Analysis of Global Power Market

Analysis of China's Power Operation Market Development Trends by Sectors Sector Hydropower Coal-fired Solar Wind Major Trends Industry Vertical Integration: With the deepening of commercialisation reform of China power industry, there will be more hydropower companies acquiring, investing in or establishing downstream business to increase the efficiency of power sale, reduce cost of distribution and have more competitive selling prices. Ecological Protection: According to the 13th five-year plan on development of hydropower from NEA, the government requires to control the development of small size hydropower stations at the developed areas such as eastern China for the purpose of ecological protection. Additionally, the government also emphasises on the environment assessment, especially on the ecological system, before the construction of hydropower station. Technology Advancement: The technology advancement of hydropower may focus on further improving the efficiency of the water turbine, as a result, the high-performance and large capacity water turbine units will be the next technological breakthrough. Additionally, although the hydropower is considered as one of the clean power generation methods, it will still have negative impacts on the ecological system. Therefore, in order to construct environment-friendly hydropower plants, ecological protection technology will be developed. Development of CHP and CCHP: In order to improve energy efficiency, CHP and CCHP facilities are constructed to replace the traditional coal-fired heating system. CHP and CCHP facilities use the waste heat in the power generation process to realise heating or cooling, which can fully utilise the primary energy and improve energy efficiency. Zero-emission: With the increasingly strict environment pollution control, the government puts a higher requirement on the emission of coal-fired power plants, as a result, many coal-fired power plants started to explore the "zero-emission". In order to reduce the emission of coal-fired power plants, the supercritical and ultra-supercritical technologies have been applied to the coal-fired power plants. Supercritical and ultra-supercritical thermal power plants operate at temperatures and pressures above the critical point of water, requiring less coal per MWh and leading to lower emissions, higher efficiency and lower fuel costs per MW. Development of Distributed Power Station. It is noticeable that the installation of distributed power station accounts for a growing share of the total annual PV installation of China. Driven by the favorable policies issued by both central and provincial governments, distributed PV station is expected to gain a more important role of PV stations in the near future. Technological Advancement. The development of PERC technology can largely reduce the loss of solar energy by increasing the conversion efficiency of photovoltaic cells. In addition, materials like monocrystalline silicon and black silicon can better trap the light incidence and reduce the reflectance, which improves the energy conversion rate. The application of these new technologies and materials will greatly improve the efficiency of photovoltaic power and reduce the cost. Coordinated Development of Onshore and Offshore Wind Power. Currently, onshore wind power in China is developing faster than offshore wind power which is mainly limited by technical restrictions. According to China Wind Energy Roadmap 2050 issued by NDRC and IEA, during 2021 to 2030, both onshore wind power and offshore wind power will be the emphasis. Continuous Advancements in Technologies. The shipment data of wind turbines indicate that the average unit capacity of wind turbine has been increasing for years. Among newly installed capacity since 2014, the turbine of 2.0 MW has become the major model and keeps expanding its share. Additionally, turbine manufacturers and developers are developing technologies of energy storage, power dispatching, power transmission, etc. The latest industry technologies, such as "large-capacity" wind turbine, low-wind-speed adaptable turbine and optimised dispatching technology, may result in lower costs of equipment, higher utilisation and operating efficiency, as well as more stable electricity generation. FROST SULLIVAN Source: Frost & Sullivan 62

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