Reducing Abandoned Wind and Abandoning Wind and Discarding Photovoltaic Capacity is Still the Main Task in 2018

On January 24, the National Energy Administration held a press conference to provide an update on the performance of renewable energy grid integration in 2017, the progress of the "distribution service" reform, and the strategies for clean heating in northern regions during winter. According to the data released, renewable energy sources contributed 26.4% of total electricity generation in 2017, marking a 0.7% increase compared to the previous year. The annual water discharge capacity reached 51.5 billion kWh, with a utilization rate of about 96%. Meanwhile, wind curtailment amounted to 41.9 billion kWh, representing a 12% curtailment rate, which marked a significant decrease of 5.2% from the same period in 2016. The conference also emphasized the progress made in reducing wind and solar power curtailment. Liang Zhipeng, deputy director of the New Energy and Renewable Energy Division at the National Energy Administration, highlighted that the implementation of the "Implementation Plan for Resolving Abandoned Wind and Solar Power and Promoting Hydropower Consumption in Southwest China" had led to notable improvements in renewable energy grid operations. However, he pointed out that while the issue of curtailment has been significantly alleviated, there are still challenges ahead. He noted that wind power is concentrated mainly in certain regions such as Xinjiang, Gansu, and Jilin, where curtailment rates remain high. Although Inner Mongolia has seen a decline in its curtailment rate, its large installed capacity means the absolute amount of curtailed power remains substantial. Looking ahead, the National Energy Administration plans to introduce further measures to enhance the use of clean energy in 2018. These include developing medium- and long-term renewable energy plans, creating a roadmap for lowering the cost of renewable energy generation, implementing a renewable energy quota system, and integrating green electricity certificate trading to establish a new mechanism for promoting renewable energy production and consumption. In addition to these efforts, the National Development and Reform Commission and the National Energy Administration have set clear targets for improving clean heating in northern regions. By 2021, the clean heating rate in the north is expected to reach 70%, replacing 150 million tons of loose coal. Guo Wei, deputy inspector of the National Electric Energy Bureau, emphasized that clean heating should not be a one-size-fits-all approach. Instead, it should be tailored to local conditions, using natural gas, electricity, or renewable energy where appropriate. In rural areas where immediate replacement is not feasible, alternatives like "clean coal + environmentally friendly stoves" or "biomass fuel + dedicated stoves" are recommended. To address rising costs associated with clean heating, the central government will leverage existing financial mechanisms to support the initiative and encourage private investment. Price reforms, including improved peak-valley pricing and residential tiered pricing, will also help reduce heating costs. Guo Wei stressed that while subsidies are important, long-term success depends on local innovation and adaptation to unique regional needs. The National Energy Administration also reported progress in the "distribution service" reform, with 72% of administrative approval items being canceled or decentralized—exceeding the 50% target set by the State Council. This has led to lower energy costs, reduced entry barriers, and increased market participation. In 2017, the volume of market-based transactions reached approximately 1.6 trillion kWh, accounting for about 25% of total electricity consumption. With these reforms, the business environment has improved, and the number of registered power sales companies has grown to 2,600.

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