As a mega state-owned key backbone enterprise, ranked No. 2 in the Fortune 500 in 2021 and supplying electricity to a population of over 1.1 billion, State Grid of China Limited plays a crucial role in the process of green energy transformation.

In March this year, State Grid released its Carbon Neutral Action Plan, proposing to accelerate the construction of a clean, low-carbon, safe and efficient energy system, and specifying the implementation path to achieve the carbon neutral goal.

Recently, Mr. Xin Baoan, Chairman of the State Grid of China, was interviewed by the media.

Moderator: As a person in charge of energy and power enterprises, how do you see the impact of carbon compliance and carbon neutrality on the energy and power industry?

Xin Baoan: China's energy sector accounts for more than 80% of the country's total carbon emissions. Achieving the "double carbon" target will force the energy industry to take a clean and low-carbon direction and accelerate the transformation. This will be a systemic and fundamental change in the energy system, facing many challenges as well as rare opportunities.

The challenge is that the original energy development model is no longer sustainable and the entire energy system must be reshaped while safeguarding energy supply, a daunting task and a profound adjustment in the pattern of interests.

The opportunity lies in the fact that many new businesses, new industries and new models will emerge in the process of clean and low-carbon energy transformation, opening up new development space and nurturing new growth momentum, and if the opportunity is seized, traditional energy enterprises can achieve leapfrogging and upgrading.

Moderator: In March this year, the ninth meeting of the Central Finance and Economics Commission pointed out that the 14th Five-Year Plan is the key period and window period for carbon peaks, and that it is necessary to build a clean, low-carbon, safe and efficient energy system and a new power system with new energy as the mainstay. What do you think is "new" about the new power system?

Xin Baoan: Compared with the traditional power system, the new power system "new" is mainly reflected in four aspects.

From the supply side, embodied in the new energy gradually become the main body of installed power and electricity. For a long time, coal, natural gas and other fossil energy generation has been the main body of electricity supply. In the past decade, China's new energy generation such as wind and solar power has grown rapidly, with the proportion of installed power increasing from 5% to 24%, and the proportion of installed coal power falling historically to below 50% in 2020. It is expected that in 2030 China's installed capacity of new energy power generation will exceed that of coal power, becoming the number one power source; by 2060, the proportion of new energy power generation is expected to exceed 50%, becoming the main source of electricity.

From the user side, this will be reflected in a high degree of electrification of end-use energy consumption and the emergence of a large number of electricity "producers and consumers". Electricity is a high-quality, clean secondary energy source, which is widely used in modern society. With the construction of new power systems, the scope of electrical energy applications will be further expanded and extended to many areas that did not previously use electricity. For example, the development of electric vehicles, China's ownership has reached 5 million, accounting for about half of the world, and is still growing at an extraordinary rate. Another example is clean heating for residents, with many residents in northern China switching from burning coal to clean electricity for winter heating. At the same time, there are new electricity users who are both consumers and producers of electricity. They use their rooftops to build photovoltaic power, selling it to the grid when there is a surplus and buying it from the grid when there is a shortfall. Electric vehicles can be charged during low periods of electricity consumption and sold to the grid during peak periods of electricity consumption. These new situations and phenomena will make profound changes in the relationship between electricity production and sales.

From the grid side, this is reflected in the development of the grid will form a large grid as the leading, a variety of grid form integration and coexistence pattern. The new grid development pattern will provide strong support for efficient development and utilisation of new energy and friendly access to all kinds of loads. The State Grid will invest US$46 billion in research and development over the next 10 years to implement a new power system technology action plan to overcome key core technology challenges. At the same time, it is actively using digital technology to empower the grid. At present, the world's largest "new energy cloud" platform has been launched, with access to 2 million scenic sites and 470 million kilowatts of new energy installed capacity; the world's largest intelligent vehicle networking platform has been built, with access to more than 1.3 million charging piles.

From the system as a whole, it is reflected that the operation mechanism of the power system will undergo profound changes. Under traditional technical conditions, it is difficult to store electricity on a large scale, and in order to achieve a balance between power supply and demand, the power generation output is mainly adjusted dynamically according to the load situation. In the new power system, because of the random and fluctuating nature of new energy generation, it is impossible to adapt to changes in electricity demand by adjusting its own power generation output, so it is necessary to achieve a dynamic balance between power supply and demand through the development of energy storage technology and demand-side response, relying on the coordinated interaction of source, network, load and storage.

In general, these four features reflect the profound changes in the new power system of the future.

Moderator: What has State Grid done in terms of carbon peaking, carbon neutrality and building a new power system? What are the next steps?

Xin Baoan: After the "double carbon" target was proposed, State Grid studied and implemented it as soon as possible. Based on the company's position in the industry and the role of the grid, we positioned ourselves to be the leader, promoter and pioneer of the clean and low-carbon energy transition.

In March, State Grid released the first systematic and complete carbon-neutral action plan for China's energy enterprises, and in July it formulated an action plan for building a new power system and a major scientific and technological research plan (2021-2030), which are now being implemented one by one. Over the next five years, US$350 billion is planned to be invested to promote the transformation and upgrading of the entire power grid.

Moderator: What are State Grid's plans and experiences in participating in the "One Belt, One Road" construction and promoting the global carbon neutral process?

Xin Baoan: Energy cooperation is a key area in the construction of "One Belt, One Road". In recent years, State Grid has adhered to the principle of mutual benefit and win-win situation, vigorously promoted international business development, and has successfully invested and operated backbone energy networks in 9 countries and regions, and achieved fruitful results in grid interconnection and international capacity cooperation. For example, in Brazil, State Grid has built two "power highways" using ultra-high voltage technology, successfully delivering clean hydropower from the Amazon basin to load centres such as Rio de Janeiro and Sao Paulo, 2,000 kilometres away, which has given a strong impetus to local economic and social development and clean and low-carbon energy transformation.

Next, the State Grid will participate deeply in the "One Belt, One Road" construction, adhere to green development, and strive to contribute to ecological and environmental protection, energy saving and emission reduction for countries and regions along the route. Firstly, we will jointly carry out technical research and solve common problems encountered in the energy transition. Secondly, we will make use of our experience and advantages in building new power systems to better serve the clean and low-carbon energy transition of relevant countries and regions through project development and technical consultation. Thirdly, we will carry out the green concept throughout the whole process of investment, construction and operation of overseas projects, fulfill our corporate social responsibility and promote the harmonious coexistence of man and nature.

Xin Baoan: The world is now experiencing the biggest change in a century, and the State Grid's overseas operations are being affected by multiple factors such as the epidemic, making it increasingly challenging. We are also deeply aware that the trend of economic globalisation is unstoppable and the low-carbon transformation of energy will not stop. Addressing climate change is a global consensus and a common responsibility of all countries. State Grid will uphold the concept of the community of human destiny, serve the construction of "One Belt, One Road" and make greater contributions to the green and low-carbon energy transition.

 

Source: Xinhua 

 

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