With the constant breakthrough of core technologies and the promotion of industrialization, China’s clean energy generation is accelerating into the era of parity and may even be cheaper than traditional energy sources in the next few years.
Li Chuangjun, deputy director of the New Energy and Renewable Energy Division of the National Energy Administration, recently stated at the China (Wuxi) International New Energy Conference that at present, China's hydropower, wind power, and photovoltaic power generation installed capacity have consistently ranked first in the world for many years. In 2016, China’s new energy utilization ranks first in the world, accounting for about one-fifth of the total global new energy use, and sets an example for global energy transition and new energy development and utilization.
In addition to the scale advantages, in recent years, China's wind power, photovoltaic and other clean energy power generation costs have rapidly declined, and the industry is now moving away from subsidies and achieving faster prices. Taking PV as an example, since 2007, the price of photovoltaic products in China has dropped by more than 90%.
Huang Jiaxing, head of new energy in the marketing department of Longyan Power Supply Company in Fujian Province, said that there are currently 1,164 photovoltaic power plants that are connected to Longyan power grids. With the cost reduction, the overall price of photovoltaic power generation has declined, and the photovoltaic power plants have shown a good momentum of sustained and steady growth.
Earlier this year, the National Energy Administration released the “13th Five-Year Plan for Energy Development†and the “13th Five-Year Plan for Renewable Energy Development†and proposed that “by 2020, the price of wind power projects can compete with the local coal-fired power generation platform. Photovoltaic project electricity prices may be equivalent to grid sales prices."
Li Chuangjun said that the National Energy Administration is organizing demonstration of wind-level electricity prices, encouraging photovoltaic power generation to competitively allocate resources, further increasing the technical requirements of the “photovoltaic leader†project, encouraging the application of advanced technologies, and promoting the realization of target prices for wind power and photovoltaic generation at an early date.
The first 110-kilovolt wind power generation project started in June 2016 in Sanming City, Fujian Province, is scheduled to be completed and put into production this year. According to Sanming Power Supply Company, after the project landed, it could provide 110 million kilowatt-hours of clean energy for the local power grid each year, saving 35,900 tons of standard coal and an annual production value of nearly 100 million yuan.
According to Hao Yaohui, deputy director of the assessment bureau of the China Development Bank, since 2011, the cost per kilowatt-hour for photovoltaic power generation in China has dropped by about 60%, and it has basically reached or even fallen below the electricity prices for general industrial and commercial enterprises. However, in order to achieve the goal of parity-free access to the power generation side, various types of policy support are also needed.