The Chain Reaction Behind Min Ning’s “Pure Green Power Town”
New energy is a crucial pathway for China to achieve its dual carbon goals and develop a new energy system. By the end of 2024, China’s installed capacity of new energy is expected to surpass that of coal-fired power for the first time. However, the rapid development of new energy has also highlighted its challenges, such as reliance on weather conditions and supply instability, which not only increase the pressure on energy consumption but also impact the safe and stable operation of the power grid.
Consequently, ensuring a stable and continuous supply of new energy and promoting its sustainable development has become key to overcoming these bottlenecks. At the end of last year, significant projects like the energy storage station and cooperative control system in Min Ning Town, Yongning County, Ningxia, were completed on schedule. This enables a 24-hour supply of pure green electricity, with new energy storage systems replacing coal-fired power and facilitating the coordinated development of new energy generation, storage, transmission, and utilization. This initiative serves as a model for addressing current challenges in new energy development and acts as a catalyst for rural revitalization in Min Ning Town, triggering a “chain reaction.”
24-Hour Pure Green Electricity Supply in a New Power System
Ningxia has unique advantages for developing new energy. Over the past 15 years, the installed capacity of new energy in Ningxia has increased from 850,000 kW in 2010 to more than 41 million kW by the end of 2024. Against this backdrop, Min Ning Town’s “Pure Green Power Town” has achieved a 24-hour supply of pure green electricity through a series of technological innovations, effectively addressing the inherent instability of new energy supply. It is expected to add 215 million kWh of green electricity consumption annually, save over 26,400 tons of standard coal, and reduce carbon dioxide emissions by 73,200 tons.
“We have developed a source-network-load-storage control system that deploys intelligent measurement and control devices at the dispatch center, hub substation, new energy stations, and energy storage plants. This creates a dual-layer control architecture for energy management, achieving coordinated control and panoramic monitoring of source, network, load, and storage,” explained Xu Yong, Secretary of the Party Committee of the State Grid Yinchuan Power Supply Company. “With this system, during peak photovoltaic generation periods in the daytime, the new storage systems store excess electricity, and at night, wind power and storage collaborate to ensure a 24-hour supply of green electricity.”
Due to external environmental influences, the volatility of new energy supply is significant. As the “storage” component of the source-network-load-storage system, new energy storage stabilizes the supply by “smoothing peaks and filling valleys.” This is an integral part of the new power system and Min Ning’s “Pure Green Power Town.” It not only enhances the economic efficiency of new energy by “storing excess to compensate for deficits” but also allows for seamless switching between grid-connected and off-grid operations. In cases of disruption in the connection between the local grid and higher-level grids, it can operate independently, minimizing the adverse effects on new energy consumption and ensuring reliable power supply and regional energy security.
According to Li Hongtao, General Manager of Datang Yongning New Energy Technology Co., Ltd., the two new energy storage stations built in Min Ning Town, each with a capacity of 100 MWh/200 MW, function like super-sized “power banks,” capable of storing 400,000 kWh of electricity. With an 85% discharge efficiency, once fully charged, they can supply 340,000 kWh to compensate for nighttime lulls and insufficient wind power output.
The virtual power plant is also a vital component of the new power system. Unlike traditional power plants, a virtual power plant utilizes advanced digital and intelligent technologies to aggregate, coordinate, and optimize adjustable loads, distributed energy sources, and storage resources within a specific area, creating a system capable of responding to grid operation adjustments.
Ningxia’s virtual power plants rank among the best in the country in terms of adjustable capacity. Some power-consuming enterprises function as virtual power plants, adjusting their electricity loads in response to fluctuations in new energy generation. This not only enhances the utilization of new energy but also allows these businesses to receive compensation, creating a win-win situation. By the end of last year, Ningxia’s virtual power plant management platform had integrated 10 virtual power plants, aggregating 20 types of adjustable loads, including electric vehicle charging stations and industrial air conditioning systems, with a total capacity of over 3.79 million kW. The operators of these virtual power plants have cumulatively earned around 1 million yuan. After the launch of the “Pure Green Power Town,” the successful experiences of Ningxia’s virtual power plants will support the balance of green electricity supply and demand in Min Ning Town and attract related enterprises.
Effectively Addressing Challenges in New Energy Development
Currently, China’s new energy development faces challenges such as significant consumption pressure and relatively low enthusiasm for the development of new energy storage. The “Pure Green Power Town” is pioneering the development of new energy systems, providing valuable lessons for overcoming these difficulties.
To alleviate the challenges of new energy consumption, in 2023, China’s renewable energy generation capacity exceeded half of the global total, with cumulative installed capacity accounting for nearly 40% of the world. The rapid development of new energy has put considerable pressure on its consumption. For example, by the end of 2024, Ningxia’s new energy installed capacity is expected to exceed 41 million kW, with solar energy accounting for over 60%. Due to rapid solar development and substantial generation fluctuations, the consumption pressure for new energy in Ningxia is rising.
He Xing’an, a specialist in the development and planning department of the State Grid Yinchuan Power Supply Company, stated that the “Pure Green Power Town,” based on a 100% new energy scenario, is exploring collaborative operation strategies for storage, source, grid, load, and storage. This initiative will not only enhance the green electricity consumption ratio in the town but also further improve the utilization of new energy, promoting practical engineering solutions to the high penetration of new energy and achieving a balance between supply and demand. This will create new experiences that are replicable and scalable for the construction of new power systems.
Increasing the enthusiasm for new energy storage development is crucial, as it plays a significant role in promoting new energy consumption and stabilizing supply. Currently, factors like policy instability and rapid cost declines have led to the situation where “the first to enter suffers the most losses,” which somewhat dampens the industry’s development enthusiasm.
Zeng Bingjie, General Manager of Ningxia Mingyi Green Energy Comprehensive Energy Service Co., Ltd., emphasized that the rapid development of new energy in China cannot rely solely on coal-fired power for load regulation, which presents vast prospects for new energy storage development. The “Pure Green Power Town” and the new power system construction are set to increase the application scenarios for new energy storage, driving industry growth. Although grid-connected energy storage is currently high in cost as a new entity, it represents the industry’s developmental trend. As it is applied on a larger scale, costs will continue to decrease, enhancing the technological advantages of new energy storage in China.
Addressing the physical traceability challenges of green electricity is another critical issue. Currently, green electricity and coal power are mixed on the grid, making it difficult to achieve physical traceability for green electricity, which affects the recognition of green certificates in China. However, the “Pure Green Power Town” ensures a full-day supply of green electricity, effectively resolving these issues and potentially increasing the value of green electricity and green certificates.
Experts interviewed noted that after the launch of the “Pure Green Power Town,” all green electricity used by enterprises in Min Ning Town can be traced, which will help enhance the benefits of related businesses.
A Catalyst for Rural Revitalization
Over the past two decades, with the support of collaborative efforts, Min Ning Town has transformed from a “dry sand beach” into a “golden sandy beach.” In recent years, new energy has further greened the previously barren landscape of Min Ning Town, and the advantages of pure green electricity brought by the “Pure Green Power Town” have become a catalyst for rural revitalization.
“The ‘Pure Green Power Town’ accelerates the transformation and development of clean and low-carbon practices in Min Ning Town and shifts towards a green production and lifestyle. It empowers high-quality development in industries such as intelligent manufacturing, deep processing of agricultural products, and facility agriculture in the Min Ning industrial park, injecting new energy into building a comprehensive rural revitalization model,” said Shi Jia, Secretary of the Min Ning Town Party Committee.
Being able to earn a living in their own community is the most straightforward aspiration of the relocated residents of Min Ning Town. The “Pure Green Power Town” employs a model involving “village collectives + enterprises + farmers.” In Yuanlong Village, large-scale photovoltaic facilities have been established, and rooftop solar panels have been installed for over 1,600 relocated households. The village collective earns more than 2 million yuan annually, while each relocated household receives rent for the rooftop panels.
Additionally, industry and commerce have been developmental shortcomings in Min Ning Town and impoverished areas. The “Pure Green Power Town” benefits high-energy-consuming industries that have a strong demand for green electricity, bringing new opportunities and advantages for the industrial development of Min Ning Town.
Ningxia Yinghai Tianchen Building Materials Co., Ltd., located within Min Ning Town, primarily produces cement and clinker. In the first 11 months of 2024, the company consumed over 36 million kWh of electricity, incurring total electricity costs of over 19 million yuan. After the launch of the “Pure Green Power Town,” according to the latest policies in Ningxia, if users adopt the bilateral trading mechanism to purchase green electricity entirely, their electricity costs could potentially decrease by up to 12%. The responsible person stated that green electricity has triggered a transformation in the entire industry, reducing not only electricity costs for enterprises but also fundamentally addressing the high carbon emissions associated with large energy consumption in the industry.
Min Ning Town’s abundant wind and solar resources provide the conditions necessary for accommodating more enterprises with a high demand for green electricity. According to Hou Ziqiang, Director of the Development and Reform Commission of Yinchuan City, at present, the installed capacity of new energy in Min Ning Town is about 200,000 kW, with an annual generation of around 300 million kWh, exceeding the local annual electricity consumption of approximately 150 million kWh. Additionally, the region’s abundant new energy resources can be expanded to about 1 million kW in the future, transforming Min Ning Town’s wind and solar resources into inexhaustible momentum for promoting rural revitalization.
