The Backbone of China's New Energy System

The Backbone of China's New Energy System

Across China, from the snow-capped north to the dry deserts of the west and mountain jungles of the south, an immense power grid is being constructed.china new energy This is the backbone of a new energy system that will enable renewables to take on the task of displacing coal and bring about a net-zero emissions future.china new energy To meet this ambitious goal, it will require a radical transformation in the way electricity is generated, transported and consumed, including electrifying surface transport and buildings to cut demand for steel and cement and increase efficiency, which will reduce GHG emissions.

To achieve these goals, the 14th Five Year Plan for a Modern Energy System was released last month, and lays out plans for the energy sector up to 2025.china new energy The title is a significant change from the previous plan, which used a more generic “energy development plan”, and reflects the focus on a new system that can accommodate China’s dual climate ambitions. Energy experts China Dialogue spoke to said the plan is wide-ranging but lacks clear direction and strong quantitative targets, sending mixed signals about China’s energy transition.

The key to achieving the China’s national climate goals is the massive expansion of renewable generation, bringing the country’s total installed capacity up to about 3.china new energy 3 trillion kWh by 2025. However, meeting this target will also mean integrating more energy storage – and the cost of batteries has dropped significantly over the past decade, making it much more affordable to build large-scale storage systems.

Energy storage is crucial to renewable integration, allowing the electricity produced by solar and wind to be stored and later used at times of peak demand when it is most needed.china new energy It is also critical for reducing the need for backup generation in remote areas, where there is less transmission capacity and higher costs.

In addition, a smarter and more efficient power grid will be needed to allow renewables to displace coal.china new energy At present, the grid is structured to encourage power plants in remote areas - like the Kela plant - to be built to support coal generation in urban areas. The result is that many renewable projects - both solar and wind - are bundled with fossil fuel generation to be transmitted thousands of miles from the western provinces to eastern cities, where most consumption occurs.

This inefficient approach means that the China’s state grid will need to invest billions of dollars to upgrade its infrastructure and create a more efficient and unified network that can integrate renewables.china new energy This can be done through a number of strategies, including promoting the construction of a new generation of high-voltage direct current (HVDC) transmission lines. This will allow electricity to be flowed from regions with excess renewables to the densely populated and heavily consuming east, and it will allow provinces with high levels of renewables to avoid the expensive cost of importing coal-based power. The China’s state grid will also need to make greater use of demand-side management, which will help to better balance supply and demand and increase the efficiency of its operations.