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Accelerate the Asian Energy Interconnection for

Energy Transition and Sustainable Development

Liu Zhenya

Global Energy Interconnection Development and Cooperation Organization

Jan 17, 2017Bangkok, Thailand

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China Initiative

On September 26, 2015, Chinese President Xi Jinping proposed discussions on establishing Global Energy Interconnection, or GEI, to facilitate efforts to meet global power demands with clean and green alternatives at the UN Sustainable Development Summit.

A Chinese Solution to global energy issues

Highly acknowledged and actively responded

by the international community

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GEIDCO

Established in: March, 2016

Mission: Promote GEI to meet global power demands with clean and green alternatives

Chairman: LIU ZHENYA

Vice Chairmen: STEVE CHU, former U.S. Secretary of Energy and Nobel Prize winner in physics;SHU YINBIAO, Chairman of State Grid Corporation of China (SGCC); MASAYOSHI SON, Chairman & CEO of SoftBank Group Corp.

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The UN’s Support

Meeting with UN Secretary-General António Guterresin UN New York Headquarter on Jan.9, 2017

GEI, as a Chinese solution to addressing such issues as global warming, should be considered

to be incorporated into 2030 Agenda for

Sustainable Development, guiding the engagement of UN state members.

-----UN Secretary-General

António Guterres

MoU signing with UN Under Secretary-General Shamshad Akhtar on July 7, 2016

The United Nations is willing to coordinate and strengthen intergovernmental cooperation

to advance progress of GEI in Asia-Pacific

regions.’

-----UN Under-Secretary-General

Shamshad Akhtar

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1. GEI concept and vision

2. Layout and significance of building

the Asian Energy Interconnection

3. The overall design and prioritized

projects of the power grid

interconnection in Asia

6

Three challenges in global energy development:

1. Global Energy Transition, NOW!

210

238

275 283293 295 290

305 313 317 316 317

1%

3.70%

3.30%3%

3.40%

0.70%

0%

5.20%

2.80%

1.20%

0%0.30%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

0

50

100

150

200

250

300

350

1990 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

排放值（

亿吨）

二氧化碳排放 增长率

GlobalCO2 Emissions

1 ton of fossil energy 2 tons CO2

Surface temperature rise

co2 concentration

CO

2

co

nce

ntr

atio

n

Su

rfa

ce

tem

pe

ra

ture

ris

e

CO

2

(

100

millio

n t

on

s)

Law ： evolving from the high-

carbon, inefficient development

model to a low-carbon, and highly

efficient one with the focus

shifting from local balance to

large-scale allocation.

Path： “Two Replacements, One

Restore and One Increase”

Platform： GEI

Pattern ： clean energy as the

priority, electricity as the center,

global allocation as the feature

Objective： ensure a safer, cleaner

and more sustainable energy

supply for the world.

Illustration of Global Energy Interconnection7

2. Principles of Energy Transition

8

100%

160%

0%

50%

100%

150%

200%

燃料 原料

单位原油创造的经济价值

5.80%

31.20%

100%

0% 50% 100% 150%

煤炭

石油

电能

等当量能源产生的经济价值

TwoReplacements

One Restore One Increase

2. How to realize Energy Transition

✓ Clean replacement in

energy production

✓ Electricity replacement

in energy consumption

Restore fossil fuel’s basic

attribute as an industrial

raw material to create even

greater value in socio-

economic development

Increase electrification,

which enlarges the

proportion of electric

power in energy

consumption and reduces

the total amount on the

grounds of meeting energy

demand.

Fuel Raw Material

Economic value of petroleum per unit

Electrici

ty

Oil

Coal

Economic value of equivalent energy

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3. What is Global Energy Interconnection

Smart Grid UHV Grid Clean Energy

GEI is a globally interconnected strong and smart grid with UHV grids as the

backbone; it is an infrastructure platform on which clean energy can be developed,

transmitted and used massively worldwide.

水能 39

风能 2000

太阳能 150000

单位：万亿千瓦时/年

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4. Why GEI

GEI is the key to implement “Two Replacements”.

✓ Abundant clean energy resources worldwide are unevenly distributed from

power load centers.

✓ Intermittent and volatile wind and PV power needs to be integrated into a

bulk power grid to advance its development.

water

wind

solar

Unit: 1,000TWh/Year

Global reserve of hydro, wind and solar power (Unit: 1,000TWh/Year)

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Economy

Politics

Practices

Technology

More cost-efficient renewable energy

Technological progress willmake wind and PV power

generation more economicallycompetitive than fossil energyby 2025.

±1100kV HVDC transmission canrun over 6000 km with a

transmission capacity of 12GW to15GW.

Paris Agreement came into effect;Endorsements from the UN, the

World Bank and IEA.

22 UHV AC/DC projects under operationand construction

The world’s most installed capacity of cleanenergy generation36% installed capacity from non-fossil fuel

power

5. Conditions for GEI have been met

More favorable politicalenvironment

More mature technologies

Successes in China

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2020

Domestic Interconnec

tion

Domestic Interconnection

2030 2050

Intercontinental Interconnection

IntracontinentalInterconnection

By 2050, GEI will basically come into being.

6. GEI Prospects

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1. GEI concept and vision

2. Layout and significance of building

the Asian Energy Interconnection

3. The overall design and prioritized

projects of the power grid

interconnection in Asia

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① great demand, huge

consumption, rapid growth

②Prominent

environmental issues

3600

7500

15800

0

5000

10000

15000

2000 2015 2050

Un

it；

Mtc

e

Energy Demand Growth in Asiafrom 2000-2050

0% 50% 100%

SO2

NOX

PM2.5

CO2

Asia others

Proportion of Pollutants’ Emission in Asia of the World’s Total

1. Asian Energy Transition is More Urgent

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③great challenge of securing energy supply to the public

④High reliance on energy imports

Power Universal Service in Asia in 2014

Primary Energy imports

Japan：93% The Republic of Korea：81%

Imports of oil

China：63% India：80%

Population

without

electricity

Proportion in total

population

Total in Asia 512 million 14%

India 244 million 19%

Bangladesh 60 million 38%

Pakistan 51 million 27%

Nepal 7 million 24%

DPRK 18 million 74%

World’s total 1186

million

16%

1. Asian Energy Transition is More Urgent

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The uneven distribution of clean energy resources and demands in Asia makesit an inevitable way to promote energy transition and realize sustainabledevelopment.

Hydro: 7,000TWh/YearWind: 160,000TWh /Year

Solar: 240,000TWh /Year

2. The key to promoting energy transition in Asia lies in the massive development and distribution of clean energy

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China

West Asia

South Asia

Central Asia

Northeast Asia

Southeast Asia

Layout: form a “1+5” interconnecting

pattern comprised of grids from China,

Northeast Asia, Southeast Asia, South

Asia, Central Asia and West Asia.

Northeast Asia: accelerate the

development of clean energy in North

China, Mongolia and Russia, and

transmit the electricity to East China,

the Republic of Korea and Japan to

realize energy interconnection in the

region.

South Asia and Southeast Asia:

speed up power grid construction so

that they are connected within the

region to accommodate clean energy

from China, Central Asia and West Asia

to meet the demand in India,

Pakistan, Bangladesh and Southeast

Asian countries.

3. Layout for the Asian Energy Interconnection

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（三）构建亚洲能源互联网的总体思路

Northeast Asia

Central Asia

South Asia

China

Southeast Asia

West Asia

Central Asia: build large wind and solar power bases and transmit wind and solar power to China , South Asia and Southeast Asia. In the case of clean power generation curtailment, thermal power would be transported instead through the same transmission channels.

West Asia: build large solar power bases to transmit electricity east to South Asia and west to Europe; transform the fossil fuel base to a clean energy base.

South Asia: it is hard to realize self-reliant for clean energy supply; power transmission from China, Central Asia and West Asia could tackle the power shortage problem.

Southeast Asia: the difficulty of massively developing hydropower in the seen future and balancing demand and supply makes it necessary to import power from neighboring countries.

Northeast Asia: The Republic of Korea and Japan are load centers with limited clean energy potential; they need to increase clean energy imports from Russia, Mongolia and China.

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2、特高压重点工

程

济南

荆门上海

天津南

泰州

苏州南阳

164

362

283

152165

63

361158

雅砻江梯级

金沙江I期

南汇

福州

北京西

160

279

南京

东北华北背靠背

165319072059

浙北

晋中 石家庄306199

榆横 316太阳山

1720

皖南

郑州

晋东南

淮南

浙西

苏南

浙南120

197

晋北266164

178

浙中

哈密

2172

锡盟

1620

潍坊

210

228

356锡盟

北京东

上海庙

1119

1150

蒙西

临沂

绍兴

湘潭

酒泉

1000千伏交流±800千伏直流

图例

准东

±1100千伏直流直流换流站分层接入

240

胜利

➢6 A C and 7 DC UHV transmission lines in operation：AC lines including Southeast of Shaanxi -Nanyang-Jinmen, South of Anhui-North of Zhejiang-Shanghai, North of Zhejiang -Fuzhou, Xim eng-Shandong, South of Anhui-Nanjing -Shanghai,, Xiluodu -West of Zhejiang,Ea st of Ningxia-Zhejiang, Yunnan-Guangdong, Nu ozhadu -Guangzhou, and West of Inner Mongolia-South of Tianjin; DC lines including

Xiangjiaba-Shanghai, Jinpin-South of Jiangsu, and South of Hami-Zhengzhou➢2 A C a nd 7 DC UHV t ransmission lines under construction: AC lines including Shengli-Ximeng, and Yuheng-Weifang; DC lines in cluding North of Shaanxi-Jiangsu, Ximeng-Jiangsu, Shanghaimiao-Shandong, Jiuquan-Hunan, Huaidong-South of Anhui, and Zhalute-

Qin gzhou

扎鲁特

青州

3. Layout for Asian Energy Interconnection

China’s role: a hub and a platform

✓ To the North: accommodate electricity from Mongolia, Russia and even the Arctic; to the West:import surplus power from Central Asia; to the South: transmit power to South Asia and Southeast

Asia

✓ China can be a “power reservoir” relying on a nationally interconnected strong and smart grid toregulate power supply and demand, providing a strong pillar for the Asian Energy Interconnection.

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bring upon the realization

of clean development in

Asia sooner and drive

global energy transition.

Ensure sustainable energy for all

Promote Asian energy transition

4. Significance of Asian Energy Interconnection

better guarantee power supply

in South Asia and Southeast

Asia, reduce the population

without access to electricity by

a large margin, and improve

the quality of power

consumption.

Promote economicintegration

strengthen the commercial

and trade ties; create a

favorable economic and

geopolitical environment

for balanced economic

development in the region.

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1. GEI concept and vision

2. Layout and significance of building

the Asian Energy Interconnection

3. The overall design and prioritized

projects of the power grid

interconnection in Asia

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• Total installed capacity in Asia: 3TW, 48% of the world’s total;

• Installed capacity of clean energy in Asia: 600GW, 40% of the world’s total.

• The per capita installed capacity in Asia:0.75 KW; the annual consumption:

2,032 kWh, 88% and 67% of the world’s average, respectively, and merely

1/3 and 1/4 of that of OECD countries.

• Total length of all 200kV and above power lines: >1,500,000km, 60% of the

world’s total. UHV AC/DC transmission technologies have been widely

applied in China.

In respect to cross-border power grid interconnection, while power grid

interconnections have already taken shape in Europe and North America

respectively, Asia has been obviously left behind where the Asian power

network has not been formed yet.

1. Current Status and Foundations of Asian Grids

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Fasten the pace to connect Asian countries’ power grids based on UHV AC/DCtechnology and smart grid technology with clean energy development as the priority.

The Asian interconnected power grid will serve as a low-carbon, safe, reliable andflexible platform for allocation of clean energy on a large scale to meet the powerdemand in a clean and green way.

South Asia Grid

To Europe

To Europe

To Africa

To Oceania

Djakarta

Sumo Er

Astana

Jerusalem

To North America

Medina

Interconnection

PlanPower Flow Direction

Legend

Northeast Asia GridCentral Asia Grid

West Asia GridSoutheast Asia

Grid

South Asia Grid

China Grid

2. Overall Outline for

Asian Grid Interconnection

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Northeast Asia

Central Asia

South Asia

China

东南亚

West Asia

Xinjiang (China) -Lahore (Pakistan) transmission project; Kazakhstan-Xinjiang (China)-Pakistan UHV transmission project

Southeast Tibet (China)-Bangalore (India) UHV transmission project; Southeast Tibet (China) -Mumbai (India) UHV transmission project; Southeast Tibet (China) -Bangladesh transmission project

Yunnan (China)--Myanmar-Thailand UHV DC transmission project;Yunnan (China)-Vietnam UHV DC transmission project;Yunnan-Myanmar-Bangladesh UHV DC transmission project

Mongolia-China-Republic of Korea-Japan power transmission project

3. Prioritized Projects in

Asian Grid interconnection

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Bring Economic gains

1

Interconnected powerpurchasing & integration

rate is around 3.5

cents/kWh lower thanlocal power integration

rate alone. All the power

receiving countries couldsave power purchasing

cost of more than 10

billion USD per year.

2

Power load centersreceive more than

360TWh of clean power

from foreign countriesto make their power

sources more diversified.

Guarantee power supply and security

3

Replace 150 million tonsof raw coal, and reduce

CO2 emission by 300

million tons, and NOx,SO2 and smoke and

dust by 1.65 million tons

every year.

Promote clean and low-carbon

development

Significant benefits of grid interconnection projects

3. Prioritized Projects in

Asian Grid interconnection

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① Governments are expected to play their leading role to the full to establish relevant mechanism.

② International organizations and research institutes are expected to take an active part in jointly pushing forward the fundamental research.

③ Relevant sectors and enterprises are expected to work together for the project implementation.

Build an inter-governmental cooperative framework and working mechanisms for energy infrastructure connectivity to induce supportive policies from different countries for

clean energy development and grid connectivity.

Strengthen research for construction plans of large-scale energy bases in Asia, grid interconnection proposals, and key technologies and equipment to guide and drive the

scientific development of the Asian Energy Interconnection.

prioritize a batch of mature and profitable renewable energy bases and transnational grid interconnection projects, and incorporate them into related nations’ power planning in

order to materialize their implementation as soon as possible.

Three Proposals

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• Building the Asian Energy Interconnection and

developing renewable energy is in common

interest for all Asian nations.

• Let’s all work together with a pioneering and

innovative spirit and look towards the future, so

we can bring the Asian energy transition to us

earlier and make a positive contribution to its

sustainable development.

Closing Remarks

Thank you！