Offshore Wind - An Opportunity For Cost-Competitive Descarbonization of China's Energy Economy
Offshore Wind - An Opportunity For Cost-Competitive Descarbonization of China's Energy Economy
example, the Cape Wind Project in Massachusetts was subjected to water depth, ocean territories, environmental protection zones, and
objections and delays due in part to concerns that offshore turbines competing demands for the use of shipping lanes. Economic feasibil-
would obstruct scenic views of Nantucket Sound and introduce ob- ity is evaluated on the basis of current and projected costs, accounting
stacles that ferries would need to avoid. A major difference between for water depth, distance to shore, and wind quality. The hourly, sea-
China and the United States is that China’s coastline is largely gov- sonal, and interannual variability of offshore wind power is investigated
ernment property, implying that many of the objections to offshore using a 39-year record of assimilated hourly wind speeds. Implications
wind in the United States would not be applicable in China. In addi- for integrating offshore wind power into different provincial power
tion, shallow waters surrounding China’s coast extend much further systems are analyzed and discussed. The calculations provide a guide
offshore relative to the situation in the United States, allowing for a for investments in offshore wind that could be economically justified
larger area suitable for offshore turbines. In any event, we believe that for individual provinces. The analysis indicates that a large portion of
the issues that have delayed offshore wind development in the United the region’s current and future power demand could be provided
States are unlikely to be consequential in China. While extensive cost-effectively through investments in offshore wind.
discussions for China have focused on resource availability, eco-
nomics, and the utilization of onshore wind power (1–5, 17), little
attention has been devoted to the possibility of using offshore wind RESULTS
resources to decarbonize coastal energy systems. Lu et al. (18) as- China has abundant offshore wind resources
sessed the energy density for offshore wind power, but the economics CFs are calculated on the basis of MERRA-2 wind speeds over the
of offshore wind power were not addressed. Hong and Möller (19) full 39-year period using an adapted method for on- and offshore
offered important assessments of economic feasibility considering wind power. Geographical regions were filtered according to water
practical geographic constraints but did not account for the exclusion depths of less than 60 m with exclusion of environmentally protected
Fig. 1. CFs and levelized costs of electricity. Spatial distributions of the mean (A) CF and (B) LCOE ($ kWh−1) over 1980–2018 for the filtered region. Coastal provinces
are colored gray. The dashed blue lines denote offshore wind areas that are in closest proximity to particular provinces. Note the different color bar limits in (A) and (B).
resource regions is constrained primarily by EEZ boundaries. Fujian provinces could be supplied by offshore wind. The economic benefits
has one of the lowest potential offshore capacities among all of the may be even more extensive in the future with a 200% energy surplus
coastal provinces considered here (see Table 1) despite its extensive in the low-cost scenario, 116% with the higher cost option. Emphasiz-
coastal boundary; its waters are shared with Taiwan. Liaoning, by ing the extent to which this is an untapped resource, offshore wind
comparison, competes for wind resources with three other provinces comprises currently only 1.6% of China’s total wind power.
and with North Korea despite the fact that it has similar offshore ca-
pacity (Table 1). Notably, the mean wind resource over most of the Trends in offshore wind
coastal region is much greater than China’s onshore average [i.e., A number of studies have commented on the declining trend in
comparison of Fig. 1A with fig. 1a from (5)]. Given that the environ- China’s onshore wind speeds (5–11). If slowing wind trends were to
ments with optimal offshore wind resources are much closer to exist also for offshore, this could have a bearing on decisions as to
population-dense regions as compared with the most favorable loca- whether conditions favorable for China at present could become un-
tions for onshore facilities, this provides a compelling argument for favorable in the future, providing a possible negative incentive for
the viability of China’s offshore wind resources. future investments. Monthly CF trends are shown in Fig. 3 for the
studied region and for mainland China over the 39-year period cov-
Offshore wind will be cost-competitive by 2030, and may ered in this study. In contrast to the declining trend over much of the
already be high-resource onshore wind area of mainland China indicated in
From the above analysis, it is clear that China has a large physical the earlier studies, trends in offshore resources appear to have been
potential for offshore wind. The next step in our analysis is to assess more muted.
the economic costs associated with the development of offshore wind While there has been a slight decline in trends over much of the
and to compare related levelized costs with competing costs for cur- offshore region, environments further from the coast actually exhibit
Table 1. Provincial physical offshore potential relative to demand. Mean potentials for offshore capacity and energy generation for different provinces over
the studied period along with the demands for each province. The ratios of the corresponding quantities are also indicated. Provincial demand data were
retrieved from NBS (32).
Offshore capacity Offshore energy Ratio offshore energy/
Province Peak demand (GW) Energy demand (TWh)
(GW) (TWh) demand
Fujian 308.8 1389.8 52.1 196.9 7.1
Guangdong 499.3 1584.4 104.6 561.0 2.8
Guangxi 111.7 310.3 41.2 136.0 2.3
Hainan 377.3 1227.0 7.5 28.7 43.8
Hebei 122.4 397.2 62.8 326.5 1.2
Jiangsu 462.7 1543.7 101.6 545.9 2.8
Liaoning 369.5 1336.6 62.8 203.7 6.6
Shandong 697.0 2334.8 109.4 539.1 4.3
Zhejiang 440.5 1725.6 83.3 387.3 4.5
power in the Beijing-Tianjin-Hebei area, for example, amounts to trated in Fig. 4 (G and H). The correlation coefficients for Jiangsu are
only 17% in summer. positive for all seasons, with the highest values occurring in summer
The hourly variations of local power demand and offshore wind (0.18). The pattern indicates that offshore wind in Jiangsu tends to
power are illustrated in Fig. 4 (C and D) for a typical week in Jiangsu generate more power during peak hours. The correlation coefficients
and Guangdong provinces. Hourly variations of power demand for for Guangdong, in contrast, are highly seasonal: Offshore wind power
Guangdong are much greater than for Jiangsu. The fluctuations of is positively correlated with the daily variation of power demand in
offshore wind power for Guangdong are lower than the variations of summer (0.19), transitioning to negative in winter (−0.11). We note
power demand. The hour-to-hour ramping requirements in Guangdong that the hourly ramping and daily variations discussed above account
and Jiangsu before and after integrating ~25% of offshore wind power only for the “within province” power demand. Possible power exports
are illustrated in Fig. 4 (E and F). The hourly rampings of power de- and interprovincial exchanges were not considered here explicitly. To
mand in Jiangsu lie mainly within the range of ±5 GW hour−1; whereas optimally integrate a large contribution from offshore wind, it
the upward ramping for Guangdong peaks at 15 GW hour−1, mainly will be necessary to explore demand-side resources and storage tech-
during morning hours. After integrating ~25% of offshore wind power, nologies and to coordinate interprovincial transmission to provide
the largest upward ramping for Jiangsu province exceeds 10 GW hour−1; needed system flexibility for coastal provinces over the long run.
the upward ramping for Guangdong is affected to a lesser extent. Re-
quirements for downward ramping will be increased substantially af-
ter integration of offshore wind power. The increase in ramping rates DISCUSSION
poses additional requirements for system flexibility. The main purpose of this study was to evaluate China’s potential for
Correlation coefficients between hourly variations of power de- offshore wind. We used assimilated meteorological data from NASA’s
mand and wind power were calculated on a daily basis throughout MERRA-2 to investigate offshore wind potential, temporal variabil-
the year for all coastal provinces (with detailed provincial and seasonal ity, trends, and cost estimates over the period 1980–2018.
statistics summarized in table S3). The seasonal and annual means of The analysis reveals a number of key results, which could have im-
the daily correlation coefficients for Jiangsu and Guangdong are illus- portant implications for China’s future power system. First, China has
Table 2. Economic potential for provinces relative to demand. The mean economic potential for offshore energy generation (E in TWh) for different
provinces over the studied period together with the ratio of economic energy generation to demand (R). The low- and high-cost scenarios are indicated for
both present day and for 2030. Note: E is the economic offshore energy generation for different provinces in TWh and R is the ratio of economic energy
generation to provincial demand.
Province Economic 2020 Economic 2030
Low cost High cost Low cost High cost
E R E R E R E R
Fujian 1341.1 6.8 388.9 2.0 1389.8 4.3 1341.1 4.2
Guangdong 902.9 1.6 147.9 0.3 1584.4 1.7 902.9 1.0
Guangxi 164.7 1.2 106.4 0.8 310.2 1.4 164.5 0.7
Hainan 368.3 12.8 60.6 2.1 1059.4 22.7 284.4 6.1
Hebei 316.6 1.0 0.0 0.0 397.2 0.7 316.6 0.6
Jiangsu 662.2 1.2 0.0 0.0 1119.7 1.3 576.1 0.6
Liaoning 853.0 4.2 344.7 1.7 1336.6 4.0 853.0 2.6
Shandong 1139.5 2.1 99.8 0.2 1932.5 2.2 1054.2 1.2
Zhejiang 635.1 1.6 0.0 0.0 1231.6 2.0 533.9 0.8
Total 6383.4 2.0 1148.3 0.4 10361.4 2.0 6026.7 1.2
provinces can be mitigated further with better coordination of inter- tions within China’s EEZ were considered. The EEZ is defined as the
provincial transmission. The present analysis sheds some light on region under which a coastal state assumes jurisdiction over marine
this. A follow-up analysis should explore the integration of future resources. The EEZ typically extends out to 200 nautical miles from
offshore wind into current power systems with detailed consider- shore, but differs when multiple countries lie within the 200–nautical
ation of temporal variations in both supply and demand. mile range, for instance, North Korea and China in the Yellow Sea.
China’s boundaries for the EEZ were taken from Marine Regions, a
database that aggregates information from a number of regional and
MATERIALS AND METHODS national providers (26). Another filter that was adopted considered
Data overview only offshore depths of less than or equal to 60 m. The offshore depth
The wind data used in this study were taken from MERRA-2 (23), a data used here were taken from the General Bathymetric Chart of
NASA reanalysis product publicly available in NASA’s Goddard Earth the Oceans One Minute Grid, a global bathymetric grid providing
Sciences Data and Information Services Center. This database defines data at a 1–arc min resolution (27). The MERRA-2 grid was rescaled
hourly wind speeds with a spatial resolution of 1/2° longitude by 2/3° to the high-resolution bathymetric data for appropriate integration
latitude from 1980 to present. Hourly wind speeds at 100 m were ex- of the two datasets. Note that we did not consider the potential for
trapolated from 10 to 50 m using the vertical profile of the power law floating turbines, a relatively new innovation in the offshore wind
described by Archer and Jacobson (24). The friction coefficient in the industry that eliminates the 60-m depth limitation. This should not
analysis was evaluated using wind speeds represented at 10 and 50 m have a great bearing on our results, however, given that the waters in
for each grid cell, as in Lu et al. (25). Wind power was computed on an China’s coastal environmental are shallow (<60 m) over much of the
hourly basis using the power curve for the MHI Vestas Offshore V164- EEZ, and costs for installation of floating technology are currently
8.0 MW wind turbine, a typical system used currently for offshore ap- elevated relative to those for fixed-bottom systems (28). Last, we re-
plications (specifications summarized in table S1). The ratio of hourly moved areas from each grid point according to environments desig-
power output to the nameplate capacity of turbines was used to com- nated as either “Special Marine Reserves” (environmentally protected
pute values of hourly CFs. regions) or shipping routes. Areas for the Special Marine Reserves are
To determine locations suitable for offshore wind in China, we defined in the National Marine Data and Information Service (29). SO2
filtered data spatially based on a number of criteria. First, only loca- emissions from MERRA-2 were used as a surrogate for the identification
of shipping routes, and 20% of a cell’s area was removed for locations how depth and distance from shore influenced costs associated with
defined as emitting SO2 at a rate higher than 10−11 kg m−2 s−1. This substructure, foundation, infrastructure, engineering, and installation.
provides most likely an overestimate of the shipping impact; the The amortized cost, I(lat,lon), is computed then using the equation
spacing that we assumed to account for turbine-turbine interference
was 1.1 km (as discussed below), and ships should be readily able to (1 + r) y
I(lat, lon ) = AC(lat, lon ) × r × ─ (3)
avoid obstructions imposed by this spacing. The area filtered accord- (1 + r) y − 1
ing to these criteria is shown in fig. S4.
where AC(lat,lon) is the cost adjusted for depth and distance to shore,
Provincial installed capacity, power generation, and LCOE r is the interest rate (8%), and y is the assumed payback period (20 years).
estimates The LCOE at a given location is calculated according to
Musial et al. (30) estimate that the spacing appropriate to minimize I(lat, lon)
turbine-turbine interference for offshore wind is approximately 7 ×
LCOE(lat, lon ) = ────────────── (4)
CF MEAN(lat, lon ) × 8760
7 rotor diameters (1.04 km2). The area for each latitude/longitude
grid cell was divided by this value to compute the number of turbines where CFMEAN(lat, lon) is the mean CF and 8760 is the number of hours
that could fit maximally into a given cell. Note that this spacing does in a year. These costs were projected to 2030, using the 30% LCOE me-
not account for the downstream wake effect, which is too small scale dian decrease based on the recommendations from Wiser et al. (20).
of a phenomenon to be modeled accurately using the MERRA-2 We arranged spatial LCOE values from smallest to largest, inte-
data. Given that the average downstream power loss is on the order grating on a province-by-province basis to obtain estimates of rele-
of 5% (31), the wake effect should not have a significant bearing on vant cost curves. These curves were compared (Fig. 4) with provincial
the present results. The potential installed capacity (in gigawatts) is costs for current power generation technologies (nuclear and coal-fired
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