Power to X in the Chinese energy system

For the China Energy Transformation Outlook 2021 (CETO2021), which is a study presenting pathways for China to reach their climate targets, Ea Energy Analyses has contributed to a chapter on Power to X in the Chinese energy system.

A comparative study was done, exploring how the energy systems in two provinces could serve as a PtX production base. The two provinces are Qinghai, a province with considerable VRE resources and large potential to deploy these at low cost, and Guangdong, which is a load centre, industrial hub, aviation hub, and not least a key location for international shipping. The study was done by integrating the OptiFlow model with the China Energy Supply Optimization (CESO) model representing the power and district heating supply in the CETO scenarios.

One of the key takeaways was to ensure decarbonised electricity is used for PtX. However, as an increased demand for electricity and heat is expected, it is necessary to first make sure this demand can be met by CO₂ free sources, before using those sources for PtX. Different provinces require different solutions, and the findings of the study underscored the need for taking a system perspective in the decarbonisation effort, with PtX pathways being reserved for sectors that are the most difficult to electrify.

The project was carried out between June and December 2021.