First state-managed offshore wind zones open up in China auctions

Aug. 8, 2023
Mainland China’s June competitive wind auction proved a landmark for the country as it included for the first time wind projects in state-managed sea areas, Rystad Energy reported.

Offshore staff

OSLO, Norway  Mainland China’s June competitive wind auction proved a landmark for the country as it included for the first time wind projects in state-managed sea areas, Rystad Energy reported.

Last month was also the most active month this year in terms of renewable project auctions in the nation, with more than 26 GW of renewable capacity opened for competitive auction.

Guangdong province opened a competitive auction in June for 30 offshore wind projects with a total capacity of 23 GW, which is the first competitive auction in China that includes offshore wind projects located in state-managed sea areas. Of the 30 projects, 15 are located in state-managed sea areas and have total capacity of 16 GW.

State-managed sea areas are farther from shore than provincial-managed sea areas where all currently operating or under-construction offshore wind farms are located, Rystad explained. The delineation between state- and provincial-managed areas varies by province and other factors.

Other provinces, such as Shandong and Zhejiang, are also planning offshore wind development in state-managed sea areas, and Rystad said it expects more such competitive auctions to open in near future.

According to the Guangdong auction notice, a comprehensive scoring method that combines evaluation scores from local and provincial level will be used for this auction. While power price will not be considered as an evaluation criteria for this auction round, all participating projects will take the CNY0.453 ($0.062) per kilowatt-hour (kWh) Guangdong coal benchmark price. Candidates that integrate marine acreage with offshore wind or voluntarily give up the provincial offshore wind subsidy will gain extra points during evaluation.

08.08.2023