New Natural Gas No Longer for Cogeneration: Will Gas Power Cool Down in the Short Term?
Read: 9 Published: 2019/10/28
As a typical major gas-power province, Jiangsu currently ranks first in both installed gas turbine capacity and gas consumption for power generation. Reporters learned that the province has been promoting natural gas cogeneration projects as a "key initiative" for energy transition and structural adjustment.
It is understood that Jiangsu will add nearly 7 million kilowatts of gas turbine units in the next three years. Currently, approval for new natural gas peak-shaving projects has been halted, and all newly added gas turbines are for natural gas cogeneration projects. In 2017 alone, Jiangsu approved 10 gas cogeneration projects with a total installed capacity of 2 million kilowatts.
"We originally planned to launch two more gas cogeneration projects during the '13th Five-Year Plan' period, but it seems difficult now and adjustments are needed," a relevant person in charge from Huadian Jiangsu Power Generation Company told reporters.
It is noteworthy that because the "Action Plan" does not clearly define technical indicators such as the scale of cogeneration, it is currently uncertain whether distributed energy projects with combined cooling, heating, and power will be affected.
"Does the natural gas cogeneration mentioned in the notice include distributed energy? How should it be defined and distinguished? Regarding these issues, we have recently been in communication with the National Energy Administration, hoping for guidance from industrial policies, but we have not yet received a clear reply," a relevant person from the Jiangsu Provincial Energy Bureau said in an interview with reporters, adding, "The impact of this policy on Jiangsu cannot be assessed at present."
