The roadmap for biomass is under study in China and may prove a gem for development of the sector. Biomass presently contributes nearly 5% of power generation to the total renewable. The technology has good growth prospects due to available potential in the country.

Biomass Power in China

Mohit Prasad, Senior Analyst | Global Data

Biomass Power Market, Global, 2001-2020

Biomass Power Market, Global, Overview

Biomass market is largely policy dependent in most of the world, as the generation of biomass power in most countries is not as competitive when compared with fossil fuels. Governments worldwide are investing in biomass technologies to ensure stability and security of energy supply. Further, the biomass power plants also help to curb green house gas emissions, generated when the bio-waste is dumped in landfills, by using the bio-waste to generate power. The regulatory framework and policy structure supporting renewable energy across various regions and countries in the world has led to the significant development of the global biomass industry. The major countries involved in biomass power production worldwide are the US, Germany, Sweden, Brazil, India and China. The supportive policy framework has driven the leading biomass nations i.e. Germany, Sweden and the US towards the growth trajectory. All leading biomass producing countries witnessed good growth in the last decade except for the US which is a matured market. In the wake of growing energy security and environmental concerns, support mechanisms in favor of biomass are expected to strengthen in most of the nations. This is expected to help the global biomass industry to continue to grow in the coming years.

Biomass has huge potential in almost all the regions of the world because of the range of raw materials that are used to produce electricity. A wide range of resources are used to produce biomass power in a variety of forms. Biomass power uses organic matter such as sewage, municipal waste, wood residues, forest residues, fiber, and short-rotation crops and so on to generate electricity. For instance, food, fiber and wood process residues from the industrial sector; energy and short rotation crops as well as agricultural wastes from the agricultural sector, and forest residues, agro forest residues and short rotation coppice from the forestry sector can all be utilized to generate electricity, heat, combined heat and power, and other forms of bioenergy. Traditional biomass sources include fuel wood, agricultural waste, animal dung and organic municipal waste.

 

Biomass Power Market, Global, Installed Capacity, MW, 2001-2020

Biomass power has seen considerable growth with installed capacity increasing from 30,188 MW in 2001 to 57,071 MW by the year 2010 at a CAGR of 7.3% In the backdrop of governmental support and increasing preference for large installations, it is expected that by 2020, the cumulative installed capacity of biomass power will reach 110,934 MW at a CAGR of 6.9% for the period 2010-2020.

The worldwide annual biomass installed capacity increased consistently from 2001-2004. However, in 2005 there was a dip in annual installed capacity. This was mainly a result of low capacity additions in various countries as recognition of biomass as renewable source was debatable as it is carbon neutral. The industry again witnessed a decline in annual installed capacity in 2009 due to the impact of global financial crisis.

Globally, a large number of biomass plants with high installed capacities are under construction or at the planning stage. There is a trend of increasing preference for large installations. Large installations are being more preferred as their output matches huge energy demands.

 

Biomass Power Market, China, 2001-2020

Biomass Power Market, China, Overview

The accelerating pace of industrialization and urbanization has lead to surge in the energy demand in China. Chinese electricity generation is largely dominated by coal that constituted more than two third of the overall electricity generated in 2010. The second major source was the hydropower which contributed around 15% to the total energy generated in the same year.

China power market is largely dominated by thermal sources of energy that represented nearly 72% of the total installed capacity by all fuel types in 2010. However; the share of thermal sources has been gradually decreasing since 2001 in total generating capacity of the nation. With the increasing share of the renewable sources in the energy mix; the contribution of thermal sources is expected to further decline in installed capacity portfolio. By 2020, the share of thermal sources in the total installed capacity mix is anticipated to decline to 65% from the present level of 72% in 2010.

China’s Renewable Energy Law, established in 2005, proved a milestone and helped the renewable development through empowering policy environment and thus setting the industry on a path of continuous rapid growth. The Law set an obligatory target that 10% of power capacity should be generated from renewable energy sources by 2010, effective from January 1, 2006 and 15% by 2020.

The renewable installed capacity in 2001 was mere 2,160 MW; which had grown to 48,942 MW by 2010 at a CAGR of 41.4% during this period. In future, this phenomenal growth is forecasted to be continued. By 2020; total renewable installed capacity is to reach 275,917 MW from 48,942 MW in 2010. The wind power is major contributor in renewable energy portfolio currently.

China is a vast country with various kinds of biomass feed stocks available in different regions. There are various types of biomass technologies available to utilize the potential of country. Some biomass technologies are matured; while other few may require some subsidies and other financial incentives to encourage them in the market. In the long term plan for renewable energy development issued by the Govt. of China in 2007, targets have been set for different renewable. The roadmap for biomass is under study in China and may prove a gem for development of the sector. Biomass presently contributes nearly 5% of power generation to the total renewable. The technology has good growth prospects due to available potential in the country.


Biomass Power Market, China, Cumulative Installed Capacity, MW, 2001-2020

The biomass installed capacity has increased at a CAGR of 6.7% during 2001 to 2010. The biomass cumulative installed capacity has reached 3,053 MW in 2010 from 1,700 MW in 2001. The installed capacity is forecasted to reach 5,750 MW in 2020 from 3,053 MW in 2010 for the technology.

 

Figure 1:     Biomass Power Market, China, Cumulative Installed Capacity, MW, 2001-2020

Source: GlobalData, Eurostat, Barometer,EurObserv’ER, REN21, , EIA, G-20 Clean Energy Fact Book

 

 

Table 1:    Biomass Power Market, China, Cumulative Installed Capacity, (MW), 2001-2020

Year

Cumulative Installed Capacity

Annual Installed Capacity

Y-o-Y Growth Rate

2001

1,700

 

 

2002

1,802

102

6%

2003

1,900

98

5%

2004

1,912

12

1%

2005

1,939

27

1%

2006

1,961

22

1%

2007

2,327

366

19%

2008

2,527

200

9%

2009

2,880

353

14%

2010

3,053

173

6%

2011

3,246

193

6%

2012

3,460

214

7%

2013

3,694

234

7%

2014

3,947

253

7%

2015

4,218

271

7%

2016

4,504

286

7%

2017

4,804

300

7%

2018

5,114

310

6%

2019

5,430

317

6%

2020

5,750

320

6%

CAGR 2001-2010

6.7%

 

 

CAGR 2010-2020

6.5%

 

 

Source: GlobalData,Eurostat, ,Barometer,EurObserv’ER,,REN21, EIA, G-20 Clean Energy Fact Book

 


Biomass Power Market, China, Top Active Biomass Plants, 2010

By 2010, there were more than 200 large-scale and small-scale biomass power plants that are online in China. Most of the biomass power plants are majorly fuelled by agricultural based feedstocks. In the recent past the biomass power plants based on municipal solid waste as fuel are also on the rise. Majority of the biomass facilities produce electricity and the rest are cogeneration plants offering a combined production of electricity and steam, the latter being used in industry.

 

Table 2:    Biomass Power Market, China, Top Active Biomass Plants, 2010

Biomass Plant Name

State /Province

Total Installed Capacity (MW)

Biomass Plant Owner

Fuel used in the Power Plant

Hunan Juntai

Hunan

70.00

Juntai Pulp & Paper Co.,Ltd

Agricultural Waste,Industrial Waste

Jilin Lishu

Jilin

50.00

Sanhe Green (Lishu) New Energy Development CO., LTD

Agricultural Waste

Nongan

Jilin

50.00

Jilin Luneng Biomass Power Generation Co.,Ltd.

Agricultural Waste

Wangqing

Jilin

50.00

Changchun Yongtuo Energy Co., Ltd.

Agricultural Waste

Guantao County

Hebei

48.00

Hebei Xinneng Power Co. Ltd

Agricultural Waste

Hunan Yueyang Kaidi

Hunan

48.00

Wuhan Kaidi Holding Investment Co., Ltd.

Agricultural Waste

Hunan Qidong Kaidi

Hunan

48.00

Wuhan Kaidi Holding Investment Co., Ltd.

Agricultural Waste

Dongguan Waste Incineration Plant

Guangdong

42.00

 

Municipal Solid Waste

Changyuan

Henan

36.00

Xinmi Changyuan Power Generation Co. Ltd

Agricultural Waste

Qinyang

Henan

36.00

Qinyang Liansheng Electric Power Co., Ltd.

Agricultural Waste

Source: GlobalData

 

Biopower Market, China, Deals Market Trends

Biopower Market, China, Deals Value versus Deal Volume Analysis, 2006-2010

The China biopower deals market had witnessed an unstable growth during the period 2006-2010. In the year 2009 there was a tremendous growth in terms of deal value. In the year 2010 there was a decline both in terms of deal value and volume. In the year 2010 the deal value came down to $948m and the number of deals registered were 20. The following graph and table represents the Chinese deal value and volume during 2006-2010.

 

Figure 2:     Biopower Market, China, Deal Value versus Deal Volume Analysis, 2006-2010

Note: Deal volume includes all announced deals; only publicly reported value is recorded as deal value

Source: GlobalData

 

Table 3:    Biopower Market, China, Deal Value versus Deal Volume Analysis, 2006-2010

Year

Total Deal Value ($m)

Deal Volume

2006

926

35

2007

2,465

77

2008

1,789

84

2009

4,679

27

2010

948

20

Note: Deal volume includes all announced deals; only publicly reported value is reported in the deal value figures

Source: GlobalData

 

From the above table it can be inferred during 2009, the Chinese biopower deals market has shown positive trend in terms of deal value whereas in the year 2010 the country’s deal volume has decreased from 27 deals in 2009 to 20 deals in 2010. The deal value has decreased from $4,679 m in 2009 to $948m in 2010. There is a tremendous decline in terms of deals value in the year 2010 in the country’s biopower market.

 

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