The China Electricity Council expects the nation to add 300 gigawatts (GW) of solar and wind power capacity to the grid this year, an increase of 7GW from the year before. A country’s electrical grid includes power stations, substations to regulate voltage and transmission lines to carry the power over long distances. The last stage consists of power distribution to industrial and residential end users.
While this is good news for the embattled energy sector, which has received perhaps an inordinate share of global criticism over its reliance on fossil fuel, China appears to be a victim of its own success.
08:42
The surprising hurdle slowing China’s switch to green energy
The surprising hurdle slowing China’s switch to green energy
Grid curtailment isn’t new. Many countries struggle with the phenomenon as they ramp up their renewable energy sectors. Britain, for example, which has a sophisticated grid and is putting in place a so-called smart grid – an electricity supply network that uses digital communications technology to detect and react to local changes in usage – is a textbook case.
A recent report by think tank Policy Exchange found the UK was losing £1 billion (US$1.28 billion) every year because it did not have enough transmission capacity for the wind power it was generating. By the time planned solutions are implemented in the next decade, costs will have increased to £3.5 billion annually.
Grid curtailment also varies across China, with some regions unable to absorb power from renewable energy while others fare better. The way out will be for China to match its rampant renewable energy development with corresponding grid expansion.
Beijing is trying to tackle the problem. It plans to invest some US$800 billion over the next six years to handle grid curtailment. It remains to be seen how this will play out since grid curtailment is difficult to manage even in smaller countries.
02:10
China starts drilling second 10,000-metre hole in search of oil and natural gas
China starts drilling second 10,000-metre hole in search of oil and natural gas
To offset the construction of coal-fired power projects (which often receive governmental approval to help stoke local and regional economic growth), China should start to retire older coal-fired power plants earlier than planned. It should also decide on a complete coal phase-out instead of a partial pullback.
Failure to do so will see more Chinese coal power projects cancel out many of the gains renewable energy can make in reducing carbon dioxide emissions from its power sector. Failure to rein in its coal power usage would also see any goodwill from China’s increase in solar and wind power erode on the global stage as concerned nations watch the energy-hungry nation dither at a crucial time.
Tim Daiss has been an energy markets and geopolitical journalist and analyst in the Asia-Pacific region for the past 15 years
