China's Offshore Wind Project Beats Coal Power Pricing Milestone

The Jinshan Offshore Wind Farm has reached a significant milestone with the successful installation of all 36 turbines, marking China’s first offshore wind project to competitively price its power against coal. This breakthrough lays a strong foundation for a full-capacity grid connection expected by the end of the year, according to reports from Shanghai local media.
Each turbine boasts a nameplate capacity of 8.5 megawatts, collectively establishing this wind farm as the largest single offshore power project in Shanghai. Its pricing structure reflects a lower cost than the benchmark coal price, highlighting a pivotal shift in China's energy economics.
The project's offshore substation was installed on April 26, with ongoing efforts to lay 36 planned circuits of 35-kilovolt submarine cables, as well as 23.7 kilometers of 220-kilovolt submarine cables. As of August 8, substantial progress has been made, with 28 circuits completed and 4.42 kilometers of the 220-kilovolt connections laid from the booster station to the onshore grid.
To facilitate the timely advancement of the wind farm, the Jinshan Maritime Safety Administration has taken proactive measures, coordinating closely with both project owners and developers to ensure comprehensive regulatory and service protocols are upheld during pre-construction and continuing supervision.
Located 19.5 kilometers from the coast and covering an area of 42.64 square kilometers, the Jinshan Offshore Wind Farm Phase I is designed to have a planned installed capacity of 300 megawatts. The local government's website states that the on-grid electricity price resulting from the project’s auction was set below the prevailing coal power benchmark.
Lin Boqiang, director of the China Center for Energy Economics Research at Xiamen University, emphasized the project's importance, noting that it will significantly bolster the local power supply and is indicative of progress within China's offshore wind energy sector.
Lin also pointed out that the offshore wind power sector possesses immense growth potential, leveraging vast ocean areas and abundant wind resources to circumvent land limitations and pioneer a new avenue for energy generation.
As a leading player in the global renewable energy landscape, China has significantly expanded its wind power capabilities, adding 79.82 million kilowatts of new capacity in 2024 alone, a 6 percent increase from the previous year. This expansion includes 75.79 million kilowatts from onshore installations and 4.04 million kilowatts from offshore developments, as reported by the National Energy Administration.
The establishment of the Jinshan Offshore Wind Farm symbolizes a progressive movement in China's commitment to renewable energy, potentially influencing future energy policies and investments.
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