China shifts from thermal to non-nuclear thermal sources of power generation

Thermal installations are expected to account for just 64.8% of total installed capacity by 2020 from the over 72% reported in 2010, says the GlobalData.

China is the main driver for the Asia-Pacific power market, with an installed capacity base of 977,019 MW in 2010. Data from the GlobalData sent to Asian Power show that during the period of 2000 to 2010, the installed capacity has been increasing at a Compound Annual Growth Rate (CAGR) of 11.8%. In the future, the research firm noted that the country is expected to increase its installed capacity to 2,248,180 MW at a very high CAGR of 8.5% but with reduced dependence to thermal sources of power generation.

Here’s from the GlobalData:

The country employs all four technologies (thermal, hydro, nuclear and renewable) with thermal sources accounting for over 72% of the total installed capacity. The share of renewable and nuclear energy in the country’s power mix has been relatively low. However, the country is expected to increase the share of other technologies to diversify its portfolio. By 2020, thermal installations are expected to account for just 64.8% of total installed capacity.The government has set huge targets for increasing installation capacities for all types of power plants. The country aims to increase the use of non-fossil fuel to 15% by 2020. This includes hydro, renewable and nuclear power generated from domestic sources,” it added.

What are the opportunities for clean energy in the country?

The majority of fuel requirements in china are met by domestic fuel production. Coal is completely met by domestic production and most gas demand is met through domestic production as well. The country has very small amounts of liquified natural gas (LNG) imports that are required to meet the gas requirements in the country. The uranium for nuclear reactors is imported. With the level of supply required by its energy demand, however, there is a good chance that China will be a net importer of coal by 2020. This is one of the main reasons for the country’s focus on diversifying its energy portfolio and increasing the share of other technologies in its power mix. Natural gas imports in the country will also increase in future and so China is collaborating with Iran and other countries for a guaranteed LNG supply. China, being a vast country, has a lot of potential in renewable energy, in terms of solar, biomass, wind, hydro and geothermal power, which is expected to be capitalized on in order to maximize its renewable installed capacity in future.

China has a lot of thermal installed capacity, especially in the form of coal-fired plants, and as a result they have high carbon emissions as well. Prior to 2005, there were very few renewable energy power plants in the country; however, since then the government has been encouraging the installation of a higher percentage of non-thermal power plants in the country.

There is a lot of government support to increase the utilization of non- thermal resources in the country. The new 12th Five Year Plan (2011- 2015) draft was relased earlier this year, and this plan includes a new target for cutting energy consumption per unit of GDP (Gross Domestic Product) and also targets for reducing carbon dioxide emissions per unit of GDP. The government aims to increase energy consumption from non-fossil fuel sources to 15% by 2020. There are compulsory targets for generating utilities to generate power from non-thermal resources as well. In April 2010, the new renewable energy law took effect which included more detailed planning and co-ordination of renewable energy with the country’s transmission grid planning as well. Such policies ensure that there will be high growth in clean technology and renewable energy in the coming years.

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Tags: China power market, China nuclear power plant, China renewable energy, clean energy investments in China