4 The Transition of China’s Power System
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thermal, hydro and nuclear power installations. The construction period for 50 MW
wind power project is roughly several months while that for MW-level PV plants is
less than half a year. Therefore, if significant cost reductions occured, the share of
renewable energy capacity will grow rapidly.
(2) High-efficiency, low-cost and long-cycle life energy storage
The large-scale application of such technologies will revolutionize how traditional
power systems operate, usher in a new form of power generation and distribution,
and lay the foundation for the new-generation power system powered by a high
percentage of or even 100% renewable energy. The average cost for lithium iron
phosphate batteries stood at roughly 3000 yuan/kWh in 2015, and is expected to drop
to just 1000 yuan/kWh in 2020. The energy storage cost of lithium ion batteries was
close to 0.65 yuan/kWh in 2016, and is set to be reduced to 0.12 yuan/kWh in 2030.
The notable reduction in the cost of energy storage solutions will overcome renewable
variability. In addition, it is expected that by 2030, ultra-high density batteries such
as lithium-air batteries will reach energy densities of 8–10 kWh/kg (calorific value
of petrol 5.94 kWh/kg). Such ultra-high energy density storage technologies will
transform the way electricity is generated, transmitted, distributed and consumed.
(3) Power electronics with higher reliability and lower losses
The uptake and application of such technologies will gradually displace the traditional AC-dominated transmission and distribution network and set the stage for a
new system characterized by the coexistence of DC and AC/DC hybrid transmission and distribution. On the one hand, the development of Wide Band Gap power
semiconductor devices such as SiC and GaN will drive HVDC transmission and
DC grids to achieve greater capacity, efficiency and reliability. The HVDC circuit
breakers based on WBG devices are also a main component of the DC power grid.
On the other hand, the connection to the grid of a new generation of FACTS devices
and power routers with greater power density and lower losses will assist in the
construction of DC distribution networks. As power converters for microgrids, they
will also bring revolutionary changes to low-voltage active distribution networks and
microgrids.
(4) High-strength low-cost environment-friendly insulation and superconducting
power transmission technology
The development and application of such technologies will transform traditional
transmission lines and equipment. Among them, the development of insulation materials with high dielectric strength, high non-linearity, resistance to heat and cold and
high voltage tracking resistance can improve the long-term safety of equipment,
contribute to the miniaturization of electrical components, significantly enhance the
performance of electrical devices and help achieve environmental sustainability. New
superconductor technology will provide a brand-new low-loss, large-capacity, longdistance power transmission solution for the power grids of the future. Meanwhile,
superconducting fault current limiters and superconducting magnetic energy storage
systems will measurably improve the safety and reliability of power grid operations.
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thermal, hydro and nuclear power installations. The construction period for 50 MW
wind power project is roughly several months while that for MW-level PV plants is
less than half a year. Therefore, if significant cost reductions occured, the share of
renewable energy capacity will grow rapidly.
(2) High-efficiency, low-cost and long-cycle life energy storage
The large-scale application of such technologies will revolutionize how traditional
power systems operate, usher in a new form of power generation and distribution,
and lay the foundation for the new-generation power system powered by a high
percentage of or even 100% renewable energy. The average cost for lithium iron
phosphate batteries stood at roughly 3000 yuan/kWh in 2015, and is expected to drop
to just 1000 yuan/kWh in 2020. The energy storage cost of lithium ion batteries was
close to 0.65 yuan/kWh in 2016, and is set to be reduced to 0.12 yuan/kWh in 2030.
The notable reduction in the cost of energy storage solutions will overcome renewable
variability. In addition, it is expected that by 2030, ultra-high density batteries such
as lithium-air batteries will reach energy densities of 8–10 kWh/kg (calorific value
of petrol 5.94 kWh/kg). Such ultra-high energy density storage technologies will
transform the way electricity is generated, transmitted, distributed and consumed.
(3) Power electronics with higher reliability and lower losses
The uptake and application of such technologies will gradually displace the traditional AC-dominated transmission and distribution network and set the stage for a
new system characterized by the coexistence of DC and AC/DC hybrid transmission and distribution. On the one hand, the development of Wide Band Gap power
semiconductor devices such as SiC and GaN will drive HVDC transmission and
DC grids to achieve greater capacity, efficiency and reliability. The HVDC circuit
breakers based on WBG devices are also a main component of the DC power grid.
On the other hand, the connection to the grid of a new generation of FACTS devices
and power routers with greater power density and lower losses will assist in the
construction of DC distribution networks. As power converters for microgrids, they
will also bring revolutionary changes to low-voltage active distribution networks and
microgrids.
(4) High-strength low-cost environment-friendly insulation and superconducting
power transmission technology
The development and application of such technologies will transform traditional
transmission lines and equipment. Among them, the development of insulation materials with high dielectric strength, high non-linearity, resistance to heat and cold and
high voltage tracking resistance can improve the long-term safety of equipment,
contribute to the miniaturization of electrical components, significantly enhance the
performance of electrical devices and help achieve environmental sustainability. New
superconductor technology will provide a brand-new low-loss, large-capacity, longdistance power transmission solution for the power grids of the future. Meanwhile,
superconducting fault current limiters and superconducting magnetic energy storage
systems will measurably improve the safety and reliability of power grid operations.