Energy Insider: China Steps Up Managing Peak Power Demand, Energy Regulator Proposes New Gas Usage Policy
Qinghai starts building ‘integrated’ solar power project, San’ao nuclear reactor hits construction milestone, Shanghai launches test base for hydrogen fuel cells
On Sept. 27, in Chuzhou, Anhui province, workers repair power lines. Photo: VCG
• China steps up managing peak power demand
• Energy regulator seeks feedback on revised gas usage policy
• Qinghai starts building ‘integrated’ solar power project
• Major nuclear plant crosses construction milestone
• Test base for hydrogen fuel cells opens in Shanghai
In focus: China steps up managing peak power demand
What’s new: China has published new measures aimed at better managing power demand from consumers to ensure energy supply.
The Electricity Demand-side Management Measures, an update of the 2017 version, urges provincial-level authorities to step up their efforts in managing power consumption during peak hours or when there is not enough renewable energy to prevent power shortages.
The document was published on Sept. 27 by six state-level government agencies including the National Development and Reform Commission (NDRC) and took effect on Oct. 1. It requires provinces to be able to shed 3%-5% of their maximum electricity demand by 2025. The target is 5% or higher for provinces whose maximum peak-time demand is 40% greater than their off-peak demand.
It instructs provinces to raise economic incentives through methods, such as rolling out peak-hour prices and modifying the price limits of electricity spot markets, to encourage businesses and individuals to change their energy consumption patterns.
The NDRC and the National Energy Administration also released the Electric Power Load Management Measures on Sept. 27. The set of measures directs various levels of electricity authorities to promote “demand-side resources” — energy-generating and storage resources from consumers, such as roof-top solar panels and small energy storage facilities — to enter the power market.
Why it matters: China’s electricity demand will keep rising in the long run, Wu Junhong, an expert at the China Energy Research Society, wrote in a post for non-profit organization Greenpeace in August. The country has also been seeing higher and higher electricity demand spikes in recent years, especially in summer due to the use of air-conditioning, Wu said.
The central government has taken a series of actions, such as increasing coal production, to ensure electricity supply from the production side during peak months. The latest announcements by the government show it is now leveraging resources on the consumer side.
Policy: Energy regulator proposes new gas usage policy
What’s new: China’s National Energy Administration (NEA), the country’s energy regulator, is seeking public feedback for a draft gas utilization policy ahead of winter when the use of the fuel peaks.
According to the draft policy published on Sept. 28, the NEA intends to fast-track the energy transition, reduce carbon emissions and ensure energy security, by providing guidance for the use of natural gas, liquefied natural gas, and other types of gases.
It reiterated and updated a priority list for various user groups’ access to the fuel, prioritizing households and public facilities in cities and towns, industrial users, and gas-fired power plants. It also called for the balance of supply and demand of the fuel, and to improve pricing, accelerate the construction of related infrastructure, and ensure the fuel’s stable supply, among others.
Why it matters: This is the first time the central government has sought to update the existing gas utilization policy, which was published in 2012.
There has been mounting industry pressure and concerns about another winter of gas shortages. High upstream fuel prices continue to squeeze the nation’s gas distributors, which can only charge residential users lower rates set by local governments under rules intended to prevent price shocks. The draft seeks to further ensure gas supply for residential and key industrial users.
Solar: Qinghai begins construction of high-altitude power project
What’s new: Construction has begun on a one-stop solar power project in Qinghai province on Sept. 28, reported CCTV. The Huadian Da Qaidam “integrated” power project can generate solar power, store solar energy, and generate heat for industrial use, the state-run broadcaster said.
Situated at 2,700 meters above sea level, the project is the highest-altitude of its kind in China, according to CCTV. With a planned installed solar capacity of one gigawatt (GW), the plant is developed by the Haixi subsidiary of China Huadian Corp. Ltd., one of China’s five largest state-owned power generation enterprises, according to the report.
Its internal energy storage system, boilers and heat storage system can turn solar power into steam, which will be provided to nearby companies in place of steam produced by small-scale coal-fired boilers, it added.
Why it matters: China’s resource-abundant west has been facing low utilization rates for solar and wind power due to the limited amount of renewable energy local power grids can take and the difficulties of transporting it to other parts of the country.
Construction of several large-scale projects have begun this year to help these provinces make full use of their renewable resources. For example, China Petroleum & Chemical Corp., known as Sinopec, in February started building a 5.7 billion yuan ($828 million) project in Ordos, Inner Mongolia autonomous region, to produce green hydrogen using solar and wind energy.
Nuclear: Zhejiang reactor hits construction milestone
What’s new: The outer dome of a reactor at a major nuclear power station in East China’s Zhejiang province has been successfully installed, a landmark achievement in the project’s construction.
Workers at the San’ao Nuclear Power Plant capped the plant’s No. 2 reactor on Sept. 28 with a 45-meter-wide semi-sphere after hoisting the 238.5-ton steel piece into place, according to its developer, China General Nuclear Power Corp. (CGN). The dome of the plant’s No. 1 reactor was installed in November.
The outer dome is one of two safety shells — the other being the inner dome — of a nuclear reactor that protects the reactor and prevents the release of radioactive materials into the environment in the event of serious damage.
Why it matters: San’ao is the first nuclear power station in China’s Yangtze River Delta region that has used the domestically developed Hualong One nuclear reactor, CGN said.
China is expected to have the world’s largest nuclear fleet by the end of this decade, according to the China Nuclear Energy Association. Wang Binghua, a director at the association, said at a forum on Sept. 25 that China aims to greenlight six to eight new nuclear reactors every year in the foreseeable future, local media reported. The country is currently building 24 nuclear reactors with a combined installed capacity of 27.8 GW, Wang said.
Hydrogen: Shanghai launches test base for fuel cell vehicles
What’s new: An industrial base dedicated to testing the quality of hydrogen fuel cells and fuel cell vehicles went into operation in Shanghai on Sept. 28, its developer, Shanghai Motor Vehicle Inspection Certification & Tech Innovation Center Co. Ltd., said in a post.
The 670-million-yuan facility, spanning 8 acres, is part of a hydrogen industrial park and is the first third-party testing base of its kind in the city, the company said. Its services cover entire fuel cell vehicles, their electric motors, fuel cell stacks which generate power, and key components, it added.
Why it matters: The opening of the base is expected to drive the development of the hydrogen industry in the Yangtze River Delta region, reported China Automotive News. The region is aiming to become a “world-class” manufacturing hub for new-energy vehicles, which include hydrogen fuel cell vehicles.
Hydrogen fuel cell vehicles are powered by electricity generated through an electrochemical reaction between hydrogen and oxygen. China plans to put around 50,000 hydrogen fuel-powered vehicles on the road and build a batch of hydrogen refueling stations by 2025.