According to Bloomberg New Energy Finance (BNEF), China’s national power system will face serious challenges in the next few years. BNEF found that the country’s power market was oversupplied by 35% at the end of 2016, due to over investment in new generation capacity.
China’s renewable power generators face the worst curtailment rates in the world with the national average curtailment ration in 2016 at 17% for wind and 10% for solar.
With the support of ClimateWorks Foundation, Bloomberg New Energy Finance has created the China Renewable Curtailment and Coal Stranded Assets Risk Map to provide forward-looking transparency on the metrics that are used by central regulators governing this market transformation.
The data-driven tool portrays cross-sector, province-level dynamics of China’s power sector challenges during the 13th five-year plan period (2016-20). The map provides insights into China’s challenge in managing its power generation system in the next few years, addressing questions such as: Will wind and solar assets face economic hardship as curtailment continues even as subsidies decline?
The key report findings include:
1. Curtailment to decline nationally, but it may emerge in southern provinces.
2. Highest coal risk regions see little improvement in conditions.
3. Long distance transmission and power market reforms crucial for reducing renewable curtailment risk.
4. There are no provinces in China where new coal generation capacity is needed.
5. China still building over 50GW of wind and solar in high curtailment risk regions.
6. China faces a potential hit of $237 billion from at-risk coal assets.
Click here to download the full report.
Filed Under: News, Repowering