Securing China's Energy Future

China In Racing To The Top Of Global Wind Industry
by Staff Writers
Washington DC (SPX) Feb 03, 2009


Global wind energy capacity grew by 28.8% last year, even higher than the average over the past decade, to reach total global installations of more than 120,800 MW (120.8 GW) at the end of 2008. Over 27,000 MW (27 GW) of new wind power generation capacity came online in 2008, 36% more than in 2007.

"These figures speak for themselves: there is huge and growing global demand for emissions-free wind power, which can be installed quickly, virtually everywhere in the world. Wind energy is the only power generation technology that can deliver the necessary cuts in CO2 in the critical period up to 2020, when greenhouse cases must peak and begin to decline to avoid dangerous climate change," said Steve Sawyer, Secretary General of GWEC.

"The 120 GW of global wind capacity in place at the end of 2008 will produce 260 TWh and save 158 million tons of CO2 every year."

Wind energy is now an important player in the world's energy markets. The global wind market for turbine installations in 2008 was worth about 36.5bn EUR or 47.5bn US$.

"Wind power is often the most attractive option for new power generation in both economic terms and in terms of increasing energy security, not to mention the environmental and economic development benefits. Volatile fossil fuel prices and unreliable supply policies from fossil fuel rich countries increase the risk of relying on conventional sources for power production," said GWEC's Chairman, Prof. Arthouros Zervos.

"The wind industry also creates many new jobs: over 400,000 people are now employed in this industry, and that number will be in the millions in the near future."

The leading markets in terms of new installed capacity in 2008 were the US and China. New US wind energy installations totalled 8,358 MW for a total installed capacity of 25,170 MW the US has now officially overtaken Germany (23,902 MW) as number one in wind power.

Europe and North America are running neck-to-neck, with about 8,900 MW (8.9 GW) each of new installed capacity in 2008, with Asia closely following with 8,600 MW (8.6 GW).

The massive growth in the US wind market in 2008 increased the nation's total wind power generating capacity by 50%. The new wind projects completed in 2008 account for about 42% of the entire new power-producing capacity added in the US last year, and created 35,000 new jobs, for a total of 85,000 employed in the sector in the US.

At year's end, however, financing for new projects and new orders for turbines and components slowed to a trickle as the financial crisis began to hit the wind sector.

"The U.S. wind energy industry turned in a record-shattering performance in 2008, establishing wind as one of the leading sources of new electricity generation in the country and a job creation dynamo," said AWEA CEO Denise Bode.

"At the same time, it is clear that the economic and financial downturn have begun to take a serious toll on new wind development. We look forward to working with President Obama and the new Congress on policies to restore the industry's vital momentum and achieve President Obama's goal of doubling renewable energy production in three years."

The growth in Asia's markets has also been breathtaking; close to a third of all new capacity in 2008 was installed on the Asian continent. In particular, the wind energy boom is continuing in China, which once again doubled its installed capacity by adding about 6,300 MW (6.3 GW), reaching a total of 12,200 MW (12.2 GW).

"The Chinese wind energy market is going from strength to strength, and has once again doubled in size compared to 2007, reaching over 12 GW of total installed capacity," said Shi Pengfei, Vice President of the Chinese Wind Energy Association (CWEA). "The outlook for the coming years is also very healthy."

In its response to the financial crisis, the Chinese government has identified the development of wind energy as one of the key economic growth areas.

"In 2009, new installed capacity is expected to nearly double again, which will be one third or more of the world's total new installed capacity for the year," said Li Junfeng, Secretary General of the Chinese Renewable Energy Industry Association (CREIA).

At this rate, China would be well on its way to overtake Germany and Spain to reach second place in terms of total wind power capacity in 2010. China would then have met its 2020 target of 30,000 MW (30 GW) ten years ahead of time.

The growing wind power market in China has also encouraged domestic production of wind turbines and components, and the Chinese manufacturing industry is becoming increasingly mature, stretching over the whole supply chain.

"Now, the supply is starting to not only satisfy domestic demand, but also meet international needs, especially for components," said Li Junfeng. "In 2009, Chinese companies will start to enter the UK and Japanese markets, and orders for 200 blades have already been placed. There are also ambitions for exploring the US market in the coming years."

In Europe, almost 8,900 MW (8.9.GW) worth of new wind turbines brought total wind power generation capacity up to nearly 66,000 MW (66 GW). This makes wind power the leading power source for new generation capacity, according to the European Wind Energy Association (EWEA).

While in the past, European growth was primarily spurred by the established markets in Germany, Spain and Denmark, 2008 saw a much more balanced expansion, led by France, the UK and Italy.

"The European figures show that wind energy is the undisputed number one choice in Europe's efforts to move towards clean, indigenous renewable power", said Christian Kjaer, CEO of EWEA.

"Wind energy is an example of an intelligent investment that puts EU citizens' money to work in their own economies rather than transferring it to a handful of fuel-exporting nations", commented Kjaer.

"Investing in wind energy means supporting technology leadership, climate protection, energy independence, commercial opportunities and jobs."

"We're on track to meeting our target of saving 1.5 billion tons of CO2 per year by 2020", concluded Steve Sawyer, "but we need a strong, global signal from governments that they are serious about moving away from fossil fuels and protecting the climate.

"As positive outcome to the climate negotiations throughout this year, resulting in a new global agreement in Copenhagen in December, is of fundamental importance and will send the kind of signal that the industry, investors and the finance sector need for wind power to reach its full potential."

China started construction of the eastern segment of the country's second West-East natural gas pipeline in Shenzhen City, Guangdong Province on Saturday.

Chinese Vice Premier Li Keqiang attended the kick-off ceremony announcing the start of the construction.

The pipeline, the second after the first West-East natural gas transfer project, will cross 15 regions and carry 30 billion cubic meters of natural gas every year to Zhejiang, Shanghai, Guangdong and Hong Kong, among others.

When visiting the construction site, Li said the pipeline under construction is the country's most expensive energy project in decades and the world's longest natural gas pipeline. It is of great importance to ensuring China's energy security, coordinating regional economic development, deepening the ties between Hong Kong and inland provinces and promoting economic growth.

The 8,704 km pipeline will be made up of one trunk line and eight sub-lines. Construction of the west segment of the pipeline was started in February 2008 and is expected to be completed by the end of the year. The whole line will be operational by the end of 2011.

As China battles the financial crisis and expands its domestic demand, the second West-East gas pipeline project is a landmark project that will boost people's confidence to overcome the crisis, said an official with the National Development and Reform Commission.

The total investment of the second West-East gas pipeline was 142.2 billion yuan (20.82 billion U.S. dollars). The eastern segment stretches 2,472 km, with an investment of 93 billion yuan.

The government approved the east segment project during an executive meeting of the State Council or the Cabinet last November, in a hope to ease natural gas shortage, boost economic development and popularize utilization of clear energy.

Zhou Dadi, a researcher with the Energy Research Institute of National Development and Reform Commission said the construction of the gas pipe is essential for China to increase gas resources and ensure energy security.

It is hoped that construction will boost consumption and increase investment amid a world economic downturn, Zhou added.

It is estimated that investment will top 300 billion yuan in other relevant industries, including machinery production, electric technology, and construction material sectors.

Dong Xiucheng, professor with China University of Petroleum said this project will help China increase clean energy consumption.

In China, coal makes up 70 percent of the total energy consumption, 40 percentage points higher than the world average. Natural gas consumption only accounts for three percent of the total.

The completion of the second pipeline is expected to save 11.06 million tonnes of coal every year.

The first West-East gas pipeline was finished in 2004. It has provided 42 billion cubic meters of gas to 3,000 factories and nearly 200 million people over the past five years

Wang Yang, secretary of the Guangdong Provincial Committee of the Communist Party of China, and Donald Tsang, chief executive of the Hong Kong Special Administrative Region, also attended Saturday's ceremony.

By Si Tingting (China Daily)
Updated: 2009-02-04

The country is poised to revise its energy development plans by nearly doubling its nuclear power capacity in the next decade, energy authorities have said. The revision is still awaiting approval from the State Council, the Chinese-language 21st Century Business Herald yesterday cited sources close to the National Energy Administration (NEA) as saying.

There are currently 11 nuclear reactors in operation in the country with a combined capacity of about 9 gigawatts (GW), supplying more than 1 percent of the country's energy needs. NEA head Zhang Guobao last year said the country would raise the share of nuclear power in the national energy mix for 2020 from 4 percent, as set in 2006, to 5 percent. The target capacity for nuclear power was set at 40 GW by 2020. The latest energy revision aims for nuclear power to generate 70 GW for the country by 2020. The country would have to produce at least 60 GW of nuclear power to meet its 5 percent goal, the China Electricity Council (CEC) has said. "We have the ability to raise our nuclear power capacity to at least 60 GW 70 GW is not unthinkable," Fu Manchang, secretary-general of the Chinese Nuclear Society, told China Daily yesterday.

The authorities would also "start building eight more nuclear power plants in the next three years, with 16 reactors whose total installed capacity will surpass 10 GW", the NEA sources were quoted as saying. Officials could not be immediately reached for comment on the specific locations of the new nuclear energy projects, but they may involve Sanmen of Zhejiang province, Yaogu in Guangdong province and Haiyang and Rongcheng in Shandong province, as indicated by Zhang. The authorities will begin construction of nuclear power plants with a total capacity of 8.4 GW this year alone, State broadcaster China Central Television (CCTV) cited participants in a national energy conference held in Beijing yesterday as saying. The country will also invest 580 billion yuan ($84.8 billion) in the power industry this year and will accelerate its development of nuclear power plants and wind farms, CCTV reported.

Oil reserves
Similarly, China's four strategic oil reserve bases have reportedly begun operating and the country will start building eight more of such reserves this year, including those in Huangdao, Shandong province, and Jinzhou, Liaoning province.

China currently relies on coal power plants to supply about 80 percent of its total energy needs. However, transporting coal can often be problematic, as shown by the damage sustained by the nation's railway system in snowstorms last year, Fu said. The authorities were then forced to shut many coal-fired power plants, leading to blackouts in many cities, he said. "China is in dire need of more nuclear power plants, especially in its southern provinces that are more economically developed but have a more acute need for local energy reserves," Fu said. The need to control carbon emissions also means the country has to increase its nuclear power generation, he said. "Third-generation nuclear power technologies, such as the AP1000 developed by the United States-based Westinghouse Electric Co, will be the main feature of our future nuclear power plants," Fu said

I was wondering what's the latest status with the nucleur peeble bed technology, News in the last couple of yrs have been pretty quite, concerning this technology, although their was an announcement about starting to build the first commercial one.
Are they having trouble in convincing authorities of its viability or attracting private investment?

bladerunner said:

I was wondering what's the latest status with the nucleur peeble bed technology, News in the last couple of yrs have been pretty quite, concerning this technology, although their was an announcement about starting to build the first commercial one.
Are they having trouble in convincing authorities of its viability or attracting private investment?

Click to expand...

Beijings respone to fall in oil price
By: Wenran Jiang

[tt_news]=34457&tx_ttnews[backPid]=25&cHash=8b748b05dd

A very interesting article although much of it goes over things that have been posted on this and associated threads, but it does introduce other elements, however here’s a interesting passage where one would have thought CHINA INC could be a bit more hardnosed and renegotiated on the purchase price, or is saving face more important.?? China might be flush with cash but a few billion here and a few billion there, soon adds up


……………… What is less clear is how Chinese energy companies will re-adjust their acquisition activities in other parts of the world given that they, like other companies, have all been caught off guard by the sharp decrease in oil prices in recent months. The dilemma facing both the Chinese energy policy makers and large Chinese oil companies today is exemplified by Sinopec’s recent purchase of Tanganyika Oil, a Canadian company with its main assets in Syrian oil blocks [11].

When Sinopec International Petroleum Exploration and Production Corporation, through its wholly owned Mirror Lake Oil and Gas Company Limited, offered RMB $2.5 billion ($2.1 billion) to acquire Tanganyika Oil last September, the oil price was hovering around $90 per barrel. But by December, the price had dropped to about $40. Yet there was no revision of the deal and both the State Council and NDRC went ahead with the required government approval (Wall Street Journal [Chinese edition], December 22, 2008)

Many see such a commitment, especially in the face of large financial losses, as a move for the sake of credibility. Others, one of which being the chairman of China’s State-owned Assets Supervision and Administration commission, question the wisdom of putting so much money abroad without immediate benefits when there is so much need for cash in dealing with the domestic economic downturn (Caijing, December 15, 2008). Yet others, represented by China Petroleum and Chemical Industry Association, view the purchase as a healthy long-term investment in the expectation that the oil price will go back up again in the near future. The latter camp seems to have the upper hand. Only days after the Tanganyika acquisition, Sinopec reportedly offered $130 million to Urals Energy, a London-listed oil-producing company with a Russia focus. The price tag is supposed to be five times higher than the firm’s market value, and the news also generated a 100 percent increase in the shares of Urals Energy (China Daily, December 28, 2008).

Oil is a finite resources and non renewable energy sources . Sooner or latter the world will run out of Oil that is definite for sure.

The day of easy onshore oil discovery is gone for good. Most of the new source of oil is located off shore.Not only that the shallow off shore strike is rare , Most likely the the new oil find is in deep sea sometime 5km under the sea bed

Drilling and production is automated(high tech). Imagine drilling 5 km with inch or two tolerances. Expensive . So if you can find onshore oil Sing Halleluya

Anyway different subject China decide to built high voltage grid Here it is courtesy of snow is red from skyscrapercity forum

China steps up in buliding UHV power line

2009-02-07

Despite the chilly wind, the erection of electricity pylons and the building of converter stations on one of China's most remarkable technological achievements goes ahead full swing across the mountains and plains from southwest China's Sichuan province to east China's coastal Shanghai.
Even the Spring Festival does not hold up work on the electricity power line, the world's only 800 kv direct current UHV line.

"We cannot suspend our work even in the week-long Spring Festival holidays, which began on January 26. We must complete the project by 2010," said Li Wenyi, general manager of the Direct Current Engineering Construction Co Ltd under the State Grid Corporation of China (SGCC), in Yibin, Sichuan, on Tuesday.

Construction kicked off on Dec 12, the pilot project will wind 2,000 km eastward over eight provinces and municipalities to join up Yibin, in Sichuan with Shanghai. It will transmit hydropower generated at Xiangjiaba Hydropower Station and Xiluodu Hydropower Station on Jinshajiang River, the country's second and third largest hydropower projects, after the Three Gorges project.

UHV, defined as voltage of 1,000 kv or above in alternating current, and 800 kv or above in direct current, is designed to deliver large quantities of power over long distances with power losses less than the most commonly used 500 kv lines.

Similar UHV power lines were previously developed in Russia and Japan, but the technology was not widely used in these countries because of relatively weak demand.

"When the transmission line is completed in 2010 as scheduled, we will deliver cheaper hydropower in an endless stream from the southwest hinterland to the energy-thirsty economic powerhouse in the east and essentially solve electric power shortage that puzzled the region for decades," said Li.

Core technologies

Breakthroughs have been made in core technologies and equipment production to turn into reality the dream of transmitting electric power economically with the world's most complex UHV lines.

"Yes, the Russians and Japanese might have the technology. But the most advanced core technologies cannot be bought," said Wu Yusheng, deputy chief engineer of SGCC. "Besides, we have our own conditions and technological requirements that are different from others. Therefore, we must rely on our own efforts for independent innovation."

At the end of 2004, SGCC raised a strategy to transform its power grid development mode, and accelerate constructing a nationwide power grid with 1000 kv alternating current and 800 kv direct current UHV transmission lines as the backbone.

Bearing this objective, Chinese industrial experts have tackled more than 300 key technological problems over the past four years. The result, China has had independent intellectual property rights over UHV transmission lines and could domestically produces 90 percent equipment.

Breakthroughs were made especially in the fields of voltage standard, electromagnetism environment, over-voltage and insulation co-ordination, reactive voltage control, lightning proof technology, design of transformer substations and lines in high altitude and heavily iced areas, UHV construction techniques and great power grid operation control, said Wu.

The technologies and equipment have succeeded in transmitting large quantities of electric power over long distances with low losses, with nearly one-month of stable and low-noise operation ofthe Shanxi-Hubei UHV transmission line, the first 1,000 kv AC linein the world, said Wu.

On January 6, SGCC successfully put into commercial operation the world's first 1,000 kv UHV alternating current transmission line, after 28 months' construction and 168 hours of test runs at full-rated voltage.

Through the 654-km transmission line, thermal power generated in North China's coal-rich Shanxi province was transmitted to Central China's Hubei province. The transmission line joined the power grid of North China with that of Central China for the firsttime. The project cost 5.7 billion yuan ($832 million),unadjusted for inflation.

That meant, residents in hydropower-rich Hubei, Hunan, Jiangxi and Sichuan provinces and Chongqing municipality started to use electric power generated with coal in North China over the just-ended Spring Festival holidays.

Badly needed

China, an economically booming country with uneven distributionof energy resources, has to transmit electric power or power coal over thousands of miles. This is different from many western countries where power is often generated more locally.

In China, 76 percent of coal reserves are found in northern and western regions and 80 percent of hydropower in western regions, while more than 75 percent of energy demand is concentrated in the central and eastern regions. China relies on coal to generate nearly 80 percent of electric power.

China's great growth is expected to see it consume 7.4 trillion kWh electric power in 2020, more than doubling the 3.4268 trillion kwh consumed in 2008, said Lu Yanchang, director-general of Chinese Society for Electrical Engineering (CSEE) on Jan 17.

"Under these circumstances, UHV transmission lines become helpful," said Lu.

Lu said when conveying same quantity of electric power, 1,000 kv UHV transmission lines can send the electric power three times in distance than traditional 500 kv lines, while their electric losses account for only 25 percent to 40 percent of the traditional lines. UHV can also save 60 percent of land used to construct the transmission lines.

"Delivering electric power with UHV lines also becomes more economical than transporting power coal to generate electricity atthe destination," Lu said.

China's existing six regional power grids charge local consumers diversified prices for the use of electric power. In North China's Inner Mongolia and Northwest China's Xinjiang, coal-rich areas, electric power is charged at 0.30 yuan per kWh. In contrast, in East China's Zhejiang and Shanghai, electricity ischarged at 0.46 yuan per kWh.

Sending electric power with UHV transmission lines from the north to the east will lower charges by 0.03-0.08 yuan per kWh, compared with transporting power coal to generate power, Lu said.

"It has become a natural choice for the country to distribute energy resources in greater areas to ensure national energy security. Developing UHV transmission lines may effectively solve the problem of sending large quantities of electric power over long distances," said Lu.

Take China's first UHV transmission line. When in full operation, Lu said, it would bring an additional 3 million kW of thermal power to Hubei province and save the central province about 7 million tons of power coal every year, or 90 percent of power coal purchased from other provinces.

The saved amount is equivalent to building another Gezhouba hydro power plant, which is the first hydro station constructed on the Yangtze River in Yichang City, Central China, consisting of 21turbines.

In response to the SGCC blueprint, Shanxi province has mapped out a strategy to give priority to directly transmitting electric power with UHV lines and other voltage lines to end users, while not neglecting coal transportation, over the next two to three years.

"The province will invest 100 billion yuan to construct and run 25 power plants, totaling 20 million kw. installed capacity, and 9,000 km transmission lines of various voltages over the next two years," said Wang Jun, governor of the province, in mid January.

"By 2011, the province will have a total of 70 power plants, with 55 million kW installed capacity. In this way, the province will be able to deliver 120 billion kWh electric power to other provinces from the present 51 billion kWh," said Wang.

More to Come

In addition to the aforesaid two transmission lines, China approved another pilot 800 kv direct current UHV transmission line linking Jinping, Sichuan with southern Jiangsu Province in the east in November 2008. SGCC Sichuan Branch started to make early preparations and construct converter stations from December 2008 on. The project is to be completed in 2012.

The direct current UHV line, together with the one under construction, has a combined investment of 40 billion yuan.

In addition, on January 18, SGCC announced it would start construction of three more alternating current UHV transmission lines this year. These lines would respectively connect Huainan of Central China's Anhui province and Xilingol of North China's Inner Mongolia with energy-thirsty Shanghai in the east, and the northern part of North China's Shaanxi province with Changsha in Central China's Hunan.

Though it did not give specifics on investment in these three lines, SGCC said it would invest 83 billion yuan in UHV transmission lines in 2009 and 2010 to make long-distance transmission more efficient. They were separated into 57 billion yuan in UHV alternating current transmission lines and 26 billion yuan in UHV direct current transmission lines.

"China needs to develop both alternating current UHV lines and direct current UHV lines," said Zhang Wenliang, president of China Electric Power Research Institute.

"The two have respective advantages. Alternating current UHV isfit for backbone power grid construction and power grid connection. Direct current UHV is ideal to transmit electric power from large-scale hydropower and thermal power stations over long distances," said Zhang.

"Although the current global economic slowdown has led to a smaller demand for electric power in the country, China's electric power sector remains less developed, compared with per capita installed capacity in developed countries. SGCC will double installed capacities in 2020 over the existing volume," said Shu Yinbiao, deputy general manager of SGCC on January 17.

Shu estimates UHV transmission lines will have a transmission capacity of 300 million kW. in 2020, with 78 million kW. Dedicated to hydropower transmission.

!0 years after negotiating the building of pipeline, it is finally being realized!
Russia Agrees to $25 Billion Oil-for-Loans Deal With China
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By Lucian Kim

Feb. 17 (Bloomberg) -- Russia agreed to supply China with oil for 20 years in return for a $25 billion credit, as the world’s largest energy producer seeks to expand its presence on East Asian markets.

Russia signed the accord in Beijing today to deliver 15 million metric tons a year (301,000 barrels a day) for the next two decades, as well as build a branch from a new Siberian pipeline to the Chinese border, Deputy Prime Minister Igor Sechin said on Russian state broadcaster Vesti-24.

State oil producer OAO Rosneft and pipeline operator OAO Transneft will receive $25 billion in loans from the China Development Bank, Vesti-24 reported. Transneft and China National Petroleum Corp. signed a separate deal on the construction of a spur from the East Siberia-Pacific Ocean pipeline, Vesti-24 said.

Russia, which shares a 4,300-kilometer (2,700-mile) border with China, is seeking to increase its influence in East Asia by building oil and gas pipelines, starting deliveries of liquefied natural gas and hosting the Asia-Pacific Economic Cooperation summit in 2012. Currently Russia delivers oil to China via rail and a pipeline via neighboring Kazakhstan.

Rosneft, whose chairman is Sechin, plans to supply the new Pacific Ocean pipeline from its Vankor field in east Siberia. Transneft expects to complete the pipeline’s first link, between Taishet in Siberia to Skovorodino on China’s northeastern border, by the end of this year.

Rosneft will get $15 billion of the credit, while Transneft will receive $10 billion, Russian state news agency RIA Novosti reported from Beijing, citing an unidentified participant in the talks. China agreed to reduce the annual interest rate by one percentage point to 6 percent, RIA reported.

CNPC bought $500 million worth of shares during Rosneft’s initial public offering in July 2006. Earlier, the Chinese company extended a $6 billion loan-for-oil deal to Rosneft in December 2004, at a time when OAO Yukos Oil Co. was being dismembered under back-tax claims. Rosneft denied that loan was used to buy OAO Yuganskneftegaz, Yukos’s main production unit.

To contact the reporter on this story: Lucian Kim in Moscow at [email protected]

Last Updated: February 17, 2009 11:47 EST

Hendrik_2000 said:

!0 years after negotiating the building of pipeline, it is finally being realized!
Russia Agrees to $25 Billion Oil-for-Loans Deal With China
........

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Nothing forces the Russians' hands like low oil price & turmoil in the credit market.
But a lot can change in 20 yrs in the murky world of the oil business even when a 'contract' is signed especially one with Russia.
Add in geopolitical changes along the way, I sure hope China has extracted some kind of 'guarantees' from them before actually handing over the loan.

Schumacher said:

Nothing forces the Russians' hands like low oil price & turmoil in the credit market.
But a lot can change in 20 yrs in the murky world of the oil business even when a 'contract' is signed especially one with Russia.
Add in geopolitical changes along the way, I sure hope China has extracted some kind of 'guarantees' from them before actually handing over the loan.

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My understanding the loan will be used to build the pipeline and at the same time use the pipeline as collateral But even owning the pipeline with no oil flow into it will be useless!. But 300,000 Barrel a day is just a drop in China's oil demand. The biggest trophy is still Gas export. Russia has a lot of it But they can't seem to agree on price with Russia demanding the same price as their European customer