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Report on China’s Strategy to Expand Renewable Energy Applications Beyond the Power Sector

Introduction: Aligning with Sustainable Development Goals

The People’s Republic of China has initiated a strategic plan to broaden the application of renewable energy, addressing critical challenges in its clean energy transition. This initiative, led by the National Energy Administration (NEA), focuses on mitigating the curtailment of solar and wind power by channeling surplus energy into the production of green hydrogen and green ammonia. This strategy is in direct support of several United Nations Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 13 (Climate Action).

Strategic Objectives and SDG Contributions

Primary Goal: Enhancing Renewable Energy Utilization

The core objective is to integrate renewable energy more deeply into the national economy by 2030, moving beyond conventional electricity generation. This addresses the issue of energy wastage when generation from soaring solar and wind capacity exceeds grid absorption limits.

Alignment with Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy): The plan directly promotes access to sustainable energy by creating new, viable uses for renewable power, thereby reducing waste and improving the overall efficiency of clean energy systems.
• SDG 9 (Industry, Innovation, and Infrastructure): By fostering the production of green hydrogen and ammonia, China is building resilient infrastructure and promoting sustainable industrialization. This represents a significant innovation in energy storage and application.
• SDG 12 (Responsible Consumption and Production): The strategy exemplifies responsible production patterns by converting potential waste (curtailed electricity) into valuable commodities, creating a more circular and sustainable energy economy.
• SDG 13 (Climate Action): Expanding the use of green fuels like hydrogen and ammonia is a crucial measure to decarbonize heavy industry and transport, contributing significantly to national and global climate change mitigation efforts.

Key Initiatives and Implementation Framework

Development of Green Hydrogen and Green Ammonia

The NEA’s plan outlines a clear pathway for the next five years to support and promote the use of renewable energy for non-electricity purposes. The key initiatives include:

1. Green Hydrogen Production: Utilizing renewable power to produce green hydrogen through electrolysis, which can then be used as a clean fuel or industrial feedstock.
2. Green Ammonia Synthesis: Using green hydrogen as a feedstock for producing green ammonia, a key component for fertilizers and a potential carbon-free fuel.
3. Offshore Wind-to-Hydrogen Projects: Encouraging coastal provinces to explore and develop the capacity to use power from offshore wind farms for large-scale hydrogen production.

Addressing Curtailment and Investment Risks

The Challenge of Renewable Energy Curtailment

A significant challenge to achieving SDG 7 is the economic viability of renewable energy projects. According to analysis from Wood Mackenzie, renewable electricity curtailment poses a major risk to the income stability of these projects.

• Forecasts indicate that average wind and solar curtailment rates are projected to exceed 5% in numerous provinces over the next decade.
• High curtailment rates, combined with power price volatility, create an unstable investment environment, potentially slowing the transition to clean energy.

Strategic Solution

By creating a demand for surplus renewable electricity through green hydrogen and ammonia production, the NEA’s plan aims to ease strain on the power grid. This approach not only expands the use of clean energy but also provides a new revenue stream for renewable energy developers, thereby mitigating investment risks and supporting the long-term sustainability of the sector in line with SDG 7 and SDG 9.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 7: Affordable and Clean Energy

   • The article’s central theme is China’s plan to expand the use of renewable energy, specifically solar and wind power. This directly aligns with the goal of ensuring access to affordable, reliable, sustainable, and modern energy for all. The plan aims to “use more renewable energy” and “expand the use of clean energy,” which is the core mission of SDG 7.

2. SDG 9: Industry, Innovation, and Infrastructure

   • The article discusses upgrading energy infrastructure to handle the “soaring capacity” of renewables and avoid situations where “generation exceeds the amount the grid can absorb.” Furthermore, the plan to produce “green hydrogen and green ammonia” represents an industrial innovation and the adoption of clean technologies to make the energy sector more sustainable, which is a key aspect of SDG 9.

3. SDG 13: Climate Action

   • By promoting a massive expansion of renewable energy sources like solar and wind and developing technologies like green hydrogen to utilize this energy, China’s plan is a significant climate change mitigation strategy. The article highlights a national-level policy by the “National Energy Administration (NEA)” to integrate renewable energy into the economy, which is a direct form of climate action as called for by SDG 13.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 7.2: Increase substantially the share of renewable energy in the global energy mix.

   • The article explicitly states that China’s plan is to “use more renewable energy” and “expand the use of clean energy in the world’s leader of renewable investment and installations.” The entire initiative is designed to increase the utilization of solar and wind power, directly contributing to increasing the share of renewables.

2. Target 7.a: Enhance international cooperation to facilitate access to clean energy research and technology… and promote investment in energy infrastructure and clean energy technology.

   • The focus on producing “green hydrogen and green ammonia” using renewable power is a direct application of advanced clean energy technology. The article also touches upon investment, noting that provinces with high curtailment rates “will face challenges attracting investment,” implying that the new plan is also designed to create a more stable environment for investment in clean energy infrastructure.

3. Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes.

   • The article describes a plan to solve an infrastructure problem—the grid’s inability to absorb excess renewable power. The solution proposed is to adopt a clean industrial process: using the excess energy for “green hydrogen and green ammonia production.” This initiative is a clear example of retrofitting the energy industry with sustainable technology to improve efficiency and reduce waste (curtailed energy).

4. Target 13.2: Integrate climate change measures into national policies, strategies and planning.

   • The article reports on a “new plan” by China’s “National Energy Administration (NEA)” for “integrating renewable energy in the economy to 2030.” This is a concrete example of a national government integrating climate-friendly energy measures into its long-term strategic planning.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Renewable Energy Curtailment Rates

   • The article directly mentions this as a key problem to be solved. It states the plan aims to “avoid curtailments of solar and wind power.” It even quantifies the issue by citing a Wood Mackenzie analysis that “average wind and solar curtailment rates will exceed 5% in seven and 21 provinces, respectively.” Therefore, a reduction in these curtailment rates would be a direct indicator of the plan’s success.

2. Volume of Green Hydrogen and Green Ammonia Production

   • The plan specifically promotes the “use of renewable energy for green hydrogen and green ammonia production.” Measuring the amount of green hydrogen and ammonia produced using renewable sources would be a clear indicator of the adoption of this new clean technology and the successful expansion of renewable energy use beyond the electricity sector.

3. Installed Capacity of Renewable Energy

   • The article refers to China’s “soaring capacity” and how “solar and wind installations soar.” The continued growth of installed solar and wind capacity is an implied indicator of progress towards increasing the share of renewable energy, which this plan is designed to support and make more efficient.

4. Table of SDGs, Targets, and Indicators

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