China's new energy four strange situation

Next month, Dr. Dr. Associate Dean, School of Energy, University of Texas at Austin. FredBeach will lead more than 20 MBA students to communicate in China.

The University of Texas at Austin is a world-renowned institution of higher education, research, and public service. Founded in 1883, it has a reputation as a "public ivy" in the United States. The annual research funding is up to 640 million US dollars.

The other party hopes that we can share some new energy developments in China. What do we have to say to a group of MBA students studying energy in the United States? In response to climate change, China's grand goal of developing new energy, the 2020 plan? In fact, China is currently the world's largest wind power and photovoltaic power.

Believe that these data and statements are not difficult to find on the Internet.

Perhaps they are willing to listen to many “fun stories” and stories on the development of new energy in China. This reminds me of the situation that new energy companies have faced since the end of last year, and this situation may become worse and worse.

The first story: According to some information from the media, the Yunnan Provincial Commission of Industry and Information Technology reportedly issued on November 20, 2015, the “Industrial and Information Technology Commission of Yunnan Province issued the wind power thermal power in November and December 2015. The Notice on Clean Energy Replacement Trading Work Program requires wind power companies to use the country's approval for the on-grid tariffs of thermal power companies in the normal and dry seasons as the charging standard, and pay 60% of the charging standards to thermal power companies.

Someone calculated a bill: Wind power in Yunnan Province in November and December was about 1.8 billion kilowatt-hours on the grid. According to this calculation, Yunnan wind power companies will pay 380 million yuan for thermal power companies for free, which will be 15 50,000-kilowatt wind farms. One year profit profit!

The second story: It is said that Xinjiang also issued a document requiring photovoltaic companies to pay 2 cents per kilowatt hour for thermal power companies. Otherwise, they would not even think about surfing the Internet. A thermal power company can earn 2 cents per kilowatt hour without generating electricity. Xinjiang's thermal power off price is only 0.25 yuan / KWH, it looks like a good deal. Photovoltaic companies have an on-grid price of 0.9 yuan/kWh and 0.95 yuan/kWh. After paying 2 yuan for thermal power, they can still have more than 7 surpluses at a time. It looks good, and it's better than not getting a penny.

Obviously, this is to allow new energy companies to transfer their interests to thermal power companies in exchange for the right to generate electricity. But this obviously runs counter to the government’s policy of encouraging renewable energy generation.

As early as 2005, China promulgated the "Renewable Energy Law," requiring power grid companies to give priority to the full purchase of renewable energy. In order to encourage the development of renewable energy, China has set up a renewable energy industry* to subsidize the generation of renewable energy, and the scale of subsidies has been increased to 1.9 points per kilowatt-hour. (Although the subsidy money has not been enough, the cycle of issuing to the company is also very long)

There is also a story recently that makes the "fable" of disused winds upgrade again. Five new energy power generation companies “speaked” to the National Development and Reform Commission, saying “In 2016, Gansu Province had only 5 billion kilowatt-hours of power generation for new energy, and the rest of the power generation was based on direct electricity purchases with large users, or The company's captive power plant has signed a power generation right replacement transaction.” Wind power companies have to find their own customers, and thermal power PK prices.

Ningxia Province has also issued similar documents. The following paragraph is very graphic:

“A CEO of a new energy company publicly read the “Renewable Energy Law of the People's Republic of China” directly at the conference. “He read even the first few orders, the first few chapters, the first few paragraphs, and we did not dare to say anything. I just gave him a hard applause. ”

Qin Haiyan, secretary-general of the China Wind Energy Association, explicitly stated to the media that this was an illegal behavior of the local government.

To blame the status quo, local governments openly violated the law, which can be described as one of the strange developments in the development of new energy in China;

Strangely, the status quo: In 2015, the investment in new energy is still growing rapidly, even if the power curtailment is severe. In 2015, China added 30.5 million kilowatts of installed wind power capacity, which is a big year for the wind power industry.

It is strange that the status quo: While the "Renewable Energy Law" requires the full acquisition of renewable energy power generation, while publishing power limit data. For example, in the first half of 2015, the nationwide wind power grid-connected operation status. In the first half of 2015, the average national wind curtailment rate reached 15.2%, an increase of 6.8 percentage points year-on-year. Among them, the three regions with the highest rate of wind curtailment were Jilin (42.96%), Gansu (30.98%) and Xinjiang (28.82%). It is said that the situation of disposing wind in 2016 will be even worse.

Strange situation four: While Article 29 of the "Renewable Energy Law" stipulates that if a grid company fails to purchase renewable energy in full, causing loss to the power generation enterprise, it shall compensate for the losses. The State Electricity Regulatory Authority shall order it to make corrections within a time limit, and refuses to correct it. The amount of the economic loss of a renewable energy power generation enterprise is levied a fine of one time or less. But it seems that it has never been fined.

The source of the strange situation?

It seems that the reasons are simple: the decline in electricity demand, excess production capacity on the power generation side, the decline in the use of thermal power, and the loss of new energy, how can this be done?

According to data from the National Energy Administration, in 2015, the electricity consumption of the entire society was 550 billion kwh, which was a year-on-year increase of 0.5%, which was a decrease of 3.3 percentage points from 2014, and the growth rate was the lowest level since 1974.

But isn't it that we want to increase the proportion of renewable energy, not to reduce haze? Why did you go to a local government and become a priority to protect thermal power?

In response to this question, Neng bean consulted many readers. Combining multiple perspectives, many readers of the omnipotent think that local governments and grid companies really love thermal power. It is true that local governments see fiscal revenue and employment. In these respects, thermal power is higher than new energy sources. Grid companies see costs, fear of trouble, and they must invest in supporting projects, and the speed of construction cannot keep pace with investment. It is all that the interest chain is at work. If you are in a smog, don't think that only the Beijing people are afraid of the fog, and how can the fog be covered?

Then, why is it that the investment is still fierce? Taking wind power as an example, many of the investment companies are state-owned. They are not very care-oriented. maybe! Maybe helpless. The short-term profit cannot be used as a starting point, and more power station assets can also be obtained from the capital market. For the sake of GDP growth, local governments hope to invest more and more. Do not say that new energy sources face fierce investment in wind curtailment, and even if the demand for electricity falls, the investment in thermal power will be even fiercer.

Maybe you see this, you will say that the status quo is more than just four, so you are welcome to Tucao.

I really do not know whether such a unique summary is attractive to MBA students from prestigious schools in the United States.