In the realm of Chinese solar energy investment, addressing midday power limitations or engaging in a “load battle” is becoming a pivotal issue in the next phase of solar energy development.
Addressing Midday Power Limitations
A private photovoltaic (PV) company recently found a solution to midday power limitations for its solar power station in Australia. By signing a 4-hour Power Purchase Agreement (PPA) with a company that consumes energy during midday, the PV company ensures the sale of surplus electricity during peak hours at a reasonable price, thus maintaining a high comprehensive electricity price level for the entire station.
National Trends and Challenges
The issue of midday power limitations and negative electricity prices is not unique to China’s new energy development but can occur in any region as installed capacity increases. Exploring load side resources has become a new path for new energy development, with the rise of new energy hydrogen production serving as a testament to finding local consumption paths.
Industry Analysis and Forecasts
At the 2024 Photovoltaic Market Development Forum held by the China Photovoltaic Industry Association, Zhang Jinping, Director of the New Energy Dispatch Operation Room of the New Energy Research Center of the China Electric Power Research Institute, pointed out that China’s cumulative installed new energy capacity has exceeded 1 billion kilowatts. However, the excessive installation of new energy exceeds the planned bottom line, posing a risk of declining utilization rates. It is predicted that China’s new energy utilization rate may drop below 95% this year, further decreasing by 2025, and reaching approximately 90% by 2030.
Regional Strategies and Initiatives
In provinces like Xinjiang, efforts to enhance new energy consumption capacity are evident. To promote the development of characteristic industries, policies supporting hydrogen energy, green computing power, energy substitution, and low-carbon industrial parks have been introduced, prioritizing the allocation of wind and solar resources to industries that can increase load.
Implications for Future Development
As China’s new energy development transitions to focusing on load side resources, challenges arise for power companies previously focused on generation-side investments and management. The 2024 New Energy Power Development Forum and the Eighth New Energy Power Plant Design, Engineering, and Equipment Selection Seminar will address these challenges, exploring opportunities and solutions for the new era of new energy development.
The forum will include discussions on green energy conversion, delving into topics such as green hydrogen, green computing power, wind and solar energy storage, and more, providing insights into market prospects, development status, demonstration cases, and construction experiences.
Source：pvmen.com
