Outline 1. 1. Why Wind Wind Power Power in in China China Why 2. Development of Wind Power Worldwide and in China 3. Wind Energy Potential Study for China 4. Discussion on Wind Policy 2 CDIAC, 2007 The new-type “energy crisis” is not from the shortage of energy reserves but from the carbon emissions during fossil fuel burning and their implications with climate change. global average CDIAC, 2007 • Carbon emissions have increased by 79.2% since 2000 due to rapid growth of coal consumption. • Coal accounted for 99% of the emissions total in 1950 and 73% in 2006 • 2006 marks the first year China's per capita emission rate (1.27 metric tons of carbon) exceeded the global average (1.25 metric tons of carbon). • China surpassed the US and became the largest CO2 emitter in 2006 due to fossil-fuel use and cement production. • China and US take over 40% of the global CO2 emissions in 2007 CDIAC, 2007 Source: Expert Interview; Literature research; McKinsey analysis 1 Tonnes CO2 associated with generation of 1 MWh electricity from coal 6000 TWh ~ 6,000,000,000 Tonnes CO2 per year Outline 1. Why Wind Power in China 2. 2. Development of Wind Power Worldwide and in China 3. Wind Power Potential Study for China 4. Discussion on Wind Policy 8 Installed capacity is increasing EXPONENTIALLY! IEA in its 2007 alternative Policy Scenario projected the possibility of an 18fold increase in wind electricity generation globally by 2030. (WWEA, 2007) 9 Capacity has been doubling every year in recent years- the market becomes No.1 in the world. • The total capacity of wind power in China reached 12.2 GW, realizing the target of 10 GW by 2010 two years earlier. • The target of 30 GW by 2020 (in 2007) will be adjusted to the 100 GW in the “Development Plan for New Energy ”. • Three offshore wind turbines have been installed near to Shanghai Dongdaqiao ; the entire wind farm will consist of 34 wind turbines (3MW) and is expected to supply electricity for Shanghai Expo in 2010. 100% 75% 75 70 55 43 24 Annual Market Foreign 50% 25% 25 30 2004 2005 45 57 76 Domestic+JV 0% 2006 2007 2008 100% 75% 50% 82 77 25% 0% 66 53 38 Cumulative Market Foreign 18 23 34 2004 2005 2006 47 2007 62 2008 Domestic+JV Data source: Pengfei Shi, 2008 China plans to build several 10 GW wind bases in Gansu, Inner Mongolia, Hebei and Jiangsu by 2020. • China is the 2nd largest country of electricity consumption • Demand for electricity in China was growing at an annual rate of near to10% in the past decade. • Wind electricity only accounts for 0.4% national wide. Outline 1. Why Wind Power in China 2. Development of Wind Power Worldwide and in China 3. Wind Potential Study Study for for China China Wind Energy Power Potential 4. Discussion on Wind Policy 15 Combination of a wide range of observations and the simulation results from AGCM. Global coverage with horizontal resolution: 2/3 ×1/2 degree and records of wind activity every 6 hours A terrain-following coordinate system defined by 72 vertical layers; 3 lowest layers being used to interpolate the wind speed and air density at 80m 5-year interval from 2004-2008 was adopted in present study to account for the inter-annual variability 16 Empirical Relation: AT=5D×9D=45D2 , where D=Rotor Diameter to ensure the power loss ≤ 10%. Unit Area of Onshore Turbines: (Masters, 2004) GE 1.5 MW turbine, D=82.5 m: AT = 0.31 km2 1km2 land area: 3~4 onshore turbines 17 Land use Point Map Polygon Map Slope Raster Map CF: the power yield expressed as a fraction of the rated power potential of the installed turbines over the course of a year. Typical Range: 20% to 45% 20 Only account the regions with CF ≥ 20% Constraints : Suitable areas only and capacity factor ≥20% Distance: 50 nautical miles (or 92.6 km) from the nearest coastline Water depth: 0 – 200m Onshore (PWh) 24.7 0-20 m 1.7 Offshore (PWh) 20 – 50 m 50-200 m 2.0 1.8 Constraints : Suitable areas only and capacity factor ≥20% • Onshore wind resources could provide potentially as much as 24.7 PWh of electricity annually, more than 7 times current national electricity consumption. • Offshore wind energy potential along the coastline of China mainland is also significant and comparable to current load demand in China Features of Wind Concession Policy in China: Competitive Tendering Tariff • Investors are selected through public tendering by the government. • The concession period is set at 25 years. • Power purchase agreement. • Price difference shared across the national grid. • Guaranteed price period of 30,000 equivalent full load hours; price in the subsequent period set by the power market. • 70% local-content requirement, since 2005 , Pt: bus-bar price of wind electricity to be estimated (RMB/kWh) during the initial fixed price period; Pt = 0.4 RMB/kWh during the subsequent period; (1 US dollar ≈ 6.8 RMB; 1 EURO ≈ 8.8 RMB ) Total Electricity Generation in China 2008: 3.4 PWh At 0.516 RMB/kWh (about 0.76 US Cents/kWh, or 5.9 EURO Cents/kWh), corresponding to the CF of 27.8%, total windgenerated electricity will be 7 PWh, comparable to total electricity demand projected for 2030. • Meeting the increased demand for electricity anticipated for China in 2030 will require construction of the equivalent of 800 GW of coalfired power plants. • If the additional electricity is supplied mainly by coal, emissions of CO2 in 2030 might increase by 3.5 gigatonnes per year. • If 30% additional electricity is supplied by wind in 2030, it will require installation of 640 GW of wind farms over the 20-year period. • Approximate cost is estimated 6 trillion RMB not formidably high compare to current China’s GDP of 26 trillion RMB). McElroy, M. B., Lu, X., Nielsen, C. P., & Wang, Y. (2009) Potential for WindGenerated Electricity in China Science 325, 1378-1380. Outline 1. Why wind power in China 2. Development of Wind Power Worldwide and in China 3. Wind Energy Potential Study for China 4. Discussion for Wind Policy More Discussion 33 Weight of price point decreased Lowest price Won Preference of average price Price (RMB/kWh) Regions 0.51 Innermongolia(except Chifeng, Tongliao, Xing’an League, Hulunbeier), XinJiang: Urumchi Yili area, Changji, Karamayi, Shihezi(Xinjiang) 0.54 He Bei: Zhangjiakou, Chegde; Innermongolia: Chifeng, Tongliao, Xing’an League, Hulumbir, Gansu: Zhangye, Jiayuguan, Jiuquan(Gansu) 0.58 JiLin: Baicheng, Songyuan, Heilongjiang: Jixi, Shuangyashan, Qitaihe, Suihua, Yichun, Daxing’an Ling Gansu: all the area except Zhangye, Jiayuguan, Jiuquan Xinjiang, All the area except Urumchi Yili area, Changji, Karamayi, 0.61 All the area except the above mentioned area Pros Guarantee the interest of return for wind farms Attract more private or international investors to develop wind energy Simplify the government approval procedure for wind projects Boost a healthier industry chain for wind power Cons Still lack of incentive policy to improve the integration of transmission grid and to coordinate the grid for larger wind power penetration or other renewable energy development. Thanks to the my advisor, Prof. Michael B. McElroy for his instruction during this study. The GEOS-5 data were provided by NASA-GMAO (Global Modeling and Assimilation Office). I am indebted to Yuanjian Li for research assistance and Chris Nielsen, Richard M. O’Connell, Sebastian Meyer, Junfeng Li, Jing Cao and Yuxuan Wang for their valuable advice. This research was supported by NSF grant ATM0635548. Province Wind Farm Capacity (MW) CF estimated (%) CF realized (%) Inner Mongolia Huitengxile 100.5 29.5 23.3 Gansu Anxi 100.5 26.9 18.8 Xinjiang Xiaocaohu 99 26.8 20.8 Jiangsu Dongtai 138 24.2 21.7 Jilin Da’an Dagangzi 198 26.4 24.2 Liaoning Changtu Quantou 98.6 24.0 18.8 Heilongjiang Daqingshan 49.3 26.3 34.2 Capacity weighted average of CF: 25.8% – SOEs provide unreasonably low biding price to win the projects – Private or international bidders hesitate to bid. – Put pressure on wind turbine suppliers (60-70% of project cost) – No income tax contribution to local government