Skip to main content

China's renewables: the more the merrier

A new study of the potential for variable renewable energy (VRE) in China says that it is vast, nearly 20 TW, and that, far from adding to the problem of grid balancing, as more of both wind and PV solar  is installed over a wider area, they were mutually supporting. There was a ‘complementarity between wind and solar in China, reflected in more optimal return-volatility performance of wind & solar portfolios, as compared to wind-only and solar-only portfolios’. And expanding both made it easier to deal with their variability: ‘For the same total installed capacity, wind & solar portfolios with unconstrained technology shares exhibit better return-volatility performance than portfolios with constrained technology shares. This suggests that existing scenarios in literature with pre-defined shares of different VRE technologies might be sub-optimal to support power system operation’.                                              

The authors of the paper are unhappy with the use of the term ‘intermittency’. While they say it ‘fairly characterizes the output pattern per VRE installation, the collective VRE output pattern is more important from the perspective of power system operation. We argue that “intermittency” should not be used to characterize the collective output pattern of well-diversified VRE assets spread over a large geographical area’.

Their study suggests that, as more capacity of solar and wind is added, a larger average system output share is available as reliable fixed output. i.e. a larger amount of the total capacity can be treated as 100% firm - as measured by the system capacity factor (CF), which they say can reach up to 5.5%. That means that less backup or storage capacity is needed to cover the periods when all wind and all solar inputs are low.

Optimal Choices for China

However, trying to maximize the CF may not be the optimal choice on cost grounds: it might be better, in terms of the Levelised Cost of Energy, to accept lower CFs and higher system output volatility, since ‘with increased portfolio volatility (and portfolio return), the LCOE of wind and solar portfolios decreases’. That might mean less use of low CF solar, but then it’s a trade off: if higher cost low-CF assets are replaced by high-CF assets, overall LCOEs fall.  

The analysis has some limitations - due to the scarcity of reliable data, it does not use hourly modeling of supply and demand, only scenario/portfolio approach, and it uses LOCEs not full system costs. In addition, it’s focused just on solar and wind, whereas China also has a very large hydro capacity (252 GW), some of which can be used for grid balancing. So can biomass-fired plants and geothermal plants. So we are still some way from identifying system optimals and back up needs.

The situation in China is perhaps unique. It is vast, covering a range of climate zones and with its renewable resources also varying geographically. However, there is a lot of it. The study puts the maximum capacity that can be installed at 575-4909 GW for onshore wind, 559-932 GW for off shore wind and 12,936 GW for PV. It says the best resources (in terms of both high mean CF and high potentials) are found in Inner-Mongolia for wind and North China for solar. That means there will be a need for more/and upgraded grid systems to bring power to centres of population which are mostly in the South East. But it is working on that, with 30,000 kilometers of new Ultra High Voltage Direct Current links having been installed so far and plans for 90,000 km in all by 2020. That will help with balancing. 

The current state of play is that China has nearly 730 GW of renewables in place, more than than any other country.  Weak grids have been a problem, leading to curtailment (non use) of some of the output from this capacity, but that is being addressed, including by the new supergrid network, as above.  IRENA says that curtailment levels at wind farms dropped to 7% in 2018 from 13% in the previous year, while solar PV plants it dropped to 3% from 5.8% over the same period. With PV and wind costs falling, the funding/subsidy over-spend problems that had also emerged, and slowed growth, may now be reduced, so expansion should continue. And that is happening: by the end of 2018, renewables were up 12% on the year before, and in the first quarter of this year, China added 5.2 GW of new PV solar and 4.78 GW of new wind capacity.  As this new study shows, there is plenty of room for more, without leading to major balancing problems. And the impetus for expansion, so as to cut emissions, is certainly growing, as awareness of likely worsening climate impact spreads.

Emission cuts

China has pledged to cut emissions per unit of GDP by 60-65% of 2005 levels by 2030, potentially putting it on course to peak by 2027 and it has committed to a peak in CO2 emissions by 2030, with best efforts to peak earlier. If the renewables programme can accelerate again, along with its other emission reduction efforts, it might be able to do better than that that. It has been claimed that PV Solar is now cheaper than grid electricity in cities across China. In 22% of them it was cheaper than coal power. And it has also been claimed that emissions from urban passenger transport could peak as soon as 2020 due to the use of green fuels, EVs, and, crucially, a shift to public transport 

That’s the good news. The less good news is that coal use is still expanding, more so than in many other parts of the world, with new coal plants being planned to meet the growing demand, even if at slower rate than before. Something has to give, if emissions are to fall, and that hopefully will happen, given the cost advantages of renewables and as the potential for demand reduction are realized.  

Emissions from China’s coal-fired plants had been falling up to 2017, according to a new study, and although they then increased, that then began to flatten off, possibly due to revised operating procedures- to reduce emissions, some of the older less efficient ones were only run part time, just to meet peak demand. However, that may not help longer term, as and when more plants come on line- even if they are more efficient than the old ones.


Certainly China’s overall CO2 emissions from fossil fuels and cement production grew by an estimated 4% in the first half of 2019. That may be because of a surge in real estate and infrastructure construction that saw emissions from steel and cement expand rapidly, in part due to the huge ‘Belt and Road’ overseas trade expansion programme,  with new links being built- a new Silk Road.  The progamme has also involved vast investment, including in energy projects, outside of China. But it has been claimed that solar expansion across the region might start to offset some of the impacts of that, and, within China, there are hopes for an overall emission peak by 2022- well ahead of schedule. We shall see…It could get worse , with more coal use, although some are hopeful that it will get better soon.  Moreover, although it may only be temporary, one of the side effects of the Coronavirus, and the national travel lockdown, has been a significant fall in oil use.

Comments

Popular posts from this blog

Global Energy Outlooks - BP v Jacobson

The share of renewables in global primary energy may increase ‘from around 10% in 2019 to between 35-65% by 2050, driven by the improved cost competitiveness of renewables, together with the increasing prevalence of policies encouraging a shift to low-carbon energy’. So says BP in its latest Global Energy Outlook . It does see wind and solar accounting ‘for all or most of the growth in power generation’, but even at the top of the range quoted, it still falls a lot short of the renewable ‘100% of total energy’ scenarios that have been produced by some academics in recent years.  To fill the gap to zero net carbon, BP sees wide-scale use being made use of carbon capture technology, as well as some nuclear power. And it says ‘Natural declines in existing production sources mean there needs to be continuing upstream investment in oil and natural gas over the next 30 years’. You won’t find much support for these fossil and nuclear options in the scenarios produced by Stanford Universi...

Renewables beat nuclear - even with full balancing included

A new Danish study comparing nuclear and renewable energy systems (RES) concludes that, although nuclear systems require less flexibility capacity than renewable-only systems, a renewable energy system is cheaper than a nuclear based system, even with full backup: it says ‘lower flexibility costs do not offset the high investment costs in nuclear energy’.  It’s based on a zero-carbon 2045 smart energy scenario for Denmark, although it says its conclusions are valid elsewhere given suitable adjustments for local conditions. ‘The high investment costs in nuclear power alongside cost for fuel and operation and maintenance more than tip the scale in favour of the Only Renewables scenario. The costs of investing in and operating the nuclear power plants are simply too high compared to Only Renewables scenario, even though more investment must be put into flexibility measures in the latter’.  In the Danish case, it says that ‘the scenario with high nuclear implementation is 1.2 bil...

The IEA set out a way ahead

The International Energy Agency's new Global Energy Roadmap sets a pathway to net zero carbon by 2050, with, by 2040, the global electricity sector reaching net-zero emissions. It wants no investment in new fossil fuel supply projects, and no further final investment decisions for new unabated coal plants. And by 2035, it calls for no sales of new internal combustion engine passenger cars. Instead it looks to ‘the immediate and massive deployment of all available clean and efficient energy technologies, combined with a major global push to accelerate innovation’.  The pathway calls for annual additions of solar PV to reach 630 GW by 2030, and those of wind power to reach 390 GW. All in, this is four times the record level set in 2020. By 2050 it wants about 24,000 GW of wind and solar to be in place. A major push to increase energy efficiency is also seen as essential, with the global rate of energy efficiency improvements averaging 4% a year through 2030, about three times the av...