China's new energy sector likely to see more growth potential in 2022

10 Aug '22

2 min read

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China's new energy sector is likely to see more growth potential this year amid efforts to achieve ‘dual carbon’ goals as construction of large-scale wind and photovoltaic power bases accelerates. Apart from boosting energy supply capacity, firms plan to raise investments in projects, including ultra-high voltage, to improve new energy consumption efficiency.

The promotion of new energy bases will significantly spur the development of the new energy industry, experts believe. The new energy sector will continue fast expansion in the second half, said Su Xinyi, an analyst with China Electric Power Planning & Engineering Institute.

China Huadian Corporation is constructing a wind power and photovoltaic base in Urumqi, capital of northwest China's Xinjiang Uygur Autonomous Region, with a total installed capacity of a million kilowatts.

The project—among the first batch of large-scale wind and photovoltaic power bases approved by the government, is expected to generate 2.5 billion kilowatt-hours of green electricity while saving consumption of 830,000 tonnes of standard coal and reducing carbon emissions of 2.1 million tonnes after completion, an official news agency reported.

The second batch of such projects includes bases planned in Inner Mongolia, Ningxia, Xinjiang, Qinghai and Gansu.

China's installed capacity of wind and photovoltaic power added 12.94 million kilowatts and 30.88 million kilowatts, accounting for 18.7 per cent and 44.7 per cent of total new capacity respectively in the first half of 2022, according to data from the National Energy Administration.

China's newly installed capacity of wind and photovoltaic power for the entire year is expected to exceed 100 million kilowatts, while the consumption of power produced by the two energy sources is estimated to reach over 12.2 per cent of total power consumption, Su said.

The State Grid Corporation of China plans to inject 2.4 trillion yuan ($354.53 billion) into the power grid during the 14th Five-Year Plan Period (2021-2025) to advance the building of a new energy consumption system.

This year, the China Southern Power Grid plans a fixed-asset investment of 125 billion yuan, which partly will be directed to building supporting power grid projects for new energy transmission and pumped-storage hydroelectric projects.

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