China looks to reduce emissions in industry by introducing a new policy for industrial parks to use more renewable energy from their micro-grids and dispatch less green energy to the main grid.
Chinese authorities on Friday issued new guidelines on micro-grids at industrial parks to address hurdles, including a lack of unified technical standards, incomplete market-based mechanisms, and insufficient coordination with the main power grid.
Under the new policy, unveiled by five central government departments, including the Ministry of Industry and Information Technology (MIIT), newly built renewable power projects at industrial enterprises and parks must ensure that at least 60% of their electricity output on an annual basis is being consumed locally or in nearby areas.
China currently has more than 300 micro-grid projects at industrial complexes operating nationwide, state Xinhua news agency reports.
The new guidelines also include directives to prioritize new energy technologies in micro-grids construction, such as green hydrogen production, fuel-cell power generation facilities, and integrated wind-solar flexible hydrogen production systems.
The Industry Ministry will boost policy support and refine guidance for green energy supply at key industries, an official at the ministry told Xinhua.
China will also aim to use more renewable energy, such as green hydrogen and green ammonia, to avoid curtailments of solar and wind power whose soaring capacity sometimes boosts clean power generation beyond the limits of the grids.
China will promote and support the use of renewable energy beyond the electricity generation sector over the next five years, the National Energy Administration (NEA) said in November in a new plan on integrating renewable energy in the economy to 2030.
Green hydrogen is expected to be used in heavy industry and as a fuel, or for feedstock to produce ammonia.
NEA is also encouraging China’s coastal provinces to explore the potential of using power generated from offshore wind for hydrogen production.
By Charles Kennedy for Oilprice.com
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