Adhering to Low-carbon Development and Building Green Guodian

China Guodian Corporation will create a "green Guodian" as its corporate development vision. Through the four parts of "changing concepts", "adjusting structure", "innovative technology", and "refined management", energy conservation and emission reduction, environmental protection capabilities have been continuously enhanced. However, with the increasingly stringent requirements of the government on pollutant emission, there are still some problems in energy conservation and emission reduction work, such as huge capital investment, difficult cost recovery, difficult technological breakthrough and so on. Nowadays, the "Twelfth Five-Year Plan" is coming to an end, and the "Thirteenth Five-Year Plan" is about to start. How to make energy conservation and emission reduction work more economical and efficient, taking into account efficiency and efficiency, is still an important issue worthy of our serious consideration.

Over the years, China Guodian Corporation (hereinafter referred to as China Guodian) has always regarded energy conservation and emission reduction as the political, economic and social responsibility that central enterprises must undertake, and comprehensively increased the importance of energy conservation and emission reduction. Adhering to the concept of low-carbon development and green development, China Guodian has successively carried out the four parts of "changing concept", "adjusting structure", "innovative technology" and "detailed management", constantly improving the production level of energy conservation, emission reduction, science and technology and environmental protection, and writing a new chapter in the development of "green Guodian.

　　Green concept into enterprise development
For electric power enterprises, safety and environmental protection are the premise and foundation of all work, and environmental protection work is of great significance to the production and operation of electric power enterprises. China Guodian takes environmental protection capability as a core competitiveness to strengthen cultivation, takes environmental protection and safety as the first responsibility, first political achievement and first discipline of enterprise operation, and takes the creation of "green Guodian" as a development vision of the enterprise.

To achieve "green national power", we must adhere to the development of green and low-carbon ideas. The key to achieve this goal is to integrate the cultural and strategic requirements of green development into the enterprise management thought, and guide the enterprise management behavior with the idea of green environmental protection. According to this concept, China Guodian integrates environmental protection into the whole process of production, operation and development, adheres to the guidance of environmental protection standards in all aspects of the life cycle of power plant construction, production and shutdown, and carries out various work in strict accordance with the requirements of environmental protection policies. To this end, the group company signed a letter of responsibility for emission reduction targets with its subsidiaries and included it in the annual assessment, realizing the closed-loop management of branches (subsidiaries).

To achieve "green national power", there must be "green power plants". While strictly implementing air pollution prevention and control measures in the production process, the power plants affiliated to the group also pay attention to the implementation of water pollution and noise pollution prevention and control measures, solid waste classification treatment and comprehensive utilization measures. Through continuous technological transformation and refined management, reduce energy consumption and material consumption levels, strengthen the utilization of waste resources, and minimize waste emissions under the premise of meeting standards. Through these measures, the construction of green demonstration power plant, to build a "green state power" to accumulate rich experience.

China Guodian is also committed to creating a green and low-carbon oriented management atmosphere within the group. In daily work, through the training of employees and special lectures, improve employees' awareness of environmental protection, let employees know why they should take the lead in implementing energy conservation and emission reduction, fully understand the importance of energy conservation and emission reduction, and overcome the idea that environmental protection work affects the economic benefits of enterprises. Concept, make every employee consciously work in accordance with standardized management concepts, support and actively participate in corporate green management actions, let the green and low-carbon management concept truly integrate into the blood of the development of corporate culture.

　　Transformation and upgrading help energy saving and emission reduction
Since the "Twelfth Five-Year Plan", China Guodian has been guided by "Green Guodian" and "Benefit Guodian" to optimize the installed structure, optimize the increment and transform the stock in the thermal power industry, further increase the proportion of high-efficiency thermal power units, and eliminate outdated production capacity. Vigorously increase the proportion of clean energy and renewable energy.

            
In terms of increment, we will focus on the development of large-scale clean, efficient, energy-saving and environmental protection units. In addition to individual cogeneration units, we will no longer build thermal power units below 600000 kilowatts, but focus on the development of ultra-supercritical units with large capacity of 600000 kilowatts and above. By the end of 2014, the proportion of units of 600000 kilowatts and above had reached 48.5 percent, 9.2 percentage points higher than that at the end of the Eleventh five-year Plan and 34.4 percentage points higher than that at the end of the Tenth five-year Plan. Expand the reserve of high-quality projects and build a number of demonstration projects with ultra-low emission and energy consumption. Guodian Bulian Power Plant, which was put into operation in 2012, applied the concept of single-row configuration of auxiliary equipment for the first time in China. The coal consumption of power supply reached 292.9g/kWh, which is at the optimal level of domestic air cooling units. The Guodian Taizhou Power Plant, which will be put into operation in 2015, will apply ultra-first in China, and vigorously carry out design optimization to ensure the design optimization of 253.17g/kWh, it will create world-class energy consumption levels.

In terms of stock, China Guodian has invested a total of 23 billion yuan in energy conservation and emission reduction transformation of active units. It has successively completed 850 major energy conservation transformations (flow-through transformation, cogeneration transformation, cold end optimization of steam turbines, frequency conversion of auxiliary machines, internal and external leakage control of thermal systems, etc.), implemented desulfurization (efficiency improvement) transformation on 88 units, denitration transformation on 152 units and dust removal efficiency improvement transformation on 101 units. Comprehensive application of advanced environmental protection technology, the completion of Taizhou No. 2, Changzhou No. 1 unit and other environmental protection transformation demonstration projects, to ensure that the gas turbine emission limits, for the Group to promote ultra-low emission transformation laid the foundation. In the 2014 national thermal power unit energy efficiency benchmarking and competition sponsored by the China Federation of Electric Power Enterprises and the China Energy and Chemical Union, 41 units of China Guodian were on the list, and the winning grade and number of units were at the leading level of comparable enterprises.

At the same time, under the background of the country's strong support for the development of renewable energy, China Guodian has closely followed the national policy deployment, complied with the situation, seized opportunities, and carried out active exploration and practice in the development of renewable energy. As of September 2015, the installed capacity of wind power has reached 21.358 million kilowatts, ranking first in the world, and the number of wind power utilization hours and operating profit are the leading in China; its Hong Kong listed company Longyuan Power is the core platform for China Guodian's wind power investment and development, with 270 wind farms nationwide, and its business is distributed in 29 provinces and municipalities in China, as well as Canada, South Africa and other countries; the installed hydropower capacity reaches 15.562 million kilowatts, A hydropower development layout of "four regions and one basin" has been formed; at the same time, the coordinated development of solar energy, ocean energy, geothermal energy, biomass energy and other renewable energy sources has been steadily promoted.
　　Innovative Technology Leading Green Development
China Guodian gives full play to the scientific and technological innovation and technical service capabilities of its subordinate Guodian Science and Technology Research Institute, Guodian Science and Technology Environmental Protection Group and other scientific and technological units, and applies and promotes independent intellectual property technology and equipment such as high-frequency power supply, wet electric dust removal, pure coagulation and back pressure mixed operation heating. Dongsheng, Yuci and other units apply heat pump and back pressure heating technology, increasing the average heating capacity by 35% and reducing coal consumption by more than 15 grams. Relying on Beilun Power Plant, Guodian has carried out technical research on the transformation of 600000-kilowatt subcritical units into ultra-supercritical units, which is expected to reduce coal consumption by about 40 grams, and explore a new way for the comprehensive efficiency improvement and transformation of subcritical units, which account for 46% of the installed capacity.

In order to control the emission of nitrogen oxides from thermal power units, Yantai Longyuan, a subsidiary of China Guodian, has greatly reduced the concentration of nitrogen oxides in the W-type flame furnace by developing a special low-nitrogen burner, and significantly reduced the transformation investment and operating costs. The plasma ignition technology of Yantai Longyuan has a total installed capacity of more than 0.276 billion kilowatts, and its domestic market share is as high as 90%. It has a cumulative application performance of 9.24 million kilowatts in South Korea, Russia, Indonesia and other countries and my country's Taiwan region.

As of March 2015, China Guodian has a full range of mature emission reduction technologies such as low nitrogen combustion, plasma ignition, SCR and SNCR denitrification, dual-cycle wet desulfurization, wet dust removal, and electric bag dust removal, which are widely used in domestic thermal power enterprises and are ahead of other power generation groups. In terms of scientific research, projects such as "complete automation control system for major projects in the thermal power industry" and "research and development and application of flue gas catalytic denitrification technology in coal-fired power plants" independently developed by Guodian have been commended by the state and relevant ministries and commissions, with a total of more than 1400 patents, ranking first among comparable enterprises.

　　Summarize Experience and Improve Management Mechanism
Energy conservation and emission reduction is a highly policy-oriented work. The national policy has set a rigid target for energy conservation and emission reduction in the power industry. However, with the development of the national energy and environmental situation, the policy requirements will continue to change. In order to do a good job in energy conservation and emission reduction, China Guodian will revise the energy conservation and emission reduction plan for the next three years according to the latest policy requirements every year to clarify indicators for grass-roots enterprises, require grass-roots enterprises to adhere to a strict assessment system, and complete the corresponding energy conservation and emission reduction work in accordance with the requirements of the group company's three-year plan. For example, indicators such as power supply coal consumption, pollutant emission concentration and total amount cannot exceed the corresponding limits, and the renovation project must be completed on schedule. The completion of the indicators of grass-roots enterprises will be included in the assessment of grass-roots enterprises by the group company. These initiatives have given a strong impetus to energy conservation and emission reduction.

While building a "green national power", not only technology but also mechanism should be innovated. In recent years, under the premise of clear indicators, China Guodian has actively promoted collaborative innovation, established a collaborative innovation mechanism of production and research, and used various forms to raise R & D funds to promote the market-oriented operation of innovation achievements. Within the system, we should build a platform for the promotion and deepening of the development of innovative achievements, improve the fault-tolerant mechanism of research and development, and invigorate the right of disposal, use and income of scientific research achievements. Establish and improve the benefit sharing mechanism of scientific research personnel for innovative achievements, increase incentives for scientific and technological innovation, and implement special rewards for major scientific research achievements to fully stimulate the innovative vitality of scientific research personnel.

　　The task of energy saving and emission reduction is still arduous
After years of hard work, although energy conservation and emission reduction work has achieved remarkable results, it still faces the following difficulties:
First, energy conservation and emission reduction investment is huge. In the first four years of the 12th five-year Plan, China Guodian has invested a total of 23 billion yuan in technological transformation of energy conservation and emission reduction, and the investment is expected to be further increased in the next three years, totaling 23.5 billion yuan. Among them, according to the requirements of the Action Plan, China Guodian will need to complete the ultra-low emission transformation of at least 41 units and 20.26 million kilowatts of thermal power units between 2014 and 2020, and the transformation cost alone will cost about 4.5 billion yuan.

Second, environmental tariff subsidies are not enough to cover costs. According to the subsidy standards issued by the National Development and Reform Commission, coal-fired units that install desulfurization, denitrification, and dust removal facilities and meet the emission standards can enjoy subsidies of 1.5 points, 1 point, and 0.8 points for each 1 kW hour of electricity generation, that is, environmental protection electricity price subsidies total 2.7 points/kWh. Except for the desulfurization electricity price or denitrification electricity price in Xinjiang and Northeast China, which is slightly lower than this level, most regions of the country strictly follow this standard. According to the China Electricity Council's estimate of the cost of emission reduction, combined with its own situation, the average cost of China Guodian's standard emissions is about 3.9 cents/kWh (considering the average value of general limits, special limits and ultra-low emissions), which is 1.2 cents/kWh higher than the current environmental electricity price subsidy. At present, the Group has an installed capacity of 91.57 million kilowatts of coal and electricity, which is considered as 450 billion kilowatt-hours per year, and the profit is reduced by 5.4 billion yuan per year due to the gap in environmental protection subsidies (considered as 100 per cent of the emission standard). Although the profits are considerable due to the downward trend of coal prices in the past two years, due to the large historical losses, the asset-liability ratio is still more than 80%, financing difficulties, and the operating pressure of enterprises is still great.

Third, energy-saving emission reduction technology breakthrough is difficult. The Action Plan for Energy Saving, Emission Reduction, Upgrading and Transformation of Coal and Electricity (2014-2020) puts forward requirements for new units and active units to achieve ultra-low emissions. However, there are not enough application cases of mainstream technologies to achieve ultra-low emissions on coal-fired units at home and abroad for a long time, and the reliability needs to be verified through existing demonstration projects. Thermal power plant energy-saving technology has encountered bottlenecks, mature technology has been adopted, further optional energy-saving technology is less, the potential is small.

2015 is the last year of the "Twelfth Five-Year Plan", and the work of energy conservation and emission reduction is still urgent. For this reason, the group has also deployed specific requirements to strengthen energy conservation and emission reduction. In the work of reducing emissions in the Beijing-Tianjin-Hebei region and surrounding areas, we have spared no effort to promote ultra-low emissions in an orderly manner, and make due contributions to reducing smog and improving the quality of the atmospheric environment in the Beijing-Tianjin-Hebei region.