The Chinese Electric System’s
Quarter-Century
Presented at
Third Annual Carnegie-Mellon Conference
on the Electricity Industry
Pittsburgh
by
Robert Blohm
KEEN Resources Asia Ltd.
亞洲金能源有限公司
http://www.blohm.cnc.net
March 14, 2007
Organizations in China’s Electric Power Industry
• State-owned Assets Supervision and Administration
Commission of the State Council (SASAC)
• State Electricity Regulatory Commission
• China Electric Council (the reliability and industry council)
The China Electric Reliability Management Center (CER), within the
China Electricity Council
The China Electric Power Research Institute
China IEEE
China National Association of Engineering Consultants
China Academy of Engineering
State Grid Corporation of China (China Northern, Central, East,
Northwest, & Northeast grid companies)
• China Southern Power Grid Company Limited (+ 5
interconnected grids)
• 5 corporatized generating entities
•
•
•
•
•
中国电网装机容量
The installed Capacity of China
622
GW
600
500
400
300
200
100
0
1980
1990
2000
The installed capacity grows rapidly. From 1980 to 2006, the
average annual growth rate of installed capacity is over 10%.
2006
全国装机容量
The installed capacity of China
总装机 Total
622GW
火电
水电
核电
其它
484GW
129GW
6.86GW
2.53GW
Thermal
Hydro
Nuclear
Others
全国年用电量增长情况
China Electricity Generation
2749 TWh
3000
2500
2000
1500
1000
500
0
1971
1980
1990
1992
1994
1996
1998
2000
2002
2004
2006
Electricity generation grows rapidly. From1998 to 2006, the average annual growth
rate of electricity generation is over 10%.
全国年用电量增长迅速，1998至2005年间，
平均年增长率超过10%。
中国电压等级 Voltage Level
1000kV
kV
750kV
500kV AC/DC
330kV
220kV
1950 1960 1970 1980 1990 2000 2005
国家电网输电线路长度
Transmission Lines Over 220kV in SG
• 截至2006年底，220kV电压等级线路总长达19.3997万公里。
• By the end of 2006, the total length of 220kV
transmission lines in SG is about 193,997km.
• 500kV及330kV电压等级线路8.7369万公里。
• There are 87,369km 500kV and 330kV transmission
lines.
• 2005年9月26日，中国第一条750千伏交流线路（140.7km）
开始运行。
• On September 26th 2005, the first 750kV
transmission line which is 140.7km was put into
operation.
全国联网示意图
中国跨区电网联网示意图
Inter
-connected Grid in China
东北
NORTHEAST
XINGJIANG
NORTH
CHINA
华北
新疆
阳城
山东
西北
西藏
NORTHWEST
TIBET
Three Gorges
川渝
万县
Ertan
二滩
变电站
substation
plant
电厂
AC交流线路
line
直流线路
DC line
EAST
CHINA
三峡
CENTRAL
华东
华中
CHINA
南方
SOUTH CHINA
海南
海南Hainan
台湾
TAIWAN
2001-2005年跨区送电情况
Inter-regional Power Transmission
TWh
90
80
70
60
50
40
30
20
10
0
77.3
66.0
38.8
20.4
8.8
2001
2002
2003
2004
2005
全国日发电量曲线
Daily Generated Electricity in 4 Years
90.00
8月14日
89.16
80.00
8月12日
78.91
70.00
8月9日
68.09
60.00
全国06
全国05
全国04
全国07
50.00
全国日发电量曲线
40.00
1月1日
2月1日
3月1日
4月1日
5月1日
6月1日
7月1日
8月1日
9月1日
10月1日
11月1日
12月1日
全国电网概况
2006.12
installed Capacity and peak load
装机容量
installed
Capacity
（10MW）
最高负荷
peak load
（10MW）
华北North
11878
10061
东北Northeast
4136
3322
华东East
12897
10661
华中Central
9187
6375
西北Northwest
4289
2319
南方South
6821
6025
东北
Northeast
西北
Northwest
华北
Northeast
华中
Central
南方
South
华东
East
中国电网稳定性
China Power System Stability
1970－1980 19 stability fault per year
1981－1988 9 stability fault per year
1989－1996 4 stability fault per year
1997--Now no stability disruption fault
RS1：99.747，
RS3：99.893
20
19
15
10
9
4
5
0
faults
70's
80's
90's
0
21ct
国家电网公司的调度组织体系
Dispatching Organization of SGCC
Nation 国调NCC
District
County
省调PCC
地调DCC
县调 CCC
26
16
00
Province
网调RCC
5
30
9
Region
国调中心技术支持系统
Technical Supporting Systems in NCC
国调目前采集全国各网省330kV以上
线路及百万以上电厂的实时数据。监视
280个厂站的实时运行工况，采集遥测
量9144个，遥信量17227个，并可对电
厂进行AGC控制。
NCC now collects the real-time data
of power lines above 330kV and plants
each of whose capacity is more than
1000MW. NCC supervises status of 280
stations and acquires 9144
measurements as well as 17227
indications. NCC also can implement
AGC on plants.
国调中心的现代化装备
Monitoring and Control Facilities in NCC
能量管理系统Energy management system ( EMS )
调度员仿真培训系统Dispatching Training System ( DTS )
水调自动化系统Hydro-power Management System ( HMS )
市场管理系统Market Management System ( MMS )
电量计量系统Tele-Meter Reading System ( TMR )
调度数据网State Grid Dispatching Data Network ( SGDnet )
广域测量系统Wide Area Measuring System ( WAMS )
保护信息管理系统Relay and Fault Information Management
System( RMS )
9. 调度信息管理系统Dispatching Management Information
System ( DMIS )
10. 雷电监测系统 Lighting Monitoring System (LMS)
1.
2.
3.
4.
5.
6.
7.
8.
特高压示范工程
UHV Demonstration Project
Northeast
First
750kV
North
China
Northwest Lanzhou
Shanxi
First
1000kV
Guanting
Tibet
Nanyang
Central
South
China
East
JingmenChina
Taiwan
SOURCE http://www.eia.doe.gov/oiaf/ieo/nat_gasboxfigure.html
SOURCE: PetroChina Planning & Engineering Institute 中国石油规划总院
发展多气源
轮南
LN
G
0
30 公
0 里
Km
SOURCE http://www.iea.org/textbase/work/2005/LNGGasMarkets/session_5/1_Yugao_Xu.pdf
Source: http://www.ieej.or.jp/aperc/final/ne.pdf
SOURCE http://www.chathamhouse.org.uk/pdf/research/sdp/KPJan05.pdf
China’s Electric Grid Should be Planned so
that Electric Transmission Does not
Substitute too much for Natural Gas
Pipeline.
• Example: Sichuan to Guangzhou, Sichuan to Shanghai
• Plan to use Ultra-High Voltage to move remote coal
and hydro power.
• Maintain the dominant roles of hydro and coal in
China’s energy mix, and China’s status as world’s
biggest hydro producer and 2nd biggest coal
producer?
Thermal Base
1800MW
2500MW
3000MW
7200MW
10000MW
Hydro Power Base
9000MW
2000MW
3000MW
AC
DC
Regional Grids Interconnection in 2005
Thermal Base
1800MW
Hydro
Base
2500MW
7200MW
10000MW
Power
9000MW
2000MW
3000MW
3000MW
Possible
International
connection
AC
DC
Regional Grids Interconnection in 2010
Thermal Base
1800MW
Hydro
Base
2500MW
3000MW
7200MW
10000MW
Power
9000MW
2000MW
3000MW
Possible
International
connection
AC
DC
Regional Grids Interconnection in 2015-2020
SOURCE: http://www.ieej.or.jp/aperc/pdf/GRID_COMBINED_DRAFT.pdf
Power network in China
Northeast
Xinjiang
Northwest
500kV
330kV
220kV
North
Shandong
Tibet
East
Chuanyu
Thermal
Plant
Hydro
Plant
Nuclear
Plant
Power network coverage 96.4%
Central
Fujian
South
Hainan
Grid interconnection
500KV AC(2)
2006 / 06
1200 MW
500KV AC(1)
2003 / 09
800 MW
500KV AC(2)
2001 / 05
1200 MW
Northeast
State Grid
Corporation
North China
500KV AC(3)
2001
1900 MW
Northwest
Tibet
East China
Central China
120KV DC(1)
2005 / 06
360 MW
South China
Taiwan
±500KV DC(1)
2004 / 02
3000 MW
±500KV DC(3)
1989 / 2003/2207
7200 MW
Power transmission from The West to
the East: Three transmission corridors
North
corridor
Central
Corridor
The capacity of each
corridor will reach
about 20GW in 2020.
South
Corridor
Power supply and demand
Growth of GDP, energy and
electricity use
Power supply and demand
„
China’s installed capacity and power generation
output are second largest in the world’s
electricity industry following the United States
Source: China Electricity Council (http://www.cec.org.cn/cec-en/index.htm
Power supply and demand
„
Electricity intensity per capita is 1/10 that of
U.S. and less than half of the world’s average.
14,000
China
U.S.
World total
12,000
Installed capacity (GW)
356.6
979.6
3,372.8
10,000
(% of world total)
(9.6%)
(26.4%)
(100%)
8,000
Power generation (TWh)
1,654.2
3,858.5
15,614.1
6,000
(% of world total)
(10.6%) (24.7%)
(100%)
4,000
Power generation per capita
(KWh/person)
1,288
2,578
2,000
2002 Data
13,120
0
American
w orld total
china
2002 Per Capita
Generation in
KWh per person
Power supply and demand
„
Coal is the major generation supply fuel.
(50 TWh)
(328 TWh)
2.3%
0.06%
0.16%
1.55%
15%
24.57%
Thermal
Hydro
Nuclear
Others
73.72%
82.64% (1,807 TWh)
Power generation in 2004
Installed capacity in 2004
Power supply and demand
≥300MW
5%
5%
4%
200-300MW
5%
41%
8%
100-200MW
50-100MW
25-50MW
12-25MW
17%
15%
6-12MW
6MW
Coal-fueled installed capacity mix in 2003 by
unit size. The total installed capacity is
289,770MW
Power supply and demand
Industry electricity use dominates other sectors
„
5.2
13.22
China’s
2002
elec.
use
5.04
3.47
Share of total 2002 electricity use
by sector in 4 countries
2.2
100%
90%
80%
1.07
69.8
Preliminary
industry
Secondary
industry
Agriculture, forestry,
ranching and fishery
Construction
5.2%
70.87%
Industry
Tertiary
industry
Commercial
13.2
70%
60%
50%
40%
30%
20%
10%
0%
Other
17
21
35.5
35.5
31.3
15.2
36.5
69.8
47.7
49.3
28
china
U.S.
Japan
Korea
10.71%
Transportation and
communication
Residential
13.22%
Source: China Statistical Annual and China Energy Resource Statistical Annual, and China Electric Power Information Center. 2002 data.
other
Resid
Indus
Power supply and demand
Business consumption growth dominates total growth
Year
2002
2003
2004
2005
‘02-’05
annual
growth
Total
14,979
18,633
21,762
24,690
18%
Agriculture,
forestry,
ranching and
fishery
Industry and
construction
Transportation,
communication,
commercial
and others
Residential
Rate of
increase
relative to the
previous year
780
10,619
1,600
1,980
10.4%
5.2%
70.87%
10.71%
13.22%
559
13751.2
2,422.2
1,900.8
3%
73.8%
13%
10.2%
687.5
16,301
2,329.5
2,444
3.16%
74.9%
10.7%
11.24%
740
18,480
2,630
2,840
3%
74.85%
10.65%
11.5%
-2%
20%
18%
13%
Electricity consumption (2002-2005)
24.4%
16.3%
13.5%
Power supply and demand
„
Power shortages were being caused by need for
more generation capacity (Trillion Yuan = $130B)
Power supply and demand
„
Power shortages occurred in three major regions.
Demand exceeded supply
Balance
Supply exceeded demand
Demand and supply condition by
region (2005)
The number of provincial grids
with curtailments in the peak
period:
12 (2002)
22 (2003)
24 (2004)
26 (2005)
Causes of power shortages
„
„
14.0%
13.0%
12.0%
11.0%
10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
Climatic variability (droughts and heat waves)
Economy, and therefore energy use, is
growing faster than electric generation
capacity can be built.
Growth rate of power consumption
Growth rate of installed capacity
12.8%
9.8%
8.0%
7.5%
9.6%
9.2%
6.6%
1980-1987
6.4%
1988-1995
1996-2000
2001-2005
Causes of power shortages
„
„
Coal supply shortages and transport bottle-necks
Escalating coal prices and decreased energy content
of coal. Differences in price trends of “regulated
power prices” and “unregulated coal prices”.
Blue indicates
supply sources
and red
indicates major
load centers
Addressing power supply shortages
„
Generation sector
„
„
„
„
Network sector
„
„
Developing coal-fired generation – high boiler
pressure, high capacity, and environmentally
friendly – is the direction.
Accelerating development of hydropower,
nuclear power, and gas-fired power
generation.
Introducing renewable energy (solar, wind,…)
Strengthening the grid.
Intensifying energy conservation efforts
and improving energy efficiency.
Environmental challenges
„ China’s carbon dioxide emissions from consumption of
fossil fuels are expected to increase from 3,000 million
tons in 2000 to 5,700 million tons in 2020.
7,000.00
6,000.00
5,000.00
4,000.00
3,000.00
2,000.00
1,000.00
0.00
United States
China
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Source: International Energy Association 2004
Environmental challenges
„ China is experiencing rising SO2 and NOX.
emission
removal efficiency
SO2
8.01Mt
0.97Mt
10.8%
Smoke
dust
3.13Mt
120.8Mt
97.5%
Efficiency of SO2 and
smoke dust emission
reduction systems(2003)
Emission trends
Improving generation
and delivery efficiency
„ Greater generation and delivery efficiency is
reducing rates of internal use of electricity,
transmission losses, and coal consumption.
10
420
9
8
410
400
7
6
390
380
Internal use of electri. (%)
5
370
power transmission losses (%)
4
3
360
350
coal consumption (g/kWh)
2
1
340
330
0
320
1980
1990
1995
2000
2001
2002
2003
Internal use of
electricity %
Power transmission
losses %
Coal consumption
(g/kWh)
2005
5.82
7.18
374
2020
5.1
6.2
320
Strategies for overcoming coal supply
and delivery challenges
„
„
Alliances between
coal mining
companies and power
generation companies
Mine-mouth power
plants substituting
electric transmission
for coal transportation
Shenhua model: simultaneous
stock holding and building of
power stations
Shanxi coking coal co. model:
building of power station by
coal mines
Luneng model: building of
coal mines by power
enterprises
Huainan model: joint venture
to establish the new coal
mines and power stations
Hydro-power development
„
Hydro
„
Resources: 500GW
„
By the year 2005:
„
„
Installed capacity
120GW (including
34.1GW from small
hydro plants).
395TWH, 15% of the
total annual
generation.
黑?
Northern Main
Stream of
Yellow river
609
Upper reaches
of Yellow river
1415
龙
?
Northeast
1131
江
白 山
150
第
二
?
松
花
江
Dadu river
1805
孔
塔里木河
雀
河
车尔臣河
辽
河
滦
黄
Yalong
river
1940
龙羊峡
128
河
河
李家峡
200
大
通
青海湖
洛
河
河
Jinshajiang
4789
黄
通
天
河
河
河
黄
渭
河
刘家峡
116
葛洲坝
271。5
汉
大
岷
渡
江
雅 鲁
金
藏
河
淮
水
长
澧水
沅水
砻
江
沧
洞庭湖
赣
江
江
二 滩
330
隔河岩
120
闽江
漫 湾
125
怒
江
江
南? 江
盘
天生桥
120
北
红
江
天生桥
132
Upper reaches
of Changjiang
2831
鄱
阳
湖
资水
江
江
洪泽湖
富春江
清 江
乌
澜
Lancangjiang
2137
江
长
三峡
1768
河
雅
布 江
沙
12 Major
Hydropower
Locations
(unit: 104KW)
江
绿
鸭
水
河
东
江
岩 滩
120
Nanpanjiang
Hongshui river
1312
Xiangxi
791
Wujiang
867
Min,zhe,
Min,zhe,
gan
1416
Nuclear power
KEY
NPP in operation
NPP under
construction
NPP being proposed
Potential wind power resource > 3000 GW
green=great, pink=good, blue=ok, yellow=poor
(offshore & coastal potential not shown)
Wind power
„
„
By the year 2005:
„ 59 wind power plants, with total
installed capacity of 1266MW.
„ 200,000 small wind units, located
in rural areas, with total installed
capacity of 30MW.
„ Mass production of 750KW (and
below) units; units at MW level is
still in the trial phase.
„ Key technology dependent on
imports. However, design
expertise growing in China.
By the year 2020 – 40GW
Wind farm underconstruction
Dan Nan wind
farm in Nan’ao
Solar power resource
„
„
„
Theoretically 1.7 trillion ton coal equivalent/year
2/3 of the land with daylight hours surpassing 2,200
hours/year, equaling 5,000mega joule/m2
Most abundant in western regions
Solar power
„
PV
„
„
„
„
Installed capacity: 70
MW, mainly in the
rural areas. (including
“sending electricity to
townships” project:
17MW).
On-grid ceiling PV:
Shenzhen 1MW
project.
Industrial capacity:
300MW units/year, but
silicon materials
depend on import.
Solar water heaters
Renewable energy policy
„
Renewable Energy Law of China -- effective
from January 2006.
„ Establishing national targets
„ Grid connection priorities
„ Classifying tariffs for RE electricity
„ Sharing cost at national level
„ Special fund for renewable energy
„ Favorable credit and favorable tax treatment
Long-term target generation mix
Installed capacity
(GW)
1000
40
40
64
900
800
700
600
500
400
3% 3%
22%
0.7
108
300
200
7%
246
65%
560
325
100
coal
0
2004
hydro
2020
Target generation mix in 2020
gas
nuclear
new
Power industry reform objectives
„
„
To establish a power market system that will
introduce competitive incentives, improve
efficiency, lower cost, improve power pricing,
optimize resource allocation, promote electric
power development, and advance nationwide
grid construction.
This market system should encompass fair
competition, orderly transition, and efficient
development using separation of government
functions from enterprise functions.
Reform goals
Goals of “Article Five” during the “10th Five-year Plan”
„ A: Separation of generation from
grid (completed)
„ B: Corporate separation of noncore functions (such as planning,
designing, construction, etc.)
„ C: Direct access to market by
large users
„ D: Formulation of competitive
regional power market
„ E: Bidding for access to grids
„ F: Make retail tariffs more
market-driven
Power industry reform history
1997
State
Power
Corp.
(SPC)
established
1998
Dissolved
Ministry
of
Electricity
2002
Power
Regime
Reform
formally
approved
by the
State
Council
2002
State Elec.
Regul.
Commission
(SERC)
created
(October
2002)
2002
SPC
restructured
2004
Separation
of gen.
assets
from
transmission assets
2004
East China
starts pilot
regional
power
market
operation.
Power industry reform
„
To “ introduce competition and break the market monopoly ”
generation and grid sectors were separated.
Former
SPC
Restructuring of the
State Power
Corporation of China
China Huaneng Group
China Datang Group
generation
assets
China Guodian Group
China Huadian Group
China Power Investment Corporation
December 2002
grid
assets
State Grid Corporation of China
China Southern Power Grid
Corporation
Power industry reform
Comparison of the installed capacity of different types of
players (2004)
9%
5%
1%
2%
1%
36%
Big 5 Generation Groups
State-owned enterprises other than Big 5 groups
Local, government-owned enterprises
Generation owned by Grid Group
State-owned Nuclear Group
Private generators from China
International private generators
46%
Power industry reform – grid sector
State Grid Corporation
Tibet Autonomous Region
China Southern Power Grid
Restructuring pilot program
North East Power
Network
„
„
„
„
„
East China: the most
developed area; electricity
consumption ranks first;
installed capacity ≥
100,000MW in 2005.
One of two pilot regional
power markets in China.
May 18, 2004: East China’s
first simulated bidding
process for the next month.
October 2005: simulated
operation of China’s first dayahead power market.
April 2006: trial operation of
day-ahead power market.
East China
Power Grid
Restructuring pilot program
Grid Companies
East China Grid
Company
East China Power
Dispatching & Trading
Center
Market
Participants
Generation
Companies
Neighboring
buying/selling
entity
Province (Municipality)
Power Company
Province (municipality)
Power Dispatching, Trading
& Settlement Center
Generation units in East China:
Trading modes:
Category A: coal-fired units with capacity over 100MW
(216 units registered by the end of 2005, generation
capacity ≥58,818MW = 56.7% of total generation
capacity in East China area). Participation Required.
Bilateral Transactions (between
neighboring provinces and municipality)
Category B: gas-fuel units, oil-fuel units, hydro units,
nuclear power units, etc. Participation Not Required
Yearly Generation Contract
Monthly Contract Bidding
Day-ahead Market
Real-time Balance Market