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MYSE plans 1.3 GW wind-solar-battery power project in northern China

6 Jan 2020

China wind turbine manufacturer Ming Yang Smart Energy (MYSE) plans to invest CNY9bn (US$1.3bn) in the construction of a 1.3 GW renewable-battery hybrid power plant near the city of Tong Liao in the Inner Mongolia province of China. The project would comprise 1000 MW of wind capacity and 300 MW of solar capacity, connected to a 320 MW lithium-ion battery storage system. Construction is scheduled to start in August 2020, with an expected completion by the end of 2021.

Inner Mongolia is the Chinese province with the largest wind capacity, totalling 29 GW by the end of September 2019 (i.e. 15% of China’s total wind capacity). The province was qualified as a "red" region for wind power generation curtailment risks in 2017, prompting the central government to temporarily ban issuing new wind power permits. In 2018, previously approved wind projects entered construction and the province was upgraded to the "orange" tier. Yet, the current construction momentum is also sparking concern for potential wind curtailment in Inner Mongolia.

In November 2019, the Chinese government decided to reduce renewable power subsidies by 30%, from CNY8.1bn (US$1.15bn) in 2019 to CNY5.7bn (US$807m) in 2020. In 2020, around 52% of the subsidy will go to wind projects (CNY2.97bn or US$422m), 47% to solar parks (CNY2.63bn or US$374m) and 1% to biomass plants (CNY73m or US$10m).

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