Caixin Weekly | What Does the Isolated Power Supply Mode Mean? (AI Translation)
Listen to the full version
文｜财新周刊 范若虹
By Fan Ruohong, Caixin Weekly
Exploring the Isolated Green Electricity Network
文｜财新周刊 范若虹
By Fan Ruohong of Caixin Weekly
孤网是指不与大电网相连，完全自给自足的供电模式。电力作为二次能源具有实时平衡、较难存储的特性，因此单一电源会被认为不安全，需要大电网作为“蓄水池”托底。
An isolated grid refers to a self-sufficient power supply system that is not connected to the main power grid. Electricity, being a secondary energy source, needs to be balanced in real-time and is relatively difficult to store. Consequently, a single power source is often considered unsafe, necessitating a major power grid as a "reservoir" to back it up.
- DIGEST HUB
Digest Hub
Back
- Isolated power grids are self-sufficient systems, primarily using coal for stable energy, but wind and solar introduce fluctuations needing improved storage solutions to maintain safety and stability.
- China's push for green energy has rapidly expanded wind and solar installations, reaching 1.41 billion kilowatts by 2024, while isolated grids reduce costs for industries by eliminating grid fees.
- Isolated green grids supplement large power grids but require backup support; however, they challenge traditional grid models by reducing dependency and costs, highlighting the need to address cross-subsidy fairness.
The article "Exploring the Isolated Green Electricity Network" by Fan Ruohong of Caixin Weekly delves into the concept and implications of isolated grids, which are self-sufficient power supplies not connected to a main power grid. These grids have traditionally relied on coal, but a shift towards wind and solar power highlights challenges like real-time balance and stability due to energy storage technology limitations. Nonetheless, isolated grids are valued for aiding the global energy transition, reducing grid fees, and helping companies cope with economic slowdowns, particularly when aligned with rising demand for green electricity under dual carbon targets. China's cumulative installed capacity for wind and solar energy is burgeoning, with expectations to surpass 1.41 billion kilowatts by 2024 as opposed to 2021[para. 1].
These grids can significantly cut electricity costs for enterprises by eliminating major grid usage fees, illustrated by the Vision Chifeng project that achieved solar and wind power costs significantly lower than regional industrial prices, indicating potential widespread adoption in various industrial sectors. The article emphasizes a possible revolutionary impact on traditional grid models. Meanwhile, misalignment in China’s power supply and demand persists, with provinces like Qinghai confronting daytime surpluses and nighttime shortages of electricity, leading to costly imports from coal-fired power at night, which offsets green electricity's affordability[para. 2].
The article notes how major western provinces, such as Inner Mongolia and Gansu, also experience similar challenges despite successful installations of large solar and wind projects surpassing government schedules. However, integrating these renewable energies into the main grids presents issues, given historical coal power dominance, posing a significant absorption question alongside marked renewable capacity growth[para. 3].
In Europe, isolated grids could reduce emissions, particularly for green hydrogen and ammonia. Different regions in China also face grid congestion due to surplus renewable energy, prompting the pursuit of isolated grids to alleviate main grid strain. Many wind power facilities in western China remain unused, with a significant proportion of new energy projects relegated to grid-connection waiting lists, prompting suggestions for new scenarios like the production of green hydrogen and ammonia, akin to Envision's pursuits for wind power utility enhancement. The article further discusses how major power grids like State Grid of China and China Southern Power Grid integrate complex large-scale investments to meet demand across diverse regions but face challenges. The 2002 and 2015 reforms to unify power sales and procurement haven't changed the intricate physical connection needs, affecting industrial users with high electricity costs[para. 4].
Towards the latter part of the article, green electricity direct supply initiatives emerge with "source-network-load-storage integration" to enhance renewable consumption locally and cut enterprise electricity costs without grid fees. However, this development creates tension in balancing equitable power distribution and exposes systemic limitations, as witnessed from limited green power-independence despite reduced main grid markets[para. 5]. Addressed are calls for government intervention in structuring fair standby costs to alleviate inequities and promote mutual progression towards an innovative energy system. The piece concludes by addressing the need for comprehensive legislation to reconcile disparities, particularly as renewable projects challenge existing industrial frameworks.
- Shandong Weiqiao Aluminum
- Shandong Weiqiao Aluminum operates a self-sufficient power supply model with its own captive power plants, similar to the isolated grid system. Traditionally, this model relies on coal power, offering stable and continuous electricity supply. The company's approach exemplifies how high-energy consumption enterprises may benefit from isolated grids, as they can significantly reduce electricity costs by bypassing fees associated with the major electrical grid infrastructure.
- Envision
- Envision is engaged in exploring green power isolated grids, notably with projects like the Envision Chifeng project. This project, in its trial phase, achieved wind and solar power generation costs below 0.2 yuan/kWh, significantly cheaper than the average industrial electricity price in Chifeng City. Envision's efforts aim to align industrial energy demands with renewable energy fluctuations, potentially establishing new application scenarios for wind power and nurturing new clients for its wind turbines.
- State Grid Corporation of China
- The State Grid Corporation of China covers 26 provinces, serving over 11 billion people and accounting for 88% of the country's land area. It uses an interconnected supply model to ensure stable power, investing over 600 billion yuan annually. As of Q3 2024, its total assets reached 5.54 trillion yuan. The interconnected network includes 38 ultra-high voltage lines to integrate widespread power sources and support a large-scale national grid system.
- China Southern Power Grid
- China Southern Power Grid supplies electricity to Guangdong, Guangxi, Yunnan, Guizhou, and Hainan, linking with Hong Kong, Macau, and Southeast Asia. Covering an area of 100,000 square kilometers and serving 2.72 billion people, its 2024 fixed asset investment reached 173 billion yuan, with total assets surpassing 1.23 trillion yuan. The grid has built 19 ultra-high voltage channels.
- 2021：
- Since 2021, new energy has rapidly developed in China's western regions, with numerous large-scale wind and solar projects being swiftly launched.
- Before the end of 2023：
- Provinces began exploring green electricity applications through 'source-network-load-storage integration' projects, starting at the end of 2023.
- By the end of 2023：
- More than 10 million kilowatts of photovoltaic power stations in Hainan Prefecture of Qinghai Province alone are queued for grid connection.
- By July 2024：
- China achieved its goal of installing 1.2 billion kilowatts of wind and solar capacity, six and a half years ahead of the 2030 target.
- November 2024：
- A document released by the Energy Bureau of Inner Mongolia indicates that the cost per kilowatt-hour of wind power is approximately 0.15 to 0.2 yuan, and photovoltaic power is about 0.2 to 0.25 yuan.
- By the end of 2024：
- The total wind and solar installed capacity nationwide in China reached 1.41 billion kilowatts.
- PODCAST
- MOST POPULAR
Sign in with Google
Sign in with Facebook
Sign in with 财新