YI Yuechun

Deputy Director-General, CREEI

Azerbaijan, 19 Oct 2016

1 RE in China: the Status Quo and Prospect

2 Promoting RE in China: Investment Policy and Experience

3 Vision of Future: Enhancing International Cooperation in RE

Content

I. RE in China: the Status Quo and Prospect

1. RE: Expanding Scale in Utilization and Proportion in Consumption Market

By 2015, China possessed 319.37GW, 129.34 GW, and 43.18 GW hydropower (22.71 GW from pumped), wind power and

solar PV installed capacity with the accumulated power output reaching 1100 billion kWh, 186.3 billion kWh, and 39.2

billion kWh respectively. China boasts the largest Hydro, wind and PV power installed capacity in the world.

By 2015, the total energy consumption of China reached 4.3 billion standard coal, 0.9% up compared to 2014. The non-

fossil fuel took up 12%, 08% up compared to 2014 and 3.4% to 2010, providing strong support to the transformation of

energy portfolio and the carbon reduction in China.

10 M

W10

,000

kW

h

Hydro Installed

Wind Installed

PV Installed

Hydro Production

Wind Production

PV Production

Chart1

200820082008200820082008

200920092009200920092009

201020102010201020102010

201120112011201120112011

201220122012201220122012

201320132013201320132013

201420142014201420142014

201520152015201520152015

水电装机容量

风电装机容量

光伏装机容量

水电发电量

风电发电量

光伏发电量

万千瓦万千瓦时

17260.3919

1217

5655.479895538

237

19629.0188

1767

5716.8166664602

344.5

21605.7181

3131

86

6867.364617

490

5

23297.8808

4784

293

6681.118758

715

18

24947.0476

6266

650

8555.51772

1028

41

28044.0715

7758

1745

8920.695176

1393

85

30485.68

9732

2805

10600.89

1534

250

31937

12934

4318

11000

1863

392

Sheet1

水电装机容量风电装机容量光伏装机容量水电发电量风电发电量光伏发电量

20081726012175655237

20091962917675717344.5

20102160631318668674905

2011232984784293668171518

20122494762666508556102841

201328044775817458921139385

20143048697322805106011534250

201531937129344318110001863392

2. Full-fledged RE Technology and Industrial Chain

“Frontrunner”PV Demo Base in the Subsidence Area in Datong, China

Jinping I, 305m high

Upgrading Large Capacity Wind Turbine

Hydro Wind

SolarIntegrated

Completion of Jinping I hydropower station, the world highest Concrete Double Arch Dam above 300mProgress of the key technologies, such as the Safety and Risk Control of Large Scale Hydropower ProjectsR&D of the Equipment Set for Super High Dams above 200m HighMastering the key technologies of large size impulse turbine units of 200~400 MWDomestic production of turbine units for pumped storage stations with 400MW installed capacity and 500m water head and above

Equipment Manufacture:1. 1.5MW~5MW: Production and Commercialization; rolling off of the large scale offshore wind turbine units2. 13121 sets of new wind turbines installed by 2015; Goldwind Technology, United Power, and Ming Yang Wind Power taking up 52% of the market in totalKey Technology:1.Wind turbine units resisting complicated natural environment, such as low temperature, typhoon, and high-altitude2. R&D of mega wind turbine

Equipment Manufacture:1. Advancing the properties of PV products, based on the “Frontrunner“ demo base2. Enhancing the conversion efficiencies: polysilicon 16.5%, monocrystalline silicon 17%, and the system 81%3. 6 of the 10 largest PV module supplies in the world come from China; Trina Solar boasts the largest production in the world.Key Technologies：1.Innovation in the technology of high percentage connection of distributed PV stations. 2.Promoting demo application of Photo thermal

Innovation of energy storage technologies,

such as all VRB and air compression, and

application in real projects

Exploration in the integration of multi-type

energies, and the construction of demo

projects

Diversifying the application of RE

China Boasts World leading Equipment Manufacturing Capacity in Hydropower, Wind Power and Solar Power

I. RE in China: the Status Quo and Prospect

Desigin

Construc-tion

Accept-ance

Opera-tion

I. RE in China: the Status Quo and Prospect

3. Developing Complete RE Industry SystemPolicy System：Based on the Renewable Energy Law, China has developed a complete RE subsidizing and monitoring policy system.

Standardization and Certification System：China possesses a full-fledged standardization policy system to guide the development of

the industry. There are dedicated standardization institutions for hydro, wind, solar power respectively, covering the whole life cycle of

projects.

Capacity Building：Investment from Chinese enterprises, such as the five power generation companies, China Guangdong Nuclear,

Guohua Group, and the Three Gorges Group, have boosted RE construction in China and the world. Engineering corporations from

POWERCHINA, such as PowerChina Chengdu, PowerChina Huadong, PowerChina Shanghai, PowerChina Xibei, PowerChina Zhongnan,

and PowerChina Guangdong, carried out extensive preliminary and planning studies and design work of large-scale hydropower projects

and onshore and offshore wind power projects in China. They possess strong investigation, design, and EPC capacity.

4. Overall Prospect of RE Development in China

The percentage of Non-fossil Fuel in Primary Power Consumption

2014 2015 2020 2030

11.1%

15%

20%

12%

I. RE in China: the Status Quo and Prospect

RE is the direction of world energy development. Chinese government pays significant attention

to RE development and has announced the ambitious goal to raise the proportion of non-fossil fuel

in energy consumption to 15% by 2020, and 20% by 2030.

340GW

Hydro

250GW

Wind

150GW

Solar

15000MW

Biomass

5. RE in the Thirteenth Five Year Plan of China

Marine

Hydro

Geo-thermal

Solar Biomass

WindOverall Coordination of

Wind Power Development

Accelerating Biomass

Development

Promoting Demo Application of Energy

Reserve Tech

Acceleration Geothermal Development

Diversified Application of Solar Power

Actively Promoting Hydropower Development

I. RE in China: the Status Quo and Prospect

II. Promoting RE in China: Investment Policy and Experience

1. Enacting RE Law and the related regulations, guiding the industry development

Feb 2005

Jan 2006

2007RE Law

Took Force

Middle and Long Term RE Development Plan

Mar 2016Amendment of the RE Law of China

Issuance of RE Law

Dec 2009

Regulation on the Full Price Subsidy Takeover of RE Power GenerationGuidance Opinion on the Establishment of Target Guiding System in RE Development and Utilization

Based on the Target Guiding System, RE (excluding hydropower) should take up 5%~13% in the social power consumption of all provinces in China by 2020.

RE (excluding hydropower) in China adopts benchmark prices. Onshore wind power and Solar PV follow certain benchmark prices in different regions, while agriculture and forest biomass, offshore wind, and Photo thermal power use the same benchmark price nationwide.

2、Mature pricing policies, creating a stable market for investment（1）Founding of RE Development Fund

（2）The Subsidy Policy of Benchmark Power Price

The first, second and the third lists of the subsidized items was issued in 2012

The forth list of the subsidized items was issued

in 2013

The fifth list of the subsidized items was issued

in 2014

The sixth list of the subsidized items was issued

in 2016

•2016 Benchmark Price：0.47~0.60 Yuan RMB/kWhWind

•2016 Benchmark Price：0.80~0.98 Yuan RMB/kWhPV

•Intertidal Zone 0.75 Yuan RMB/kWh，Coastline Zone 0.85 Yuan RMB/kWhOffshore Wind

•1.15Yuan RMB/kWh for demo projectsPhoto thermal

II. Promoting RE in China: Investment Policy and Experience

The Added Fees intend to support:

Some of the fund is allocated by the Ministry of Finance from the yearly public budget, while the rest comes from the

added fees to power payment.

•The scientific and technological studies, standard compilation, and demo projects in RE

development and utilization

•RE project supplying energy to rural and pasturing area

•Development of isolated RE power system in remote area and islands

•RE resources investigation, evaluation, and information system development

The special fund will go to:

3 、 Enhancing Planning; Guiding the Industry; Promoting Investmentfrom Enterprises; Upgrading the Manufacturing Capacity

•The Thirteenth Five Year Plan for RE development

•The planning of regional energy reform demo projects, such as Zhangjiakou RE demo zone

•The planning of hydro, wind, and solar power complementary demo base

RE Integrated Utilization

•The Thirteenth Five Year Plan for Hydropower development

•Nationwide water resources investigation and river planning of 40 rivers, including Jinsha

River, Yalong River, and Dadu

•Pumped storage planning in more than 20 provinces of China

Hydro

•The Thirteenth Five Year Plan for Wind Power development

•The planning of large-scale wind power bases, such as in Jiuquan of Gansu Province, Inner

Mongolia, Shanxi, and Huaidong in Xinjiang autonomous region

•The planning of offshore wind farms in provinces, such as Jiangsu, Fujian, Guangdong, and

Hainan

Wind

•The Thirteenth Five Year Plan for Solar Power development

•The planning of “frontrunner” demo bases in Datong, Yangquan, Baotou, Jining, Xintai, and etc.

•The planning of photo thermal demo projects

Solar

II. Promoting RE in China: Investment Policy and Experience

4. Ideas on the Incentive Policies for RE Investment during the “13th Five Year Plan

Developing the RE industry in market environment, allocating the projects through competition, and pulling down the cost of the industry

Exploring mechanisms such as RE quota, carbon reduction, and green certificate to develop full-fledged RE market mechanism

Imposing Non-RE power generation quota and assessment mechanism on coal-fired thermal power projects to ensure room for RE power consumption

Accelerating the development of micro-grid and distributed PV stations and cultivating strategic new markets, based on the Power System Reform

II. Promoting RE in China: Investment Policy and Experience

III. Vision of Future: Enhancing International Cooperation in RE

Vision of Cooperation：

It is estimated that there should be about 2.5 trillion RMB investment in RE during the “13th

Five Year Plan”. There will be a huge market for RE investment in China. On the other hand,

China is willing to participate in RE development and construction in the world market,

leveraging our strengths in technology and cost and capacity from manufacturing, investment

and development, construction to operation.

As we go further in countering climate change and pushing forward energy reform, RE has

become a key area for“green”economic development. China is willing to carry out coorpation

with all nations by capacity building, technical exchanges, project construction, and talent

training. We hope to join hands with all nations to promote the development of RE industry.

the only appointed institution in Charge of RE technology management of China

Industry Planning

Technology management

Project check and acceptance

Quality monitoring

Standard compilation

Policy studies

RE budget administration

Safety facility check and acceptance

National RE power generation monitoring institution

National RE information management center

International and inter-governmental Cooperation

One of the 16 energy study and consulting bases of China

Standardization Commission and 8 Sub-commissions

Industry Planning

Industry Report Compilation

Information System

Development

Quality Monitoring

Compilation of Policies and Standards

Technical Review and Approval

Project Budget and Technology Management

Safety Check and Acceptance

III. Vision of Future: Enhancing International Cooperation in RE

The Core Business of CREEI

CREEI is the RE technology administrative institution of China and boasts strengths in technology, information, resources, and talents. CREEI is willing to provide full-ranged technical exchanges, cooperation and service in planning and studies, policy consulting, project design, project assessment consulting, and project construction. CREEI is willing to join the world to explore the prospect of RE cooperation and contribute to the sustained and sound development of RE industry in the world.

Slide Number 1Slide Number 2Slide Number 3Slide Number 4Slide Number 5Slide Number 6Slide Number 7Slide Number 8Slide Number 9Slide Number 10Slide Number 11Slide Number 12Slide Number 13Slide Number 14