ESCI KSP

Huzhou City, Zhejiang Province, China

In August 2022, SPIC was the first to propose the “smart energy prosumer” concept in the world. Huzhou Smart Energy Prosumer is listed as the first major demonstration of smart energy prosumers (SEP) by State Power Investment Corporation Limited (SPIC) and is also recognized as the pilot project of new power systems in Zhejiang Province. The Huzhou SEP is established with high capacity energy storage building on the “Dubhe Cloud” platform self-developed by SPIC. On the one side, its major storage capacity is underpinned by lead-carbon storage batteries that are produced by Tianneng Group, a leading battery enterprise in Changxing, Huzhou. On the other side, with the help of the digital and smart control system “Dubhe One” the project pools distributed new energy, user-side energy storage, and adjustable load. As a result, the Prosumer functions to mitigate load fluctuations, fill the peak supply gap, and provide users with green power at lower costs, contributing to the local power supply, and the flexible operation and better regulation of the power grid. The Huzhou SEP is the first smart energy prosumer, with a large-capacity energy storage station as its core part.

After completion in 2024, the project will supply 200GWh green power each year for Huzhou. It will reduce standard coal emissions by 60,000 tons, CO2 emissions by 16,5000 tons.

LCMT_Huzhou_China

https://drive.google.com/file/d/1bbo7gHrZXofz7nCYl0rsZwzd1-z9jJqg/view?usp=sharing

 

What is the policy, vision, or objective of the town? Please specify the actual goal and its metrics, if applicable.

On August 15, 2005, Xi Jinping, the Secretary of the CPC Zhejiang Provincial Committee then (the President of the People’s Republic of China now), proposed
the scientific development concept of “lucid waters and lush mountains being
invaluable assets”. Guided by this principle, Huzhou has steadfastly worked
towards advancing ecological civilization and played its part in fostering new
green and low-carbon development models and fulfilling the carbon neutrality
responsibility for the achievement of “dual carbon” goals as scheduled. Notably,
Huzhou has intensified its efforts to build beautiful villages, towns, and cities, with
increasing recognition and influence of the “Beautiful China, Dynamic Huzhou”
city image. It has grown into a garden city. In addition, Huzhou has scored
constant progress in ecological environment quality. To be specific, this city has
witnessed a virtuous cycle of the mountains, waters, forests, farmlands, lakes,
and grasslands ecosystems, an impressive air quality rate exceeding 90%, as well
as consistent maintenance of Class III or higher surface water quality. Besides,
Huzhou, a “zero-waste city” boasting a green production approach and lifestyle
now, has stayed committed to expanding channels to realize the value of ecological products, and substantially enhancing resource and energy efficiency.

Brief outline of the low carbon town development plan

Guided by “lucid waters and lush mountains being invaluable assets”, Huzhou has unwaveringly executed its ecological conservation, innovation, reform and
opening-up strategies in pursuit of sustainability, core competitiveness and
prosperity, and rolled out its six initiatives focusing on strength, vitality, quality,
culture, nature, and wellbeing to build a “Beautiful China, Dynamic Huzhou”
demonstration city in ecological civilization. To this end, Huzhou has given full
play to its energy advantages while shoring up its shortcomings, addressed both symptoms and root causes of energy issues, and introduced holistic energy policies. All these efforts are aimed to strike a balance between energy demand and supply, stabilize competitive power and natural gas prices, promote modern energy infrastructure construction, and facilitate green and low-carbon energy transition for the boom of Huzhou, and the great rejuvenation of China.

By 2025, the energy supply and demand will come to an overall balance as the
contradiction between energy supply and demand is effectively resolved in
Huzhou. Its power and natural gas prices will remain within appropriate ranges.
Its installed capacity will reach 13.56GW. Its non-fossil energy will account for
25% of total primary energy consumption, and its installed clean energy capacity is 76% of the total installed capacity.

By 2027, Huzhou will establish a modern energy system that is clean, low-carbon, safe, and efficient, foster a moderately loose energy supply and demand situation, and maintain competitive power and natural gas prices. Its installed capacity will reach 13.91GW. Its non-fossil energy will account for 27% of total primary energy consumption, and its installed clean energy capacity is 78% of the total installed capacity. Rooftop photovoltaic panels will be installed for over 80% of newly constructed industrial factories, 50% of new buildings in public institutions, and 50% of “zero-carbon” public institutions.

Estimated cost savings in implementing low-carbon measures (per year/per unit of energy, etc.)

The Huzhou SEP achieves an 80% reduction in the construction period and a 66%
decrease in investment compared to a traditional thermal power plant, assuming
it possesses the same peak supply capacity. Under the equivalent electricity sales,
the former will see significantly less strain on grid infrastructure investment. After
completion, this project will help enterprises cut power costs by 15%, supply
200GWh of green power, and create value equivalent to 200000 green power
certificates annually.

What central/local government departments are/will be involved in development of the project?

The jobs including project planning, field survey, and data collection are led by the
people’s governments, development and reform commissions, and energy
administrations of Huzhou City, and Zhejiang Province, with county/district
governments providing support. At the implementation stage, efforts are made to
apply for the pilot project of new power systems in Zhejiang Province and
promote the development model of this project.

What private company, non-government ogranizations are/will be involved in development of the project?

The Heping energy storage station project, a core project of the Huzhou SEP, is
jointly invested by SPIC (the major shareholder) and Changxing Tahoe Electric
Technology Co., Ltd., a lead-carbon battery solution provider in the local. A joint
venture is established to boost this project.

How is/will be the development of the town funded?

By 2027, Huzhou Municipal People’s Government will draw up a detailed annual
investment plan, and attract energy enterprises to invest USD 3.6 billion in green
and low-carbon energy projects, and projects for energy supply and price stability.


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