2008 November 7th, Guodian Group's Chifeng Longyuan Power Generation Company signed 100MW wind power project development agreement with Shuangta District government.
The total investment will be 1 billion RMB, the project will start in the second half 2009, and get completed in one year.
Tuesday, November 11, 2008
Shandong Changdao Offshore Wind Power Project Under Evaluation
Recently Shandong Tianrong New Energy Development Company's Changdao Offshore Wind Power project evaluation meeting was held in Jinan city Shandong province.
The total planned capacity for the offshore wind power project is 300MW. And the first phase project capacity is 48MW, and 24 sets of 2MW wind turbines will be installed.
The total planned capacity for the offshore wind power project is 300MW. And the first phase project capacity is 48MW, and 24 sets of 2MW wind turbines will be installed.
China's Fast Growing Renewable Energies
By Joao Alves, Vice President, Capital Eight, on Tuesday, 11 November 2008
The rapid pace of growth and the environmental impacts of a coal-based economy have led China to look at renewable energies for sustainable development. Government action and private initiative are creating one of the largest Alternative Energies producers in the world, with Wind Power taking a prominent position and major foreign companies already present or looking to enter the market.
In today's context of scarce and expensive traditional energy sources, renewables are once again becoming a more and more popular alternative worldwide. China's specific situation is nowadays especially important for several reasons, including:
- The sheer size of the country its population, which in 2007 accounted for 16.8 per cent of the worldwide consumption of primary energy (only surpassed by the United States);
- Its economic growth and resulting increase in energy needs (10 per cent per year since 2000), both for producing goods and to meet improving living standards;
- The environmental impact of traditional energy sources (China depends on coal for 69 per cent of its energy) and the uncomfortable position of being one of the world's two largest emitters of CO2;
- Its geological features, in which the existing reserves of oil, natural gas and coal might be completely used in 15, 30 and 80 years respectively;
- China wanting to be, as much as possible, self-sufficient energy wise (and, hence, the ongoing acquisition of foreign energy assets, in Africa, Asia and even Europe).
- The increased use of renewable energy sources would address all these issues, at least partially. However, by then end of 2006, renewables accounted for just 7 per cent of China's total primary energy consumption.
Government Guidance
The Chinese Government has been stepping up its efforts in fostering the development of alternative energies. This becomes clear if we look at four key documents:
- The Renewable Energies Law, issued in February 2005 ("Law"), that establishes the general guidelines for the industry in areas such as pricing, cost sharing and financing, among others;
- The Medium and Long-Term Development Plan for Renewable Energy in China, published in September 2007 ("Plan"), stating that by 2020, 15 per cent of all energy should come from renewable sources, with a 30 per cent share by 2050. By 2020, according to the Plan, 300 GW of hydro capacity, 30 GW of wind, 30 GW of biomass and 1.8 GW of solar energy should be installed;
- The Catalogue for the Guidance of Foreign Investment Industries, amended in October 2007 ("Catalogue"), which places the "construction and management of new energy power plants (solar energy, wind energy, magnetic energy, geothermal energy, tide energy and biological mass energy, etc.)" in the Encouraged Industries category;
- The White Paper: China's Policies and Actions on Climate Change, released in October 2008, that places an emphasis on energy conservation and optimisation of the energy mix, namely by reducing the role of coal as the primary energy source.
The Specific Case Of Wind Power
According to data from the European Wind Energy Association, China was the fifth-largest wind energy producer worldwide at the end of 2007. With an installed capacity of 6GW (3.5GW installed during 2007 alone), it still trails Germany (22.2GW) and Spain (16.8GW) by a large margin.
While these figures show that there is still a reasonably wide gap between the 6GW of installed capacity and the 30GW objective for 2020, the truth is that at this rate, the Government's goals seem very conservative. Greenpeace has stated that by 2020 China will have 50-100GW of installed capacity, while China's National Development and Reform Commission (NDRC) has been quoted as admitting that 120GW is a more likely scenario by 2020. Considering the official surveys that estimate a 1000GW feasible wind power capacity, this seems well within reach.
A couple of areas have been subject to most attention and investment: the first one is in the North-Northwest, especially in Inner Mongolia and Xinjiang; the second area is along China's coastline, from Shandong all the way around to Guangxi. Additionally, offshore wind resources, although less explored, offer the greatest promise.
However, two very significant barriers have stood in the way of foreign investment in such a high potential industry: 1) the bidding system used to award major projects. Chinese companies tend to win the largest, centrally awarded projects by proposing to sell electricity to the grid at very low prices. These companies are apparently not so concerned with making money from renewables as they are with having a certain percentage of alternative energies in their energy portfolio, in order to meet Government demands; and 2) in a country where the market has little say in energy prices (the most notable cases being the low gas prices that have lead the government to compensate oil majors) it has been difficult for western companies to devise a profitable operation under these constraints.
Despite these barriers, foreign companies have been investing in two areas in the industry in China:
- Wind Turbine Manufacturers. The two largest companies worldwide are already manufacturing in China. The Danish company Vestas, with a 23 per cent global market share, has been producing in China since 2005, with several factories in Tianjin. The Spanish group Gamesa, with a 15 per cent global market share, has invested EUR40m to achieve a 700MW yearly turbine production capacity, also in Tianjin - and China is already responsible for 15 per cent of worldwide sales. Other large players, such as GE, Suzlon and Nordex, are also manufacturing locally.
- Wind Energy Producers. Australian company Roaring 40s is currently involved in seven wind farms (under construction and operating), in Shandong and Jilin provinces. It operates under a very specific JV model with a Chinese SOE partner (three projects with one company, four projects with another), looking for smaller projects (50MW) and negotiating directly with local authorities, therefore avoiding the larger, centrally awarded projects where large Chinese companies control their turf. Recently, it has signed an agreement with Datang Jilin Power Generation, a large traditional energy producing SOE, to develop a 1000MW wind farm. Construction will begin in 2008, and will be one of the largest projects in the world.
Another company involved in seven projects, all in Inner Mongolia, is Honiton Energy Holdings, which also operates in 50MW incremental projects but for larger wind farms. The company is based in China but has foreign investors and was recently acquired by a Dubai Investment Bank and a Singapore operator, in a USD2 bn deal. Unlike Roaring 40s, Honiton approaches each project alone, without JVs with Chinese companies. An interesting landmark achieved, according to the company, was the signing of the first Power Purchasing Agreement by a foreign firm - 25 years in duration, the first 35,000 hours will be sold at RMB0.548kw/h and subsequently at existing market prices.
Barriers Are Real, But Investment Opportunities Exist
There are still important obstacles in the way of foreign investment with some large infrastructure/energy focused funds finding it nearly impossible to enter the market. Private equity funds have confirmed that they have been looking at some renewable energy projects, but could not make the numbers work, at least for energy production. In equipment manufacturing, the outlook seems brighter.
However, the cases presented above prove that China is currently a real market in renewables - both for power generation as well as for manufacturing equipment. Like in most sectors in the country, it's essential to be ingenious, flexible and persistent to overcome existing obstacles.
The rapid pace of growth and the environmental impacts of a coal-based economy have led China to look at renewable energies for sustainable development. Government action and private initiative are creating one of the largest Alternative Energies producers in the world, with Wind Power taking a prominent position and major foreign companies already present or looking to enter the market.
In today's context of scarce and expensive traditional energy sources, renewables are once again becoming a more and more popular alternative worldwide. China's specific situation is nowadays especially important for several reasons, including:
- The sheer size of the country its population, which in 2007 accounted for 16.8 per cent of the worldwide consumption of primary energy (only surpassed by the United States);
- Its economic growth and resulting increase in energy needs (10 per cent per year since 2000), both for producing goods and to meet improving living standards;
- The environmental impact of traditional energy sources (China depends on coal for 69 per cent of its energy) and the uncomfortable position of being one of the world's two largest emitters of CO2;
- Its geological features, in which the existing reserves of oil, natural gas and coal might be completely used in 15, 30 and 80 years respectively;
- China wanting to be, as much as possible, self-sufficient energy wise (and, hence, the ongoing acquisition of foreign energy assets, in Africa, Asia and even Europe).
- The increased use of renewable energy sources would address all these issues, at least partially. However, by then end of 2006, renewables accounted for just 7 per cent of China's total primary energy consumption.
Government Guidance
The Chinese Government has been stepping up its efforts in fostering the development of alternative energies. This becomes clear if we look at four key documents:
- The Renewable Energies Law, issued in February 2005 ("Law"), that establishes the general guidelines for the industry in areas such as pricing, cost sharing and financing, among others;
- The Medium and Long-Term Development Plan for Renewable Energy in China, published in September 2007 ("Plan"), stating that by 2020, 15 per cent of all energy should come from renewable sources, with a 30 per cent share by 2050. By 2020, according to the Plan, 300 GW of hydro capacity, 30 GW of wind, 30 GW of biomass and 1.8 GW of solar energy should be installed;
- The Catalogue for the Guidance of Foreign Investment Industries, amended in October 2007 ("Catalogue"), which places the "construction and management of new energy power plants (solar energy, wind energy, magnetic energy, geothermal energy, tide energy and biological mass energy, etc.)" in the Encouraged Industries category;
- The White Paper: China's Policies and Actions on Climate Change, released in October 2008, that places an emphasis on energy conservation and optimisation of the energy mix, namely by reducing the role of coal as the primary energy source.
The Specific Case Of Wind Power
According to data from the European Wind Energy Association, China was the fifth-largest wind energy producer worldwide at the end of 2007. With an installed capacity of 6GW (3.5GW installed during 2007 alone), it still trails Germany (22.2GW) and Spain (16.8GW) by a large margin.
While these figures show that there is still a reasonably wide gap between the 6GW of installed capacity and the 30GW objective for 2020, the truth is that at this rate, the Government's goals seem very conservative. Greenpeace has stated that by 2020 China will have 50-100GW of installed capacity, while China's National Development and Reform Commission (NDRC) has been quoted as admitting that 120GW is a more likely scenario by 2020. Considering the official surveys that estimate a 1000GW feasible wind power capacity, this seems well within reach.
A couple of areas have been subject to most attention and investment: the first one is in the North-Northwest, especially in Inner Mongolia and Xinjiang; the second area is along China's coastline, from Shandong all the way around to Guangxi. Additionally, offshore wind resources, although less explored, offer the greatest promise.
However, two very significant barriers have stood in the way of foreign investment in such a high potential industry: 1) the bidding system used to award major projects. Chinese companies tend to win the largest, centrally awarded projects by proposing to sell electricity to the grid at very low prices. These companies are apparently not so concerned with making money from renewables as they are with having a certain percentage of alternative energies in their energy portfolio, in order to meet Government demands; and 2) in a country where the market has little say in energy prices (the most notable cases being the low gas prices that have lead the government to compensate oil majors) it has been difficult for western companies to devise a profitable operation under these constraints.
Despite these barriers, foreign companies have been investing in two areas in the industry in China:
- Wind Turbine Manufacturers. The two largest companies worldwide are already manufacturing in China. The Danish company Vestas, with a 23 per cent global market share, has been producing in China since 2005, with several factories in Tianjin. The Spanish group Gamesa, with a 15 per cent global market share, has invested EUR40m to achieve a 700MW yearly turbine production capacity, also in Tianjin - and China is already responsible for 15 per cent of worldwide sales. Other large players, such as GE, Suzlon and Nordex, are also manufacturing locally.
- Wind Energy Producers. Australian company Roaring 40s is currently involved in seven wind farms (under construction and operating), in Shandong and Jilin provinces. It operates under a very specific JV model with a Chinese SOE partner (three projects with one company, four projects with another), looking for smaller projects (50MW) and negotiating directly with local authorities, therefore avoiding the larger, centrally awarded projects where large Chinese companies control their turf. Recently, it has signed an agreement with Datang Jilin Power Generation, a large traditional energy producing SOE, to develop a 1000MW wind farm. Construction will begin in 2008, and will be one of the largest projects in the world.
Another company involved in seven projects, all in Inner Mongolia, is Honiton Energy Holdings, which also operates in 50MW incremental projects but for larger wind farms. The company is based in China but has foreign investors and was recently acquired by a Dubai Investment Bank and a Singapore operator, in a USD2 bn deal. Unlike Roaring 40s, Honiton approaches each project alone, without JVs with Chinese companies. An interesting landmark achieved, according to the company, was the signing of the first Power Purchasing Agreement by a foreign firm - 25 years in duration, the first 35,000 hours will be sold at RMB0.548kw/h and subsequently at existing market prices.
Barriers Are Real, But Investment Opportunities Exist
There are still important obstacles in the way of foreign investment with some large infrastructure/energy focused funds finding it nearly impossible to enter the market. Private equity funds have confirmed that they have been looking at some renewable energy projects, but could not make the numbers work, at least for energy production. In equipment manufacturing, the outlook seems brighter.
However, the cases presented above prove that China is currently a real market in renewables - both for power generation as well as for manufacturing equipment. Like in most sectors in the country, it's essential to be ingenious, flexible and persistent to overcome existing obstacles.
China Solar Companies Reportedly Slowing Production
November 10, 2008, 1:12 pm
China Solar Companies Reportedly Slowing Production
Posted by Eric Savitz
The China-based solar cell and module manufacturers are slowing down production in anticipation of slowing demand and falling prices, according to Wedge MKI, the Asia-based research arm of investment research boutique Wedge Partners. In a research note this morning, Wedge provided a rundown on the moves some of the companies in the industry are making in response to the rapidly shifting economic conditions, including much tighter credit markets, falling module and polysilicon prices and a sharp appreciation in the dollar. "Companies are doing their best to hold on while pricing falls apart, but market visibility is very poor," Wedge reports.
Here's a rundown on the steps Wedge finds unfolding at some of the key players:
Suntech (STP): "Quietly laying off about 10% of its 10,000 employees, and has idled half its production lines." Wedge says the company is "lobbying regional banks for short-term financial support in order to ballast the company during this downturn." The company has "put on ice" its plans to expand from 700 MW to 1.2 GW by the end of the year. European orders are down, and depreciation of the dollar means ASPs "are untenably low." Prices proposed for new contracts would put solar manufacturers "into a loss position."
JA Solar (JASO): Customer orders are "drastically down." Channel sources say the company has "large volumes of inventory which will ultimately have to be sold at much-reduced prices." Contends that half of the company's production lines have been closed down.
Yingli (YGE): Postponed or canceled planned expansion from 400 MW to 600 MW. Trying unsuccessfully to renegotiate contact with equipment supplier GT Solar (SOLR); seeking to retrieve its down payment.
Trina (TSL): Halted plans to expand its plan to 700 MW, at least through Q1.
Canadian Solar (CSIQ): "Canadian Solar may also have slowed its ingot plant in Luoyang, Henan."
Wedge notes that the spot price of polysilicon in the China market is down to $233, from $280 last week. "Although the lowered input cost should offer relief, we understand that purchasing is very sluggish due to lack of visibility on market demand and also weak financing for pre-payments," Wedge reports.
China Solar Companies Reportedly Slowing Production
Posted by Eric Savitz
The China-based solar cell and module manufacturers are slowing down production in anticipation of slowing demand and falling prices, according to Wedge MKI, the Asia-based research arm of investment research boutique Wedge Partners. In a research note this morning, Wedge provided a rundown on the moves some of the companies in the industry are making in response to the rapidly shifting economic conditions, including much tighter credit markets, falling module and polysilicon prices and a sharp appreciation in the dollar. "Companies are doing their best to hold on while pricing falls apart, but market visibility is very poor," Wedge reports.
Here's a rundown on the steps Wedge finds unfolding at some of the key players:
Suntech (STP): "Quietly laying off about 10% of its 10,000 employees, and has idled half its production lines." Wedge says the company is "lobbying regional banks for short-term financial support in order to ballast the company during this downturn." The company has "put on ice" its plans to expand from 700 MW to 1.2 GW by the end of the year. European orders are down, and depreciation of the dollar means ASPs "are untenably low." Prices proposed for new contracts would put solar manufacturers "into a loss position."
JA Solar (JASO): Customer orders are "drastically down." Channel sources say the company has "large volumes of inventory which will ultimately have to be sold at much-reduced prices." Contends that half of the company's production lines have been closed down.
Yingli (YGE): Postponed or canceled planned expansion from 400 MW to 600 MW. Trying unsuccessfully to renegotiate contact with equipment supplier GT Solar (SOLR); seeking to retrieve its down payment.
Trina (TSL): Halted plans to expand its plan to 700 MW, at least through Q1.
Canadian Solar (CSIQ): "Canadian Solar may also have slowed its ingot plant in Luoyang, Henan."
Wedge notes that the spot price of polysilicon in the China market is down to $233, from $280 last week. "Although the lowered input cost should offer relief, we understand that purchasing is very sluggish due to lack of visibility on market demand and also weak financing for pre-payments," Wedge reports.
Monday, November 10, 2008
Advance In Flexible Thin Plastic Solar Cells
Swiss and Chinese researchers lifted the conversion efficiency of a bendable and thin type of solar cell.
Researchers in China and Switzerland are reporting the highest efficiency ever for a promising new genre of solar cells, which many scientists think offer the best hope for making the sun a mainstay source of energy in the future. The photovoltaic cells, called dye-sensitized solar cells or Grätzel cells, could expand the use of solar energy for homes, businesses, and other practical applications, the scientists say. Their study is scheduled for the November 13 issue of ACS' The Journal of Physical Chemistry C, a weekly publication.
The research, conducted by Peng Wang and colleagues - who include Michael Grätzel, inventor of the first dye-sensitized solar cell - involves photovoltaic cells composed of titanium dioxide and powerful light-harvesting dyes. Grätzel cells are less expensive than standard silicon-based solar cells and can be made into flexible sheets or coatings. Although promising, Grätzel cells until now have had serious drawbacks. They have not been efficient enough at converting light into electricity. And their performance dropped after relatively short exposures to sunlight.
In the new study, researchers describe lab tests of solar cells made with a new type of ruthenium-based dye that helps boost the light-harvesting ability. The new cells showed efficiencies as high as 10 percent, a record for this type of solar cell. The new cells also showed greater stability at high temperatures than previous formulas, retaining more than 90 percent of their initial output after 1,000 hours in full sunlight.
These cells offer two potential advantages: First off, they should be lower cost due to expected ease in manufacturing. Second, both their flexibility and their light weight will allow installation in places which otherwise would not support the presence of solar cells. For example, cars could have them on their roofs without a big weight penalty. Also, side walls and other vertical surfaces could be covered with lightweight solar cells whereas much heavier weight silicon photovoltaics would weigh too much for easy installation. Skyscrapers might some day get covered with Grätzel solar cell sheeting.
While they achieved 10% efficiency they only achieved 9.1% efficiency using materials that can be incorporated into a plastic.
The new dye absorbs light far better than the conventional dye. Because the dye absorbs light so well, it's possible to cut the thickness of the active material in the solar cell in half, which makes it easier for electrons to escape the solar cell and reach an external circuit. That, in turn, increases efficiency, in this case to 9.1 percent.
The researchers also paired the new dye with a nonvolatile solvent-based electrolyte. It's not quite as stable as an ionic liquid, and it can't be used with plastic. But it allowed slightly higher efficiencies--up to 10 percent.
With advances happening that cut costs for such a large variety of solar photovoltaic materials I am optimistic about the future of solar energy. PV electric power will come down in cost so far that it will compete with grid power during the day first in high sunlight areas such as the US southwest and gradually in lower and lower light areas. This will slow and eventually stop and reverse the growth of coal burning for electric power. It will also cut natural gas consumption and save it for more valuable space heating and fertilizer production.
Our biggest future energy problem continues to be for transportation. While the world recession has cut oil demand and oil prices the eventual resumption of economic growth will push oil prices back up again and the peak in world oil production is not many years away. I'm still not clear on whether advances in battery technology will happen soon enough to make the transition away from liquid fuels.By Randall Parker at 2008 November 09
Researchers in China and Switzerland are reporting the highest efficiency ever for a promising new genre of solar cells, which many scientists think offer the best hope for making the sun a mainstay source of energy in the future. The photovoltaic cells, called dye-sensitized solar cells or Grätzel cells, could expand the use of solar energy for homes, businesses, and other practical applications, the scientists say. Their study is scheduled for the November 13 issue of ACS' The Journal of Physical Chemistry C, a weekly publication.
The research, conducted by Peng Wang and colleagues - who include Michael Grätzel, inventor of the first dye-sensitized solar cell - involves photovoltaic cells composed of titanium dioxide and powerful light-harvesting dyes. Grätzel cells are less expensive than standard silicon-based solar cells and can be made into flexible sheets or coatings. Although promising, Grätzel cells until now have had serious drawbacks. They have not been efficient enough at converting light into electricity. And their performance dropped after relatively short exposures to sunlight.
In the new study, researchers describe lab tests of solar cells made with a new type of ruthenium-based dye that helps boost the light-harvesting ability. The new cells showed efficiencies as high as 10 percent, a record for this type of solar cell. The new cells also showed greater stability at high temperatures than previous formulas, retaining more than 90 percent of their initial output after 1,000 hours in full sunlight.
These cells offer two potential advantages: First off, they should be lower cost due to expected ease in manufacturing. Second, both their flexibility and their light weight will allow installation in places which otherwise would not support the presence of solar cells. For example, cars could have them on their roofs without a big weight penalty. Also, side walls and other vertical surfaces could be covered with lightweight solar cells whereas much heavier weight silicon photovoltaics would weigh too much for easy installation. Skyscrapers might some day get covered with Grätzel solar cell sheeting.
While they achieved 10% efficiency they only achieved 9.1% efficiency using materials that can be incorporated into a plastic.
The new dye absorbs light far better than the conventional dye. Because the dye absorbs light so well, it's possible to cut the thickness of the active material in the solar cell in half, which makes it easier for electrons to escape the solar cell and reach an external circuit. That, in turn, increases efficiency, in this case to 9.1 percent.
The researchers also paired the new dye with a nonvolatile solvent-based electrolyte. It's not quite as stable as an ionic liquid, and it can't be used with plastic. But it allowed slightly higher efficiencies--up to 10 percent.
With advances happening that cut costs for such a large variety of solar photovoltaic materials I am optimistic about the future of solar energy. PV electric power will come down in cost so far that it will compete with grid power during the day first in high sunlight areas such as the US southwest and gradually in lower and lower light areas. This will slow and eventually stop and reverse the growth of coal burning for electric power. It will also cut natural gas consumption and save it for more valuable space heating and fertilizer production.
Our biggest future energy problem continues to be for transportation. While the world recession has cut oil demand and oil prices the eventual resumption of economic growth will push oil prices back up again and the peak in world oil production is not many years away. I'm still not clear on whether advances in battery technology will happen soon enough to make the transition away from liquid fuels.By Randall Parker at 2008 November 09
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