Gansu is located in northwest China and in 2014 contributed a relatively modest 1% to the country’s overall nominal GDP with $110.1bn, up from $103.6bn in 2013. However, the province plays a disproportionately large role in China’s overall clean energy industry.
As of year-end 2014, Gansu had an installed power generating capacity of 41.9GW, of which 44.1% (18.5GW) was thermal, 24% (10.1GW) wind, 19.4% (8.1GW) hydro, and 12.3% (5.2GW) solar PV. In 2014, 58.9% of the total 124.1TWh power generated in Gansu came from thermal sources. The balance was supplied by zero-carbon technologies, including large hydro, wind and solar.
To better align the zero-carbon technology industry development with overall local economic growth, the Gansu government released in 2011 the 12th Five-year Development Plan for New Energy and Renewable Industries. It sets installation targets of 17GW, 8GW and 5GW for wind, hydro and solar PV by year-end 2015. By 2014, Gansu had already achieved theses targets for hydro and solar PV, but not for wind.
Today, the main challenge for Gansu’s clean energy development is improving utilization efficiency for its existing fleet of solar PV and wind projects. This remains low compared to other provinces due to grid congestion and limited local power demand. Gansu’s wind curtailment rate was 15% in 2014, well above China’s 8% national average. Steps are being taken to address this as an 800kV direct current ultra-high-voltage line starting from Gansu and ending in Hunan has been approved for construction. The line is expected to be commissioned in mid-2017 and should reduce curtailments in Gansu significantly in coming years.
A new National Plan to Tackle Climate Change in Gansu through 2020 was announced by the provincial government at the end of 2014 and aims to cut CO2 intensity of the provincial economy 42% against 2005 levels by 2020. For the power sector, a carbon emissions cap was set at 650g/kWh for large power plants.