Supporting the development of new energy in Southeast Asia, China's "green electricity" accelerates its overseas energy | Vietnam | Southeast Asia
After experiencing a rare heatwave caused by extreme weather, the power supply tension in Southeast Asian countries such as Vietnam has recently eased. However, the impact of the "electricity shortage" on the booming manufacturing industry in the region is still alarming, highlighting the demand for clean energy generation. As China's more "green" electricity gradually goes abroad, these countries are also facing more power supply options. The Global Times reporter recently visited multiple Southeast Asian countries in person to experience the changes that China's "green electricity" has brought to local production and life.
Chinese wind power is helping Thailand's green transformation. The picture shows the Caiyepeng wind farm in cooperation between China and Thailand.
China's wind and photovoltaic industries are advancing rapidly in Southeast Asia
According to the Vietnam News on the 20th, the 16th International Green Energy and Power Industry Exhibition of Vietnam opened in Ho Chi Minh City on July 19th. Hundreds of international companies showcased power generation equipment and systems, smart electrical equipment and technology, renewable and green energy, as well as electrical services and solutions. More than 300 Chinese energy and power companies, including CNNC, CGN, Dongfang Electric, Southern Power Grid, and Zhejiang Energy, participated in this exhibition. Chinese exhibitors told Vietnam News that this was the largest centralized exhibition that the Chinese electrical industry participated in in Vietnam since the outbreak of COVID-19.
In recent years, Vietnam has vigorously laid out the development of green energy. The Global Times reporter learned that Chinese enterprises have strong competitiveness in Vietnam's electricity construction and investment market. In recent years, the energy cooperation between the two countries has been continuously upgraded, especially in the field of clean energy.
In December 2020, the first unit supplied to Vietnam's Ningshun Zhengsheng 50000 kW wind power project was lifted, becoming the first Chinese wind turbine established in Vietnam. This project is also the first wind power project invested by a Chinese enterprise in Vietnam. According to incomplete statistics, as of May 2022, there were over 70 wind power projects invested or constructed by Chinese enterprises in Vietnam. Vietnam has replaced Australia as the country with the highest number of new and cumulative exports of wind turbines from China.
The Chinese photovoltaic industry is also developing rapidly in Vietnam. Since 2014, 12 companies including Trina Solar, JA Solar, and Vietnam Photovoltaic have invested nearly 2 billion US dollars in the photovoltaic industry in Beijiang Province, Vietnam. The total module production capacity exceeds 30GW and the battery production capacity exceeds 25GW, forming the largest photovoltaic industry cluster in Vietnam and one of the largest overseas photovoltaic product production bases in China.
Not only in Vietnam, clean energy power generation is increasingly needed by more and more Southeast Asian countries. The regional goal set by ASEAN is to achieve a 23% share of renewable energy in the primary energy structure by 2025.
The reporter learned during interviews in Thailand and Malaysia that Southeast Asian countries generally have good lighting conditions, which provides a good foundation for the development of photovoltaics. Due to the overseas investment of Chinese clean energy enterprises, Thailand has become an important global manufacturing base for the photovoltaic industry, with the ability to supply related products to Southeast Asia.
China Electric Power's Foreign Cooperation is becoming increasingly Rich
According to data from the China Electricity Council, new energy has become the field with the highest number of outward investment projects in electricity in 2022, accounting for approximately 58%. Among them, there are 8 solar power generation projects with an investment amount of 1.331 billion US dollars; Six wind power projects with an investment amount of 519 million US dollars. Investment opportunities in energy storage, hydrogen energy, comprehensive energy, and multi energy complementarity are also significantly increasing.
In addition to wind and photovoltaic power generation, Chinese enterprises also cater to local actual needs and invest in the construction of thermal power plants. A reporter from the Global Times recently visited Shenhua Guohua Java Power Generation Co., Ltd. located in the western part of Java, Indonesia for an interview. The project is the largest single unit thermal power unit with independent intellectual property rights invested and constructed by a Chinese enterprise overseas. It is also one of the most efficient and environmentally friendly power plants with the largest single unit capacity, highest parameters, and most advanced technology in Indonesia.
It is reported that the emission indicators of sulfur dioxide, nitrogen oxides, dust and other pollutants in the project are all better than Indonesian standards. Local residents told reporters that Java Island has been plagued by electricity shortages, and every household has to be prepared at any time to deal with power outages. With the commissioning of power plants such as Guodian Power Indonesia Java Company, the power supply has become relatively abundant. According to data released by the Indonesian Ministry of Mines and Energy, this project can save Indonesia a significant amount of electricity bills annually.
While investing in overseas electricity, the Chinese power industry also supports neighboring countries through electricity exports. According to information from China Electric Power Union, China has achieved cross-border transmission line interconnection and electricity trading with countries such as Vietnam, Myanmar, and Laos. In 2022, the total electricity exchange between China and neighboring countries increased by 20.7% compared to the previous year, with a year-on-year increase of 26.1% in transmitted electricity.
Xue Yunnan, the head of new energy industry research at domestic consulting firm Co Foundation, analyzed to reporters that the Chinese government has taken a series of measures to encourage enterprises to export electricity to neighboring countries while developing their own energy supply. For example, by improving domestic energy efficiency, expanding the scale of clean energy, strengthening energy interconnection, etc., gradually achieving optimized energy allocation and benefit sharing. The government also encourages enterprises to actively participate in international cooperation and achieve internationalization and leapfrog development of energy supply through joint construction of energy infrastructure and other means.
Further cultivation is needed in overseas markets
The reporter learned that in recent years, China has achieved breakthrough practices in new energy consumption, offshore wind power grid connection, pumped storage, and new energy storage. The consumption rates of wind power and photovoltaic power have reached 96.9% and 98.0% respectively. The standard system for large-scale grid connection of offshore wind power continues to improve, and the planning, construction, operation and maintenance, and commercial operation of pumped storage energy are becoming increasingly mature. The new type of energy storage has been basically developed into an internationally advanced full industry chain system, forming a multi-level, multi variety, and multi time scale electricity market system. Xue Yunnan believes that China has invested heavily in the fields of photovoltaics and wind power, accumulated rich technology and experience, and achieved many results. The Chinese government strongly supports the development of the new energy industry, providing a favorable policy and market environment for enterprises. These have laid a solid foundation for the high-quality development of China's new energy industry.
"At present, China's new energy power exports to the sea also face some challenges and difficulties." Liu Chongyang, a researcher at the Southern Power Grid Energy Development Research Institute, told reporters that new energy technologies such as offshore wind power are relatively new and require large-scale investment and technical support. China still needs to further improve its technological level and solve technical problems in this regard. In addition, overseas markets have different access conditions and policy support for China's new energy electricity. China needs to establish more cooperation mechanisms and agreements with other countries to obtain better market access and policy support.
When visiting Southeast Asia, the reporter learned from the head of a Chinese photovoltaic company that has built a factory in Thailand that the production of Chinese companies in Southeast Asia mainly supplies the European and American markets, and the local market demand still needs to be cultivated. In addition, the Malaysian government has long provided subsidies for fuel and electricity, resulting in low oil prices and a lack of motivation for businesses and the public to shift towards using new energy. The reporter observed in Kuala Lumpur that the price of 95 octane gasoline in the local area is around 2 Malaysian ringgit per liter, equivalent to approximately 3 RMB.
Xue Yunnan believes that the challenges faced by new energy power going global mainly include technical difficulties, market competition, and policy risks. At present, some international markets do not have a high recognition of new energy electricity, believing that it is expensive and requires technological innovation and cost reduction to improve competitiveness. At the same time, some countries have policy barriers, such as restricting foreign investment, which also poses certain obstacles to China's export of new energy electricity. However, with the continuous improvement of technology and the gradual opening of the market, it is believed that China's new energy power going global will be increasingly trusted, recognized, and welcomed by the international market.
