The power generation installation structure continues to be optimized, and the problem of wind and solar power curtailment has been significantly alleviated

The power generation installation structure continues to be optimized, and the problem of wind and solar power curtailment has been significantly alleviated

Firstly, there is a clear trend towards cleaner power generation installation structures. As of the end of 2017, the total installed capacity of power generation in China was 1.78 billion kilowatts, a year-on-year increase of 7.6%; Among them, the installed capacity of non fossil energy power generation was 690 million kilowatts, accounting for 38.7% of the total installed capacity, an increase of 2.1 percentage points year-on-year. The newly added installed power generation capacity in China is 133.72 million kilowatts, of which 89.88 million kilowatts are newly added non fossil energy power generation capacity, both of which have reached a new high in recent years. The total newly installed hydropower capacity for the year was 12.87 million kilowatts, of which 2 million kilowatts were pumped storage; The newly added grid connected wind power installed capacity was 19.52 million kilowatts, of which the eastern and central regions accounted for 58.9%, an increase of 8.8 percentage points year-on-year; The newly added grid connected solar power generation installed capacity was 53.38 million kilowatts, an increase of 21.67 million kilowatts year-on-year. 82.4% of the newly added installed capacity was concentrated in the eastern and central regions, an increase of 19.6 percentage points year-on-year. The newly installed coal-fired power capacity was 38.55 million kilowatts, a year-on-year decrease of 1.42 million kilowatts.

The second is the rapid growth of non fossil energy generation, while the proportion of coal-fired power generation has decreased. The national total power generation reached 6.42 trillion kilowatt hours, a year-on-year increase of 6.5%; Among them, non fossil energy power generation increased by 10.0% year-on-year, accounting for 30.4% of the total power generation, an increase of 1.0 percentage point year-on-year. The total grid connected solar power generation, grid connected wind power, and nuclear power generation increased by 75.4%, 26.3%, and 16.5% respectively; The total hydropower generation increased by 1.7%, with a year-on-year decline of 3.9 percentage points in growth rate. The total coal-fired power generation increased by 5.2% year-on-year, with a growth rate increase of 2.9 percentage points compared to the same period last year; Among them, coal power generation increased by 4.8% year on year, with a year-on-year growth rate of 3.6 percentage points. Coal power generation accounted for 64.5% of the total power generation, with a year-on-year decrease of 1.0 percentage points.

Thirdly, the utilization hours of hydropower equipment have decreased year-on-year, and the problem of wind and solar power curtailment has significantly improved. The utilization hours of power generation equipment nationwide are 3786 hours, which is roughly the same as the previous year. Among them, due to factors such as the high base of the previous year, the utilization hours of hydropower equipment were 3579 hours, a decrease of 40 hours compared to the same period last year. Under the comprehensive influence of multiple factors, such as the rapid growth of power consumption and the slow growth of hydropower generation, the utilization hours of thermal power equipment nationwide were 4209 hours, 23 hours higher than the same period last year, of which the utilization hours of coal power equipment were 4278 hours, slightly higher than the same period last year. The utilization hours of nuclear power equipment are 7108 hours, an increase of 48 hours compared to the same period last year. With the joint efforts of the government and power companies, the problem of wind and solar power curtailment has been significantly improved. The utilization hours of grid connected wind and solar power generation equipment nationwide were 1948 and 1204 hours respectively, an increase of 203 and 74 hours year-on-year. Among them, the utilization hours of wind and solar power generation equipment in the northwest region increased by 380 and 146 hours respectively.

Fourthly, the supply and demand situation of coal for electricity is relatively tight, and the supply of natural gas for power generation in winter is tight. In 2017, the demand for coal consumption grew beyond expectations, and the coal industry's capacity reduction exceeded the schedule. Coupled with various factors such as safety and environmental protection, the increase in coal production was insufficient, and the supply in the coal market was less than the consumption, resulting in a continuous tight supply of thermal coal. The relevant departments have taken multiple measures to increase the supply of electricity coal, and the supply and demand situation has eased to some extent. However, during the peak winter season, the demand for electricity coal consumption has grown rapidly, and the supply and demand situation of electricity coal in Guizhou, Anhui, Hunan, Gansu and other places is relatively tight. Affected by factors such as the concentrated release of new demand for coal to gas conversion, natural gas consumption demand has grown beyond expectations. The supply of natural gas for power generation during the heating period is tight, and gas turbine power generation in some areas is restricted by gas supply.

Fifth, the efficiency of the power industry has declined, and the operating situation of coal-fired power enterprises continues to be severe. The continuous high price of thermal coal has been operating in the "red zone" for the majority of the year, resulting in a significant increase in the cost of electricity generation for coal-fired power companies and widespread losses. Preliminary estimates suggest that in 2017, the increase in coal prices for coal-fired power enterprises nationwide resulted in an increase of approximately 200 billion yuan in coal procurement costs compared to 2016. The scale of market-oriented trading of electricity has further expanded, with a cumulative trading capacity of 1.63 trillion kilowatt hours, a year-on-year increase of 45%, effectively reducing social production costs. In addition, the significant lag in the payment of subsidies for renewable energy, as well as the continuous increase in environmental protection investment by coal-fired power enterprises, and the difficulty of compensating for environmental protection investment with environmental subsidies, have all exacerbated the production and operation difficulties of power enterprises. Affected by the continuous losses of coal-fired power enterprises and the reduction of new coal-fired power projects, the business situation of power generation design, construction and other enterprises is also quite severe.