NewEnergyNews: China Learning The Economics Of Wind The Hard Way

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    Friday, March 02, 2018

    China Learning The Economics Of Wind The Hard Way

    Wind curtailment in China and lessons from the United States

    Ye Qi, Jiaqi Lu, and Mengye ZhuThursday, March 1, 2018 (Brookings Institution)

    “…China has successfully fertilized the [world’s] biggest renewable industry in terms of both installation and equipment manufacturing…[Its investment in renewables is 100 times higher than it was in 2005] and accounts for one-third of global investments in renewable energy today. China aims to boost its wind power installation to 250 gigawatts and solar to 150 gigawatts by 2020…[But curtailment of renewable electricity generation is becoming increasingly common.] From 2010 to 2016, 150.4 million megawatt hours, or as much as 16 percent of overall wind generation, was abandoned. Over the last 6 years, the opportunity cost of wind power curtailment in China is estimated to exceed $1.2 billion…[and] about 1.5 percent of China’s total emissions in 2016…Direct causes for curtailment change over time and across different provinces…[F]rom 2010 to 2012, the main causes of curtailment were the rapid growth of installation and inadequate buildup of transmission grid…[After new grid construction in 2013 and 2014, curtailment was caused when demand for electric power was slowed down due mainly to economic deceleration…” click here for more

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