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[SMM Hydrogen Policy Update] Shandong Province: Reasonably Set Spot Prices to Create Profit Space for ESS

  • Nov 10, 2025, at 1:25 pm

On the morning of November 6, the Information Office of the Shandong Provincial People's Government held a press conference themed on "High-Quality Completion of the 14th Five-Year Plan," inviting key officials from the Shandong Provincial Energy Administration and others to introduce the progress of accelerating green and low-carbon energy development in Shandong during the 14th Five-Year Plan period and answer questions from journalists.

Yue Jianru, Deputy Director of the Shandong Provincial Energy Administration, pointed out that as of the end of September, Shandong had 9.65 million kW of new-type energy storage in operation, representing a more than fivefold increase from the end of 2022 and ranking third nationwide. Forty-two generation-grid-load-storage integration pilot projects have been identified, with seven completed and 11 under construction as of the end of September. Yue also stated that Shandong has reasonably set upper and lower limits for spot market prices, creating profitable opportunities for new-type energy storage through "charging at low prices and discharging at high prices." Innovative time-of-use pricing strategies for retail packages were introduced last year, shifting approximately 5 million kW of electricity load and making midday electricity consumption more economical. Zheng Deyan, Director of the Shandong Provincial Energy Administration, introduced that by fully leveraging demand-side response capabilities and innovating a "five-stage" time-of-use electricity pricing policy, Shandong has guided enterprises and users to "reduce peak loads and fill valleys." These efforts have ensured that green electricity is both generated and utilized effectively. Currently, one out of every three units of electricity consumed in the province comes from clean energy sources, continuously increasing the "green content" of economic and social development. Shandong has taken the lead in establishing a trading mechanism for standalone ESS to participate in the electricity spot market, clarifying profitable channels such as electricity trading, capacity compensation, and capacity leasing. This effectively offsets the investment and construction costs of power stations, paving the way for the market-oriented development of new-type energy storage.

The full text of the press conference is as follows:

 Speakers:

 Zheng Deyan, Deputy Secretary of the Party Leadership Group and Deputy Director of the Shandong Provincial Development and Reform Commission

   Secretary of the Party Leadership Group and Director of the Shandong Provincial Energy Administration

 Liu Xuejun, Deputy Director of the Shandong Provincial Energy Administration and Press Spokesperson

 Yue Jianru, Deputy Director of the Shandong Provincial Energy Administration

 Meng Fanzhi, Deputy Director of the Shandong Provincial Energy Administration

Zheng Deyan, Deputy Secretary of the Party Leadership Group and Deputy Director of the Provincial Development and Reform Commission, as well as Secretary of the Party Leadership Group and Director of the Provincial Energy Administration, introduced that energy is the lifeblood of the national economy and the primary battlefield for achieving carbon peak and carbon neutrality. Since the beginning of the 14th Five-Year Plan period, under the guidance of the new energy security strategy of "four revolutions and one cooperation" and the strong leadership of the provincial Party committee and government, the provincial energy system has coordinated energy supply security, green transformation, and reform and innovation. It has accelerated the construction of a green and low-carbon energy transformation demonstration zone, achieving breakthrough progress and historic accomplishments in high-quality energy development in the province. The main energy targets outlined in the 14th Five-Year Plan Outline will be met on schedule, effectively satisfying the energy demands of over 100 million people. Energy has become a "stabilizer" for high-quality economic development, a "main force" driving green and low-carbon transformation, and a "new engine" for building a modern industrial system.

Over the past five years, through persistent and determined efforts, we have shouldered the responsibility for energy security, making the foundation for supply assurance more solid. During this period, we have always kept in mind the national priorities and focused on stability, accelerating the construction of the energy production, supply, storage, and marketing system, comprehensively strengthening the foundation for energy supply assurance, effectively meeting the rapidly growing demand for energy and electricity, and providing solid energy support for this major economic province to play a key role. On the production side, we stabilized the "fundamental base" within the province. We carried out in-depth actions to ensure mining continuity in coal mines and to increase oil and gas reserves and production, comprehensively ensuring stable production and supply. Annual coal and crude oil production remained at around 86 million mt and 22 million mt, respectively, with crude oil output accounting for over one-tenth of the national total. We strengthened the construction of supportive and backup power supplies. By the end of September, the total installed power capacity in the province reached 250 million kW, ranking second in the country, and annual power generation from provincial units is expected to reach around 700 billion kWh. On the supply side, we unclogged the "major arteries" of transportation. Adhering to the principles of moderate advancement and scientific planning, we enhanced the planning and construction of major energy infrastructure. A number of significant landmark projects, such as the Longdong–Shandong power transmission project, the Shandong section of the China–Russia Eastern Gas Pipeline, and the Yimeng Pumped Storage Power Station, were successively put into operation. We built the nation's largest provincial-level AC-DC hybrid power grid, with the total length of power transmission lines at 110 kV and above exceeding 95,000 km. We established an interconnected provincial oil and gas "integrated network," with the total length of long-distance oil and gas pipelines surpassing 15,000 km, ranking second in the country, comprehensively building an energy supply assurance network that facilitates mutual support between east and west and coordination between internal and external sources. On the emergency response side, we effectively utilized the "regulator" of reserves. We strengthened the construction of energy emergency support capabilities, completing a number of major projects such as the Qingdao Dongjiakou and Longkou Nanshan LNG receiving terminals and the Lubei coal storage base. The government's dispatchable coal reserve capacity reached 20 million mt, and the gas storage capacity of various gas storage facilities reached 2.52 billion m³, both ranking among the top in the country. Since the start of the 14th Five-Year Plan period, despite severe challenges including the normalization of peak electricity loads exceeding 100 million kW, repeated record highs, and frequent extreme weather events, Shandong's energy and electricity supply assurance has remained generally stable and orderly, strongly supporting economic and social development as well as residential energy needs.

Over the past five years, with unwavering commitment and a firm focus on the dual-carbon strategic goals, the energy transition has taken on a greener hue. During this period, we adhered to the principle of establishing new before phasing out the old and made comprehensive plans, accelerating the green and low-carbon transition of energy with firm determination and pragmatic measures. The development of clean energy has entered a "golden period" with the fastest pace, best quality and efficiency, and strongest vitality. Chasing the wind and sun, and moving forward with innovation, we integrated the diversified development of clean energy such as nuclear, wind, solar, and geothermal power, and accelerated the construction of large clean energy bases including the Jiaodong Peninsula nuclear power and offshore wind power projects. The installed capacity of non-fossil energy power generation successively broke through two important milestones: "first exceeding 100 million kW in eastern coastal regions" and "historically surpassing coal power." The current installed capacity has reached 134 million kW, 2.8 times that of 2020, accounting for 53.4% of the total installed power capacity, an increase of 22.6 percentage points, achieving leapfrog development with unprecedented speed and intensity. Multiple measures have been taken to promote renewable energy integration and actively adapt to the rapid development of wind, solar, and other renewable energy sources. The diversified development of energy storage facilities, including pumped hydro, compressed air, and electrochemical storage, has been accelerated. Over 9.6 million kilowatts of new-type energy storage have made the system more flexible and efficient. By fully leveraging demand-side response capabilities and innovating the "five-segment" time-of-use electricity pricing policy, enterprises and users are guided to "peak shaving and valley filling," ensuring that green electricity is not only generated but also utilized effectively. Currently, one out of every three kilowatt-hours of electricity consumed in the province comes from clean energy, continuously increasing the "green content" of economic and social development. The principle of "replacing small with large and old with new" has been implemented, focusing on key links such as coal power for clean and efficient coal utilization. Action plans have been formulated and introduced for the transformation and upgrading of coal power, clean replacement of coal-fired heating boilers, and the phase-out of subcritical units, systematically establishing an energy-saving and carbon reduction promotion system for the coal power industry, leading the nation. By coordinating the construction of large, clean, and efficient coal power plants with the shutdown and restructuring of outdated small coal power units, over 12.27 million kilowatts of small coal power capacity have been phased out in the past four years, while 88.785 million kilowatts of capacity have undergone the "three transformations linkage." Efforts to accelerate the transformation and upgrading of a new generation of coal power are underway, setting benchmarks for green development.

Over the past five years, determined exploration has strengthened the role of technological innovation in leading energy development, injecting greater momentum. During this period, targeting key areas and major demands, technological leadership and digital-intelligent empowerment have been enhanced, driving innovation in the energy industry at an "accelerated pace." Technological innovation capabilities have continuously improved. Landmark projects such as the world’s first fourth-generation nuclear power plant at Rongcheng Shidao Bay and the demonstration project of the independently developed third-generation nuclear power technology "Guohe One" have been established in Shandong. The construction of the first 630°C ultra-supercritical double-reheat coal power unit is progressing in an orderly manner. Breakthrough technologies like million-ton-level CCUS, 300 MW large-scale advanced compressed air energy storage, and 26 MW offshore wind turbines have filled gaps in related fields. High-level platforms such as the National Fuel Cell Innovation Center and the Shandong Energy Research Institute have continuously enhanced their capacity for technological innovation. New business models and formats are flourishing. Actively adapting to new changes and requirements in new energy development, pilot projects such as generation-grid-load-storage integration and green electricity industrial parks have been initiated. Smart microgrids and virtual power plants are developing rapidly, while demonstration applications like cross-regional nuclear heating and vehicle-grid interactive charging and battery swapping are leading nationally. The integration of the energy industry with sectors like industry and transportation is accelerating, continuously giving rise to new fields and tracks, becoming an important source of new quality productive forces. Intelligent development is at the forefront. The application of next-generation digital-intelligent technologies such as big data, cloud computing, and artificial intelligence in the energy sector has been accelerated, promoting the digital-intelligent upgrade of energy facilities. The world’s first commercial AI large model empowering smart mine construction has become a "new wing" of technology for coal mine safety production and efficient operation. Video surveillance coverage in high-consequence areas of oil and gas pipelines has exceeded 90%, with these "eyes in the sky" constantly safeguarding pipeline safety. State Grid Shandong Electric Power Company, leveraging artificial intelligence, has achieved precise load forecasting and intelligent escort of dispatch commands, creating a "smart brain for grid dispatch."

Five years of breakthroughs and solid use of key reform measures have strengthened the effectiveness of energy governance. Over the past five years, by adhering to pilot initiatives and using market mechanisms and reform methods, we continuously activated a strong engine for energy transformation and development. The market environment has become more vibrant. As one of the first national power spot market reform pilots, a full-cycle, all-category power market system encompassing "medium and long-term + spot + ancillary services + retail" was fully established. The number of registered market entities reached 43,000, with the proportion of traded electricity accounting for 51% of total social electricity consumption, achieving both quantitative and qualitative improvements in the power market size. We were the first to introduce a market-oriented reform plan for new energy on-grid tariffs and successfully implemented it, exploring a comprehensive entry strategy for new energy known as the "Shandong Model." Support policies have become more effective. We pioneered a mechanism for standalone ESS to participate in the power spot market, clarifying profit channels such as electricity trading, capacity compensation, and capacity leasing, effectively alleviating the investment and construction costs of power stations, and paving a path for the market-oriented development of new-type energy storage. Special fiscal funds were allocated to provide key support for major projects like offshore wind power. A special fund was set up to support and subsidize geothermal energy development pilots, government coal and natural gas reserves, and the shutdown of small coal-fired power units, significantly promoting energy transformation and development. Project investments have gained more momentum. By formulating management methods for key energy projects and implementing incentive and elimination mechanisms such as the "competition system" and "grading system," we have ensured that annual investments in the energy sector over the past few years have exceeded 200 billion yuan, providing strong support for stabilizing investments and growth. We have relaxed market access for energy development, supporting various market entities to participate in Shandong's energy resource development, and continuously promoting fair access to energy infrastructure for private enterprises. For example, the participation rate of private enterprises in competitively allocated onshore wind power projects reached 40%, and nuclear power projects introduced at least 10% private shares, effectively stimulating the enthusiasm and initiative for energy project construction and investment, making the private economy an indispensable force in energy transformation. Since the 14th Five-Year Plan, in the face of complex and changing domestic and international energy situations, Shandong has firmly held its energy bowl, accelerated green and low-carbon transformation, and blazed a trail of high-quality energy development. Moving forward, the Provincial Energy Bureau will accelerate the construction of a new-type energy system, create a demonstration zone for green and low-carbon energy transformation, and provide strong energy support for the construction of a modern and powerful province.

Question

Energy development is closely related to people's well-being. During the 14th Five-Year Plan period, what significant achievements has Shandong made in meeting the high-quality energy needs of the people, and how can the benefits of energy development be more widely shared with the public?

(Liu Xuejun) Response: Chinese modernization prioritizes people's livelihoods. Since the 14th Five-Year Plan period, Shandong has consistently taken meeting the people's aspirations for a better life as the starting point of its energy work, focusing on core needs such as transportation, rural areas, and heating. Through concrete measures, it has addressed pressing concerns and difficulties, transforming the dividends of energy development into tangible gains, happiness, and a sense of security for the people.

In the field of green transportation, the focus has been on tackling the challenges of "difficult, expensive, and slow charging," resulting in the establishment of a nationally leading urban and rural charging service network. Two landmark achievements stand out: First, achieving "full coverage" in terms of the number and density of charging piles. Leveraging the urban road traffic network, public charging station construction was strengthened, procedures for residential charging pile installation were simplified, and pilot "unified construction and service" projects in old residential communities were launched, creating a diversified and complementary charging service landscape that thoroughly resolves the issue of "difficulty finding a charging pile." By the end of September this year, the province's ownership of various charging infrastructure reached 1.488 million units, 19 times the figure from 2020. Second, achieving a "dual breakthrough" in charging speed and cost. The Jinan New-Old Kinetic Energy Conversion Start-up Area built a domestically leading megawatt (MW)-level fully liquid-cooled super charging station, enabling "charging 100 kWh in 10 minutes." Through the implementation of a "five-tier time-of-use electricity pricing" scheme that offers benefits, the price per kWh during the deep valley period is only 0.222 yuan (one-quarter of the critical peak price), saving users up to 40 yuan per charge, making green transportation "both time-saving and cost-effective" for the public.

In the rural energy sector, infrastructure construction has been continuously strengthened to meet high-grade energy needs for people's livelihoods and support the rural revitalization strategy. Over the past five years, the rural power grid consolidation and upgrade project has been deepened, with cumulative investment exceeding 47 billion yuan, continuously improving power supply security in rural areas and truly achieving the leap from "having access to electricity" to "using electricity well." Active promotion of distributed PV development allows people to fully enjoy the "sunshine dividend." Based on a calculation of 20 kW installed per household, the average annual power generation is about 26,000 kWh, potentially increasing income by approximately 10,000 yuan. Making full use of scattered rural land, the "Wind Energy Utilization Action in Thousands of Townships and Villages" has been solidly carried out, with cumulative arrangements for over 3 million kW of rural wind power, striving to build a development pattern where "villages have wind power, collectives see increased revenue, and villagers gain practical benefits."

In the clean heating sector, tailored approaches have been adopted to actively expand the application of nuclear energy, geothermal energy, and biomass energy in clean heating. While meeting the public's need for safe heating, this also contributes to "fresher air and bluer skies." In nuclear heating, the country's first nuclear-powered zero-carbon heating city was established, with a heating area reaching 13 million m². The heating fee decreased from 22 yuan per m² to 21 yuan per m². While the reduction seems relatively small, it represents a tangible benefit for the people. In geothermal energy utilization, 100 million yuan in fiscal funds was specifically allocated to support the construction of a number of geothermal energy development and utilization demonstration projects. Currently, the heating (cooling) area has reached nearly 70 million m², painting a new green picture using underground thermal energy.

From convenient travel to stable rural electricity supply, from warm winters to stable income growth, Shandong has always used people's livelihood needs as a benchmark to advance energy transition. Looking ahead, the focus will remain on meeting the public's new demand for high-quality energy use, ensuring the benefits of energy development are shared more broadly and equitably among the people.

Question

The Provincial Conference on Seizing Reform and Innovation to Promote High-Quality Development identified deepening energy transition reform as one of the ten key reform tasks. May I ask, what innovative measures and achievements has the Provincial Energy Bureau made in deepening the reform of the energy system and mechanisms?

(Yue Jianru) Answer: Focusing on key areas and critical links, we adhere to the combination of upholding fundamental principles and breaking new ground, and the integration of an effective market and a proactive government, continuously deepening energy transition reform to constantly invigorate the "pool of spring water" for green and low-carbon high-quality energy development.

First, improving the mechanism for the new energy consumption system. Strengthening top-level design, we issued the "Several Measures on Improving the New Energy Consumption System Mechanism to Promote High-Quality Energy Development," which proposes 24 specific measures focusing on six aspects: deepening power market reform, innovating development and utilization models, and building a new-type regulation system. Gathering policy synergy, supporting policies were introduced, including the 2025 Action Plan for High-Level New Energy Consumption, Implementation Rules for the Generation-Grid-Load-Storage Integrated Pilot Program, Pilot Construction Plan for Green Electricity Industrial Parks, and the Green Electricity Direct Connection Implementation Plan, making every effort to promote new energy consumption. From January to August, Shandong's new energy utilization rate reached 95.9%, 1.4 percentage points higher than the national average.

Second, accelerating the cultivation and development of new models and business forms. Accelerating the development of new-type energy storage. By the end of September, the operational scale of new-type energy storage in the province reached 9.65 million kW, an increase of more than five times compared to the end of 2022, ranking third in the country. Exploring and promoting the integrated development of generation-grid-load-storage. Four types of pilot models were proposed: local and nearby consumption, green electricity trading, virtual power plants, and distributed new energy self-generation and self-consumption, with 42 generation-grid-load-storage integrated pilot projects identified through research. By the end of September, 7 pilot projects had been completed, with 11 under construction. Orderly advancing the pilot program for green electricity industrial parks. Since the beginning of this year, pilot application and evaluation work has been organized. Following the principles of steady progress and rational layout, 10 pilot parks, including Wanhua's New Generation Battery Materials Industrial Park, were selected. Among these, three parks focus on battery materials as the leading industry, one on high-end chemicals, five on advanced manufacturing, and one on information technology.

Third, we have advanced the reform of the business environment in depth. Focusing on building a unified national market, and taking "efficiently completing one task" as the starting point, we continuously optimized the business environment, shifting from pursuing "policy lowlands" to creating "reform highlands." In terms of market access, the "Shandong Province Centralized Wind and PV Power Generation Project Competitive Allocation Work Management Measures (Trial)" was issued, adhering to the principle of marketization. Two rounds of centralized onshore wind power competitive allocation were carried out, with a total installed capacity of 18,525 MW, selecting 63 enterprises. Regarding approval services, the management method for the new-type energy storage project library was adjusted and optimized. The annual provincial-level unified organization for project entry into the library was changed to quarterly organization by each city, shortening the waiting time for projects to enter the library. We actively constructed a project management mechanism that is "convenient, efficient, well-managed, and service-oriented." In terms of policy implementation, we furthered the "direct and fast enjoyment" of energy benefits for enterprises. The rewards for shutting down and converting small coal-fired power units and the financial subsidies for deep geothermal energy extraction wells were made available on the "Lu Huitiong" platform, disbursing 30.99 million yuan and benefiting 45 enterprises.

Next, we will continue to deepen the reform of the energy system and mechanisms, promoting efficient linkage between reform and development, and deep integration with innovation, further shaping new momentum and advantages for the transformation and development of energy.

Question:

Shandong is the only comprehensive power market reform pilot in the country and also one of the first provinces to pilot the construction of a spot power market. What achievements has Shandong's power market construction made during the 14th Five-Year Plan period? What are the main considerations for the next steps in Shandong's power market construction?

(Yue Jianru) Answer:Power market reform facilitates the optimal allocation of resources and the safety and stability of power supply, serving as a key measure for constructing a new-type power system.

Since the 14th Five-Year Plan, based on the provincial conditions of being a major energy consumer and having a large installed capacity of new energy, Shandong has conducted a series of explorations. The construction of the power market has achieved phased results, mainly reflected in the following three aspects: First, a complete market system with a full range of categories. The Shandong power market is like a "power supermarket," offering medium and long-term contracts, spot trading, ancillary services, and retail packages, catering to various needs. Among these, the medium and long-term market ensures most of the annual electricity demand, stabilizing the basic power generation and consumption; the spot market prices reflect supply and demand in real-time, making it one of the markets with the longest operating time, highest participation of market entities, and the most mature rule system in the country; the ancillary services market incentivizes and guides relevant entities to actively participate in grid regulation; and the retail market connects the "last mile" of price transmission, allowing users to choose electricity packages as conveniently as online shopping. Second, the rules are reasonable, safeguarding the rights and interests of all types of entities. Shandong took the lead in scientifically exploring a market-based capacity compensation mechanism to ensure the stable operation of coal-fired power units, which serve as the "ballast stones" of the power system. It set reasonable upper and lower limits for spot market prices, creating a profit space for new-type energy storage to "charge during low prices and discharge during high prices." By innovating time-of-use pricing strategies for retail packages, approximately 5 million kW of electricity load was shifted last year, making electricity usage during midday more economical. Third, competition is sufficient, promoting cost reduction and efficiency improvement in energy consumption. Through innovative improvements in market mechanisms, energy storage, nuclear power, biomass, virtual power plants, and others were guided to actively participate in spot market competition, effectively encouraging large-capacity, low-cost units to generate more electricity and reducing the total cost of power supply. In 2024, Shandong's electricity market transactions reached 421.9 billion kWh, with an average electricity price of 0.726 yuan per kWh for commercial and industrial users, nearly 0.02 yuan cheaper than the previous year, saving users a total of over 8 billion yuan in electricity costs.

In January of this year, the national level issued the "Notice on Deepening the Market-Oriented Reform of New Energy On-Grid Tariffs to Promote High-Quality Development of New Energy," marking a new stage in China's power sector reform. Currently, Shandong has completed its first new energy bidding process and is intensively formulating supporting policies for the full market entry of new energy. Moving forward, Shandong will continue to adhere to the direction of market-oriented reform, focusing on the following areas for further advancement: First, comprehensively promote the market entry of new energy. Improve various trading rules, gradually guide new energy to participate orderly in the electricity market, create a market environment where all types of power supply compete on a level playing field, and guide the high-quality development of various power sources. Second, accelerate the transformation of the role of coal power. Focus on building a market mechanism of "capacity compensation + operational compensation + auxiliary services" to ensure reasonable returns for coal-fired power units and promote their transition from the "main source of electricity" to a role of "regulation and supply guarantee," thereby strengthening the foundation of power security. Third, actively cultivate new-type entities. Enhance market trading mechanisms, guide new-type entities such as distributed power sources, energy storage, and virtual power plants to enter the market, fully leverage their roles in new energy integration and power supply guarantee, and improve system regulation capabilities. At the same time, Shandong will accelerate the coordination and integration of inter-provincial and intra-provincial electricity markets, contributing a "Shandong model" to the construction of a unified national electricity market.

Question

During this year's peak summer period, grid loads repeatedly hit new highs, but power supply remained largely stable. What key measures has Shandong taken to ensure the energy demand for high-quality economic and social development? What considerations are there for the upcoming peak winter period?

(Zheng Deyan) Answer:In recent years, as the provincial economy has stabilized and progressed, continuing to improve, electricity loads have been steadily climbing. Especially since the start of this summer, driven by the dual heat of the economy and temperature, the power grid load has routinely exceeded 100 million kW. In the face of a severe supply guarantee situation, the provincial energy bureau earnestly implemented the decisions and deployments of the provincial party committee and government, taking multiple measures and coordinating efforts, successfully addressing the challenge of the all-grid electricity load setting new records eight times and both midday and evening peaks exceeding 100 million kW on the same day for 38 days. In the work, the main focus was on the following three aspects:

First, self-sufficiency was robust. Focusing on "strengthening coal power and increasing green power," the capacity for self-supply of energy and power was continuously enhanced. In terms of coal power, the construction of large, efficient, and clean coal-fired power units was accelerated, with projects totaling 12.37 million kW, such as those in Guoneng Boxing and Jinan Thermal Power, being completed successively. These units, during peak periods, operated at full capacity, bolstering the confidence in power supply. In terms of new energy, over 100 million kW of wind and solar power installations played a crucial role, notably reflected in two "60%" figures: the highest contribution of wind and solar power generation to the total output during mid-peak hours exceeded 60%, and the proportion of additional wind and solar power generation in the increase of electricity consumption surpassed 60%. These new energy sources not only solidified the foundation of power supply but also strengthened the momentum for green development.

Second, external support was strong. Fully leveraging geographical, resource, and market advantages, active efforts were made to smooth out energy transmission channels. In terms of electricity, a development pattern of "five AC and four DC" for incoming power from outside the province was actively constructed, with the capacity to accept external power reaching 38 million kW. This year, the imported electricity will exceed 160 billion kWh, accounting for nearly 20% of the total social electricity consumption, strongly supporting the safe supply of power. In terms of natural gas, significant efforts were made to open up key channels for "sea gas landing," accelerating the construction of four major LNG receiving stations along the coast, which currently have a reception capacity of 16 million mt, expected to reach 28 million mt by year-end. This not only laid a solid foundation for Shandong's natural gas supply but also provided a continuous flow of clean energy to the North China region.

Finally, emergency reserves were ample. To cope with extreme weather conditions such as prolonged high temperatures and snow and ice, coal reserves were strengthened. Before the peak summer demand, the government's physical coal reserve reached over 4 million mt, and during the summer, the average inventory of directly dispatched public power plants exceeded 10 million mt, with available days always maintained above 23, effectively enhancing the emergency guarantee capability for power coal. Stable gas source guarantees were ensured through active coordination with the three major oil and gas companies, securing natural gas supplies to provide strong support for residential heating. To enhance power safety, the regulations on power facilities and electric energy protection were revised, and a national power emergency base for the North China region was established, regularly conducting emergency drills to ensure no issues with the power supply across the province.

Currently, as the winter peak approaches, Shandong has formulated the "Energy Supply Guarantee Work Plan for the 2025-2026 Winter Peak," making early plans and deployments for related work. First, strengthening support by accelerating the construction of large-scale power supply projects such as the Huadian Longkou Cogeneration Project (660,000 kW) and the Huaneng Yantai Heavy-Duty Gas Turbine Project (1.08 million kW), which will play a role in ensuring supply during the peak winter period. Second, optimizing regulation by continuously carrying out large-scale vehicle-grid interaction, promoting the market-oriented, large-scale, and standardized development of virtual power plants, and further tapping the potential of the power system for supply assurance. Third, consolidating the foundation by ensuring the supply of primary energy such as coal and natural gas, improving the natural gas upstream-downstream price linkage mechanism, and continuously strengthening power supply guarantees for key users to ensure that people stay warm during the winter.

Question

During the "14th Five-Year Plan" period, the development of non-fossil energy in Shandong has been very rapid, providing important support for the green and low-carbon transformation of energy. What measures has Shandong taken to promote the development of new energy, and what results have been achieved?

(Meng Fanzhi) Answer:In recent years, the Provincial Energy Bureau has thoroughly implemented the new energy security strategy of "Four Revolutions and One Cooperation," carried out the work deployments of the Provincial Party Committee and Provincial Government, resolutely shouldered the mission of "taking the lead and bearing the heavy load," and promoted leapfrog development in non-fossil energy.

First, non-fossil energy installations have doubled. Since the "14th Five-Year Plan," the province's non-fossil energy installations have grown by nearly 25% annually. From 2021 to 2024, new installations reached 13.08 million kW, 13.62 million kW, 19.35 million kW, and 21.64 million kW, respectively, more than doubling the installation scale. In the first nine months of this year, the province added 18.14 million kW of non-fossil energy installations, setting a new historical record, and it is expected that the annual new non-fossil energy installations will exceed 20 million kW.

Second, the supply capacity of green electricity has increased significantly. From 2021 to 2024, renewable energy power generation (green electricity) reached 91.2 billion kWh, 109 billion kWh, 138.1 billion kWh, and 164.7 billion kWh, respectively, with the share of renewable energy power generation in the province rising by nearly 10 percentage points. In 2024, all newly added electricity consumption in the whole society was supplied by green electricity. In the first nine months of this year, the province's renewable energy power generation reached 147.56 billion kWh, up 15.6% YoY, accounting for 28.1% of the province's total power generation, an increase of 3.3 percentage points YoY.

Third, the share of non-fossil energy consumption has risen rapidly. In 2024, the share of non-fossil energy consumption in the province reached 13.4%, an increase of 5.9 percentage points from the end of 2020, with the growth rate 2 percentage points higher than the national average, effectively boosting the increase in the share of non-fossil energy consumption nationwide.

Since the "14th Five-Year Plan," Shandong has adhered to overall planning across the entire region and tailored measures to local conditions, promoting the integrated development and construction of non-fossil energy sources such as wind, solar, and nuclear power, and accelerating the construction of a demonstration zone for green and low-carbon energy transformation.

First, the safe and orderly development of nuclear power. Nuclear power is considered a key measure for expanding clean energy supply and promoting green and low-carbon transformation. Efforts have been accelerated to develop coastal nuclear power plant sites. Since the 14th Five-Year Plan, Haiyang Phase I has operated safely and stably, while the Rongcheng high-temperature gas-cooled reactor and the Guohe One demonstration project have been successively completed and put into operation. The cumulative power generation from nuclear sources has exceeded 150 billion kWh, equivalent to reducing carbon dioxide emissions by 1.1 billion mt, providing a continuous supply of green momentum for Shandong's economic and social development.

Second, focusing on breakthroughs in offshore and onshore wind power. Offshore, efforts are concentrated around the Bohai Central, Southern Peninsula, and Northern Peninsula areas, accelerating the construction of projects in provincially managed waters and orderly conducting pilot projects in nationally managed waters. New installations have ranked among the top in the country for three consecutive years, with a total installed capacity of 5.92 million kW, ranking third nationwide. Onshore, with a focus on western and southern Shandong, two rounds of centralized project allocation have been organized, with a scale approaching 200 million kW. Initiatives such as the "Thousand Towns and Ten Thousand Villages Wind Power Action" and integrated energy and transportation pilot projects exceeding 5 million kW have also been launched.

Third, developing PV through both centralized and distributed approaches. The first batch of large-scale national wind and solar power bases, with a capacity of 2 million kW, has been fully constructed. Efforts are being expedited to build the third batch of large-scale national wind and solar power bases, with a capacity of 10 million kW. Plans include the development of an integrated wind, solar, storage, and transmission base in the northern Shandong salt-alkali wetlands and a "PV+" clean energy base in the southwestern Shandong coal mining subsidence areas. Distributed PV development is being promoted in an orderly manner, encouraging the construction of commercial and industrial distributed PV systems primarily for self-consumption. By the end of September, the installed PV capacity reached 91.728 million kW, maintaining the top position in the country for eight consecutive years.

During the 15th Five-Year Plan period, the province will coordinate non-fossil energy resources, green electricity consumption, and industry development, achieving four transitions: from policy support to market dominance, from power source construction to source-load interaction, from resource development to industry synergy, and from large-scale development to high-quality development. These measures will strongly promote the green and low-carbon transformation of the economy and society.

Question:

Innovation and technology are the core drivers of the energy system transformation and the foundation for high-quality energy development. What achievements has Shandong made in enhancing its energy innovation capabilities and developing the energy equipment industry?

(Liu Xuejun) Answer:Since the 14th Five-Year Plan, the provincial energy system has prioritized energy innovation as a strategic move, aiming to seize the starting point and future high ground in the energy equipment industry. Focusing on industry needs and technological frontiers, significant progress has been made in major technological breakthroughs and the promotion of advanced equipment, resulting in notable and multifaceted achievements in innovation and industry development.

First, there have been continuous breakthroughs in the construction of innovation platforms. Shandong has established a tiered and interconnected innovation platform system. Among these, Shandong University established the School of Nuclear Science and Energy Power to accelerate basic nuclear science and applied technology research; the Ye Qizhen Academician Workstation at Meihe Electric conquered "bottleneck" technologies such as nuclear-grade flow meters and achieved localization substitution; Weichai Group took the lead in establishing the sole "National Fuel Cell Technology Innovation Center" in the hydrogen energy field; the Shandong Energy Research Institute's "National Key Laboratory of Solar Photoelectric Conversion and Utilization" was approved, making every effort to seize the technological high ground in next-generation thin-film solar cells and photoelectric utilization.

Second, the implementation of major scientific and technological demonstration projects has achieved significant results. The "Hydrogen into Ten Thousand Homes" project has blossomed in multiple locations, promoting the deployment of over 2,000 hydrogen fuel cell vehicles, ranking fourth nationally; 38 hydrogen refueling stations have been built, ranking second nationally; hydrogen energy combined heat and power demonstration projects have been constructed in hydrogen energy industrial parks such as those of Weichai Power and Dongyue Future; the world's first pure hydrogen shaft furnace demonstration pilot line was built at the Linyi High-Quality Steel Base. The "Nuclear Powering the Future" project has entered its mid-term phase, achieving numerous results in areas such as overall parameter optimization of "Guohe One," R&D of high-temperature gas-cooled reactor components, and nuclear medicine R&D. The "Perovskite Solar Cell" project has propelled the industry from the "laboratory scale" to the "integrated technology production line platform" stage, placing it in the domestic first tier. Three national major science and technology projects, including the "Interactive Energy Use Demonstration Project for Green Electricity and Green Hydrogen in Heavy Chemical Industrial Parks," have been successfully approved and launched.

Third, innovative achievements that fill industry gaps continue to emerge. Yantai Penglai launched a 150-meter-class offshore wind turbine blade, the longest globally, applied to the world's largest 26-megawatt-class offshore wind turbine unit connected to the grid in Dongying, with the annual power generation of a single unit sufficient to meet the annual electricity demand of 55,000 ordinary households; Weichai Power developed the world's first commercially available large-power solid oxide fuel cell with a combined heat and power efficiency of 92.55%, setting a global record and providing strong support for the stable and reliable operation of distributed energy and microgrids; Shandong AIKO developed the world's highest mass-production efficiency photovoltaic ABC modules; Taihai Mannur pressurized water reactor nuclear island main equipment material technology broke foreign monopolies; the world's first mobile heat injection platform, "Thermal Recovery One," contributed to major breakthroughs in key technologies for offshore heavy oil thermal recovery. Additionally, 22 technological equipment items were selected for the national list of first (set) equipment in the energy sector.

Fourth, the development of the new energy equipment industry has reached a new level. Driven by the dual engines of project construction and technological innovation, the industry is promoted for differentiated and staggered development. Three major offshore wind power equipment manufacturing bases have been basically completed in Dongping Economic Development Zone, Yantai Penglai, and Weihai Rushan; new-type energy storage equipment is diversifying, with lithium batteries basically forming a complete industry chain, and the industrial layout for solid-state batteries, sodium-ion batteries, and flow batteries advancing simultaneously; two nuclear energy equipment industry clusters have initially taken shape in Yantai and Weihai, forming a development pattern with coordinated support from heavy equipment and specialized equipment in cities such as Jinan and Zibo; centered around cities in the "Shandong Hydrogen Economic Belt," a group of domestic top-tier enterprises have been cultivated in links such as hydrogen production, storage, transportation, refueling, and utilization, making Shandong one of the provinces with the most complete hydrogen energy industry chain in the country, with a clear first-mover advantage.

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