Energy Insider: China’s Green Energy Capacity to Exceed Coal for First Time

In today’s Caixin energy news wrap: Chinese electric vehicle maker Li Auto clears a Hong Kong listing hearing; Shandong Xuguo obtains first carbon emission quota-backed loan; crude steel output reductions to cap price rises for steel scrap; China may include traditional industries and transport sector in national carbon market; and China to issue timetable and road map for carbon neutrality.

China’s green energy capacity to outstrip coal for the first time by year-end

China’s installed nonfossil fuel power capacity is expected to surpass that of coal-fired electricity generation for the first time by the end of 2021, according to a report published Friday by the China Electricity Council (CEC). The council estimated that China will have installed generating capacity of 2,370 gigawatts (GW) by year-end, up 7.7% from a year earlier. Capacity based on nonfossil fuels — such as hydropower, wind and solar power — will reach 1,120 GW, accounting for 47.3% of total generating capacity, while coal-fired power capacity will total 1,100 GW. Coal will retain a significant role in guaranteeing stable electricity supply in China, especially during the peak consumption season. The CEC forecast that China’s electricity consumption in the second half will rise 6% from a year ago, making the increase in full-year usage 10%–11% from 2020.

New-energy storage industry receives policy support

China set a goal of adding more than 30 gigawatts of new-energy storage capacity by 2025, according to guidelines issued July 23 by the National Development and Reform Commission and the National Energy Administration. China had total energy storage capacity of 35 gigawatts as of 2020, of which 3.3 gigawatts was new-energy storage, according to the China Energy Storage Alliance.

Li Auto passes HKEX listing hearing

Chinese electric vehicle maker Li Auto Inc. cleared a Hong Kong Stock Exchange listing hearing and is set to become the second Chinese electric vehicle startup to be traded on the exchange. Goldman Sachs and CICC are Li Auto’s Hong Kong listing joint sponsors and UBS is financial consultant. Li Auto will adopt a weighted voting rights structure for its Hong Kong shares.

Shandong Xuguo obtains first carbon emission quota-backed loan

Shandong Xuguo Energy Co. Ltd., a subsidiary of China Power Conservation & Environment Protection Co. Ltd., obtained a 30 million yuan ($4.6 million) loan backed by carbon emission quotas from Bank of Rizhao July 21. The loan with 610,000 tons of carbon quotas as collateral was the first such credit issued in Shandong province.

GAC Toyota starts up first phase of NEV capacity expansion

GAC Toyota Motor Co. Ltd., a Guangzhou-based joint venture between Guangzhou Automobile Group and Toyota Motor Corp., put the first phase of its new-energy vehicle (NEV) capacity expansion into operation in Nansha District in the southern Chinese megacity of Guangzhou. The plant will have capacity to produce 200,000 NEVs a year.

LB Group to invest $7.87 million in battery material joint venture

A subsidiary of LB Group Co. Ltd. (002601.SZ) plans to invest 51 million yuan ($7.87 million) in a 100 million yuan joint venture that will make lithium iron phosphate cathode materials. Hubei Wanrun New Energy Technology Development Co. Ltd. will invest the remaining 49 million yuan. The project will have a production capacity of 100,000 tons.

Crude steel output reductions to limit rising prices of steel scrap

The upward momentum in China's steel scrap prices will be capped in coming months as more steelmakers start cutting production in compliance with government orders. China pledged to limit crude steel output in 2021 to last year’s 1.065 billion tons. China’s crude steel output in the second half will have to decline by 11% from a year earlier to 502 million tons to hit the target.

China may include traditional industries and transport in carbon market

An official of the China Securities Regulatory Commission said China will gradually expand industries in the national carbon market to include traditional industries and the transport sector.

China to release timetable and road map for carbon neutrality

China is formulating a timetable and road map for carbon neutrality that will be published soon, Xie Zhenhua, China's special envoy for climate change, said Saturday at a Global Asset Management Forum.

China mulls unified five-year plan for renewable energy

Chinese planners will abandon their previous practice of issuing separate five-year plans for different forms of new energy in favor of a joint renewables package with a stronger emphasis on solar power, an energy official said Thursday. The draft plan will also focus on competition with a view to weaning the industry off government subsidies.

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