing by the
1212000
门头沟区妙峰山镇禅房村
13262
31800
张家口怀来县存瑞镇义合堡村
end of 2018.

4. R&D strategy
 National Key R&D Plan for the 13th Five-Year Plan
“Technical System and Key Technologies Development of Near Zero
Energy Consumption Building” lead by China Academy of Building
ResearchThe goal of this project is to study and establish a near zero-energy building

technical indicator system for different regions of China. These include research
into the application of renewable energy and energy storage technologies innear-zero energy buildings, with a focus on developing high-efficiency heatpump products and technologies.

4. R&D strategy
 National Key R&D Plan for the 13th Five-Year Plan“New Technology of Heating and Air Conditioning Using
Renewable Energy in Tibetan, Northwest and Plateau Areas” leadby China Academy of Building ResearchThis project mainly studies solar energy heating in Tibet, air source heatpump heating in Sichuan and Tibet, and evaporative cooling technology inhot and dry western regions.

4. R&D strategy
 National Key R&D Plan for the 13th Five-Year Plan
“Development and demonstration of low-grade residual energy recovery
technology and heat pump equipment” lead by Shanghai Jiao TongUniversity
The project aims to develop compressed high-efficiency heat pump for industrial
waste heat, high-efficiency absorption heat pump and chemical heat pump for
upgrading the grade of low-temperature heat energy. The overall technical schemeof network utilization of low-temperature residual energy is put forward to realize
the effective utilization of medium-low-temperature heat energy.

4. R&D strategy
 National Key R&D Plan for the 13th Five-Year Plan
“Solutions and corresponding systems for building heating
and air conditioning in the Yangtze River Basin” lead byChongqing University
The project aims to improve the living environment of the Yangtze

River basin in China, and develops winter and summer shared heatpump products and high-efficiency cold and heat source equipmentsystems.

4. R&D strategy

Hotspots of R&D
1Clean heating——“coal-to-electricity”

2

Research of Deep Geothermal andHeat Pump Technology

3

Research on Absorption Heat Pump
Technology

4

Research on Industrial Waste HeatPump

4. R&D strategy
 Clean heating-Unit

Research and Development of Special Low Temperature Air Source Heat
Pump Technology

4. R&D strategy
 Clean heating-Testing◆Standard performance requirements for air source heat pump products
1) The measured nominal heating capacity should not be less than 95% of the stated value.
2) The total power consumed by the nominal operating conditions shall not exceed 110% of thestated value.
3) The measured nominal performance coefficient COPh is not less than 2.1, and is not less than
92% of the explicit value (when 92% of the unit's nominal value is higher than 2.1).
NumberproductLow

1

Air side

temperature
air source
heat pump

Ordinary air
2

mediumWater side

Air sidesource heatpump

Water side

Nominal condition

Low temperature condition-12 °C dry bulb temperature / --20 °C dry bulb

14 ° C wet bulb temperaturetemperature

41 ° C water temperature

41 ° C water temperature

7°C dry bulb temperature/6°C

2°C dry bulb temperature /wet bulb temperature

1°C wet bulb temperature

41 ° C water temperature

41 ° C water temperature4. R&D strategy◆ Actual monitoring of operation data

4. R&D strategy
HP unit Medium-deep geothermalheat pump technology

Heatingholes

Project Project Project Project
NumberABCD
Building area
㎡20600 43500 56000 37800
Occupancy rate％29436820Casing pipeU type pipe

Heating area ㎡ 6000
Heat pumpinstalled power
kW
1040
Number ofheating holes
218700

38000

7560

1986

2600

2160

353

COP of system

3.28

3.61

3.35

3.91

4. R&D strategy
 Absorption heat pumpAbsorption ground source heat pump is more suitable for cold
regions, and can effectively improve the imbalance rate of groundsource heat pump in cold regions.

4. R&D strategy
 Industrial waste heat pump

Heat source

Industrial
waste heat

Driving energy+Heat source4. Summary

123Heat pump, as a technical means of efficient use ofrenewable energy, has been widely recognized andconcerned in China, and has been given strong
policy support from the central to local governments .
The development of the heat pump market is affected bydifferent factors such as preferential policies, economicconditions, fuel prices and consumption preferences.
Different types of technology development stages aredifferent. The application of ASHP is growing rapidly,
and the GSHP is slowly decreasing. However, market
data also show that the future development trend is stillgood.
China's clean heating policy provides a new growth point
for the application of heat pump technology, and also
puts forward new technical requirements. The
construction of Xiongan New Area provides a newopportunity for the application and development ofgeothermal energy and ground source heat pumptechnology.