New energy focuses on four key industries, with biomass energy leading the way

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The last edit to this post was made by qinweijun on 2012-3-15 at 15:45. Reporters have recently learned that the 12th Five-Year Plan for the development of strategic emerging industries has entered the stage of seeking feedback, with its release approaching. As one of the seven strategic emerging industries, the future development of new energy will focus on four key sectors: nuclear power, wind power, solar energy, and biomass energy. Among them, the installed capacity for solar and biomass power generation has been basically determined, with these capacities reaching 10 million kilowatts and 13 million kilowatts respectively over the next 5 years. In terms of planning objectives, biomass energy has overtaken photovoltaic power. Experts point out that, compared to photovoltaic power, biomass power generation has cost advantages, which is a key reason for its growing popularity. Shi Yuanchun, an academician of the Chinese Academy of Sciences and the Chinese Academy of Engineering, estimates that a power generation capacity of 13 million kilowatts would require the construction of 500–700 biomass power plants, meaning that over 100 such plants need to be built each year. “Affected by the nuclear accident in Japan, greater emphasis is being placed on the safety of nuclear power development, which may impact its pace of growth. ”**Zhou Fengqi, a senior advisor at the Energy Research Institute of the National Development and Reform Commission, analyzed that the low cost of biomass energy for power generation compared to the high cost of solar energy is one of the main reasons why biomass energy will see faster development in the next 5 years. **Liu Tienan, vice head of the National Development and Reform Commission and director of the **Energy Bureau, said at China’s first Rural Energy Work Conference that it is necessary to arrange biomass power generation projects in a rational manner, promote the use of biomass briquettes, develop non-grain-based bio-liquid fuels steadily, and advance biomass gasification projects. It is reported that in addition to having a biomass power generation capacity of 13 million kilowatts by 2015, it is also planned to provide gas to 3 million households, with an annual consumption of shaped fuels reaching 20 million tons, an annual consumption of biofuel ethanol reaching 3 million tons, and an annual consumption of biodiesel reaching 1.5 million tons. Experts predict that by 2015, the utilization of various types of biomass will exceed at least 40 million tons of standard coal. “All regions attach great importance to strategic emerging industries and are providing various forms of support. ”An industry insider revealed to reporters that not long ago, the Guangdong Provincial Development and Reform Commission issued a notice to specifically investigate the loan needs for projects in strategic emerging industries. Its purpose is to use methods such as loan commitments, guarantees, and interest subsidies to meet the funding needs of strategic emerging industry development projects. The reporter learned that in order to fully support the development of the new energy industry, relevant departments have identified several key actions and important support policies. Currently, the **Development and Reform Commission is working on formulating an implementation plan for the comprehensive utilization of straw; it plans to introduce pilot programs for such utilization, and is also aiming to promote the development and deployment of large-scale automated machinery for straw collection, in order to pave the way for the development of biomass energy. In addition, the relevant departments will also advance the research and development of key equipment such as gas internal combustion generator sets, as well as the industrialization of large-scale biomass gasification and purification systems. Li Yuanpu, an executive director of the Chinese Society for Renewable Energy, believes that in addition to the measures mentioned above, it is also necessary to strengthen the breeding and industrialization of plant materials for bioenergy. It is precisely in recognition of the huge potential for the development of biomass energy that, in recent years, regions such as Hubei and Shandong**, along with listed companies like Kaidi Power and COFCO Biochemicals, have pooled their resources to increase investment in the biomass energy industry. (Reporter: Yu Xiangming ○ Editor: Heng Daoqing) The wind power industry faces restrictions; breakthroughs in key technologies will be the highlights. Authorities have reached a consensus on the development goals for the wind energy industry over the next decade: by 2015, the total installed capacity of wind power systems connected to the grid is expected to exceed 90 million kilowatts, with an annual power generation volume of 180 billion kilowatt-hours ； By 2020, the targets for installed capacity and annual power generation are over 150 million kilowatts and 300 billion kilowatt-hours, respectively. Prior to that, the market expected the installed capacity of the wind energy sector to be 100 million kilowatts by 2015, with projections as high as 200–250 million kilowatts by 2020. The targets set by the relevant authorities are significantly lower than previous market expectations. The targets set by the relevant authorities also stipulate that China will build eight wind power bases with a capacity of ten million kilowatts each in the Northeast, Northwest, northern North China, and coastal areas during the period 2015–2020. Xiao Han, a researcher in the new energy sector at CIC Consulting, noted that based on the total capacity of 90 million kilowatts in 2015, during the 12th Five-Year Plan period, aside from the eight major wind power bases, only about 10 million kilowatts were available for other smaller wind power and offshore wind power projects. Previously, the market’s expectations for offshore wind power exceeded 10 million kilowatts. In fact, it is evident from the development strategies for the wind energy industry from 2015 to 2020 that the regulatory authorities held relatively conservative expectations regarding small and medium-sized wind power projects as well as offshore wind power projects – that is, to develop small and medium-sized wind power projects in a manner suited to local conditions, and to carry out pilot projects for offshore wind power. ” According to the introduction, the “speed restrictions” on the wind power industry are mainly caused by problems within the industry itself. Over the past five years, the wind power industry has doubled in size, growing from 1.2 million kilowatts at the end of 2005 to 42.3 million kilowatts by the end of 2010, making it the world’s leader in new and cumulative wind power capacity installed. The problems caused by rapid growth have gradually become apparent recently. Lin Boqiang, director of the China Energy Economics Research Center at Xiamen University, believes that insufficient investment in research and development leads to technological backwardness, overcapacity in equipment production, and difficulties in connecting wind turbines to the grid – all of which are problems in the development of wind power and also the root causes of frequent quality issues. Feng Fei, head of the Industrial Economics Research Department at the Development Research Center of the State Council, said, “The development of wind power must focus on reliability; we have been using wind power for only a short time, and the problems have not yet become fully apparent.” In the coming period, reliability issues with fans may come to light. ” Therefore, while the production capacity of the wind energy industry is restricted, relevant authorities have placed greater emphasis on the quality of its development. Authorities have stated that over the next decade, **efforts will be made to help companies achieve further breakthroughs in wind power operation control and large-scale grid connection technologies. The reporter was informed that in order to improve the capacity for wind power to be connected to the grid, the relevant authorities have formulated technical **standards for wind power grid connection, namely the “Technical Regulations for Integrating Wind Farms into the Power System.” It has now passed the final review and been submitted to the **Standardization Management Committee. Meanwhile, the industry standard \"Technical Specifications for Grid Connection Design of Large-Scale Wind Farms\" has also passed the final review and been submitted to the **Energy Administration. It is specified that wind turbines connected to the grid need to have low-voltage ride-through technology. Low-voltage ride-through refers to the ability of wind turbines to continue operating without disconnecting from the grid when a voltage drop occurs at the connection point due to a grid fault; in the event of a grid failure, they can be disconnected from the grid, thereby enhancing the safety and stability of the grid. Low-voltage ride-through technology is mainly implemented by converters. Among the goals set by the relevant departments, improving the technical development capabilities of key components such as converters is explicitly mentioned. Zhang Shuai, a researcher at Guojin Securities, believes that the importance of converters will continue to increase. Based on an installed capacity of 150 million kilowatts in 2020, the market size for converters is estimated to be 5.5 billion yuan per year, which is not much different from the level in 2010. However, with the development of local enterprises, the market share of domestic products is expected to rise from the current less than 5% to over 30%, representing a growth potential of about 6 times. Xiao Han believes that among listed companies, Guodian NARI’s wind turbine converters have effectively addressed the issue of low-voltage ride-through, and the company is expected to see breakthroughs in terms of orders this year. The wind turbine converters controlled by Haid also have passed low-voltage ride-through certification. (Reporter Li Yanzheng ○ Editor Heng Daoqing) Solar power generation capacity is set to increase tenfold within five years. As an important part of the new energy sector, the development goals for the solar energy industry during the 12th Five-Year Plan period have been clearly defined. Reporters learned from authoritative sources recently that by 2015, the installed capacity of solar power generation will exceed 10 million kilowatts. During this period, photovoltaic power generation will also achieve \"grid parity\" on the user side, taking another step forward toward commercialization. Industry experts say that as the installed capacity of solar power generation expands rapidly during the 12th Five-Year Plan period, investment in the solar industry is expected to reach hundreds of billions of yuan, leading to explosive growth in the photovoltaic market. The installed capacity for solar power generation is set to increase tenfold. Reporters have learned that a consensus has been reached regarding the development goals for the solar energy industry during the 12th Five-Year Plan period: by 2015, the installed capacity for solar power generation is expected to exceed 10 million kilowatts. It is understood that currently, there are 1 million kilowatts of solar power capacity under construction in our country. To achieve the aforementioned goals, it means that over the next 5 years, the installed capacity will increase by 1–2 million kilowatts each year; by the end of the 12th Five-Year Plan period, the installed capacity for solar power generation will have increased tenfold. According to Meng Xiangan, vice president of the Chinese Society for Renewable Energy, **the energy authority has set a goal to reach 10 million kilowatts of solar power generation capacity in China during the 12th Five-Year Plan period, including both photovoltaic and concentrated solar power generation. Dong Xiufen, head of the Renewable Energy Department at the Energy Bureau, also said earlier at a seminar on the large-scale development of solar power generation organized by the bureau in collaboration with the Asian Development Bank that, according to the special plan for new energy being formulated for the 12th Five-Year Plan period, China’s installed capacity for solar power generation will reach 10 million kilowatts by the end of that period. Dong Xiufen pointed out that the aforementioned 10 million kilowatts of installed capacity is primarily composed of three parts. Among them, solar power generation bases have been established in provinces and regions such as Qinghai, Xinjiang, and Gansu, while major large-scale solar power projects are being promoted in Inner Mongolia, Ningxia, Shanxi, Tibet, etc. These large-scale solar power plants account for approximately 6.5 million kilowatts. In addition, about 3 million kilowatts come from distributed photovoltaic projects, which are mainly located in areas with high energy consumption in the central and eastern regions; these projects are planned based on electricity demand levels, with an emphasis on self-use of the generated power ； The remaining approximately 500,000 kilowatts consist mainly of off-grid solar systems, used in remote areas without electricity or with insufficient power supply. Authorities also revealed that as the costs of solar systems continue to decline, the actual installed capacity will **increase; by 2020, this figure is expected to exceed 40 million kilowatts. The timeline for achieving ‘grid parity’ in photovoltaic power generation has been established. Although the prospects for photovoltaic power generation in China are promising, industry experts generally believe that the difficulty in achieving grid parity is the key factor hindering the large-scale commercialization of this technology. As the cost of photovoltaic power generation declines and supportive policies are introduced, a roadmap for achieving grid parity in photovoltaic power generation is gradually taking shape: by 2015, it is expected that photovoltaic power generation will achieve grid parity on the consumer side, and by 2020, it will achieve grid parity on the generation side. It is understood that the concept of \"grid-parity\" for photovoltaic systems can be divided into two categories depending on the method of grid connection: in the case of user-side grid connection, the photovoltaic power generation system is used for self-consumption, with any excess electricity sold to the grid, following a \"net metering\" system; in other words, the power company purchases the photovoltaic-generated electricity at the selling price ； This method of power generation is commonly found in cities and towns, and its competitor is the local selling electricity price. On the other hand, grid connection on the power generation side is a form of grid connection for power stations, suitable for large-scale desert photovoltaic power stations, and its competitor is the feed-in tariff for conventional electricity. “The condition for achieving affordable electricity access is a continuous decline in the cost of photovoltaic power generation, until it becomes comparable to that of competing sources, or even lower. ” Wang Sicong, a researcher at the Energy Research Institute of the National Development and Reform Commission, said. Following the development strategy proposed by Wang Sicong, in 2009 the benchmark price for electricity generated from photovoltaic systems fed into the grid was 1.5 yuan per kilowatt-hour. If the electricity price for photovoltaic power generation in China continues to decline at a rate of 8% per year, it could drop to 1 yuan per kilowatt-hour by 2015, and reach 0.6–0.8 yuan per kilowatt-hour by 2020. “When the electricity price for photovoltaic power generation drops below 1 yuan per kilowatt-hour, subsidies will no longer be necessary, and ‘grid parity’ will be fully achieved. ” Therefore, Wang Sicong pointed out that in 2015, parity between photovoltaic power generation and grid electricity prices on the user side would be achieved ； By 2020, achieve grid parity on the power generation side. This approach to development is also confirmed by the statements of relevant officials from the **Energy Bureau**. In June of this year, Liang Zhipeng, deputy director of the Department of New and Renewable Energy at the National Energy Administration, said during a seminar that the administration is preliminarily considering achieving \"grid parity\" for solar power generation on the user side by 2015, with the price of solar power reaching levels comparable to those of traditional fossil fuels by 2020. Industry insiders reveal that in the future, **a grid operation and management mechanism suitable for distributed solar photovoltaic power generation will be established, and the mechanism for determining the feed-in tariff for photovoltaic power will be improved. The photovoltaic market is set to experience explosive growth. Behind the rapid increase in installed capacity, a photovoltaic market worth hundreds of billions is taking shape. Jin Yong, an academician of the Chinese Academy of Engineering and a professor at Tsinghua University, said recently that China’s optoelectronic production capacity doubles every year, while costs are declining. Originally, the cost of generating 1 kilowatt of electricity through photovoltaic systems was around 40,000 yuan, but it has now dropped below 20,000 yuan. Analysts point out that at the current cost of 20,000 yuan per kilowatt, investment in solar energy over the next 5 years will reach 200 billion yuan. Industry insiders reveal that, in terms of policy, the development of the solar energy industry will aim to improve the conversion efficiency of solar cells and reduce the costs of photovoltaic power generation systems, with greater emphasis placed on the development of new processes and equipment for manufacturing solar energy utilization devices. In a research report, Guoxin Securities noted that manufacturers of key equipment and materials for the solar industry face significant opportunities for growth. Among them, companies that deal in upstream materials and equipment will benefit in the future from the development of the solar photovoltaic industry and the substantial market opportunities arising from import substitution, resulting in growth rates that are higher than the industry average. Related companies include Tianlong Optoelectronics, Zhonghuan Shares, Hengxing Technology, etc. (⊙Reporter: Liang Min ○Editor: Heng Daoqing) Advanced nuclear technologies will play a key role in the next five years. “In the development of nuclear power, safety comes first; in other words, there is a preference for more advanced technologies.” ”**Zhou Fengqi, a senior advisor at the Energy Research Institute of the National Development and Reform Commission, said. The reporter learned that, as one of the \"four key players\" in the new energy industry, nuclear power will be developed on the basis of ensuring safety, with the target of achieving 40 million kilowatts of installed capacity by 2015 remaining unchanged. The **12th Five-Year Plan for Science and Technology Development** released by the Ministry of Science and Technology recently also specifies the development plans for key scientific and technological initiatives in the nuclear power sector – namely, large-scale advanced pressurized water reactors and high-temperature gas-cooled reactors – during the 12th Five-Year period. At the same time, fourth-generation nuclear energy and hydrogen energy, as key areas in the development of advanced energy technologies, will be further explored and developed. According to the Plan, the main tasks for the development of nuclear power in China over the next five years are to make breakthroughs in advanced pressurized water reactor and high-temperature gas-cooled reactor technologies, improve the standard system, establish technical platforms, and enhance the international competitiveness of the nuclear power industry. Regarding the specific construction progress, the Plan specifies that by relying on the nuclear power plant construction project using the advanced passive nuclear technology (AP1000) with an installed capacity of 1,000 megawatts, it is necessary to fully master the key design technologies for AP1000 nuclear power plants as well as the manufacturing technologies for key equipment and materials, and to independently develop standard designs for inland plant sites. Complete the design of the standard system for China’s 1,400-megawatt advanced passive nuclear power technology (CAP1400) and build a demonstration plant, so that it will be ready to transmit electricity in reverse and have part of its control room operational by the end of 2015. Research on the key technologies for high-temperature gas-cooled reactors was completed, and demonstration power plants were built and put into trial operation around 2013. “Strengthen the technical support for the safety of pressurized water reactors and high-temperature gas-cooled reactors, as well as research efforts related to the reprocessing of spent nuclear fuel, in order to ensure the safety of nuclear power. ”The Plan also addresses safety issues during the construction of major special projects. Industry experts point out that advanced nuclear energy technologies will be a key factor in improving the level of nuclear power development in our country, and they are in line with the trends in nuclear power development worldwide as well as the realities of nuclear power development in China. “The purpose of establishing major special projects is to organize and concentrate the best scientific research teams and resources, so as to achieve breakthroughs in key areas and acquire world-class technologies, thereby providing strong support for the development of nuclear power in our country. By setting a clear timeline this time, it demonstrates **a high level of emphasis on nuclear power generation. ”The aforementioned expert said. The reporter learned that the construction of the four units of the AP1000 project is progressing steadily, with all milestone targets for 2009 and 2010 having been successfully achieved. As of July 18, 5 of the milestone targets for 2011 have been achieved. The conceptual design of the CAP1400 nuclear power plant, which has a higher power output than the AP1000 and features independent intellectual property rights in China, was approved in 2010. As of March this year, the preliminary design for the CAP1400 nuclear power plant demonstration project has been fully underway. Site surveys, optimization of the overall layout, as well as the preparation and submission of feasibility study reports and assessments regarding environmental impact and site safety have also been completed.