Jiang Liping, deputy director with the State Grid Energy Research Institute, noted that the increasing installed capacity of renewable energy will boost construction of power grid, resulting in hig her operating cost of power grid and further push up electricity price in China.
Jiang noted that China is facing big problem of poor power grid construction and small grid-connected capacity compared to large installed capacity of wind power. In 2010, China’s electricity output by wind power stood at 48.1 GW, accounting for 1.4 percent of China’s total electricity consumption. The grid-connected wind turbines capacity took 4.2 percent share of national total. Meanwhile, the grid-connected wind power capacity of the State Grid has reached 28.26 million kilowatts by the end of 2010.
The surge of wind farm generating installed capacity from 100 GW to 150 GW by 2020 will incur 4. 8 percent increases of investment in power grid constructions, which is regarded as a factor to increase the operating cost of China’s power grid system by 1.1 percent. Theoretically, China’s electricity price may follow the 1.1 percent rise.
Besides, the surge in renewable energy installed capacity will drive up the construction of peak-load regulation power plants, including the pumped-storage hydroplant, oil and gas power station, wind energy storage power plant and solar energy storage power plant.