Commentary: China Transforms Itself As Renewable Powerhouse
By Siti Radziah Hamzah
BEIJING, June 9 (Bernama) -- China is the world's largest greenhouse emitter, but it has quietly transformed itself as a renewable energy powerhouse.
Over the years, the country became the location of investment in solar, wind and nuclear power. A move that Malaysia could emulate and implement faster to achieve its commitment on net zero carbon emission by 2050.
On this writer's recent trip to the southeastern Chinese province -- Fujian -- it was learned that this area boasts around 4,500 wind turbines in the area including offshore, generating at least 30 per cent of electricity for China.
Under the purview of Fujian Three Gorges Maritime Wind Power Industrial Park, which owns 30 per cent of the 4,500 wind turbines, being the biggest share of wind turbines in the province, the wind turbines produce 1,434.57 megawatt of electricity per hour at its peak.
Fujian Three Gorges Offshore Wind Power International Industrial Park is the first full-industry-chain offshore wind power industrial park in China.
In November 2023, the world's largest 18-megawatt direct-drive offshore wind turbine was unveiled at the Fujian Three Gorges Maritime Wind Power Industrial Park.
These wind turbines in the industrial park also prove China's dominance in the wind power industry globally, and the products of the industrial park are not only widely used in China's offshore wind power development, catering not only for the domestic market but are also exported to countries including Turkey, the United Kingdom and Vietnam.
Moody's Ratings noted that one of the key reasons for China’s dominance is because the wind power sector is a key part of the government’s decarbonisation plan.
As at end-2023, China has 441 gigawatt (GW) of installed wind capacity for both onshore and offshore wind, representing the highest global share of 43.4 per cent and its annual wind capacity addition of 76GW in 2023 also accounted for 65.5 per cent of the world’s total annual capacity addition.
China’s offshore wind farms are close to the eastern coastal load centre, where the offshore wind conditions are generally better than those on land.
In particular, Fujian Province is located on the west coast of the Taiwan Strait. In this area, affected by the “narrow tube effect”, the annual average wind speed at sea can reach about nine metres per second, and the offshore wind resources are at the forefront of the country.
Chinese wind turbine manufacturers also account for about half of the global wind turbines produced in 2022 and 2023.
"Other than being a clean energy source, wind power in China is also very cost competitive compared to fossil fuels. We expect wind power’s contribution to the nation’s power generation mix (standing at 10 per cent in 2023) to increase," Moody's Ratings told Bernama.
To date, China has estimated between 40 and 50 wind power plants in the country, including in Fujian.
China was the world's largest contributor of new renewable capacity between 2012 and 2021. New projects for onshore wind and solar power in the country entered grid parity in 2022, and subsidies are no longer the major driver for the development of renewable energy.
In its research note in May 2023, Moody's Ratings noted that increasing clean energy in China's power mix is the key to the power sector’s carbon transition.
Compared to other clean energies, renewables are the most cost competitive energy in China based on current technology due to several factors namely more available renewable resources. less safety issues and new renewable projects have reached grid parity.
Revival of nuclear energy in power mix
Demand for nuclear power as a reliable, low-emission power source has increased in various countries globally because of governments' commitments to decarbonisation, volatile fossil fuel costs and the less predictable generation performance of solar and wind power in the absence of large-scale long duration power storage technology.
China is one of the world's largest producers of nuclear power and is likely to increase the share of nuclear power in its power mix, alongside South Korea and Japan, following their plans to diversify their fuel base amid decarbonisation.
China owns several nuclear power plants including two in Fujian province.
In 2023, China's nuclear power generation amounted to about 433.4 billion kilowatt-hours
Moody's Ratings said the Fukushima incident in 2011 halted the growth in nuclear power investment globally but also gave room for enhanced designs in new reactors.
"Third-generation reactor generation fleets are beginning to establish a safe operating record and so far have responded swiftly and transparently to public concerns.
"In addition, new generation reactors are designed with safer, structurally reinforced features: alternative cooling options; backup generators; additional shields and seals to guard against wind; as well as dikes and other embankments to protect sites against flooding." it added.
Moody's Ratings said robust and transparent regulatory oversight defined and transparent decommissioning and waste disposal plans could also enhance public confidence in nuclear power over the longer term.
In the meantime, the International Energy Agency (IEA) expects the share of nuclear power in the global energy mix to remain at around 10 per cent from 2024 to 2050 as Asia increases its nuclear investment and construction, offsetting plant retirements and suspensions in Europe and North America.
The IEA said a nuclear renaissance is coming and predicts nuclear power generation globally will reach an all-time high in 2025 with several traditional nuclear plants in Japan that were put on pause after the Fukushima incident will soon be restarted, and new reactors in China, India, South Korea and Europe will start operating.
Nuclear energy in Southeast Asia
In Southeast Asia, Thailand and the Philippines are charging ahead with their plans to start nuclear reactors by the next decade as momentum grows in the region toward its first operational power plant.
Malaysia also mulls nuclear power generation but needs to make further consideration before integrating it into the country’s energy mix.
Given that Malaysia is still at an early stage in nuclear power development, Moody's Ratings believed the government will look at some of the global experiences when it makes its decisions in this area.
It said that among the global experiences were risks of cost overrun / project delays on new nuclear power project rollout such as the rollout of European pressurised reactor (EPR) units in France / Finland and the dilemma between public concerns on nuclear power safety versus higher electricity costs by increasing natural gas power consumption.
Other factors include cost competitiveness of nuclear power (especially for new generation units) against competing fuels, in particular in countries where the cost of renewable generation continues to fall (China / India).
-- BERNAMA
