China
China aims for carbon neutrality by 2040
Significant investment in shore power infrastructure have been made
Governmental Rules and Regulations
Energy Majors and Companies
Frequently Asked Questions
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Key Takeaways
Ahead of COP26 in November 2021, China officially submitted to the UNFCCC its carbon neutrality “before 2060” target and updated NDC targets.
With legislation on carbon tax and fuel specifications upcoming but not yet active in the foreseeable years, main focus is on shore power.
Shore power in China gained momentum during the ‘13th Five Year Plan’ period (2016-2020), which focused on environmental protection, energy conservation and emissions reduction from China’s transport sector.
The ‘Ships and Ports’ plan set a target to construct 400 shore power connections by 2020 for specialized berths for containers, ro-ro passengers, cruise ships, passenger transport above 3,000 tons and dry bulk cargo above 50,000 tons on major ports and ports in the ship emission control area.
According to Power Technology Research, China has overinvested in the development of its shore power infrastructure, leading to the under-utilization of this technology on ports in the country. In the upcoming years, the shore power market of China is not expected to grow at the pace that was previously forecasted.
Disparity in the grant of subsidies to ports
A lack of coherent policy and disparity in subsidies have led to a vast difference in the per unit price of electricity at shore power facilities on Chinese ports. Ports that have government funds at their disposal, such as Guangzhou port, provide a subsidy of USD 0.015 per kilowatt-hour; on the other hand, Shenzhen and Xiamen Port have linked electricity prices with international fuel prices. As there is no government subsidy for using shore power at the Foshan port, withdrawing power from shore power facilities at the port costs USD 0.47 per kilowatt-hour, which is relatively high.
Lack of enthusiasm in certain provincial governments
In China, provincial governments are usually responsible for the improvement and maintenance of the local air quality. Country generally pay more attention to the environment and have introduced subsidies on shore power supply to ships that dock on their ports, along with rewards for ships using shore power for the first time. Other provinces are yet to incentivize the use of shore power for vessel owners, which has led to underutilization of shore power systems on their ports.
Patchy oversight on the use of shore power in various provinces
The inability to implement policies that render the use of shore power mandatory is affecting the utilization rates of shore power facilities in the country. According to Guangxi’s Department of Transportation, one of the reasons for the low utilization rate of local shore power is that the policy that requires ships berthing at the coastal ports for more than 3 hours and inland ports for more than 2 hours to withdraw power from the shore instead of on-board diesel generators is not being strictly followed. On the other hand, the Shanghai port can impose penalties around USD 1500 to ships that are equipped with shore power reception facilities but fail to use them as required.
References
Power Technology Research - Challenges in the shore power market in China
Stories
China’s coastal shipping sector is to implement low-carbon marine fuel regulations no later than 2030. Learn more about the low-carbon fuel regulations in China here.