Energy Insider: Nuclear Giant Starts Building Coastal Solar Farm, Shenzhen Invites EVs to Charge the Grid

The content of this Caixin energy wrap provides insights into China’s latest developments in climate and energy policy, industry shifts, significant projects, and emerging business models. The key highlights include the construction of a major coastal solar farm, trials of vehicle-to-grid charging in Shenzhen, Jiangxi's ambitions to become a global mineral base, partnerships in battery-swapping businesses, and the solar industry's call for an end to malicious competition.

**[Nuclear Major’s Coastal Solar Farm]**: China National Nuclear Corp (CNNC) has initiated the construction of a large-scale solar farm adjacent to its Tianwan nuclear base in Jiangsu province. The project, started on May 19, aims to install solar panels on mudflats by the Yellow Sea. It is heralded as China's largest ocean-based solar project with a 2-gigawatt capacity, expected to be fully operational by next year with a 25-year lifespan. This venture, costing 9.88 billion yuan, is part of a significant 10 GW clean energy base that integrates nuclear, solar power, and energy storage facilities [para. 4][para. 6].

**[Shenzhen’s Vehicle-to-Grid Charging]**: Shenzhen has started a trial of a vehicle-grid interaction system where 1,420 EVs were requested to avoid charging during peak hours (1:30 to 2:30 p.m.) in exchange for cheaper tariffs during other periods. Additionally, 53 EVs sent power back to the grid, receiving reverse-charging fees. This initiative aims to utilize EVs as “mobile battery packs” to support power supply needs. China plans to establish these systems by 2025, with broader applications anticipated by 2030 [para. 9][para. 11].

**[Jiangxi’s Mineral Base Ambitions]**: Jiangxi province seeks to leverage its rich reserves of key minerals like lithium and copper to become a globally influential manufacturing base for strategic raw materials. Vice Governor Ren Zhufeng highlighted the province's focus on specialty mineral resources to bolster its industrial capacity and economic future. Emphasizing its role in the EV supply chain, the provincial government has dedicated support to its cities to tap into lithium-related industries to achieve high-quality development [para. 15][para. 18].

**[CATL and Aion Battery-Swapping Business]**: Contemporary Amperex Technology Co. Ltd. (CATL) has partnered with Aion, an EV brand under Guangzhou Automobile Group Co. Ltd. (GAC), to advance the battery-swapping business. The partnership entails developing EV models with swappable batteries, and CATL providing battery packs and services for battery sales, rental, and swapping. Battery swapping addresses concerns like range anxiety by offering faster charging and utilizing off-peak electricity, aligning with the Chinese government’s emphasis on technological innovations to enhance the electrification of transportation [para. 21][para. 23].

**[Solar Industry Calls Against Malicious Competition]**: The China Photovoltaic Industry Association (CPIA) has called on solar power manufacturers to cease “malicious” competition amid cutthroat price wars and financial strain. In a recent meeting, stakeholders discussed raising technical standards, protecting intellectual properties, and encouraging mergers and restructuring. This situation is critical since Chinese firms are projected to dominate over 80% of the global polysilicon, wafer, cell, and module manufacturing capacity by 2026, following substantial industry investments. However, the industry faces a potential shakeout due to overdevelopment and oversupply concerns [para. 26][para. 29].

This overview encapsulates significant strides and challenges in China’s energy landscape, reflecting the country's efforts to innovate and stabilize critical sectors to ensure sustainable growth and technological advancement.