Construction of modern energy systems were proposed in the draft of the 13th -Five-Year-Plan. At the same time, eight major projects in the energy field were proposed. In the filed of the third recyclable energy project, the country proposed the idea of taking hydropower development in the southwest region as the focus, constructing 60 million KW traditional hydropower, overall planning receiving markets and transmission channels, orderly optimizing construction of “Northeast China, North China and Northwest China”, coastal sceneries and photovoltaic projects, and fastening development of distributed wind power generation and distributed photovoltaic generation in the east central region and the southern region.
Construction of modern energy systems were proposed in the draft of the 13th -Five-Year-Plan. (hereinafter referred to as the “plan draft”). At the same time, eight major projects in the energy field were proposed during the 13th -Five-Year-Plan period.
Eight major projects are as follows: firstly, the efficient intelligent electric power system; secondly, clean and efficient utilization of coal, comprehensively implementing ultra-low emission and energy-saving reconstruction of coal-fired units; thirdly, recyclable energy, constructing 60 million KW traditional hydropower; fourthly, nuclear power; fifthly, nontraditional oil and gas; sixthly, energy transmission channels; seventhly, energy reservation facilities; eighthly, key energy technical equipment.
“These eight major projects will positively promote construction of modern energy systems. The order of these projects also shows key points in the order of future tasks.” According to analyses of Chai Qimin, the deputy director of Strategic Planning Department of National Strategic Center for Climate Changes, the second major project and the third major project are specially paid attention to.
Ultra-Low Emission Reconstruction Increases the Price of Electricity
In clean and efficient utilization of coal in the second major project, the country proposed the idea of implementing plans of energy saving and emission reduction and upgrading of coal-fired power, and comprehensively implementing ultra-low emission and energy-saving reconstruction of coal-fired units, so as to reduce the average coal consumption in generating one kilowatt-hour of electricity to less than 310g for all power stations in service and less than 300g for newly built power stations.
The so-called ultra-low emission refers to emission of main pollutants in coal-fired power plants lower than the current statutory standard of Emission Standard of Air Pollutants for Thermal Power Plants in our country, while being close to or reaching the emission standard of natural gas turbine units.
The Minister of Environmental Protection Department, Chen Jining said on March 11th that China was promoting the ultra-low emission reconstruction project of coal-fired power plants, which required emission of sulfur dioxide, nitrogen oxide and dusts by power plants close to levels of natural gas power plants and would bring positive influences to the solution of the problem of haze.
The current ultra-low emission policy for coal-fired power plants has far exceeded Action Plan for Energy Saving and Emission Reduction and Upgrading of Coal-Fired Power implemented by the country in 2014. Ultra-low emission reconstruction of coal-fired units in service has been expanded from the east region to the east central region. At the same time, the reconstruction time has been shifted to an earlier time. Coal-fired units of over 100 thousand KW in the east region and coal-fired units of over 300 thousand KW in the middle region will realize ultra-low emission by the end of 2017 and 2018 respectively.
However, costs of ultra-low emission reconstruction are high. A research carried out by Environmental Planning Institute of Environmental Protection Department found that costs of dust elimination in the steel industry and denitrification in the cement industry were lower than that in the thermal power industry. The advantage in costs of pollutant emission reduction in the electric power industry was not significant, while ultra-low emission reduction did not have any advantage in costs.
This research pointed out that the average cost in desulfuration reconstruction increased by 10.07 Yuan/kg and the average cost in dust elimination reconstruction increased by 15.49 Yuan/kg. The electricity price of ultra-low emission would increase the electricity price of the power grid and increase social costs of pollutant emission reduction. If the electricity price of ultra-low emission of coal-fired units increased by 1.0 Fen/kWh, an annual fund of 39.776 billion Yuan was required on the basis of the coal-fired power generation in 2013. After it was apportioned to power generation in the whole country, the electricity price would increase by 0.74 Fen/kWh.
Break the Bottleneck of Recyclable Energy
In recyclable energy in the third major project, the country proposed the idea of taking hydropower development in the southwest region as the focus, constructing 60 million KW traditional hydropower, overall planning receiving markets and transmission channels, orderly optimizing construction of “Northeast China, North China and Northwest China”, coastal sceneries and photovoltaic projects, and fastening development of distributed wind power generation and distributed photovoltaic generation in the east central region and the southern region.
For hydropower development, the plan draft emphasizes the idea of overall planning hydropower development and ecological protection, taking leading hydroelectric power stations in important fields as the key point, and scientifically developing hydropower resources in Southwest China.
“It should be noted that 60 million KW here means the construction scale rather than the operation scale. We suggested operating 40 million KW of hydropower during the 13th -Five-Year-Plan period previously.” The director of China Renewable Energy Engineering Institute, Zheng Shengan said in the analysis toward 21st Century Business Herald.
The representative of National People's Congress, the deputy general manager of Sichuan Electric Power Company, Chu Yanfang publicly said that as the province with the largest quantity of clean energy across the country, Sichuan had continued rapidly developing clean energy during the “13th five-year plan” period. The installed capacity of Wudongde Power Station under construction was 10.2 million KW. The total installed capacity of Lianghekou and Changheba was nearly 20 million KW. Along with 16 million KW of Baihetan that was about to be constructed, the general hydropower development pattern of “three rivers, seven areas and two lines” would be completed in Sichuan by 2020.
“Overall planning receiving markets and transmission channels” that the country emphasizes is mainly aimed at phenomena of “wind driven generator shutdown” and “photovoltaic power abandonment” that frequently occur at present. Thus, the director of National Energy Board, Nur Bekri said during “Two Sessions” that it was necessary to promote construction of cross-region electric power channels and energy channels.
Bekri explained that recyclable energy had been developing rapidly in recent years but corresponding channel construction lagged behind, which resulted in bottlenecks in transmission of clean energy, coal-fired power and thermal power. Besides, according to the situation of little consumption of recyclable energy in Northeast China, North China and Northwest China, Energy Board of National Development and Reform Commission worked out a series of countermeasures.
In the northeast region where the problem of electricity retention is severe, phenomena of wind driven generator shutdown and photovoltaic power abandonment are the severest. The country will alleviate this problem through transfer and ultra-high voltage transmission. The concrete measure includes three steps. Firstly, transmit electricity in Northeast China to North China. Secondly, transmit electricity in Northeast China to Hebei. Thirdly, set up a ±800 kV ultra-high voltage line from the northeast region to Qingzhou, Shandong.
“Macroscopically, the reason for wind driven generator shutdown is not the insufficiency of power grid infrastructure, but the lack of an exposed market share competition mechanism.” The chief energy economist of Draworld (Beijing) Environment Research and Consultancy, Zhang Shuwei said in the analysis toward 21st Century Business Herald, compared to changing demands, power grid infrastructure was not a sufficient reason for the severe coal excess currently. The key was how to solve the problem of optimum resource distribution with the lack of resources.