The Chain Reaction Behind Minning’s “Pure Green Electric Town”
New energy is a crucial pathway for China to achieve its “dual carbon” goals and build a new energy system. By the end of 2024, the installed capacity of new energy in China is expected to exceed that of thermal power for the first time. However, as new energy rapidly develops, its reliance on weather conditions and supply instability are becoming increasingly prominent challenges. These issues not only increase the pressure on new energy consumption but also impact the safe and stable operation of the power grid.
To address these challenges and ensure a stable and continuous supply of new energy, the construction of the “Pure Green Electric Town” in Minning, Yongning County, Ningxia, has been completed on schedule. Key projects, including the energy storage power station and coordinated control system, now provide the capability for 24-hour pure green electricity supply. The new energy storage systems are set to replace coal power and help promote coordinated development of new energy generation, storage, transmission, and usage, serving as a reference for overcoming current challenges in the sector. This initiative has also acted as a catalyst for rural revitalization in Minning, triggering a “chain reaction.”
24-Hour Pure Green Electricity Supply Achieved
Ningxia boasts unique advantages for new energy development. Over the past 15 years, the installed capacity of new energy in Ningxia has surged from 850,000 kilowatts in 2010 to over 41 million kilowatts by the end of 2024. Against this backdrop, the “Pure Green Electric Town” in Minning has achieved 24-hour pure green electricity supply through a series of technological innovations, effectively compensating for the inherent instability in new energy supply. It is expected to add 215 million kilowatt-hours of green electricity consumption annually, save over 26,400 tons of standard coal each year, and reduce carbon dioxide emissions by 73,200 tons.
“We have developed a source-network-load-storage control system. This system, utilizing intelligent measurement and control devices at the dispatch center, hub substations, new energy stations, and energy storage stations, has constructed a dual-layer control architecture for energy management. This enables coordinated control and panoramic monitoring of new energy and load, precise forecasting, and intelligent regulation of energy storage charge and discharge,” said Xu Yong, Secretary of the Party Committee of State Grid Yinchuan Power Supply Company. “With this system, during peak solar hours, the new energy storage systems store excess electricity, and at night, wind energy and storage collaborate to achieve 24-hour green electricity supply.”
Due to external environmental factors, the supply of new energy can be highly volatile. New energy storage serves as a crucial component of the source-network-load-storage system by stabilizing supply through “peak shaving and valley filling.” This functionality is vital for both the new power system and the “Pure Green Electric Town.” It enhances economic efficiency by “storing excess and compensating for shortages,” and it can seamlessly switch between grid-connected and off-grid operations, ensuring reliable power supply and regional energy security even if connections to the higher-level grid are disrupted.
Li Hongtao, General Manager of Datang Yongning New Energy Technology Co., Ltd., stated that the two energy storage stations built in Minning, each with a capacity of 100 megawatt-hours/200 megawatt-hours, function like large “power banks,” capable of storing 400,000 kilowatt-hours of electricity. With an 85% discharge efficiency, they can supply 340,000 kilowatt-hours of electricity after being fully charged, compensating for nighttime shortages and periods of insufficient wind energy output.
Virtual power plants also play a significant role in the new power system. Unlike traditional power plants, virtual power plants leverage advanced technologies such as digitalization and smart systems to aggregate, coordinate, and optimize adjustable loads, distributed energy sources, and energy storage within a specific area, forming a system capable of responding to grid operation adjustments.
Ningxia’s virtual power plants rank among the top in the country in terms of adjustable capacity. Some power-consuming enterprises operate as virtual power plants, adjusting their electricity loads in response to fluctuations in renewable energy generation. This not only increases the utilization rate of new energy but also allows enterprises to receive compensation, creating a win-win situation. As of the end of last year, Ningxia’s virtual power plant operation management platform had connected 10 virtual power plants, aggregating 379 megawatts of adjustable loads from various sources, including electric vehicle charging stations, building air conditioning, and ferroalloy companies. Overall, virtual power plant operators have earned approximately 1 million yuan. Following the operation of the “Pure Green Electric Town,” the successful experiences of Ningxia’s virtual power plants are expected to support green electricity supply-demand balance in Minning and attract related enterprises to the area.
Effectively Addressing New Energy Development Challenges
Currently, the development of new energy in China faces significant challenges, including pressure on consumption and low enthusiasm for the development of new energy storage. The “Pure Green Electric Town” serves as a pioneering example for the development of new energy systems, offering insights to overcome these difficulties.
Mitigating new energy consumption challenges: In 2023, new installed renewable energy generation capacity in China accounted for over half of the global total, with cumulative installed capacity nearing 40% of the world’s total. The rapid development of new energy has placed significant pressure on its consumption. For instance, as of the end of 2024, Ningxia’s new energy installed capacity will exceed 41 million kilowatts, with solar power accounting for over 60% of that capacity. However, due to the rapid growth and considerable volatility of solar generation, the pressure on Ningxia’s new energy consumption continues to rise.
He Xing’an, an official from the development and planning department of State Grid Yinchuan Power Supply Company, stated that the “Pure Green Electric Town,” based on a 100% new energy scenario, explores the development of coordinated operation strategies for storage, source, network, load, and storage systems, which can enhance the proportion of green electricity consumed in the town and further improve the utilization rate of new energy. Through practical engineering, this initiative aims to address the issues of supply-demand balance for high-penetration renewable energy, creating new experiences that are replicable and promotable in building new power systems.
Stimulating enthusiasm for new energy storage development: New energy storage is a vital component for promoting new energy consumption and stabilizing supply. Currently, due to unstable policies and rapidly decreasing costs, the new energy storage industry faces a situation where “the first to enter incurs greater losses,” which has dampened enthusiasm for its development.
Zeng Bingjie, General Manager of Ningxia Mingyi Green Energy Integrated Energy Service Co., Ltd., remarked that the rapid development of new energy in China cannot rely solely on coal power for peak regulation, indicating a promising future for new energy storage. The “Pure Green Electric Town” and the construction of the new power system further increase the application scenarios for new energy storage, accelerating industry growth. Currently, while grid-connected storage costs are relatively high, they represent an industry development trend. As large-scale applications increase, costs are expected to decrease, enhancing the technological advantages of new energy storage in China.
Solving the physical traceability of green electricity: Presently, green electricity and coal power are mixed on the grid, making it challenging to achieve physical traceability of green electricity, which affects the recognition of green certificates in China. The “Pure Green Electric Town,” through its all-day supply of green electricity, effectively addresses this issue, potentially enhancing the “value” of green electricity and certificates in China.
Experts have noted that after the operation of the “Pure Green Electric Town,” all green electricity used by enterprises in Minning can be traced, which will help improve the benefits of relevant enterprises.
A Catalyst for Rural Revitalization
Over the past 20 years, with the collaborative assistance of Minning, the area has transformed from a “dry sandy beach” to a “golden sandy beach.” In recent years, new energy has further enhanced the greenery of Minning, and the advantages brought by the “Pure Green Electric Town” are becoming a catalyst for rural revitalization.
The “Pure Green Electric Town” accelerates Minning’s transformation towards clean, low-carbon development and the shift to a green production and lifestyle, empowering high-quality development in industries such as intelligent manufacturing, deep processing of agricultural products, and facility agriculture in the Minning Industrial Park. This initiative injects new momentum into Minning’s efforts to build a comprehensive rural revitalization model,” said Shi Jia, Secretary of the Minning Town Party Committee.
Making money at home is the most straightforward wish of the relocated residents in Minning. The “Pure Green Electric Town” employs a model that combines “village collectives, enterprises, and farmers.” In Yuanlong Village, large-scale photovoltaic facilities have been established, providing rooftop solar installations for over 1,600 relocated households. The village collective earns more than 2 million yuan annually, while each relocated household receives a yearly rental fee for their rooftops.
Additionally, the industrial and commercial sectors have long been a weakness for Minning and impoverished areas. The “Pure Green Electric Town” brings new opportunities and advantages for industries with high demand for green electricity, particularly energy-intensive sectors.
Ningxia Yinghai Tianchen Building Materials Co., Ltd., located within Minning, primarily produces cement and clinker. In the first 11 months of 2024, the company’s electricity consumption exceeded 36 million kilowatt-hours, with total electricity costs reaching over 19 million yuan. Following the launch of the “Pure Green Electric Town,” according to Ningxia’s latest policies, if users adopt a bilateral trading mechanism to fully purchase and utilize green electricity, the electricity costs could ideally decrease by up to 12%. The company representative stated that green electricity has triggered a transformation in the entire industry, not only reducing electricity costs but also fundamentally addressing the high carbon emissions associated with heavy electricity consumption.
Minning’s abundant “wind and solar” resources provide the conditions necessary for attracting more enterprises with high demand for green electricity. Hou Ziqiang, Director of the Development and Reform Commission of Yinchuan City, Ningxia, noted that Minning currently has an installed capacity of about 200,000 kilowatts for new energy, generating approximately 300 million kilowatt-hours of electricity annually, which surpasses the local annual electricity consumption of about 150 million kilowatt-hours. Moreover, with abundant local new energy resources, the capacity could expand to around 1 million kilowatts, transforming Minning’s “wind and solar” resources into a continuous driving force for rural revitalization.
