context: Renewables are largely able to operate independently of state subsidies. Access to the grid and renewable consumption will be major roadblocks to a transition to a highly renewable power system. Financial support is crucial for power grid upgrades.
State Council Information Office released 'China's energy development in the new era white paper' on 21 Dec 2020. Zhang Jianhua 章建华 NEA (National Energy Administration) director noted that raising the proportion of non-fossil energy in primary energy consumption from 15.8 percent in 2020 to 25 percent in 2030 will be difficult and will require 70 percent of additional generation to come from non-fossil energy.
Raising the total installed capacity of wind and solar to 1.2TW will be inadequate to reach the 25 percent non-fossil energy goal, adds Lin Boqiang 林伯强 Xiamen University China Energy Policy Research Institute dean. This means a further expansion of nuclear, biomass and hydropower. Current total installed capacity of wind and solar is below 500 GW, accounting for about 4 percent of total energy consumption.
An increased share of renewable power also means higher requirements for the power grid, says Lin. Renewables consumption has replaced subsidies as the biggest concern, with a continued drop in costs, notes Zhang. Recent power restrictions in some areas may be related to the growing deployment of renewables and insufficient power grid stability. Transforming and upgrading the power grid system may still need government subsidies, adds Lin.
Zhu Ming 朱明 NEA Legal and Institutional Reform Office director noted that during the 14th 5-year plan period, it is necessary to
- build a new power system adapting to a higher proportion of renewables and an intelligent power dispatch transaction/operation mechanism
- promote technology application such as flexible direct current transmission, local smart grids and microgrids
- construct more inter-provincial power transmission channels
- upgrade traditional coal-fired power plants, expand energy storage and improve system flexibility
- improve the renewable consumption guarantee mechanism by
- incorporating the mechanism into the law
- incorporating renewables consumption accountability assessment into local economic and social development evaluation systems