7/21/2019 Wind Energy (China Case Study)

http://slidepdf.com/reader/full/wind-energy-china-case-study 1/21

Wind Power

7/21/2019 Wind Energy (China Case Study)

http://slidepdf.com/reader/full/wind-energy-china-case-study 2/21

• Worldwide capacity of wind energy isapproaching 100 000 MW

• Costs of generating electricity fromwind today are only about 10% ofwhat they were 20 years ago due toadvances in turbine technology

• At well chosen locations wind powercan compete with conventionalsources of energy

7/21/2019 Wind Energy (China Case Study)

http://slidepdf.com/reader/full/wind-energy-china-case-study 3/21

Advantages of modern multimegawatt turbines !repowering"

• More wind power from the same areaof land

• #ess wind turbines

• $igher eciency& lower costs

• 'nhanced appearance ( turbinesrotate at a lower speed ) are morevisually pleasing

• *etter grid integration ( connectionmethod is similar to conventionalpower plants

7/21/2019 Wind Energy (China Case Study)

http://slidepdf.com/reader/full/wind-energy-china-case-study 4/21

Concerns

• $uge turbines located nearby will blighthomes ) a+ect property values

• $um of turbines disturbing people ) wildlife

• ,-ylines in scenically beautiful areas ruined•  .urbines can -ill birds ( migratory /oc-s

tend to follow strong wind

• A+ect . reception

• Cost of investing in wind energy is highcompared to the alternatives

7/21/2019 Wind Energy (China Case Study)

http://slidepdf.com/reader/full/wind-energy-china-case-study 5/21

WindChinas fastest growing

renewable energy resource

7/21/2019 Wind Energy (China Case Study)

http://slidepdf.com/reader/full/wind-energy-china-case-study 6/21

• Chinas wind power production actuallyincreased more than coal power productionfor the rst time ever in 2012& according

to new statistics from the China 'lectricityCouncil

•  .hermal power use !coal" grew by onlyabout 045% in China during 2012& an

addition of roughly 12 terawatt hours !.Wh"more electricity4 6n contrast& wind powerproduction e7panded by about 28 .Wh4

7/21/2019 Wind Energy (China Case Study)

http://slidepdf.com/reader/full/wind-energy-china-case-study 7/21

•  .otal amount of wind powerproduction in China is brought to 100

 .Wh&

• Coal still accounts for 9:% ofelectricity production in China& but ischallenged by competition from

cleaner energy& as wellas government policies and publicconcerns about air pollution4

7/21/2019 Wind Energy (China Case Study)

http://slidepdf.com/reader/full/wind-energy-china-case-study 8/21

 #argest yet most inecient windpower system in the world;

• 6n 2012& 15 gigawatts !<W" wereadded to the system& andincremental wind electricity

production e7ceeded coal growth forthe rst time ever

• 6n the same year& unused wind

electricity hit record highs while windnot connected to the grid wasroughly half the si=e of <ermanys

/eet

7/21/2019 Wind Energy (China Case Study)

http://slidepdf.com/reader/full/wind-energy-china-case-study 9/21

>isadvantages

• Wind pro?ects are typically far fromcity and industrial centres whereelectricity is needed& however& and

transmission investments to connectto the grid did not -eep up pace4

• A third of the turbines in 2010 were

languishing unconnected& unable tosell their electricity

7/21/2019 Wind Energy (China Case Study)

http://slidepdf.com/reader/full/wind-energy-china-case-study 10/21

7/21/2019 Wind Energy (China Case Study)

http://slidepdf.com/reader/full/wind-energy-china-case-study 11/21

•  China had until mid2011 a uni@uepolicy that e7acerbated the windgridmismatch

• all pro?ects smaller than B0 MW couldbe approved directly by localgovernments& bypassing more

rigorous feasibility analyses& inparticular& related to grid access4

7/21/2019 Wind Energy (China Case Study)

http://slidepdf.com/reader/full/wind-energy-china-case-study 12/21

• 6f you are a wind farm owner and havesuccessfully connected to the grid& youmight still face hurdles when trying to

transmit your power to load centres4• <rid operators ma-e decisions a day

ahead on which thermal plants to turn on&so if wind is signicantly higher than

forecasted 2 hours before& the di+erencemay be curtailed !or DspilledE" to maintaingrid stability4

7/21/2019 Wind Energy (China Case Study)

http://slidepdf.com/reader/full/wind-energy-china-case-study 13/21

• 6f wind is at the end of a congestedtransmission line& the grid operator mayalso have to curtail& as happens in 'FCG.

!.e7as grid" and northwest China4•  .o manage hourly variation& grid operators

will accept wind as much as they canramp up and down other generators to

maintain supply and demand balance4 .hethermodynamics of fossil fuel plants placelimits on this /e7ibility

7/21/2019 Wind Energy (China Case Study)

http://slidepdf.com/reader/full/wind-energy-china-case-study 14/21

Chinas curtailment problems aremuch more severe than for its peers

•  .his di+erence is largely& though note7clusively& attributable to twofactors Chinas mi7 is coalheavy

which is more sluggish whenchanging output than& for e7ample&natural gas4

7/21/2019 Wind Energy (China Case Study)

http://slidepdf.com/reader/full/wind-energy-china-case-study 15/21

7/21/2019 Wind Energy (China Case Study)

http://slidepdf.com/reader/full/wind-energy-china-case-study 16/21

Political fragmentation

• 6diosyncrasies of Chinas power sectorgovernance results in spilled wind4

• A product of the partial deregulation !1::9

and 2002" the establishment ofDgeneration @uotasE for coal plantsminimum annual generation outputs 7edby province loosely to recover costs and

ensure a prot4•  .here may be messy politics if wind cuts

into the @uotas of e7isting plants4

7/21/2019 Wind Energy (China Case Study)

http://slidepdf.com/reader/full/wind-energy-china-case-study 17/21

solutions

•  .argeted reforms

•  .he guiding document for power sector reformpublished in 2002 !,tate Council H2002I Jo4 B"

14 establish a wholesale mar-et in each dispatchregion to encourage competition in generationK

24 open up interregional electricity mar-etsK

54 allow for retail price competition and direct

electricity contracts between producers andlarge consumers& among others4

7/21/2019 Wind Energy (China Case Study)

http://slidepdf.com/reader/full/wind-energy-china-case-study 18/21

• *etter implementation of e7isting regulations!such as a mandate that grids give precedenceto renewables over thermal plants"

•

additional re@uirements on wind forecastingand automated turbine control& andcompensation schemes of coal generators forramping services4

•

>ue to these policies and central governmentpressure to better accommodate renewables all provinces e7cept $ebei saw an increase inutili=ation hours in the rst half of 2015

7/21/2019 Wind Energy (China Case Study)

http://slidepdf.com/reader/full/wind-energy-china-case-study 19/21

conclusion

• >ue to the uni@ue mi7 of power plants andregulation in China& typical wind integrationapproaches such as increased transmission

are important but not sucient4• China aims to generate at least 5:0 .Wh of

electricity from wind in 2020& which is roughlyB% of total production under businessas

usual& over twice in percentage terms ofcurrent levels4 .his will put additional stresseson the nations purse and power grid4

7/21/2019 Wind Energy (China Case Study)

http://slidepdf.com/reader/full/wind-energy-china-case-study 20/21

• $ow China chooses to face thesecon/icts and grow its wind sector (through a combination of more

investment and targeted reforms (will have unavoidable implications forthe longterm viability of wind energy

in the country4

7/21/2019 Wind Energy (China Case Study)

http://slidepdf.com/reader/full/wind-energy-china-case-study 21/21

,ources

• httpLLthin-progress4orgLclimateL2015L05L20L1991Lchinaswindpowerproductionincreasedmorethancoalpo

werdidforrsttimeeverin2012L• httpLLtheenergycollective4comLmicha

eldavidsonL2B:91Ltransformingchin

asgridintegratingwindenergyitblowsaway• httpLLtheenergycollective4comLrobe

rtrapierL5:9011Lwhenwinddoesntb

low