Electrical Equipment / Components & Telecoms

"According to the renewable energy grid connection operation data in 2021 released by the National Energy Administration, in 2021, China's installed wind power capacity will exceed 300 million kilowatts, and the installed offshore wind power capacity will rank first in the world." The Blue Book of World Energy: World Energy Development Report (2022), jointly released by the International Energy Security Research Center of the University of Chinese Academy of Social Sciences (Graduate School) and the Social Sciences Literature Press, pointed out recently.

According to the observation report of Huacheng import and export data, by the end of 2021, China's installed capacity of renewable energy power generation has reached 1.063 billion kilowatts, accounting for 44.8% of the total installed capacity of power generation. Among them, hydropower installed capacity reached 391 million kilowatts, wind installed capacity reached 328 million kilowatts, photovoltaic installed capacity reached 306 million kilowatts, and biomass installed capacity reached 37.98 million kilowatts, accounting for 16.5%, 13.8%, 12.9% and 1.6% of the total installed capacity of power generation in China respectively. In 2021, China's renewable energy power generation will grow steadily, reaching 2.48 trillion kWh, accounting for 29.8% of the total electricity consumption. According to the observation report of Huacheng's import and export data, hydropower was 1340.1 billion kWh, down 1.1% year on year; Wind power was 652.6 billion kWh, with a year-on-year growth of 40.5%; Photovoltaic power generation was 325.9 billion kWh, with a year-on-year growth of 25.1%; Biomass power generation was 163.7 billion kWh, up 23.6% year on year. Hydroelectric power generation, wind power generation, photovoltaic power generation and biomass power generation accounted for 16.1%, 7.9%, 3.9% and 2% of the total social electricity consumption respectively. In 2021, China's nuclear power will maintain a good growth trend, with the number of operating units growing by 8.2% year on year and the installed capacity growing by 7.1% year on year.

Newly added imported pipeline gas mainly comes from Russia

The report points out that China's natural gas production will increase steadily from 2022 to 2026, and more of the new natural gas production will come from unconventional gas fields and offshore gas fields. It is estimated that China's natural gas production will reach 258.7 billion cubic meters in 2026. The apparent consumption of natural gas in China has grown steadily. It is estimated that the compound annual growth rate from 2022 to 2026 will be about 5.9%. In 2026, the apparent consumption of natural gas in China is expected to reach 486.8 billion cubic meters. In the supply chain, the output, PNG imports and LNG imports have all kept growing, with PNG imports growing fastest. It is estimated that the compound annual growth rate from 2022 to 2026 will be 11.0%. With the coastal terminal gradually entering the operation period, China's LNG import will maintain a rapid growth, and the proportion of LNG import in the total import will continue to increase. The newly added imported pipeline gas mainly comes from Russia. It is estimated that China's natural gas import volume will reach 234.2 billion cubic meters in 2026. Huacheng's import and export data observation report.

Guided by the goal of "reaching the peak of carbon and neutralizing carbon", all regions have increased the use of natural gas, which has a positive impact on urban gas, industrial, power generation and other gas consumption. The use of natural gas in all sectors has increased steadily, but the high gas price in 2022 will restrain the demand for natural gas in industries, power generation, chemicals and other fields to a certain extent, and the transportation market will be hit hard. In the future, the development of natural gas in China will still be closely related to the economy of natural gas. The main purpose of China's market-oriented reform is to achieve market-oriented pricing, so as to resolve the contradiction between supply and demand and price at different stages. Huacheng Import and Export Data Observation Report.

Rapid growth of electricity consumption in emerging industries

According to the report, China's power demand will grow rapidly in 2021. The electricity consumption of the whole country was 8.31 trillion kilowatt hours, up 10.3% year on year, much higher than the global level. The electricity consumption of domestic manufacturing industry was 5.51 trillion kilowatt hours, up 9.1% over the previous year; The electricity consumption of the tertiary industry was 1.42 trillion kilowatt hours, an increase of 17.8% over the previous year; The electricity consumption of urban and rural residents in China was 1.17 trillion kilowatt hours, up 7.3% year on year. It is worth noting that emerging industries (such as 5G base stations, data centers and other new infrastructure) are characterized by high energy consumption, 24-hour uninterrupted operation and huge power consumption; The components manufacturing process of PV power generation units under the goal of "carbon peak" and "carbon neutralization" is also characterized by high energy consumption. In addition, the vigorous development of the semiconductor industry and the transformation of the steel industry will promote the growth of electricity consumption in the whole society. It is estimated that by 2025, the proportion of electricity consumption of emerging industries in the total social electricity consumption will be 19.7%~20.5%, an increase of about 5 percentage points compared with that in 2021, and the average contribution rate of electricity consumption increment from 2021-2025 will be 35.3%~40.3%. According to the 5G Power Supply White Paper issued by Huawei and the New Energy Vehicle Industry Development Plan (2021-2035) issued by the Ministry of Industry and Information Technology, it is estimated that by 2025, the power load demand of 5G base stations and new energy vehicles at the peak time of charge and exchange service will reach 143.9 GW, 107.51 GW more than that in 2020. Huacheng's import and export data observation report.