Don't let high electricity prices deter the "coal to electricity" initiative

2018-01-29 11:53 0

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The era of "coal to electricity" heating has come

In recent years, we all have a deep feeling that the heating season in the north is shrouded in smog. Smog has become a "heart and lung problem" for urban development. Research shows that PM2.5 in Beijing has 6 important sources, which are soil dust, coal burning, biomass burning, automobile exhaust and garbage incineration, industrial pollution and secondary inorganic aerosol, among which coal burning accounts for about 18%, and coal burning pollution has a huge impact on the formation of haze weather. A comprehensive treatment of loose coal has been carried out across the country, especially in northern China, which is a "major heating household", and actively advocates clean heating by replacing coal with electricity and gas.

The transformation from coal to electricity not only depends on the national policy formulation, but also needs the full support and promotion of enterprises. Yankai Energy conforms to the needs and development of The Times, and rapidly grows into a leading enterprise in the "coal to electricity" industry army. The general manager, Liu Guobin, used to be a department manager of a large state-owned enterprise in China. In 2016, he resigned and founded Yankai New Energy Co., LTD., which focuses on the application of power replacement technology, especially the comprehensive utilization of off-current power and the use of electricity storage for heating. Liu Guobin pointed out that condition of power supply and demand in our country is oversupply at present, the performance of trough electricity is more obvious. Like wind power, curtailment rates are 30 to 40 percent or more, and because electricity cannot be stored, it is wasted. "The integration and utilization of off-peak power resources is an urgent demand of the power industry. Making full use of the electricity generated is the biggest energy saving and emission reduction.

"Cut through all obstacles to reform Fangshan District" coal reduction for coal"

Fangshan, the gateway to the southwest of Beijing, is rich in coal resources, and Mentougou District and called the "West of Beijing Coal bunker". In the past, coal-fired heating was common in local areas, so the task of "coal reduction for coal" was particularly difficult. In order to implement the "coal to electricity" transformation, on February 17, 2016, the People's Government of Fangshan District of Beijing assigned the following tasks for the coal to electricity transformation in Fangshan District in 2016: Coal boilers with 2,800 tons of steam were upgraded to clean energy, 23,000 households were converted from coal to electricity and gas, and 300,000 tons of coal was cut or replaced by coal in rural areas.

Liu Guobin also focuses his business on Fangshan. In 2016, under the premise that the company has no fixed assets and it is difficult to get bank loans, Liu Guobin raised more than 100 million yuan by himself and invested all of it in the "coal reduction for coal" transformation in Fangshan District, Beijing, becoming the first one to eat the fish. The renovation of Fangshan No. 5 Middle School is particularly remarkable. It is located in Zhoukoudian Town, Fangshan District, with a building area of 36,000 square meters and more than 1,300 students. Before the switch from coal to electricity, the school used coal-fired boilers for heating, which required 1,500 tons of coal each year during the heating season. After the transformation, the energy storage cabinet replaces the traditional boiler. Compared with the traditional coal-fired boiler, this equipment has many advantages. First of all, the water temperature is constant, and there will be no phenomenon of hot and cold in the coal-fired boiler. Secondly, the equipment operation process is unattended, heating time setting, water temperature and other parameters, can be controlled by remote, reduce labor costs; The biggest change is that there is no smoke pollution and the environment has been improved.

Projects are proliferating and companies are losing money

After one year's experience in Fangshan District, Liu Guobin confidently believes that the implementation of "coal to electricity" has strong feasibility and rationality both in the technical level and in the economic level, which can effectively solve the low running rate of the generating units of power enterprises and the loss of some enterprises.

The total investment of Fangshan No.5 Middle School renovation project alone is more than 10 million yuan. In return for the investment, the Education Bureau and other units signed a 20-year long-term heating agreement with Yankai Energy Company and paid the heating fee annually according to the heating area. Liu Guobin calculated the investment return cycle of the project in advance and predicted that the cost could be recouped in 7-8 years. It will be profitable in the next few years. But the crux of the problem lies in the electricity price. One heating company paid about 5 million yuan for the basic electricity fee alone (the so-called basic electricity fee refers to the compensation for the long-term fixed and variable costs of the power grid enterprise). However, the basic electricity fee was not included in the cost when the project was evaluated initially, because the project used clean energy. It makes efficient use of the grain electricity at night, effectively promoting the process of "coal to electricity", which is fully in line with the national power consumption policy encouraging enterprises to "cut peaks and fill valleys", and meets the conditions for enjoying the preferential policies of the government. However, in the actual operation process, the electric power department had to charge basic electricity according to regulations due to the lack of policy basis. Such extra expenditure basically offset the profit space, so that the enterprise faces the embarrassment of being on the verge of loss.

The problem of high electricity price may seriously affect the comprehensive promotion of "coal to electricity"

The increase of operation cost leads to high heating price, which has a huge impact on the marketing of "converting coal-fired boilers to electricity", especially for small and medium-sized enterprises with a huge stock of coal-fired boilers. Compared with coal-fired boilers, the heating cost of electric boilers must be much higher, which is more difficult for enterprises to accept.

Liu Guobin admitted that a stable electricity price policy is a guarantee for the promotion and implementation of the coal power transformation project. He called on the competent authorities to introduce electricity incentive policies for the "coal power transformation" enterprises as soon as possible to attract more enterprises and social funds to participate in the "coal power transformation", which is the best way to rapidly promote the current clean heating transformation in northern China.

Changing the history of burning coal for heating in winter is, it should be said, welcomed by both the people and the businesses. Ordinary people look forward to coal to electricity, many enterprises have also tested the water coal to electricity project, but in the process of implementation, more details of the policy, still need to be considered carefully by the competent authorities, the preferential subsidy policy of electricity is in place? Can the initiative of enterprises and social funds be fully mobilized? A series of problems, such as further refinement of the "coal to electricity" project landing concrete measures, in order to really quickly promote the current clean heating transformation in northern areas.

Source: Corporate press release
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