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China Hami reports on the city solar CSP development and plan

2017.12.20     From: CSP Focus 光略咨询

Hami, a city in China western Xinjiang province, is one of the locations better for developing solar thermal power plants in China. One of China 1st batch 20 pilot CSP projects---CPECC Hami 50MW molten salt tower CSP plant is located in this area. And till now, around 20 CSP plants with total capacity of 2GW in Hami are preparing for the application of China future 2nd batch CSP projects.

1.    China CSP Industry Current Status

A. CSP industry planning


With the continuous development of China CSP industry, China entire CSP industry chain has already initially shaped in recent years. National support drives CSP to industrialization.

In the 13th five-year plan for power development announced in 2016, National Energy Administration indicated that the total CSP installed capacity should be 5 GW by 2020. On Sept. 4th, National Energy Administration issued the Notice of Development of CSP Pilot Project, approving 20 CSP pilot projects with a total capacity of 1.349 GW, which marked that the construction of China’s 1st batch of CSP pilot projects officially started.

Pricing Department of China National Development and Reform Commission announced the FiT for CSP pilot projects as RMB 1.15/kWh (about USD 17.2 cents /kWh) and encouraged local government to take some preferential policies like low taxes, financial subsidies, green loan and kindly land tenancy to boost CSP industry.

With well-developed situation and policy support, the planned CSP installed capacity of some pilot regions like Qinghai, Gansu, Hebei, Inner Mongolia and Xinjiang has reached 9.6 GW by 2020 and 67.6GW by 2030.

        

                         
B. The progress of the 1st batch of 20 pilot CSP projects


China National Energy Administration officially launched the 1st batch of 20 CSP pilot projects with total capacity of 1.349GW, among which 9 are tower projects, 8 are parabolic trough projects and 4 are Fresnel projects, and the locations are: 4 in Qinghai, 9 in Gansu, 4 in Hebei, 2 in Inner Mongolia and 1 in Xinjiang Province. By now, 3 of the 20 projects respectively owned by China Supcon, China General Nuclear Power Group and Shouhang IHW Resources Saving have already moved into overall startup of the construction. 6 projects stepped into startup preparation. The remaining 11 projects have finished record for reference and are carrying out bidding and procedures settlement.


Relevant free report: Detailed Progress on China 1st Batch 20 CSP Pilot Projects


C. CSP Industry Development in Close Areas


Qinghai, Gansu and Xinjiang are among the major provinces for China CSP industry development. Cities like Delingha in Qinghai and Jiuquan, Yumeng and Dunhuang in Gansu are CSP pioneers and even some of CSP projects have been connected to the gird.

Xinjiang CSP industry possesses outstanding advantages in both of resource and grid, while there is only one pilot project (CPECC Hami 50MW molten salt tower CSP plant). Xinjiang has great potential for CSP development and it still should be developed vigorously.

2、The necessity of CSP industry development in Hami


With annual DNI of 2000 kWh/m2, Hami possesses rich solar resource for large scale CSP development. By developing CSP industry, Hami energy industry and economy can be mutually developed.

A.    To construct national level new integral energy base


China is lack of large-scale energy project and Hami begins to take shape as integrated energy base for coal, wind and PV.

B.    CSP industry development conforms to national industrial policy and energy deployment in Xinjiang


The 13th five-year plan proposed 1GW CSP installed capacity in Xinjiang. As one of the regions who owns the best of solar resource, Hami is imperative to develop CSP industry.

C.    To drive city fixed investments and equipment manufacturing industry development


Almost 70% of equipment can be locally manufactured, which will definitely boost local equipment manufacturing industry. 


D.    To boost Xinjiang electricity output and alleviate wind & solar abandon as peaking power source

3、CSP Industry development progress in Hami

A. CSP development planning in Hami


As the key construction area, Hami is planned to achieve 1.5GW CSP installed capacity in the 13th Five-year (by 2020) and 20GW in the 15th Five-year (2030).

B. CSP projects construction situation in Hami


As the first approved national CSP pilot project in Xinjiang, CPECC Hami 50MW molten salt tower CSP plant is planned to connect to the gird in April, 2019.

CPECC Hami 50MW molten salt tower CSP plant progress will be discussed at
CSP Focus China 2018 Mar.22-23 Beijing conference.

C. The progress for the application of 2nd batch of CSP pilot projects in Hami


By Dec 18, 2017, Hami has already selected 20 companies who match the CSP project application conditions with 2GW installed capacity. (Tower project: 1.3 GW; Parabolic Trough project: 0.6GW; Fresnel project: 0.1GW) All 20 companies have signed feasibility study agreements and 15 companies started the tasks.


4、The following work plan and suggestion


A. Formulate and publish preferential policy for CSP pilot projects

B. Encourage companies to prepare for the 2nd batch of CSP pilot projects application

C. Create better situation to perfect CSP supporting industry


To make the most of abundant minerals to provide raw materials of key parts like molten salt, heliostat and glass.

In conclusion, concentrated solar power will be one of the most important industries in Hami and the local government will certainly try best to create the best environment to boost CSP industry.

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