During the 14th Five-Year Plan: Development Trend of Offshore Wind Power Industry

2020-09-16 10:45:54 en-admin 31

Key words: Offshore wind power;  Wind power industry;  Wind power feed-in tariff

Industrial Policy Analysis

1) On May 18, 2018, the National Energy Administration issued the “Notice on Relevant Requirements for the Management of Wind Power Construction in 2018”, requiring that all newly approved offshore wind power projects from 2019 should be configured and determined through competition. That is to say, offshore wind power projects approved before 2019 can lock in the on-grid electricity price of 0.85 yuan/kWh before 2019.

2) On May 24, 2019, the National Development and Reform Commission announced the “Notice on Improving the Wind Power Feed-in Tariff Policy”, which adjusted the newly approved offshore wind power guidance price in 2019 to 0.8 yuan per kilowatt hour and 0.75 yuan per kilowatt hour in 2020. The on-grid tariff determined through competition for newly approved offshore wind power projects shall not be higher than the above-mentioned guide prices. For offshore wind power projects that have been approved before the end of 2018, if all units are connected to the grid before the end of 2021, the on-grid price at the time of approval will be implemented; if all units are connected to the grid in 2022 and later, the guide price for the year of grid connection will be implemented.

3) On January 20, 2020, the Ministry of Finance, the National Development and Reform Commission, and the Energy Administration issued the "Several Opinions on Promoting the Healthy Development of Non-aqueous Renewable Energy Power Generation". Starting from 2020, newly-added offshore wind power will no longer be included in the scope of central financial subsidies. Support according to the actual situation. The inventory of offshore wind power projects that have been approved (filed) in accordance with regulations and all units have been connected to the grid before December 31, 2021 will be included in the central fiscal subsidy according to the corresponding price policy. 

Industry development trend

With the support of various advantages of offshore wind power, my country's offshore wind power has ushered in rapid development. From 2013 to 2018, my country's offshore wind power installed capacity increased significantly. In the first three quarters of 2018, the newly installed capacity reached 1.02GW, and the cumulative installed capacity reached 3.05GW. According to the national "Thirteenth Five-Year Plan for Wind Power Development", the national offshore wind power construction scale will reach 10GW by 2020, and the cumulative grid-connected capacity will reach more than 5GW. Therefore, it is expected that by 2020, the cumulative installed capacity of offshore wind power in China will reach 15.78GW, which has broad development prospects.

2) Offshore wind power is expected to continue to increase in the proportion of installed power generation and power generation

The state has issued a series of supporting policies to promote the continuous cost reduction and efficiency increase of the wind power industry, and encourage the orderly construction of various types of wind power projects. More and more large northern base projects have also begun the procedures of approval, bidding and start-up. Grid companies have invested in the construction of UHV power transmission channels for large bases, which has also brought about the recovery of installed capacity in the northern region. The centralized transmission model helps to deliver green electricity to areas where electricity is landed and consumed. my country's offshore wind power has a late start, rapid growth, significant technological progress, and large room for industrial chain upgrades. Policy encouragement will also guide the offshore wind power industry to further improve efficiency, rational investment, and efficient use of resources in the future.

4) The new crown pneumonia epidemic has a serious impact on the development of the wind power industry

According to statistics from the Global Wind Energy Council (GWEC), Europe has been vigorously developing offshore wind power since 2000. In 2018, the cumulative installed capacity reached 18.28GW, accounting for about 79% of the global sea breeze, and it has shifted from offshore to far sea. In April 2017, the results of the first round of offshore wind power auctions in Germany were announced. The two large offshore wind power projects of OWP West and BorkumRiffgrund West 2 no longer rely on government subsidies, and are the first to enter the era of parity on the grid, proving that offshore wind power can be effectively released through market-based means The potential for lowering costs in the medium and long term to reduce dependence on subsidies.

Source from :Fourteenth Five-Year Strategic Plan

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