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China Green Energy Landscape

China’s Green Energy Landscape: A Transformative Journey with Statistical Highlights


China, the world’s second-largest economy and most populous nation, is undergoing a remarkable transformation in its energy sector. 

As global concerns about climate change and energy security intensify, China has embarked on a ambitious journey towards a greener future, prioritizing renewable energy development and carbon neutrality. This article delves into the current landscape of China’s green energy landscape, highlighting key statistics and exploring the challenges and opportunities ahead.


Soaring Renewables:



  • Dominant Player: As of 2023, China leads the world in installed capacity of wind and solar power, boasting an impressive 403 GW and 536 GW respectively. This represents a significant increase from 2022, with remarkable growth particularly in solar.

  • Ambitious Targets: China aims to achieve its 2030 wind and solar energy targets five years ahead of schedule, potentially reaching 1,200 GW of solar and 800 GW of wind by 2025.

  • Diverse Portfolio: Beyond solar and wind, China is also investing in other renewable sources like hydro, geothermal, and biomass. In 2022, hydro remained the largest contributor to renewable electricity generation, with 397 TWh produced.


Impressive Numbers:



  • Investment Surge: China is the world’s largest investor in renewable energy, pouring over $84 billion in 2022 alone. This significant investment fuels advancements in research, development, and deployment of green technologies.

  • Job Creation: The green energy sector is a burgeoning job market, contributing to millions of employment opportunities directly and indirectly. Estimates suggest that by 2030, the green energy workforce could reach 40 million.

  • Environmental Impact: The shift towards renewables is already showing positive environmental effects. Studies indicate that China’s renewable energy development has mitigated over 2.2 billion tons of carbon dioxide emissions between 2016 and 2020.


Challenges and Opportunities:



  • Grid Integration: Integrating large-scale variable renewable energy sources like solar and wind into the national grid presents a significant challenge. Building smart grids and developing efficient storage solutions is crucial.

  • Market Regulation: Establishing a stable and transparent regulatory framework for the green energy sector is vital to attract continued investment and foster innovation.

  • Technological Advancements: Continuous research and development are necessary to enhance the efficiency and affordability of renewable energy technologies. This includes exploring areas like next-generation solar panels and advanced wind turbines.


Moving Forward:


China’s green energy transition presents a remarkable case study for the world. While challenges persist, the country’s commitment to renewables and bold policy pronouncements have positioned it as a global leader in this crucial endeavor. As China navigates its green energy journey, the world closely watches, learning valuable lessons and drawing inspiration from its successes and challenges.


China Green Energy Landscape

Types of Green Energy in China: A Statistical Breakdown


China’s green energy landscape encompasses a diverse spectrum of renewable sources, each with its own unique contribution and significance. Let’s delve into the key types and explore relevant statistics:


Hydropower:



  • Dominant Force: As of 2023, hydropower remains the largest contributor to renewable electricity generation in China, boasting an installed capacity of 382 GW and generating 397 TWh in 2022.

  • Geographical Distribution: Hydropower projects are concentrated in mountainous regions like the Southwest and Northwest, with the Three Gorges Dam being the world’s largest hydroelectric facility.

  • Challenges: While mature and reliable, further expansion faces limitations due to environmental concerns and social impacts associated with large-scale dam construction.


Solar Power:



  • Rapid Growth: China leads the world in installed solar capacity with an astonishing 536 GW (2023), witnessing remarkable growth from 252 GW in 2020.

  • Diverse Applications: Solar energy utilization ranges from photovoltaic (PV) farms and rooftop installations to building-integrated systems.

  • Cost Competitiveness: Solar power costs have plummeted in recent years, making it increasingly competitive with traditional fossil fuels. However, grid integration and land use remain challenges.


Wind Power:



  • Second Largest: China holds the second position globally in installed wind capacity, reaching 403 GW (2023) up from 282 GW in 2020.

  • Focus on Onshore and Offshore: Onshore wind dominates currently, but offshore wind is witnessing rapid development with ambitious targets.

  • Challenges: Integrating large-scale wind farms into the grid and finding suitable locations, especially for offshore projects, are key hurdles.


Other Renewables:



  • Biomass and Geothermal: These sources contribute a smaller but significant share. Biomass capacity reached 39 GW in 2022, while geothermal reached 25 GW.

  • Emerging Technologies: Research and development are ongoing in areas like tidal, wave, and ocean thermal energy conversion, holding potential for future contributions.


Additional Statistics:



  • Investment: China invested over $84 billion in renewable energy in 2022, demonstrating its strong commitment.

  • Employment: The green energy sector employs millions directly and indirectly, contributing significantly to the economy.

  • Emission Reduction: The shift towards renewables has mitigated over 2.2 billion tons of carbon dioxide emissions between 2016 and 2020.


China’s Green Energy Landscape: Table of Key Statistics



Type of Green Energy Installed Capacity (GW, 2023) Electricity Generation (TWh, 2022) Investment (USD billion, 2022) Employed Workforce (millions, estimated) Key Challenges
Hydropower 382 397 N/A 2.5 Environmental concerns, social impacts
Solar Power 536 392 46.3 4.1 Grid integration, land use
Wind Power 403 389 22.2 3.8 Grid integration, location constraints
Biomass 39 85 8.5 1.2 Cost competitiveness, feedstock availability
Geothermal 25 29 7.0 0.2 Resource distribution, technology advancement



Notes:



  • N/A indicates data not readily available.

  • Employment figures are estimates and may vary depending on sources and definitions.

  • This table provides a snapshot of key statistics and is not exhaustive. .

China Green Energy Landscape


Statistics of Green Energy Consumption in China

Here’s a breakdown of key statistics regarding green energy consumption in China:

Overall Consumption:

  • Total Renewable Energy Consumption (2022): 13.3 exajoules (up from 11.27 exajoules in 2021)
  • Share of Total Final Energy Consumption (2022): 16.8% (World Bank – 2023)
  • Annual Growth Rate of Renewable Consumption (2010-2022): 5.5% on average

By Source:

Source Installed Capacity (GW, 2023) Electricity Generation (TWh, 2022) Share of Renewable Consumption (2022)
Hydropower 382 397 30%
Solar Power 536 392 29.5%
Wind Power 403 389 29.3%
Biomass 39 85 6.4%
Geothermal 25 29 2.2%

Additional Statistics:

  • Leading the World: China is the world’s largest consumer of renewable energy.
  • Ambitious Targets: China aims to reach 80% renewable energy consumption by 2060.
  • Economic Contribution: The green energy sector contributes significantly to China’s GDP and job creation.
  • Environmental Impact: Renewable energy expansion helps reduce air pollution and greenhouse gas emissions.

China Green Energy Landscape

Green Energy Growth in China: A Statistical Snapshot


China’s green energy sector is experiencing exceptional growth, making it a global leader in this crucial transition. Here’s a closer look at the statistics showcasing this progress:


Installed Capacity:



  • Overall Growth: From 2015 to 2023, China’s total installed capacity of major renewable energy sources (hydro, solar, wind) multiplied sixfold, reaching an impressive 1,341 GW.

  • Breakdown:


    • Solar: From 43 GW to 536 GW, witnessing a 12-fold increase.

    • Wind: From 92 GW to 403 GW, a fourfold growth.

    • Hydro: Remained relatively stable at around 380 GW.




Electricity Generation:



  • Total Renewable Generation: In 2022, China generated 1,205 TWh of electricity from renewables, a 94% increase from 2015.

  • Contribution to National Grid: Renewables contributed 27.5% to China’s total electricity generation in 2022, compared to just 16.6% in 2015.


Investment:



  • Global Leader: China has been the world’s largest investor in renewable energy for several years, pouring over $84 billion in 2022 alone.

  • Investment Growth: From 2015 to 2022, China’s cumulative investment in renewable energy reached a staggering $1.5 trillion.


Job Creation:



  • Booming Sector: The green energy sector employs millions in China, directly and indirectly. Estimates suggest the workforce could reach 40 million by 2030.

  • Job Growth: Between 2015 and 2022, green energy jobs in China have grown threefold.


China’s Green Energy Growth: Statistical Highlights



Metric 2015 2022 Growth (2015-2022)
Installed Capacity (GW):
– Solar 43 536 12x
– Wind 92 403 4x
– Hydro (approx.) 380 380 Stable
Total Renewable Capacity (GW) 515 1,341 6x
Renewable Electricity Generation (TWh) 626 1,205 94%
Share of Total Electricity Generation (%) 16.6 27.5 10.9%
Renewable Energy Investment (USD billion) N/A 84 N/A
Cumulative Renewable Investment (USD trillion) N/A 1.5 N/A
Estimated Green Energy Workforce (millions) N/A N/A 3x (2015-2022)



China Green Energy Landscape

Green Energy Company and Financial Institution in China

Green Energy Companies in China:


Leading players:



  • Goldwind:


    • Market Share: 12% in global onshore wind turbine market (2022)

    • Revenue: ¥152.1 billion (2022)

    • Installed capacity: 138 GW (2022)



  • Longi Green Energy Technology:


    • Market Share: 24% in global silicon wafer shipments (2023)

    • Revenue: ¥130.9 billion (2022)

    • Solar module shipments: 60.3 GW (2023)



  • Sungrow Power Supply Co., Ltd.:


    • Market Share: 19% in global inverter shipments (2022)

    • Revenue: ¥29.7 billion (2022)

    • Inverter shipments: 220 GW (2022)



  • BYD Company:


    • Market Share: 3.3% in global electric vehicle market (2023)

    • Revenue: ¥255.3 billion (2022)

    • Electric vehicle sales: 1.89 million units (2023)



  • State Grid Corporation of China:


    • Assets: ¥26.5 trillion (2022)

    • Installed renewable energy capacity: 551 GW (2022)

    • Investment in renewable energy: ¥584 billion (2022)




Market outlook:



  • China’s renewable energy investment: ¥1.5 trillion (2022)

  • Global renewable energy investment: ¥330 billion (2022)

  • China’s renewable energy capacity: 1,219 GW (2022)

  • Global renewable energy capacity: 3,110 GW (2022)


Financial Institutions Supporting Green Energy in China:


Key players:



  • China Construction Bank (CCB):


    • Green loan assets: ¥10.7 trillion (2022)

    • Green bond issuance: ¥2.1 trillion (2022)



  • Industrial and Commercial Bank of China (ICBC):


    • Green loan assets: ¥9.5 trillion (2022)

    • Green bond issuance: ¥1.8 trillion (2022)



  • Bank of China (BOC):


    • Green loan assets: ¥7.8 trillion (2022)

    • Green bond issuance: ¥1.5 trillion (2022)



  • Agricultural Bank of China (ABC):


    • Green loan assets: ¥4.2 trillion (2022)

    • Green bond issuance: ¥0.8 trillion (2022)



  • China Development Bank (CDB):


    • Green loan assets: ¥4.1 trillion (2022)

    • Green bond issuance: ¥0.2 trillion (2022)




Government support:



  • China’s 14th Five-Year Plan targets 80% of electricity from clean sources by 2030.

  • The government launched a green finance action plan in 2019 to develop the green finance market.

  • China’s green bond market is the world’s largest, with issuance exceeding ¥5 trillion in 2022.


Green Energy Companies in China



Company Market Share (%) Revenue (2022, ¥ billion) Key Product/Service Installed Capacity/Shipments (2022/2023)
Goldwind 12 (Onshore Wind Turbines) 152.1 Wind Turbines 138 GW
Longi Green Energy Technology 24 (Silicon Wafers) 130.9 Solar Panels 60.3 GW
Sungrow Power Supply Co., Ltd. 19 (Inverters) 29.7 Inverters for Solar & Wind 220 GW
BYD Company 3.3 (Electric Vehicles) 255.3 Electric Vehicles, Batteries 1.89 million units
State Grid Corporation of China N/A 26,500 (Assets) Renewable Energy Transmission & Distribution 551 GW



Financial Institutions Supporting Green Energy in China



Institution Green Loan Assets (2022, ¥ trillion) Green Bond Issuance (2022, ¥ trillion)
China Construction Bank (CCB) 10.7 2.1
Industrial and Commercial Bank of China (ICBC) 9.5 1.8
Bank of China (BOC) 7.8 1.5
Agricultural Bank of China (ABC) 4.2 0.8
China Development Bank (CDB) 4.1 0.2



Additional Notes:



  • Market share data varies depending on source and methodology.

  • State Grid Corporation of China’s market share is not applicable due to its unique role as a utility company.

  • Green loan and bond issuance data may not capture all green financial activities.


China Green Energy Landscape

Latest China Green Energy Technology Developments


Here are some of the latest advancements in China’s green energy technology landscape:


Renewable Energy:



  • Wind Power:


    • Goldwind unveiled its next-generation offshore wind turbine, the H222-16MW, boasting larger capacity and improved efficiency.

    • Construction began on the world’s first 12MW class offshore wind farm in Fujian province.



  • Solar Power:


    • Longi Green Energy Technology achieved world record efficiency for silicon solar cells at 26.89%.

    • Researchers at Tongji University developed a cost-effective “black silicon” technology for improved solar cell efficiency.



  • Hydropower:


    • China launched the Baihetan Hydropower Station, the world’s largest hydropower station by capacity.

    • Development continues on pumped hydro storage projects to optimize renewable energy integration.




Energy Storage:



  • Lithium-ion Batteries:


    • CATL unveiled a new generation of sodium-ion batteries for large-scale energy storage applications.

    • Researchers at the Chinese Academy of Sciences developed a new electrolyte material for longer lifespan lithium-ion batteries.



  • Redox Flow Batteries:


    • Dalian Rongke Power developed a 100MW vanadium redox flow battery for grid-scale energy storage.

    • Researchers at Xiamen University developed a low-cost iron-chromium redox flow battery for stationary energy storage.




Smart Grid Technologies:



  • Artificial Intelligence (AI):


    • State Grid Corporation of China is using AI to optimize grid operations and improve renewable energy integration.

    • AI-powered demand forecasting is being implemented to enhance grid stability and efficiency.



  • Blockchain:


    • Blockchain technology is being explored for peer-to-peer energy trading and decentralized grid management.

    • Pilot projects are underway to demonstrate the feasibility and benefits of blockchain-based energy solutions.




Overall, China continues to be a leader in green energy technology development and deployment. These advancements are crucial for achieving their ambitious climate goals and transitioning to a more sustainable energy future.

https://www.exaputra.com/2024/02/china-green-energy-landscape.html

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Vineyard Wind’s $69.50 PPA, Two Offshore Lease Exits

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Vineyard Wind’s $69.50 PPA, Two Offshore Lease Exits

Rosemary reports back on her visit to multiple Chinese renewable energy companies, Vineyard Wind activates a $69.50/MWh PPA with Massachusetts utilities, and Bronze Age jewelry halts a German wind project.

Sign up now for Uptime Tech News, our weekly newsletter on all things wind technology. This episode is sponsored by Weather Guard Lightning Tech. Learn more about Weather Guard’s StrikeTape Wind Turbine LPS retrofit. Follow the show on YouTube, Linkedin and visit Weather Guard on the web. And subscribe to Rosemary’s “Engineering with Rosie” YouTube channel here. Have a question we can answer on the show? Email us!

[00:00:00] The Uptime Wind Energy Podcast brought to you by Strike Tape protecting thousands of wind turbines from lightning damage worldwide. Visit strike tape.com and now your hosts.

Allen Hall 2025: Welcome to the Uptime Wind Energy Podcast. I’m your host, Allen Hall. I’m here with Yolanda Padron in Austin, Texas, who is back from the massive wedding event. Everybody’s super happy about that, and Rosemary Barnes had her own adventures. She just got back from China and Rosemary. You visited a a lot of different places inside of China.

Saw some cool factories. What all happened?

Rosemary Barnes: Yeah, it was really cool. I went over for an influencer event. So if you are maybe, you know, in the middle of your career, not, not particularly attractive or anything you might have thought influencer was ruled out for you as a career. No one, no one needs engineering influencers in their [00:01:00] forties.

It’s incorrect. It turns out that’s, that’s where, that’s where I, I found myself. It was pretty cool. I, I did get the red carpet rolled out for me. Many gifts. I had to buy a second bag to bring home the gifts, and when I say I had to buy a second bag, I had to mention. Oh, I have so many gifts, I’m gonna need another bag.

And then there was a new bag presented to me about half an hour later. But, so yeah, what did I do? I got to, um, as I was over there for a Sun Grow event. Huge, huge event. They, um, it’s for, it’s for their staff a lot, but it’s also, they also bring over partners. They also bring over international experts to talk about topics that are relevant to them.

Yeah. They gave everybody factory tours in, um, yeah, in, in shifts. Um, I got to see a module assembly factory, so where they take cells, which are like, I don’t know, the size of a small cereal box, um, and assemble them into a whole module. Then the warehouse, warehouse was [00:02:00] gigantic. It, um, was, yeah, 1.8 gigawatt hours worth of cells that couldn’t hold in that one building.

They’re totally obsessed with fire safety there in everything related to batterie, like in the design of the product, but also in, in the warehouse. And they do, yeah, fire drills all the, all the time. Some of them quite big and impressive. Um, I saw inverter manufacturing facility that was really cool.

Heaps of robots. Sw incredibly fast. Saw a test facility.

Allen Hall 2025: So was most of the manufacturing, robotics, or humans?

Rosemary Barnes: Yeah. So at the factory it was like anything that needed to be done really fast or with really good quality was done by robots. So they had, um, you know, pick and place machines putting in. Um, you know, components in the circuit board, like just insane, insane rate.

I’m sure it’s quite, quite normal, but, um, just very fast. Everything lined up in a row. Most of their quality control is done by robots. Um, so it does well it’s done by ai, I should say. [00:03:00] Taking photos of, of things and then, um, AI’s interpreting that. Repairs, I think were done by humans. There were humans doing, um, like custom components as well.

Like not every product is exactly the same. So the custom stuff was done by humans.

Allen H: So that’s the Sun Grove facility, right? You, but you went to a couple of different places within China?

Rosemary Barnes: Yeah, I went to another, a factory, a solar panel, a factory, um, from Longie. That was really cool too. I got to see a bit more probably of the, um, interesting, interesting stuff there, like, uh, a bit more.

Um, yeah, I don’t, I dunno, processes that aren’t, aren’t so obvious. Not just assembly, but um, you know, like printing on, um, bus bars and, you know, all of the different connections and yeah, it was a bit, a bit more to it in what I saw. Um, so that was, but it, it’s the same, you know, as humans are only involved when it’s a little bit out of the.

Norm or, um, where they’re doing repairs, actual actually re [00:04:00]repairing. You know, the robots or the AI is identifying which components don’t meet the standard and then they’ll go somewhere where a human will come and, um, fix them.

Allen H: Being the engineer there. Did you notice where the robots are made? Was everything made in China that was inside the factory or were they bringing in outside?

Technology.

Rosemary Barnes: I didn’t think to look for that, but I would assume that it was Chinese made, also

Allen H: all built in country

Rosemary Barnes: 20 years ago that wouldn’t have been the case, but I think that China has had a long, a long time to, to learn that. Again, it’s not like, it’s not, it’s not rocket science. These are, these are pick and place machines, you know, like I remember working on a project very early in my career, so.

Literally 20 years ago, um, I was working with pick and place machines. It’s the same, it’s the same thing. Um, some of them are bigger ’cause they’re, you know, hauling whole, um, battery packs around. It’s just the, um, the way that it’s set up, but then also the scale that they can achieve. You just, you can’t make things that cheap if you don’t have the [00:05:00] scale to utilize everything.

A hundred percent. Like I said, wind turbine towers is a really good example. ’cause anyone, any steel fabricating

Allen H: shop

Rosemary Barnes: could make a wind turbine tower. Right? They, they could, they could do that. You know, the Chinese, um, wind turbine tower factories have the exact right machine. They don’t have a welder that they also use for welding bits of bridges or whatever.

Uh, they have the one that does the exact kind of world that they need, um, for the tower. They, you know, they do that precisely. Robotically, uh, exactly the same. And, you know, a, a tower section comes on, they weld it, it moves off to the next thing, and then a new one comes on. They’re not trying to move things around to then do another weld in the same machine.

You know, like they’re, um, but the exact right. Super expensive machine for the job costs a whole bunch to set up a factory. And then you need to be making multiple towers every single day out of that factory to be able to recoup on your cost. And so that is [00:06:00] the. The, um, bar that is just incredibly hard slash impossible for, um, other countries to clear.

Allen H: Can I ask you about that? Because I was watching a YouTube video about Tesla early on Tesla, where they wanted to bring in a lot of robotics to make vehicles and that they felt like that was the wrong thing to do. In fact, they, they, they kinda locked robots in and realized that this is not the right way to do it.

We need to change the whole process. It was a big deal to kind of pull those. Specialized piece of equipment, robots out and to put something else in its place in that they learned, you know, the first time, instead of deciding on a process, putting it in place and then trying to turn it on, see if it works, was to sort of gradually do it.

But don’t bolt anything down. Don’t lock it in place such that it doesn’t feel like it’s permanent. So you engineer can think about removing it if it’s not working. But it sounds like this is sort of the opposite approach of. A highly specialized [00:07:00] machine set in place permanently to produce. Infinite amounts of this particular product, does that then restrict future changes and what they can make or, I, I, how do they see that?

Did, did you talk about that? Because I think that’s one of an interesting approaches.

Rosemary Barnes: I didn’t actually get as much chances I would’ve liked to speak to engineers. Um, I was talking mostly to salespeople and installers. Um, so they know a lot, but I couldn’t, um, like in the factory tours, I was asking questions.

Um. That kind of question and, and they could answer all, all that. Um, but outside of that, and I couldn’t record in the factory obviously. Um, but I did, I did take notes, but what I would say is that they would have a separate facility where they would be working out the details of new products and new manufacturing processes and testing them out thoroughly before they went and, you know, um, installed everything correctly.

But what I do hear is that, you know, especially with solar power. Maybe to [00:08:00] batteries to a lesser extent. You, you know, you like, you have these kind of waves of technology. Um, so you know, like everyone’s making whatever certain type of solar cell and then five years later, um, there’s a new more efficient configuration and everybody’s making that.

And I know that there are a lot of factories that kind of get scrapped. Um, and the way that China’s set up their, like, you know, their economy around all this sort of thing is set up is that it’s not that, like every company doesn’t succeed. Right. They SGO was a big exception because they’ve been going since 1997, I think it was.

It was started by a professor quid his job and hired a room across the, across the road from his old university and, you know, built his first inverter and, um, you know, ’cause he, he could see that. Uh, the grid was gonna have to change to incorporate all of the solar power that was coming, which to be honest, in 1997, that was like pretty, pretty farsighted.

That was not obvious to me when I started working in solar in mid two thousands. And it was not obvious to me that this was a winner.

Allen H: Well, has sun grow evolved then quite a bit? ’cause if you’re [00:09:00] saying that they’ve minimized the cost to produce any of their products by the use of robotics, they have been through an evolutionary process.

You didn’t see any of the previous generations of. Factories. You, you were just seeing the most modern factory that that’s actually producing parts today. So is that a, is that a, is that just a cost mindset that’s going on in China? Like, we’re just gonna produce the lowest cost thing as fast as we can, or is it a market penetration approach?

What are, what were, were the engineers in management saying about that?

Rosemary Barnes: I think there’s a few different aspects to that, like within China. So Sun Grow is the big company with a long track record and they’re not making the cheapest product out of China. So I think that they are still trying to make the cheapest product, but they’re not thinking about it just in the purchase price.

Right. They’re thinking more in terms of the long, long term. You know, they’ve been around for 30 years and probably expect to be around for another 30 years. They don’t wanna be having [00:10:00] recalls of their products and you know, like having to, um. Installers in particular are probably working with them because they know that they won’t have to go back and do rework and the support is good and all that sort of thing.

So they’re spending so much money on testing and you know, just getting everything exactly right. But I don’t think that that’s the only way that China is doing it. There’s, you know, dozens, probably hundreds of companies. Um. Doing similar stuff between Yeah, like solar panels and associated stuff like inverters and, and batteries.

So many companies and all of them won’t succeed. You know, sun Girls Facility in, I was in her and it’s huge, you know, it’s like a, a medium sized country town. Just their, um, their campus there, they’re not, they’re not scrapping that and moving to a new site, you know, they’re gonna be. Rejiggering and I would expect that, you know, like everything’s set up exactly the way it needs to be, but it’s not like gigantic machines.[00:11:00]

It’s not like setting up a wind turbine blade factory where it’s hard if you designed it for 40 meter blades, you can’t suddenly start making 120 meter blades. Like it’s, they will be able to be sliding machines in and out as they need to. Um, so I, I, yeah, I guess that it’s some, some flexibility. But not at the cost of making the product correctly.

Allen H: Did you see wind turbines while you were in China?

Rosemary Barnes: I, the only winter I saw, I actually, I saw, because I caught the train from Shanghai, I actually caught the fast train from Shanghai to, which is about, it depends which one you get between like an hour 40 or three hours if it stops everywhere. Um, and I did see a couple of wind turbines on the way there, out the window, just randomly like a wind turbine in the middle of a, a town.

Um, so that was a bit, a bit interesting. But then in the plane, on the way back, the plane from Shanghai to Hong Kong, I, at the window I saw a cooling tower of some sort. So either like a, yeah, some kind of thermal [00:12:00] power plant. And then. Around all around, well, wind turbines, so onshore wind turbines. So I don’t know.

Um, yeah, I, I don’t know the story behind that, but it’s also not a particularly windy area, right? Like most of the wind in China is, um, to the west where, uh, I wasn’t

Allen H: as wind energy professionals, staying informed is crucial, and let’s face it. That’s why the Uptime podcast recommends PES Wind Magazine. PES Wind offers a diverse range of in-depth articles and expert insights that dive into the most pressing issues facing our energy future.

Whether you’re an industry veteran or new to wind, PES Wind has the high quality content you need. Don’t miss out. Visit PS win.com today. So there are two stories out of the US at the minute that really paint a picture of the industry. It was just being pulled in opposite directions. The Department of Interior announced agreements to terminate two more.

Offshore wind leases, uh, [00:13:00] Bluepoint wind and Golden State wind have agreed to walk away from their projects. Global Infrastructure Partners, which is part of BlackRock, will invest up to $765 million in a liquified natural gas facility instead of developing blue point wind. Ah. And Golden State Wind will recover approximately $120 million in lease fees after redirecting investment to oil and gas projects along the Gulf Coast, and both companies say they will not pursue further offshore wind development in the United States.

Well, we’ll see how that plays out. Right? Meanwhile. In Massachusetts Vineyard Wind, which has been fighting with GE Renova recently has activated its long awaited power purchase agreement with three utilities. The contract set a fixed electricity price of drum roll please. [00:14:00] $69 and 50 cents per megawatt hour for the first year and a two and a half percent annual increase.

Uh, state officials say the agreements will save rate payers $1.4 billion over 20 years. So $69 and 50 cents per megawatt hour is a really low PPA price for offshore wind. A lot of the New York projects that. Renegotiated we’re somewhere in the realm of 120 to $130 a megawatt hour, and there’s been a lot of discussion in Congress about the, the usefulness of offshore wind.

It’s intermittent blahdi, blahdi, blah. Uh, but the, the big driver is what costs too much. In fact, it doesn’t cost too much. And because it’s consistent, particularly in the wintertime, uh, electricity prices in Massachusetts in the surrounding area are really high. ’cause of the demand and ’cause how cold it is that this offshore wind project, vineyard wind would be a huge rate saving.

And [00:15:00] actually the math works out the math. Math everybody. Do you think this is, when we go back five years from now, look back at this. This vineyard wind project really makes sense for Massachusetts.

Yolanda Padron: I think it really makes sense for Massachusetts. I’m really interested to know what the asset managers are thinking on the vineyard wind side, um, and if they’re scared at all to take this on.

I mean, it’s great and I’m sure they can absolutely deliver. Like generation I don’t think should be an issue. Um. I just don’t know. It’s, it sounds like they’re leaving a lot of money on the table.

Allen H: I would say so, yeah. But remember, the vineyard win was one of the early, uh, agreements made when things were, this is pre Ukraine war, pre Iran conflict on a lot of other, a lot of other things.

It was pre, so I remember at the time when this was going on that. P. PA prices were higher than obviously a lot of other [00:16:00] things. Onshore solar, onshore wind, it would, offshore is always more expensive, but I don’t remember $69 popping up anywhere in any filing that I remember seeing. So even if they had said $69 five years ago, I think that would’ve still been like, wow, that’s pretty good for an offshore wind project.

And now it looks fantastic for the state of Massachusetts

Yolanda Padron: because I know that there’s sometimes, and we’ve talked about this in the past, right? There are sometimes projects where, you know, you think you, you’ve got a really good price and you’re really excited about it, and then it goes into operation and then like a couple years down the road, prices increase quite a bit and it’s not the worst thing in the world.

But you do just kind of think a little bit like, I wish I could. Renegotiate this or you know, just to get, to get our team a bit of a better deal or to get a bit more money in operations and everything.

Allen H: Does this play into Vineyard wind claiming $850 [00:17:00] million in dispute with GE Renova that at $69 PPA, there’s not a lot of profit at the end of this and need to get the money out of GE Renova right now, and maybe why GE Renova wants to get out of this because they realize.

The conflict that is coming that they need to separate the, the themselves from this project. It’s, it’s very, as an asset manager, Yoland, as you have done this in the past, would you be concerned about the viability of the project going forward, or is all the upfront costs. Pretty much done in that operationally year to year.

It’s, it’s not that big of a deal.

Yolanda Padron: As an asset manager taking this on, I’d probably have started preparation on this project a lot earlier than other of my projects like I do. I know that usually there’s, you know, we’ve talked about the different teams, right, throughout the stages of the project until it goes into operations, [00:18:00] but.

And usually you don’t have a lot of time to prepare to, to make sure all of your i’s are dotted and t’s are crossed, um, by the time you take the project and operations from a commercial standpoint. But this project, I think would absolutely, like you, you would need to make sure that a lot of the, of the things that you’re, that might be issues for some of your projects like aren’t issues for this project.

Just to make sure at least the first few years you can. You can avoid a lot of, a lot of turmoil that the pricing and the disputes and the technical issues are gonna cause you, because I feel like it’s just, there’s, there’s just so many things that just keep this side, just keeps on getting hit, you know?

Allen H: Well, I, I guess the question is from my side, Yolanda, is obviously inflation, when this project started was pretty consistent, like one point half, 2%. It was very flat for a long time. And interest rates, if you remember when this project started, were very, very low. Almost [00:19:00] nonexistent, some interest rates.

Now that’s hugely different. How does a contract get set up where a vineyard can’t raise prices? It would just seem to me like you would have to tie some of the price increase to whatever the inflation rate is for the country, maybe even locally, so that if there were a, a war in Ukraine or some conflict in the Middle East.

That you, you would at least be able to, to generate some revenue out of this project because at some point it becomes untenable, right? You just can’t afford to operate it anymore. And,

Yolanda Padron: and I think, um, I, I haven’t, I obviously haven’t read the, the contracts themselves, but I know that there’s sometimes there, it’s pretty common for a PPA to have some sort of step up year by year.

And it’s usually, it can be tied to, um, the CPI for. Like the, the change in CPI for the year to year. So you’re [00:20:00] absolutely like, right, like maybe, I mean, hopefully they’re, they’re not just tied to the fixed 69 bucks per megawatt hour. Um, but, but yeah, to, to your point like that, that price increase could, could really save them.

Now that we’re, we’re talking the, the increase in, in inflation right now and foreseeable future,

Allen H: if you think about what electricity rates are up in the northeast. I think I was paying 30 cents a kilowatt hour, which is 300. Does that sound right? $300 a megawatt hour. Delivered at the house, something like that.

Right? So

Yolanda Padron: prices in the northeast are crazy to me,

Allen H: right? They’re like double what they are in North Carolina. Yeah.

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Yolanda Padron: you millions.

Allen H: Well, sometimes building a wind farm turns out more than expected construction workers at a 19 turbine wind project in lower Saxony Germany under Earth. What experts call the largest Bronze age Amber Horde ever found? The region, the very first scoop of an excavator brought up bronze and amber artifacts that stopped construction and brought archeologists back to the site.

Uh, the hoard has been dated between [00:22:00] 1500 and 1300 DCE and is believed to have belonged to at least three. Status women possibly buried as a religious offering. Now as we push further and further across Germany with wind turbines and solar panels for, for that matter, uh, we’re coming across older sites, uh, older pieces of ground that haven’t been touched in a long time and we’re, we’re gonna find more and more, uh, historically significant things buried in the soil.

What is the obligation? Of the constructor of this project and maybe across Europe. I, I would assume in the United States too, if we came across something that old and America’s just not that old to, to have anything of, of that kind of, um, maybe value or historically significant. What is the process here?

Rosemary Barnes: I assume that they’ve gotta stop, stop work. Um, yeah, that’s my, my understanding and I don’t think, do you have [00:23:00] grand designs in America?

Allen H: I don’t know what that is. Yes.

Rosemary Barnes: So missing out by not having that chat. It’s a TV show about people who are building houses or doing, um, ambitious renovations, and it just, it follows, it follows them.

You can learn a lot about project management or. The consequences if you decide that you don’t need to, project management isn’t a thing that you need to do. Um, anyway. I’m sure that in some of those ones I’ve seen they have had work stop because in their excavation they found a, um, yeah, some, some kind of relic, um, from the, from the past.

So based on that very well-credentialed experience that I have, I can confidently say that they would be stopping stopping work on that site. I mean, it’s so bad, bad for the developer, I guess, but it’s cool, right? That they’re, you know, uncovering, uh, new archeology and we can learn more about, you know, people that lived thousands of years ago.

Allen H: It, it does seem [00:24:00] like, obviously. Do push into places where humans have lived for thousands of years. We’re going to stumble across these things. Does that mean from a project standpoint, there’s, there’s some sort of financial consequence, like does the lower Saxony government contribute to the wind turbine fund to to pay the workers for a while?

’cause it seems like if they’re gonna do an archeological dig. That that’s gonna take months at a minimum, may, maybe not, but it usually, having watched these things go on it, it’s. It’s long.

Rosemary Barnes: But wouldn’t that be something that you’d have insurance for?

Allen H: Oh, maybe that’s it.

Rosemary Barnes: You know, it seems to me like an insurable, an insurable thing, like not so hard to, it would’ve affected plenty of other, like any project that involves excavation in Europe would come with a risk of, um, finding Yeah.

An archeological find. And having work stopped, I would assume.

Allen H: Yolanda, how does that work in the United States do, is there some insurance policy towards finding [00:25:00] a. Ancient burial ground and what happens to your project?

Yolanda Padron: I don’t know. I, um, the most I’ve heard has been, it’s just talking to like the government and like the local government and making sure that you have all your permits in place and making sure, you know, you might need to, to have certain studies so you know, you might not have to get rid of the whole wind farm or remove the hole wind farm, but at least a section.

Of it has to be displaced from what you originally had thought. I don’t know. I know it happens a lot in Mexico where you get a lot of changes to construction plans because you find historical artifacts or obviously not everybody does this, but like. Tales of construction workers who will like, find, they’re so jaded from finding historical artifacts that they just kind of like take and then dump them to the next plot over to not deal with it right now.

Not that it’s anything ethical, uh, or done by everybody, [00:26:00] uh, but it’s, but, but it’s a common occurrence, a relatively common occurrence.

Allen H: You would think it where a lot of wind turbines are in the United States, which is mostly Texas and kind of that. Midwest, uh, wind corridor that they would’ve stumbled across something somewhere.

But I did just a quick search. I really hadn’t found anything that there wasn’t like a Native American burial ground or something of that sort, which they previously knew. For the most part. It’s, so, it’s rare that, that you find something significant besides, well, maybe used some woolly mammoths tusks or something of that sort.

Uh, in the Midwest, it’s, it’s, so, it’s an odd thing, but is there a. A finder’s fee? Like do does the wind company get to take some of the proceeds of, of this? Trove of jewelry.

Rosemary Barnes: I, I would be highly surprised.

Allen H: Well, how does that work then? Rosemary?

Rosemary Barnes: I’d be highly surprised if that’s the case in Europe. I bet it would happen like that in America.

Allen H: Sounds like pirate bounty in a sense.

Rosemary Barnes: In, in Australia it wouldn’t be like that because [00:27:00]you, when you own land, you don’t actually. You, you own the right to do things from surface level and above, basically. I don’t know how excavation works. So you don’t generally have a a right to anything you find like that?

I mean, you shouldn’t either. It’s not, it’s not yours. It’s a, it belongs to the, I don’t know, the people that, that were buried. When you then to the, the land, like, I guess. The government in some way. I mean, in Australia it’s, um, like we don’t have so many archeological fines that you would find from digging.

I mean, it’s not that there’s none, but there’s not so many like that. But it is pretty common that, you know, there are special trees, um, you know, some old trees that predate, uh, white people arriving in Australia. And, um, you know, that have been used for, you know, like it might have a, a shield that’s been, um.

Carved out of it. Or, uh, hunting. Hunting things, ceremonial things, baskets, canoes, canoe like things, stuff like that. They call ’em a scar [00:28:00] tree ’cause they would cut it out of a living, living tree. And you know, so when you see a tree with those scars and that’s got, um, cultural significance. There’s also, you know, just trees that were, um.

That that was significant for cultural reasons and so you wouldn’t be able to cut down those trees if you were building any, doing any kind of development in Australia and a wind farm would be no different. I know that they are, there are guidelines for, if you do come across any kind of thing like that or you find any anything of cultural significance, then you have to report it and hopefully you don’t just move it onto the neighboring property.

Allen H: I know one of the things about watching, um. Some crazy Canadian shows is that. Uh, you have to have a Treasure Hunter’s license in Canada. So if you’re involved in that process, like you can’t dig, you can’t shovel things, only certain people can shovel. ’cause if they were to find something of value, you.

You’ll get taxed on it. So there’s just a lot of rules [00:29:00] about it. Even in Canada,

Rosemary Barnes: if I was an indigenous Australian and you know, some Europe person of European descent came and found some artifacts, uh, aboriginal. Artifacts. I would be pissed if they just took it and sold it. Like that’s just clearly inappropriate right.

To, to do that. So you, I don’t think it should be a free for all. If you find artifacts of cultural significance and you just, it’s, you find its keepers that, that doesn’t sound right to me at all.

Allen H: Can we talk about King Charles II’s visit to the United States for a brief moment?

Uh, he is a really good ambassador, just like, uh, the queen was forever. He’s, he does take it very seriously and the way that he interacted with the US delegation was remarkable at times in, in terms of knowing how to deal with somebody that there’s a war going on right now. So there’s a lot [00:30:00] happening in the United States that, uh, not only could it be.

Uh, respecting both sides of the UK and the United States’ position in a, in a number of different areas, but at the same time being humorous, trying to build bridges. Uh, king Charles, uh, had the scotch whiskey tariffs removed just by negotiating with President Trump, and sometimes that’s what it takes.

It’s a little bit of, uh. Being a good ambassador.

Allen H: Yeah. The very polished you would expect that. Right? But this is the first visit of. The king to the United States, I believe. ’cause he, he’s been obviously as a prince many, many, many times to the United States. [00:31:00]But this time as, as a, the representative of the country, the former representative or head of the country, which was unique.

I think he did a really good job. And I wish he, they would’ve talked about offshore wind. Maybe he could’ve calmed down the administration on offshore wind.

Rosemary Barnes: I bet that’s one of the, the goals. I mean, that’s an industry that’s important to. So

Allen H: I wonder if that happened actually. ’cause that’s not gonna be reported in, in the news, but how the UK is going on its own way in terms of electrification and I guarantee offshore wind had to come up it.

Although I have been not seen any article about it, I, I find it hard to believe that King Charles being the environmentalist that he is, and a proponent of offshore wind for a long time. Didn’t bring it up and try to mend some fences.

Rosemary Barnes: Maybe he’s playing the long game though. I mean, Trump is pretty, he’s transactional, but he also, you know, he has people that he really likes and you know, will act in their interests.

So maybe it’s enough to just be [00:32:00] really liked by Trump, and then that’s the smartest way you can go about it.

Allen H: Did you see the gift that King Charles presented to, uh, the US this past week?

It was a be from, uh, world War II submarine, which was the British, I dunno what the British called their submarines, but it was, the name of it was Trump. So they had the bell from. The submarine when it had been commissioned and they, they gave that to the United States, or give to the president. It goes to the United States.

The president doesn’t get to keep those things, but it was such a smart, it’s a great president. It’s such a smart gift, and somebody had to think about it and the king had to deliver it in a way that got rid of all the noise between the United States and the uk. Brought it back to, Hey, we have a lot in common [00:33:00] here.

We shouldn’t be bickering as much as we are. And I thought that was a really smart, tactful, sensible way to try to men some fences. That was really good. That wraps up another episode of the Uptime Wind Energy Podcast. If today’s discussion sparked any questions or ideas, we’d love to hear from you. Reach out to us on LinkedIn.

Don’t forget to subscribe, so you never miss this episode. And if you found value in today’s conversation, please leave us a review. It really helps other wind energy professionals discover the show. For Rosie and Yolanda, I’m Allen Hall and we with. See you’re here next week on the Uptime Wind Energy Podcast.

Vineyard Wind’s $69.50 PPA, Two Offshore Lease Exits

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America Is a Gun

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Money means everything, and the value we put on the lives of our children pale in comparison.

America Is a Gun

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