012 PRC Tacr PDF

Technical Assistance Consultants Report
Project Number: 44016

October 2012
Peoples Republic of China: Renewable Energy

Development in Qinghai
(Co-financed by the MultiDonor Clean Energy Fund under the
Clean Energy Financing Partnership Facility)
This consultants report does not necessarily reflect the views of ADB or the Government concerned, and
ADB and the Government cannot be held liable for its contents. (For project preparatory technical
assistance: All the views expressed herein may not be incorporated into the proposed projects design.
RENEWABLE ENERGY DEVELOPMENT IN QINGHAI
PEOPLES REPUBLIC OF CHINA
PROJECT NUMBER : TA-7643 (PRC)
FINAL REPORT
Prepared for
Asian Development Bank
By
NEWJEC Inc.
October, 2012
Renewable Energy Development
Final Report Contents
TABLE OF CONTENTS
EXECUTIVE SUMMARY
CHAPTER 1 INTRODUCTION
1.1 Background ............................................................................................................. 1 - 1
1.2 TOR ......................................................................................................................... 1 - 2
1.3 Objectives ................................................................................................................ 1 - 2
1.4 Structure of the Final Report ................................................................................... 1 - 2
CHAPTER 2 ADVANCED TECHNOLOGY FOR GRID-CONNECTED SOLAR PV SYSTEMS

2.1 International Best Practices for Grid Protection Design and System Configuration
for a 10MW-class Grid-connected Solar PV System .............................................. 2 - 1
2.1.1 Principle of Demand and Supply Power Balance ......................................... 2 - 1
2.1.2 Influence of Rapid Expansion of Solar PV Systems and Countermeasures
by PV Power Stations ................................................................................... 2 - 1
2.1.3 Practices in RE-Advanced Countries ............................................................ 2 - 2
2.1.4 Locally Appropriate Countermeasures for Grid Protection in Golmud,
Qinghai Province ........................................................................................... 2 - 5
2.2 Power Conditioner ................................................................................................... 2 - 8
2.2.1 Internationally Advanced Technologies for Power Conditioner
of the 10 MW Class Grid-connected Solar PV System................................. 2 - 8
2.2.2 Locally Appropriate Power Conditioner Technology ..................................... 2 - 11
2.3 MCM ........................................................................................................................ 2 - 18
2.3.1 Latest International Technologies for Master Control and Monitoring
for Grid-connected Solar PV System ............................................................ 2 - 18
2.3.2 Locally Appropriate MCM System in terms of Reliability, Efficiency
and Cost ........................................................................................................ 2 - 25
2.4 Assessment Tools ................................................................................................... 2 - 38
2.4.1 Assessment of Insolation and Estimation of Power Generation ................... 2 - 38
2.4.2 Prediction of Power Generation .................................................................... 2 - 47
2.4.3 Reflection Light from Solar PV System ......................................................... 2 - 52
2.5 Assessment Tools for Solar PV System Economics ............................................... 2 - 54
2.5.1 Outline of RETScreen ................................................................................... 2 - 54
2.5.2 Input of Project Information ........................................................................... 2 - 54
2.5.3 Specifying Energy Model .............................................................................. 2 - 55
2.5.4 Input of Cost Data ......................................................................................... 2 - 56
2.5.5 Financial Analysis ......................................................................................... 2 - 57
2.5.6 Risk Analysis ................................................................................................. 2 - 59
CHAPTER 3 CAPACITY DEVELOPMENT IN THE PLANNING, DESIGN, CONSTRUCTION,

AND O&M OF A GRID-CONNECTED SOLAR PV SYSTEM
3.1 Performance Assessment of the Selected Grid-connected Solar PV System ........ 3 - 1
3.1.1 300kW Grid-connected Solar PV System in Xining, Qinghai ....................... 3 - 1
3.1.2 Sakai Mega Solar PV Power Station ............................................................ 3 - 5
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Contents Final Report
3.2 Capacity Assessment of the Implementation Agency ............................................. 3 - 12

3.2.1 Solar Radiation and Other Resources........................................................... 3 - 12
3.2.2 Evaluation of the Site Analysis ...................................................................... 3 - 13
3.2.3 Design Ability of 10MW Solar PV System ..................................................... 3 - 15
3.2.4 Construction .................................................................................................. 3 - 19
3.2.5 Operation and Maintenance .......................................................................... 3 - 19
3.3 Technical Guidance and a Capacity Enhancement Module .................................... 3 - 19
3.3.1 System Configuration .................................................................................... 3 - 19
3.4 Solar PV Supply Chain ............................................................................................ 3 - 30
3.4.1 Overall Comments ......................................................................................... 3 - 30
3.4.2 Outline of the Ingot Factory ........................................................................... 3 - 31
3.4.3 Manufacturing Process of Solar Cells ........................................................... 3 - 31
3.4.4 Instructions and Suggestions ........................................................................ 3 - 33
3.4.5 Assessment of Capacity and Quality and Provision
of Technical Guidance ................................................................................... 3 - 34
CHAPTER 4 REVIEW OF GRID CONNECTIVITY OF MW CLASS SOLAR PV SYSTEM

4.1 Design of MW Class Solar PV System .................................................................... 4 - 1
4.1.1 System Configuration Design of Substation .................................................. 4 - 1
4.1.2 System Components ..................................................................................... 4 - 3
4.1.3 Inverter .......................................................................................................... 4 - 5
4.1.4 Control ........................................................................................................... 4 - 6
4.1.5 Cost Effectiveness and Efficiency ................................................................. 4 - 9
4.1.6 Proposition of Other Improvement in Design ................................................ 4 - 10
4.2 Power Grid in Golmud Area ..................................................................................... 4 - 12
4.2.1 Overview of Power System in Golmud Area ................................................. 4 - 12
4.2.2 Demand Forecast and Power Balance (Supply-Demand Balance)
in Golmud Area.............................................................................................. 4 - 16
4.2.3 Grid Code ...................................................................................................... 4 - 23
4.2.4 The PV Power Plants .................................................................................... 4 - 23
4.2.5 Detail of Golmud East 110kV Combiner Station ........................................... 4 - 25
4.2.6 FRT Function ................................................................................................. 4 - 27
CHAPTER 5 ECONOMICS OF SOLAR PV POWER PLANT

5.1 Financial Assessment and Financial Options .......................................................... 5 - 1
5.1.1 Financial Analysis .......................................................................................... 5 - 1
5.1.2 Risk Assessment and Lifecycle Analysis ...................................................... 5 - 8
5.1.3 Consideration on Tariff and Financial Needs of Pilot Project ........................ 5 - 12
5.2 Policy Implication ..................................................................................................... 5 - 13
CHAPER 6 POLICY NOTE, KEY FINDINGS, AND RECOMMENDATION

6.1 Outlook of Solar Energy Development in the PRC and the Qinghai Province ........ 6 - 1
6.2 Key Findings and Recommendations for Sustainable Solar PV Development
in Qinghai Province .................................................................................................. 6 - 4
6.2.1 Enhancing Grid Connectivity: Stable Solar PV Power Evacuation ............... 6 - 4
6.2.2 Upgrading Grid Code which requires FRT Function: Improving Grid Stability
and Safety ..................................................................................................... 6 - 5
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Final Report Contents
6.2.3 Solar PV based Micro-grid System Development: Another Pathway for

Large-scale Solar PV Application ................................................................. 6 - 6
6.2.4 Stringent Technical Specification Standard and Institutional Strengthening:
Enhancing Quality Control of Solar PV Power Plant .................................... 6 - 6
6.2.5 Strengthening Metrological Observatory System: Mitigating Risks in Solar
Resource Forecasting ................................................................................... 6 - 7
6.2.6 Credit Enhancement: Improving the Project Financial Performance ............ 6 - 8
APPENDICES
Appendix 1 Terms of Reference
Appendix 2 National Development Plan and Provincial Development Plan
Appendix 3 Capacity Development Training
Appendix 4 Presentation Materials
Appendix 4-1 : Seminar
Appendix 4-2 : Interim Workshop
Appendix 4-3 : Final Workshop
Appendix 5 Seminar and Workshops
Appendix 6 Registered Companies and Applied Projects of Qinghai 930 Projects
in Haixi Prefecture
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List of Tables, Figures and Abbreviations Final Report
LIST OF TABLES
Table 2.1-1 Impacts on the Grid and Measures ....................................................................... 2 - 5

Table 2.2-1 Limit on Harmonic Voltage in Public Grid.............................................................. 2 - 13
Table 2.2-2 Permissible Value of Harmonic from PV Power Station ....................................... 2 - 13
Table 2.2-3 Voltage Fluctuation and Flicker of Inverters .......................................................... 2 - 14
Table 2.2-4 Short Time Flicker Pst and Long Time Flicker Plt ................................................. 2 - 14
Table 2.2-5 Required Operation Time for Large or Medium Size PV Power Station
in case of Grid Frequency Anomaly ...................................................................... 2 - 16
Table 2.4-1 Insolation Estimation by Three Different Methods ................................................ 2 - 45
Table 2.4-2 Difference of Estimated Insolation in proportion to QBEs Estimation .................. 2 - 46
Table 2.4-3 Estimation of Power Generation using Fish-eye Lens (Tilt angle 35) ................. 2 - 46
Table 2.4-4 Estimation of Power Generation using Fish-eye Lens (Tilt angle 25) ................. 2 - 47
Table 2.4-5 Prediction Method of Insolation and Quick Demand/Supply Control Method
in Japan ................................................................................................................. 2 - 49
Table 2.4-6 Monthly Probability of Fine Sky ............................................................................. 2 - 52
Table 2.4-7 Monthly Probability of Cloudy Sky......................................................................... 2 - 52
Table 2.4-8 Monthly Probability of Rainy Sky........................................................................... 2 - 52
Table 3.1-1 Verification Items ................................................................................................... 3 - 6

Table 3.1-2 Type of Solar Panel and Occupied Area ............................................................... 3 - 6
Table 3.2-1 Insolation at Golmud Site ...................................................................................... 3 - 12
Table 3.2-2 Insolation at Golmud Site (Conversion Megajoule to kWh) .................................. 3 - 13
Table 3.3-1 Test Wave and Current ......................................................................................... 3 - 23
Table 4.1-1 Calculation Result of Short Circuit Level in 2020 for Relevant Substation
Buses .................................................................................................................... 4 - 2
Table 4.1-2 Specifications of DC Convergence Control Box ................................................... 4 - 3
Table 4.1-3 Specifications of Unit Step-up Transformer .......................................................... 4 - 4
Table 4.1-4 Specifications of Circuit Breaker ........................................................................... 4 - 4
Table 4.1-5 Main Electrical Equipment List .............................................................................. 4 - 5
Table 4.1-6 Specifications of Grid-connected Inverter ............................................................. 4 - 5
Table 4.1-7 Maximum Power of Direct Current (DC) Side ....................................................... 4 - 10
Table 4.1-8 Rated Output ......................................................................................................... 4 - 10
Table 4.2-1 Qinghai Grid .......................................................................................................... 4 - 15
Table 4.2-2 Demand Forecast in Golmud Area........................................................................ 4 - 17
Table 4.2-3 Power Balance in Golmud Area (Summer) ........................................................... 4 - 18
Table 4.2-4 Power Balance in Golmud Area (Winter) .............................................................. 4 - 19
Table 4.2-5 Solar Power Station............................................................................................... 4 - 22
Table 4.2-6 Grid Owner, Construction and Operation .............................................................. 4 - 24
Table 5.1-1 Cost Estimate of 10 MW Pilot Project ................................................................... 5 - 3

Table 5.1-2 Calculation of WACC............................................................................................. 5 - 4
Table 5.1-3 Calculation of FIRR ............................................................................................... 5 - 5
Table 5.1-4 Improvement of FIRR/e by Longer Project Life and Additional Income
from CER ............................................................................................................... 5 - 6
Table 5.1-5 FIRR/e with Soft Loan ........................................................................................... 5 - 7
Table 5.1-6 Effect of Smaller Investment Cost on FIRR/e ....................................................... 5 - 7
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Final Report List of Tables, Figures and Abbreviations
Table 5.1-7 Sensitivity Analysis of FIRR/e with Soft Loan Introduced ..................................... 5 - 9
Table 5.1-8 Sensitivity Analysis of FIRR/e with Soft Loan, tariff at CNY 1.0 ........................... 5 - 10
Table 5.1-9 Reduction of CO2 Emission .................................................................................. 5 - 11
Table 6.3-1 Program of the Seminar ........................................................................................ 6 - 8

Table 6.3-2 Program of the Interim Workshop ......................................................................... 6 - 9
Table 6.3-3 Program of Final Workshop .................................................................................. 6 - 11
LIST OF FIGURES
Fig. 2.1-1 Description of Grid Stability (taking marching by persons as an example) .......... 2 - 7
Fig. 2.2-1 Required Capability on the FRT Function ............................................................ 2 - 16
Fig. 2.3-1 Demonstrative Research in Ota City, Japan ........................................................ 2 - 20
Fig. 2.3-2 Large-scale PV Power Plant located in Wakkanai City ........................................ 2 - 20
Fig. 2.3-3 Results of Output Fluctuations Preventive Control Testing
(Moving Average Target Control) ......................................................................... 2 - 21
Fig. 2.3-4 Large-scale PV Power Plant located in Wakkanai City ........................................ 2 - 22
Fig. 2.3-5 Demonstrative Microgrid in Los Alamos County ................................................... 2 - 23
Fig. 2.3-6 Residence Area in Los Alamos County ................................................................ 2 - 24
Fig. 2.3-7 Configuration of Microgrid in Albuquerque ........................................................... 2 - 25
Fig. 2.4-1 Southern View from 10MW Pilot Project Site ....................................................... 2 - 39
Fig. 2.4-2 Shadow made by Obstacles of the Surroundings ................................................ 2 - 40
Fig. 2.4-3 Illustrative Picture of Sunlight Orbit Projection ..................................................... 2 - 40
Fig. 2.4-4 Direct Sunlight and Diffused Sunlight ................................................................... 2 - 41
Fig. 2.4-5 Single-lens Reflex Camera and Fish-eye Lens .................................................... 2 - 41
Fig. 2.4-6 View of Fish-eye Lens with Tilt Angle 35 ............................................................ 2 - 42
Fig. 2.4-7 Visible Fields using Fish-eye Lens ....................................................................... 2 - 43
Fig. 2.4-8 Solar Orbit ............................................................................................................. 2 - 43
Fig. 2.4-9 Solar Orbit on Fish-eye Lens ................................................................................ 2 - 44
Fig. 2.4-10 Solar Orbit on Fish-eye Lens at the 10MW Pilot PV System Site ........................ 2 - 45
Fig. 2.4-11 Prediction of Power Generation ............................................................................ 2 - 48
Fig. 2.4-12 Macro Prediction System ...................................................................................... 2 - 50
Fig. 2.4-13 Graphics by the Weather Satellite ........................................................................ 2 - 50
Fig. 2.4-14 Sun Orbit and Movement of Cloud ....................................................................... 2 - 51
Fig. 2.4-15 Method of Getting Reflection Sunlight .................................................................. 2 - 53
Fig. 2.4-16 Reflection Light at 10MW PV Site (Tilt Angle 35)................................................ 2 - 53
Fig. 2.5-1 Input of Project Information................................................................................... 2 - 55
Fig. 2.5-2 Site Data by NASA (downloaded automatically) .................................................. 2 - 55
Fig. 2.5-3 Input of Energy Model ........................................................................................... 2 - 56
Fig. 2.5-4 Input of Cost Data ................................................................................................. 2 - 57
Fig. 2.5-5 Input of Financial Parameters ............................................................................... 2 - 57
Fig. 2.5-6 Input of Annual Income ......................................................................................... 2 - 57
Fig. 2.5-7 Costs & Income Summary .................................................................................... 2 - 58
Fig. 2.5-8 Financial Viability .................................................................................................. 2 - 58
Fig. 2.5-9 Yearly Cash Flow .................................................................................................. 2 - 58
Fig. 2.5-10 Cumulative Cash Flow Graph ............................................................................... 2 - 59
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Fig. 2.5-11 Sensitivity Analysis ................................................................................................ 2 - 59

Fig. 2.5-12 Impact Analysis (After-tax IRR-equity) .................................................................. 2 - 60
Fig. 2.5-13 Distribution of Key Indicators (After-tax IRR-equity) ............................................. 2 - 61
Fig. 3.1-1 300kW Grid-connected Solar PV System ............................................................. 3 - 2

Fig. 3.1-2 Configuration of Test Circuit for Real Facility Tests .............................................. 3 - 3
Fig. 3.1-3 Results of Tests of EDLC Effect with PV Output forcedly varied
at 1-Hz Frequency (With EDLC not controlled) ..................................................... 3 - 3
at 1-Hz Frequency (With EDLC controlled) ........................................................... 3 - 4
Fig. 3.1-5 Cost and Efficiency of Solar Panel ........................................................................ 3 - 7
Fig. 3.1-6 Evaluated Value for the Solar PV System Cost .................................................... 3 - 7
Fig. 3.1-7 Countermeasure of Unequal Settlement ............................................................... 3 - 8
Fig. 3.1-8 Installation Condition ............................................................................................. 3 - 8
Fig. 3.1-9 Measured Solar Radiation ..................................................................................... 3 - 9
Fig. 3.1-10 Prediction of PV Output ......................................................................................... 3 - 10
Fig. 3.1-11 Outline of Sakai Mega Solar Power Station .......................................................... 3 - 10
Fig. 3.1-12 Location of Sakai Mega Solar PV Power Station .................................................. 3 - 11
Fig. 3.2-1 10MW PV Sight View ............................................................................................ 3 - 13
Fig. 3.2-2 Main Electric Circuit............................................................................................... 3 - 15
Fig. 3.2-3 Islanding Phenomena and Possibility of Occurrence............................................ 3 - 16
Fig. 3.2-4 Configuration of a PV System in 10MW Pilot Project ........................................... 3 - 17
Fig. 3.2-5 Electricity for Station Use at a Pilot 10MW Solar PV System ............................... 3 - 18
Fig. 3.3-1 Overloading Capacity of Transformer ................................................................... 3 - 22
Fig. 3.3-2 Test Wave ............................................................................................................. 3 - 23
Fig. 3.3-3 LPZ Partition.......................................................................................................... 3 - 23
Fig. 3.3-4 Propagation of the impact of Lightning.................................................................. 3 - 24
Fig. 3.3-5 SPD Protecting Lightning Impact to Propagate .................................................... 3 - 24
Fig. 3.3-6 Wiring between Modules ....................................................................................... 3 - 25
Fig. 3.3-7 Solid Angle of Sky by Different Tilt Angle ............................................................. 3 - 26
Fig. 3.3-8 Relation between Diffusion Sunlight and Solid Angle of Cloud ............................ 3 - 26
Fig. 3.3-9 Method of Set Sensor............................................................................................ 3 - 27
Fig. 3.3-10 Direct Fault Current Flow ...................................................................................... 3 - 27
Fig. 3.3-11 Safety Stock .......................................................................................................... 3 - 28
Fig. 3.3-12 I-V Approximation Curve ....................................................................................... 3 - 29
Fig. 3.3-13 Power of Serial Connection ................................................................................... 3 - 30
Fig. 3.4-1 Manufacturing Process of Polycrystalline / Monocrystalline Cells ........................ 3 - 31
Fig. 3.4-2 Photos of Monocrystalline / Polycrystalline Ingots ................................................ 3 - 32
Fig. 3.4-3 Flowchart of Cleaning............................................................................................ 3 - 34
Fig. 3.4-4 Method of Cleaning Material ................................................................................. 3 - 35
Fig. 3.4-5 60 kg Materials previously filled in a Melting Pot .................................................. 3 - 36
Fig. 3.4-6 Using a Vacuum Cleaner ...................................................................................... 3 - 36
Fig. 3.4-7 A Carbon Pot is bundled by a Band ...................................................................... 3 - 37
Fig. 3.4-8 Yield Improvement ................................................................................................ 3 - 37
Fig. 3.4-9 Prevention of Crack ............................................................................................... 3 - 38
Fig. 3.4-10 Confirmation of the Contamination........................................................................ 3 - 38
Fig. 3.4-11 Confirmation of the Contamination........................................................................ 3 - 39
Fig. 3.4-12 Issues of Pot Scrap and Deformation ................................................................... 3 - 39
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Fig. 3.4-13 Condition of a Melting Pot before Deformation (Image) ....................................... 3 - 40

Fig. 3.4-14 Condition of a Melting Pot after Deformation ........................................................ 3 - 40
Fig. 3.4-15 Condition of a Melting Pot after Deformation ........................................................ 3 - 41
Fig. 3.4-16 Structure of Pots ................................................................................................... 3 - 41
Fig. 3.4-17 Steps of Usage of Carbon Pot .............................................................................. 3 - 42
Fig. 3.4-18 Measurement of Carbon Pot Parts, 1 to 10 .......................................................... 3 - 42
Fig. 3.4-19 Method I Confirmation .......................................................................................... 3 - 42
Fig. 3.4-20 Method II Confirmation ......................................................................................... 3 - 43
Fig. 3.4-21 Material in the Pull-up Lab .................................................................................... 3 - 44
Fig. 3.4-22 Type (I), (II) Materials ........................................................................................... 3 - 44
Fig. 3.4-23 .............................................................................................................................. 3 - 45
Fig. 3.4-24 Cristal pulling up Process ..................................................................................... 3 - 45
Fig. 4.1-1 Schematic Diagram of Arrangement of 110kV Outgoing Line Bays

in 330kV Golmud Substation ................................................................................ 4 - 2
Fig. 4.1-2 Control System Structure ...................................................................................... 4 - 7
Fig. 4.2-1 Power Balance in Golmud Area............................................................................ 4 - 17
Fig. 4.2-2 Golmud Location ................................................................................................... 4 - 20
Fig. 4.2-3 PV Power Plant Map ............................................................................................. 4 - 21
Fig. 4.2-4 Owner, Construction and Operation Scheme ....................................................... 4 - 24
Fig. 4.2-5 Requirement on FRT Function (before March, 2017)........................................... 4 - 28
Fig. 4.2-6 Requirement on FRT Function in Japan (after April, 2017) .................................. 4 - 30
Fig. 4.2-7 Requirement on FRT Function (PRC) .................................................................. 4 - 32
Fig. 4.2-8 Block Diagram of Control System ......................................................................... 4 - 33
Fig. 4.2-9 Result of Factory Test of the FRT Function .......................................................... 4 - 33
Fig. 6.1-1 Solar PV Diffusion Scenario till 2020 .................................................................... 6 - 2

Fig. 6.1-2 Forecasted Solar PV Cost of Energy and Grid Parity........................................... 6 - 3
Fig. 6.2-1 Proposed FRT Requirement ................................................................................. 6 - 5
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CURRENCY EQUIVALENTS
Currency Unit Chinese Yuan (CNY)

$1.00 = CNY6.77 (As of November 2011)
1.00 = CNY 8.17 (Average of January 2102 to June 2012)
ABBREVIATIONS
ADB Asia Development Bank

AGC Active generation control
AVC Active voltage control
BIPV Building-integrated photovoltaics
CB Circuit breaker
CDM Clean Development Mechanism
CER Certified Emission Reductions
DSP Digital signal processor
ECMWF Europe Center of Meteorological Weather Forecast
EDLC Electric Double-Layered Capacitors
EMS Energy Management System
F/S Feasibility Study
FIRR Financial Internal Rate of Return
FIRR/e Equity Internal Rate of Return
FIT Feed-In Tariff
FRT Fault Ride Through
GHG Greenhouse Gas
GPS Global Positioning System
GRDP Gross Regional Domestic Product
HEMS Home Energy Management System
HVDC High Voltage Direct Current
IEC International electrical commission
IGBT Insulated-gate bipolar transistor
IRMOSFET IRMOS Field-effect transistor
IRR Internal Rate of Return
LCD Liquid crystal display
MCM Master Control and Monitoring
METI Ministry of Economy, Trade and Industry, Japan
MMI Man-Machine interface
MPPT Maximum Power Point Tracking
NAS Natrium Sulfur
NASA National Aeronautics and Space Administration
NDRC National Development and Reform Commission
NEIQ New Energy Institute of Qinghai
NPV Net Present Value
O&M Operation and Maintenance
PNM Public Service of New Mexico
PPA Power Purchase Agreement
PPP Public Private Partnership
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PRC The Peoples Republic of China

PV Photovoltaic
QBE Qinghai Brightness Engineering
RE Renewable Energy
SCR Silicon-controlled rectifier
SOE Sequence of Event
SPC Special company management
SPD Surge Protect Device(s)
TA Technical Assistance
TOR Terms of Reference
TSO Transmission System Operator
VAT Value Added Tax
WACC Weighted average cost of capital
USD United States Dollar

CNY Chinese Yuan
2
CO Carbon Dioxide
t-CO2 a tonne of Carbon Dioxide
GW Gigawatt=1,000 MW = 1,000,000 kW
GWh Gigawatt hour=1,000 MWh = 1,000,000 kWh
Hz Hertz
V Volt
kV Kilo Volt
kVA Kilo Volt Ampere
kW kilowatt
kWh Kilowatt - hour
km Kilometer
km2 square kilometer
m meter
mm millimeter
s second
MW Megawatt (= 1,000 kW)
MWh Megawatt hour (= 1,000 kWh)
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Final Report Executive Summary
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
I. INTRODUCTION
1. The main objective of the TA is to enhance the capacity of grid-connected solar

photovoltaic (PV)system development in Qinghai Province by (i) introducing the
advanced technology to lower barriers for development, (ii) enhancing local capacity
in planning, design, construction, supply chain and Operation and maintenance
(O&M) (iii) improving the design of 10 MW class grid-connected solar PV pilot plant
and (iv) improving provincial government policy for solar PV development in Qinghai
Province.
2. The Peoples Republic of China (PRC) is the world largest solar cell producer with
huge production capacity which shares around 50% of 29.5 giga Watt (GW) solar
cell productions in the world as of 2011. Although the worldwide solar cell market is
estimated to be shrunk from 2012 and onward due to aggressive cut feed-in-tariff
(FIT) incentive in European countries, domestic huge production capacity in PRC
will continuously contribute to domestic solar PV market expansion. With ambitious
long term target in expanding solar energy install capacity, and feed-in-tariff for solar
energy project announced in 2011, the PRC has witnessed a significant growth in
domestic solar PV market where solar PV installed capacity has surged by 2.9 GW
from 0.9 GW in 2010. During the Twelfth Five Year plan (2011 2015), the PRC has
newly set a target for solar PV install capacity by 20 GW.
3. Qinghai Province, which is located in the northeastern part of the Qinghai-Xizang

plateau in the western part of PRC, has abundant mineral and natural resources,
while its Gross Regional Domestic Product (GRDP) is the second lowest of all the
provinces in PRC. To enhance economic development by utilizing these resources
in environmentally sustainable manner, the Qinghai Provincial Government has set
a development agenda for promoting solar energy, which would supply clean
electricity to the load centers in the eastern part of PRC, and for developing a solar
PV-related supply-chain industry, utilizing more than 20GW of solar power resource
potential with around 2,000 kWh/day of solar irradiation resources and the rich silica
deposits in the Qinghai Province.
4. The installed capacity of grid-connected solar PV systems in Qinghai Province

reached to 1,010MW by the end of 2011 which was 47.2% of total solar PV installed
capacity in PRC, and 1,000 MW additional solar PV power plants will be in operation
by the end of 2012. Qinghai provincial government plans to concentrate the
grid-connected solar energy power plants in Qaidam basin in Haixi prefecture to add
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Executive Summary Final Report
solar energy install capacity by 1,000 MW per year during the twelfth five-year plan
(2011-2015) period. By 2015, the planned solar energy install capacity will be 4,000
MW comprised of 3,500 MW of the grid-connected solar PV power plants, 300 MW
of the concentrating solar thermal power plants, and 200 MW of distributed solar PV
systems. The solar energy install capacity is planned to be expanded by 10,000 MW
in 2020 and by 20,000 MW by 2030. By the end of 2011, solar PV installed capacity
in Qinghai province reached 1,010 MW which was 47.2% of total solar PV installed
by the end of 2012. Qinghai province has been and will continuously be a major
driver for solar energy development in PRC. But challenges lie ahead, in view of
grid-connectivity and stability, electricity yield risk, financial viability, system quality
assurance, and development planning, to realize sizable grid connected MW and
GW class solar PV investment as planned in twelfth five-year plan (2011-2015) and
onward till 2020.
5. The TA report is composed of (i) advanced technology for grid-connected solar PV

systems; (2) capacity development in planning, design, construction, and operation
and maintenance (O&M) of the grid-connected solar PV system; (3) grid connectivity
of MW class solar PV system; (4) economics of solar PV power plant; and (5) policy
note, key findings and recommendations.
II. ADVANCED TECHNOLOGY FOR GRID-CONNECTED SOLAR PV SYSTEMS
6. Grid Stability and Safety
In a power system consisting of many power stations and related network equipment
spreading over wide area, it is essential to control the supply-demand balance and
to optimally operate the power system to maintain the stability of power system
overall. Penetration of sizable grid-connected solar PV system into the grid in PRC
and Qinghai province is raising concern over supplydemand balance control and
grid stability. Such supply and demand imbalance due to rapid diffusion of solar PV
could cause (i) excessive power supply generation; (ii) frequent heavy and
unexpected power flow causing critical grid condition with small margin in N-1
criteria; and (iii) emergency trip at inter-connection lines. The output fluctuation of
grid-connected solar PV has to be supplemented by the power plants having peak
and middle peak output supply capacity. But, in parallel with enhancing transmission
capacity, solar PV power plant in PRC is also required to enhance its own system for
grid stability and safety function such as introducing Fault Ride Through (FRT)
function, increasing capacity of power conditioner, and improving Mater Control and
Monitoring (MCM) system.
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7. High Voltage Direct Current (HVDC) Transmission
HVDC has high speed control system as well as large transmission capacity, and
power flow through the HVDC system can be changed and modulated using the
high speed control in timely manner. The power transmission capability and
modulation function are useful for recovery from the fluctuation of grid voltage and
frequency and disturbance in grid. HVDC as part of smart grid technology will be
essential for power system having high grid-connected solar PV and wind power
plants.
8. FRT, Power Conditioner, and MCM
FRT function as a part of inverter system should be required for MW-class grid
connected solar PV system to keep grid stability. FRT function improves durability of
solar PV system during sudden accident in the grid to ensure continuous operation
to avoid grid collapse. Power conditioner having maximum power point tracking
(MPPT) and two-stage conversion structure with phase separation in inversion
section are essential functions for grid connected solar PV system, and enlarging
power conditioner capacity up to 500 kW will also be necessary as install capacity of
grid connected solar PV increases. MCM having supervisory system software with
solar PV power station, substation, and control center monitoring function is another
essential function for grid connected solar PV system. MCM with the secondary
battery system such as sodium-sulfur (NaS) battery is a cutting-edge technology
enabling grid-connected solar PV output stable.
9. Good Practice of Grid-Connected Solar PV System in Qinghai
300 kW Grid-connected solar PV system in Xining, Qinghai province consists of i)

300-kW solar PV system (PV system), ii) 75-kW output power stabilization system
(EDLC: Electric Double Layer Capacitor), iii) 300-kW bi-directional inverter
(converter) for grid connection, iv) Inverter to supply power to loads, v) Monitor and
control system, and vi) Low-voltage incoming panel, as shown below.
-3-
v) Monitor and control system

High-voltage distribution line
Solar radiation Plant control device
meters/Temperature (including
stabilization control)
indicator
Monitor and measuring device

vi) Low-voltage
incoming panel
iii) Bidirectional
CNV inverter
300kVA (converter) for
DC bus bar (DC unit) grid connection
CHP CHP INV

400kVA iv) Inverter to
75kW 10kVA supply power
to load
Power Power
collector collector
Electric double-layered
capacitor, 1 kWh
ii) Output power stabilizing Load

system (EDLC system) : Power line
300-kW PV : Control signal line
i) PV power generation system (PV : Measuring signal
system) line
This pilot grid-connected solar PV power plant testified technology useful in

stabilizing power output to be distributed to the grid system even for a short period of
time when solar PV having output fluctuation due to intermittent nature of solar
irradiation is increasingly interconnected to the grid system. As conclusion, when
solar PV systems are interconnected to the power grid system, the EDLC system
can efficiently compensate output of solar PV system and stabilize the grid system.
III. TECHNICAL GUIDANCE FOR PILOT 10 MW GRID-CONNECTED SOLAR PV SYSTEM
10. Solar Resource Assessment, Tilt Angle, and Electricity Yield
Fish-eye Lens devise estimating solar irradiation resources is cost efficient approach
to validate both satellite imaginary and site specific based solar irradiation estimates.
Solar irradiation forecasting derived from Fish-eye Lens devises has shown good
agreement with satellite imaginary and site measurement data. On a basis of solar
resource validation, forecasted electricity yield is estimated at 16,822 MWh/year (tilt
angle of PV modules at 35) and 17,083 MWh/year (at 25), which suggests that tilt
-4-
angle lower than 35 of longitude and up to 25 are desirable tilt angle capturing the
direct and diffused sun-light, thereby maximizing output generation of solar PV
system. Due to output fluctuation of solar PV system, precise prediction of solar
irradiation is one of the core issues in terms of electricity yield projection and
electricity supply and demand control in grid system. Since several kinds of
estimation period (every 30 minute, 1 minute to several minutes interval,
one-second level interval) are required for appropriate supply and demand control,
weather forecast methods for these periods have to be developed.
11. Inverter Capacity
Total loss before the inverter is 10%. Then the capacity of inverter is enough to have
90% of the capacity of the solar PV panels. Specifications of inverters may be
offered unilaterally by the inverter manufacturer; still it is important here that the user
engineers understand each item of the specifications. Users understanding of the
specifications of inverter should be at the same level as manufacturers engineers.
There are several steps to be taken to improve the knowledge of user engineers: (i)
installation conditions based on the specifications; (ii) necessary function for the
solar PV system at the site; (iii) specifications of the equipment in detail and
specified value gained from testing method; and (iv) appropriate combination of
devices, to achieve high efficiency, low cost, long life time, and easy maintenance.
12. Transformer Capacity
The life of the transformer is estimated based on the maximum utilization factor and
the load factor and the life measurement method of transformer is established at
present. Considering a capacity factor of the solar PV system in the night period is
zero, less than 90 % of inverter capacity is good enough for the capacity of the
transformer. Generally speaking, a transformer has overloading capacity. It depends
on the insulator used in transformer, the load factor and ambient temperature. Load
factor of a transformer used for a grid-connected PV system will be less than 0.3. It
may be worth considering to downsize transformer capacity which is smaller than
solar PV installed capacity, though there is a need to investigate how much the
maximum power is, how many hours the continuous operation is, and how often
appear in appropriate period. On a basis of these considerations, a transformer with
smaller capacity may be introduced to PV system. Using smaller-capacity
transformer will reduce, not only installation cost, but also transformer's electric loss.
-5-
13. Lightning Protection
10 MW Pilot Project has been designed to be installed with SPD (Surge Protective
Device) in each joint box. This is an agreeable design in order to prevent PV arrays
from lightning hazards. Some array which was hit by lightning would spread the
impact to other arrays. It might happen to flash over between frame and photovoltaic
cell of PV arrays. Surge will be passed on to other PV arrays. To avoid damage by
lightning, SPD is effective. Function of SPD is to equalize potential between
equipment and the ground, which prevent the occurrence of flash over.
SPD
14. Reactive Power Absorption
For alterative current circuit, there are two kinds of power supply. One is effective
power and the other is reactive power. The PV system of 10MW Pilot Project will
supply only effective power, but transmission line needs reactive power because
there is line inductance and capacitance to the ground in transmission line. For this
reason, it is very appropriate to install SVC (Static Var Compensator) in the
substation to compensate the lack of reactive power. For 10MW Pilot case, a SVC
should be located at the transmission line's end.
15. Wiring between Modules
Wiring is vibrating and rubbing against PV frame because wiring was not firmly fixed.
This condition damages the insolation of wiring. Therefore, wiring needs some more
length for setting to absorb vibration and to avoid rubbing against PV frame as
below.
-6-
16. Direct Current Protection
Direct current (DC) circuit generally needs insulation to the ground and some
monitoring and protection might be necessary. When grounding accident happens in
the DC circuit of a solar PV system, the DC fault current flows from PV array through
transformer. DC fault current flows in the transformer as shown in Fig.3.3-10. In this
case the transformer may experience insulation deterioration quickly by DC fault
current which is dangerous for maintenance staffs. If someone touches the wiring of
DC circuit and the wiring does not have enough insulation, electrical shock may be
occurred. Even if the inverter does not have this function, it is possible to set this
function outside the inverter, such as DC OVGR (Over Voltage Ground Relay).
270kV/350V
PV Transless Inverter
Transformer
Grounding
DC fault current
17. Short Circuit Current Protection at Substation
In the case of short-circuited failure, the fault current will flows from not only
transformer but also other transmission lines that are connected to PV system.
Therefore, the capacity of circuit breaker should be designed to have enough
endurance of those total current.
PV PV PV PV
A : Short circuit current from transformer
B : Short circuit current from PV system through other transmission
-7-
18. Spare Parts Stocks for O&M
Long term operation and maintenance requires more skill in handling complex
devices such as power conditioners. Generally, a power conditioner has several
electronics boards inside and replacing such boards requires specific skills. If
replacement of parts is conducted by manufacturers engineer, minimum 2 or 3 days
have to be given before arrival of engineers at the site. It is desirable for the plant
operator to obtain the special training in the guarantee period.
Exchange number / month
S= a N M
S: number of spare parts
D in stock
a: coefficient ( >1 )
At first "a" will be
Delivery time : month desirable 1.5 ~ 2.
IV. GRID CONNECTIVITY OF MW CLASS SOLAR PV SYSTEM
19. Power Grid in Golmud, Qinghai
Current 330 kV transmission capacity is no longer sufficient enough to

accommodate the mushrooming grid-connected solar PV systems. Construction of
new substations and transmission lines were ongoing and further expansion being
planned in the area. The grid will be reinforced and able to mitigate the impacts of
huge solar PV stations connected after these constructions. Especially, 750kV
transmission project and 400kV HVDC project should be in place to ensure the
stability of grid conditions. In addition to the above, application of smart grid
Haixi Grid 110kV Lines or Substation
technology are being studied in
PRC. 110kV substation (Golmud
d. 110 kV Transmission lines East 110kV combiner station) has
been constructed to consolidate
c. 110kV Substation and step-up (35/110kV) the
110 kV Substation
(110/35kV Transformer)
power from six (6) PV power
b. 35 kV Transmission lines plants in Golmud solar park and
to connect with the 110kV grid.
PV1 PV2 PV3 PV4 PV5 PV6 a. PV power plant
Six (6) PV power plant companies
-8-
20. Improving Performance of FRT Function
Grid-interconnection code in many developed countries requires for a solar PV

power generator to control frequency fluctuation and voltage drop within the certain
regulated range and demands to equip with FRT function. The FRT function has yet
to be required for grid-connected solar PV system. However, the FRT function is
essential to keep grid stability for the country having huge install capacity of grid
connected solar PV system. Further the voltage recovery time of FRT will be
modified from 2.0 Sec to 0.5 Sec in consideration of more stable operation in
immediate future.
Requirement on LVRT*1 level recovery time
[%] Required time and voltage

100
90
Remained Voltage
80
Within
1 Sec
China
30
Japan
20
(before March, 2017)
0.0 0.5 2.0 [Sec]

Voltage recovered Time
Start time
of voltage drop
21. Block Diagram of Control System
Assessing the grid condition either it must be paralleled off or must be operated
continuously, is the key point to ensure safety operation of FRT function. When a
fault occurred in the connected transmission line, the PV power plant must be
paralleled off. But, when a fault occurred in other transmission lines with voltage
drop, the PV power plant must be operated continuously.
The PV power plants in PRC should establish a complete and efficient line
protection. This line protection can catch a fault in the case of 1) above easily and
quickly. The proposed block diagram of the control system designed is shown below.
Grid protection circuit integrated in this block diagram is designed to meet the
requirements to connect with low voltage circuit (6.6kV) without circuit breaker.
Under this connection, control system of inverter must have the grid protection.
-9-
Vdc / Idc Vout / Iout / Fout

Inverter
PV-Array Grid
Detection Circuit
Drive Circuit of
for Vout & Fout
Inverter
Grid Protection
Circuit
Control Control
for for
1
MPPT* Vout & Iout
Control
for
FRT Operation
*1 : Maximum Power Point Tracking
V. ECONOMICS OF 10 MW CLASS GRID-CONNECTED SOLAR PV POWER PLANT
22. Project Financial Rate of Return (FIRR/p)
Projection of revenue and cost are laid out for coming twenty years to calculate
Financial Internal Rate of Return (FIRR) (see the table below). FIRR obtained was
4.95%, higher than the calculated WACC 3.42%. Financial Net Present Value
(FNPV) calculated using the discount rate 3.42% was CNY 22 million. However, we
should not take this result at face value. This analysis method was based on the
assumption that the financial projection was valued in real terms: under the
inflationary condition, the interest rate of bank loan was converted to real terms
when WACC was calculated, and the operation and maintenance cost was
considered to be constant in real terms.
23. Equity Internal Rate of Return (FIRR/e)
Income and expense projections were made in nominal terms with loan repayment
schedule, and cash flow was calculated to obtain the return on equity. Only
operation and maintenance cost was adjusted for the inflation. The resulting IRR
(FIRR/e) should be compared with cost of equity in nominal terms. FIRR/e obtained
was 4.46%. This is much lower than NDRC Guideline value of 11% or the alternative
lower threshold 8%. The project is not likely to be financially attractive in project
owners point of view.
- 10 -
24. Project Life Extension and Carbon Revenue
To turn this condition around, we considered two ways to improve financial

performance of the Pilot Project. One was to extend the project life and loan tenor
from twenty years to twenty five years. The other was to increase the income by
acquiring the carbon credit, CER (Certified Emission Reductions). Operation of PV
power plant is expected to realize a lifecycle reduction of CO2 emission at a rate of
840g-CO2 per kWh. The Designated National Authority (DNA) of CDM (Clean
Development Mechanism) sets its basic price of CER at EUR 7.0 per t-CO2. This
price is equivalent to CNY 0.05 per kWh.
25. Credit Enhancement
With project life extension and CER revenue, low cost and long term credit will also
impact to improve FIRR/e. Given that financing plan comprised of 40% from equity
investment, 10% from domestic bank loan, and 50% of international and/or domestic
financial institution having low cost and long term credit (25 years tenor including 5
years grace and 2.60% loan interest) out of total project cost, FIRR/e under current
CNY 1.0 per kWh of off-take tariff will be improved significantly but still vulnerable to
certain adverse conditions.
FIRR/e
Change 20 years 25 years
w/o CER w/CER w/o CER w/CER
(a) Base case 5.18% 6.63% 7.59% 8.86%
(b) Capital cost overrun +10% 2.82% 4.24% 5.55% 6.78%
(c) Lower benefit -10% 2.58% 4.00% 5.34% 6.56%
(d) Faster deterioration -1.5% p.a. 3.79% 5.30% 6.31% 7.63%
(e) Delay of Construction 1 year 3.76% 4.88% 5.74% 6.78%
(f) CER income reduced -10% - 6.48% - 8.73%
(g) Higher Interest Rate +10% 4.76% 6.21% 7.21% 8.48%
(h) All of conditions above -1.93% -0.64% 0.00% 1.31%
VI. POLICY NOTE, KEY FINDINGS AND RECOMMENDATION
26. Enhancing Grid Connectivity: Stable Solar PV Power Evacuation
Given that solar energy power plant will continuously be concentrated in Golmud,
Haixi prefecture, current 330 KV transmissions and substation capacity is no longer
sufficient enough to evacuate power from mushrooming solar PV power plants with
- 11 -
more than 1,000 MW installed capacity in total which will be surged by 3,500 MW by
2015. Limited grid capacity for power evacuation risks stable power generation and
project cash flow, which will be a significant bottleneck of sustainable investment in
solar PV development in Qinghai. Thus, the presence of upgraded and expanded
transmission lines and substations are essential to evacuate surging power supply
from sizable solar PV plants. HVDC system which has high speed control system as
well as large transmission capacity, and power flow through the HVDC system can
be changed and modulated using the high speed control in timely manner. This
power changing and modulation is
useful for recovering from the
fluctuation of grid voltage and
frequency and disturbance of grid. 750
KV transmission line and 400kV HVDC
system are currently under
construction in Golmud should be in
operation to keep pace with solar PV
penetration into the grid in accordance
with install capacity target in provincial
twelfth five-year plan.
27. Upgrading Grid Code which Requires FRT Function: Improving Grid Stability
and Safety
When a fault occurs in a grid, the voltage drops and frequency and power flow are
also disturbed. Under this disturbed grid condition, the conventional power plants
connected to the grid try to keep sending power to the grid, which helps the grid
recover from the disturbed condition. If it drops out of N-1 criteria, the
interconnection lines must be disconnected or the whole grid will corrupts at worst.
The solar PV systems do not have the modulation capability, and it stops operation
(parallel off from grid) when voltage drop and/or disturbed frequency observed. This
parallel off is an unexpected trip. When the total capacity of PV plants that have
gone parallel off is too large, the gird collapses. To solve this problem there is a
technology developed which is called Fault Ride Through (FRT) function. This
function enables the inverters to keep operations when an instant voltage drop
and/or disturbed frequency encountered. The FRT function is essential to avoid the
unexpected trip and to keep the grid stability. Since the grid code to date does not
require FRT function for solar PV power plants, upgrading the grid code in which
FRT function is compulsory requirement for grid connection is urgently needed. On
top of it, as grid-connected solar PV is expected to be sharply increasing even within
a couple of years, low voltage recovery time (LVRT) is also suggested to be
shortened from 2.0 Sec to 0.5 Sec in immediate future for enhancing grid safety.
- 12 -
28. Solar PV based Micro-Grid System Development: Another Pathway for

Large-Scale Solar PV Application
The micro grid system has small size power grid and controls supply and demand
power within the system. It connects multiple power-generating facilities and
electrical storage devices, including natural-energy sources such as solar power,
thereby ensuring a stable supply of electricity. The micro-grid system provides
optimal control, adjusting and maintaining the balance between demand and supply
to ensure a stable supply of electricity. The micro grid system is also effective to
reduce the influence caused by the fluctuation of the large solar PV system to the
wide range power grid.
In case of micro-grid system in Los Alamos County in the United States which is up
and running in September 2012, solar PV power generation system and storage
batteries (1.0 MW of NAS batteries and 0.8 Lead battery) are introduced to compose
micro grid system with around $37 million of initial investment cost. Real-time price
signal system from the Energy Management System (EMS) of the power distribution
lines is also designed to monitor solar PV power generation, power storage volume
in the secondary batteries, and electricity consumption inside the grid system. In this
micro grid system, clustered PV power generation system and storage batteries that
connect between the power distribution substation and the switchgear are installed,
and demonstrate the ability to control variations in solar radiation with storage
batteries. EMS for controlling the system is introduced and the smart equipment on
the power distribution lines to simulate
distribution lines with a high PV power
penetration into the grid is operated. In
case of Qinghai, the similar concept of
Los Alamos micro grid is applicable.
Golmud city could be the candidate for
the micro grid system as the pilot
testing location, using abundant solar
PV electricity supply capacity from
adjacent solar park and the natural gas
resources as back-up.
29. Stringent Technical Specification Standard and Institutional Strengthening:

Enhancing Quality Control of Solar PV Power Plant
Technical standard for solar PV system in design, construction, and quality

acceptance have not been unified and enforceable, in spite of rapid increase in solar
PV installed capacity. Anecdotal evidence from domestic solar PV project owners
- 13 -
has raised concern over unpredictable deterioration in solar cell conversion

efficiency and inverter loss at DC-AC conversion, which will be resulted in a decline
in overall plant efficiency over time. Such possible quality deterioration in grid
connected solar PV performance will directly impact on electricity generation and
economics of power plant as a whole. Qinghai provincial government authority has
made necessary arrangement for grid connection and acceptance, water supply,
access road, and peak regulation. But, due to the absence of stringent and
enforceable technical specification standard, limited experience of developers, and
very narrow construction timeframe, a possible decline in the plant output over the
times needs to be anticipated without effective quality control measures.
Developing stringent and unified technical standard is suggested on a basis of

performance evaluation for grid-connected solar PV power plant in operation, and of
international technical standard such as the one issued by Technical Committee 82
(TC 82) of the International Electrotechnical Commission (IEC) which covers wide
range of solar PV system quality standard from design, construction, commissioning,
operation and maintenance, and disposal.
In parallel, building technical guidance and supervision team under the provincial
government authority is also suggested to conduct technical evaluation of whole
project cycle including construction and operation, and strengthen supervision and
guidance for solar PV owners who fail to attain originally predicted annual power
plant output. Moreover, solar energy projects using unique and variety of technology
such as various type of concentrating solar thermal power (CSP), concentrating PV
(CPV), micro-grid are expected to be emerging in immediate future. As less down 50
MW solar energy project is fallen in provincial government approving authority,
continuous capacity enhancement of such the provincial technical team and the
local design institute will also be essential to assure quality and performance of solar
energy projects in Qinghai.
30. Strengthening Metrological Observatory System: Mitigating Risks in Solar

Resource Forecasting
Reliable solar irradiation data is essential to predict electricity yield throughout more
than 20 years of solar PV project life. Project site selection and electricity yield
forecasting are always based on historical solar irradiation data and changes in
weather patterns from year to year, and long term data are desirable for determining
a representative annual data set. Currently, solar irradiation forecasting uses the
approach (i) comparing locally measured ground data (at site and at metrological
station less than 10 km from the site) to the satellite-derived data for the same time
interval, and (ii) correcting any bias in the satellite data to generate the improved
- 14 -
solar irradiation data set. In Qinghai, only 3 out of 54 meteorological observatory

stations in operation have solar irradiation measurement function. But, in such a
case, the solar energy developer is likely to confront a lack of reliable solar
irradiation and related weather data sets due to limited number of metrological
stations near by the potential site, and short and discontinuous period of times of
data sets. Ground measurement data at the site over 12 months would not have
good fit with satellite-derived data in general due to short period of data
accumulation and measurement error. Relaying upon satellite-derived data is likely
to cause more than 20% of high uncertainty in solar irradiation forecasting, which will
be resulted in the reduced electricity yield and deteriorated financial performance of
the project. Unreliable solar irradiation forecasting will also disturb stable grid
operation accordingly.
Considering the provincial government has set 20,000 MW of solar energy install
capacity by 2030 and has planned to concentrate solar energy power plant in
Golmud, enhancing metrological observatory system in Qinghai by (i) increasing
number of metrological observatory stations (one station in each 10 km mesh is
desirable), and (ii) accumulating continuous time series solar irradiation and related
weather data set will be a great help to gain developers and transmission operators
confidence in irradiation resource and electricity yield forecasting for sustainable
solar PV development in Golmud.
31. Credit Enhancement: Improving the Project Financial Performance
Financial assessment for the pilot 10 MW solar PV power plant indicates that
financial rate of return (FIRR) of 4.95% at base case scenario, which is marginally
higher than 3.42% of weighted average cost of capital (WACC). Setting appropriate
tariff level taking consideration into latest static investment cost trend and leveraged
cost of energy (LCOE) will be essential for sustainable solar energy development.
But, if credit enhancement support will be in place, the project could become
financially viable even with CNY 1.0 per kWh of off-take tariff level.
One approach found effective is to extend loan tenor and project life from 20 to 25
years. Longer loan tenor and project life will not only improve the financial
performance of projects, but also contribute to the reduction of carbon dioxide
emission for most of carbon dioxide emission from PV power generation comes from
production and installation processes of the equipment. Another effective and
important approach is an introduction of soft loan in funding plan. For capital
intensive, expensive PV projects it is quite important to have such funds having low
cost and long term tenor terms. Given that (i) extension of loan tenor and project life
from 20 to 25 years, and (ii) 2.6% of interest rate with 25 years tenor (including 5
- 15 -
years grace period) are considered, the

FIRR/e improves 7.59% from 2.01% in
the original case. If certified emission right
(CER) is considered, the project IRR
further improves 8.86%. Providing that all
credit enhancement supports are
accommodated (2.5% interest of low cost
and 25 years of long term loan with CER
revenue), sensitivity analysis shows that
the FIRR/e would decrease to (i) 6.78% if
there were a capital cost overrun 10%; (ii)
6.56% if revenue decreased by 10%; (iii) 7.63% if deterioration accelerated by -1.5%,
(iv) 6.78% if there were 1-year delay in construction; (v) 8.73% if CER price declined
by 10%; and (vi) 8.48% if interest rate hiked by 10%. Credit enhancement support
will greatly improve the project financial performance.
Provincial government is encouraged to collaborate with domestic and international

financial institutions having low cost and long term credit product for supplying credit
enhancement assistance to continuous but large scale solar PV development in
Qinghai. But, the project financial performance will be vulnerable if couple of
combined adverse scenario occurs, provincial government is also expected to
supply risk mitigation support in power evacuation, grid stability and safety, quality
control, and solar irradiation forecasting as suggested in previous paragraphs, so
that the several risks assumed in adverse scenario can be mitigated.
- 16 -
Renewable Energy Development Chapter 1
Final Report Introduction
CHAPTER 1
INTRODUCTION
CHAPTER 1 INTRODUCTION
1.1 BACKGROUND
Large-scale grid-connected PV 1 power station is an important form of PV power

generation. Since the beginning of the 21st century, many grid-connected PV power
stations of MW class have been built in various countries over the world, plans to
construct 100MW class and even GW class PV power stations are now ready to come
out soon, and PRC 2 has also worked out many programs to construct MW class
grid-connected PV power stations. Large-scale grid-connected PV power stations
have become one of the important development orientations for PV power generation
in the world today.
In February, 2005, the Renewable Energy Law was enacted in PRC. The Law
provides a feed-in tariff for some renewable technologies, and specifies grid-feed as
requirements and standard procedures, and establishes incentives and supervisory
measures for promoting renewable energy development. In 2007, NDRC 3 issued the
Medium and Long-Term Development Plan for Renewable Energy in PRC, which
aimed to increase the share of renewable energy to 10% by 2010, and to 15% by
2020. Besides, in November 2009, the State Council of PRC announced to reduce
carbon dioxide emissions per unit of gross domestic product by 40% to 45% by 2020
compared to 2005 level.
Increasing the share of renewable energy to achieve the targeted energy mix by 2020
will also reduce carbon dioxide emissions. The share of renewable energy of the total
primary energy mix has increased steadily, from 7% in 2005 to 9% in 2009, and likely
to reach the target of 10% in 2010. However, the growth of all renewable energy
sources has not been uniform. While wind power increased rapidly from 1.3GW in
2005 to 25GW in 2009, the growth rate of solar PV power generation was rather slow
as the unit cost for power generation stayed at high level.
However, the domestic market for solar PV power generation is expected to grow with
the government support. The government launched the first concession program for a
10 MW class grid-connected solar PV system in Dunghuang, Gansu Province in 2009,
and the nationwide grid-connected solar PV concession program with the total
installed capacity of 280MW in 2010. With the ambitious updated target to increase
solar energy install capacity up to 21 GW by 2015, installed capacity of solar energy
1 Photovoltaic
2 The Peoples Republic of China
3 National Development and Reform Commission
1-1
Chapter 1 Renewable Energy Development
Introduction Final Report
surged from 0.9 GW in 2010 to 2.9 GW in 2012.
Qinghai Province, which is located in the northeastern part of the Qinghai-Xizang

plateau in the western part of PRC, has abundant mineral and natural resources,
while its GRDP 4 is the second lowest of all the provinces in PRC. To enhance
economic development by utilizing these resources in environmentally sustainable
manner, the Qinghai Provincial Government has set a development agenda for
promoting solar energy, which would supply clean electricity to the load centers in the
eastern part of PRC, and for developing a solar PV-related supply-chain industry,
utilizing more than 20GW of solar power resource potential and the rich silica deposits
in the Qinghai Province. The installed capacity of grid-connected solar PV systems in
Qinghai Province reached to 1,010MW by the end of 2011 which was 47.2% of total
solar PV installed capacity in PRC, and 1,000 MW additional solar PV power plants
will be in operation by the end of 2012.
Qinghai provincial government plans to concentrate the grid-connected solar energy

power plants in Qaidam basin in Haixi prefecture to add solar energy install capacity
by 1,000 MW per year during the twelfth five-year plan (2011-2015) period. By 2015,
the planned solar energy install capacity will be 4,000 MW comprised of 3,500 MW of
the grid-connected solar PV power plants, 300 MW of the concentrating solar thermal
power plants, and 200 MW of distributed solar PV systems. The solar energy install
capacity is planned to be expanded by 10,000 MW in 2020 and by 20,000 MW by
2030. By the end of 2011, solar PV installed capacity in Qinghai province reached
1,010 MW which was 47.2% of total solar PV installed capacity in PRC, and 1,000
MW additional solar PV power plants will be in operation by the end of 2012.
1.2 TOR 5
TOR as included in Appendix A of the Consultants Contract is repeated in Appendix 1

in this report.
1.3 OBJECTIVES
This Project is conducted through the TA 6 of the ADB 7.
The TA aims to increase the capacity of grid-connected solar PV system development

in Qinghai Province by;
4 Gross Regional Domestic Product

5 Terms of Reference
6 Technical Assistance
7 Asian Development Bank
1-2
(i) introducing advanced technologies to lower barriers for development,

(ii) enhancing local capacity in planning, design, construction, O&M 8, and solar PV
supply chain,
(iii) improving the design of 10MW class grid-connected solar PV power systems,
(iv) improving Provincial Government Policy for solar PV development in Qinghai
Province,
(v) knowledge dissemination on grid-connected solar PV system, and
(vi) organizing interim and final workshop.
To achieve the objective, NEWJEC Inc., a Japanese consulting firm, was employed by
ADB through the international competitive bidding.
1.4 STRUCTURE OF THE FINAL REPORT
The Final Report presents the major documents prepared by the Consultant during
the course of the TA and organized according to the Table of Contents.
8 Operation & Maintenance
1-3
Final Report Advanced Technology for Grid-Connected Solar PV Systems
CHAPTER 2
ADVANCED TECHNOLOGY
FOR GRID-CONNECTED SOLAR PV SYSTEMS
CHAPTER 2 ADVANCED TECHNOLOGY FOR GRID-CONNECTED

SOLAR PV SYSTEMS
2.1 International Best Practices for Grid Protection Design and System
Configuration for a 10MW-class Grid-connected Solar PV System
2.1.1 Principle of Demand and Supply Power Balance
In a power system consisting of many power stations and related network equipment
spreading over wide area, it is essential to control the supply-demand balance and to
operate the power system property as to maintain the stability of total power system.
The frequency of power system is affected by the balance of power consumption and
power generation. The system frequency must be maintained within certain range in
order to avoid serious system accidents.
Recently, RE 1 such as solar, wind, biomass and so on has been increasingly

introduced in power system to mitigate the climate change and to reduce air pollution.
However, some REs, such as solar and wind have disadvantages of wide fluctuation
of output power. The output of solar energy varies greatly according to time of a day,
day-to-day weather patterns, and seasons, but also fluctuates sharply by change in
the weather.
The importance of supply and demand control technologies especially in short period
is now given focus as the number and proportion of REs in power systems are being
increased.
2.1.2 Influence of Rapid Expansion of Solar PV Systems and Countermeasures

by PV Power Stations
In PRC, power demand has been rapidly increasing. To meet the increasing demand,
enhancement of power supply (power generation facilities) and expansion of
transmission and substation facilities are planned and implemented. Installation of
large-scale solar PV systems is one of the means to secure the power supply to meet
the increasing demand. However, power supply enhancement by installation of a
large-scale solar PV system brings the following concerns to a power grid.
(1) Supply demand balance control

(2) Grid stability
1 Renewable Energy
2-1
Advanced Technology for Grid-Connected Solar PV Systems Final Report
Countermeasures to be taken by solar PV systems to cope with such issues are;

(1) transmission of real-time operation data,
(2) equipment of FRT 2 function.
In Haixi Prefecture where Golmud is located, power supply will exceed the demand
and surplus power would be generated when all planned solar PV projects are
implemented. Following countermeasures are considered to deal with such surplus
power: 1) output control of solar PV systems, 2) expansion of transmission lines in
order to send the surplus power to other demand areas.
It still remains some issues to realize stable operation of the power grid even through
power supply-demand is balanced according to calculation, as it is difficult to estimate
and control power output of solar PV systems which are influenced by weather. As
countermeasures against this issue, it is required to collect and store the real-time
operation data and continuous operation record of the solar PV system. Therefore,
the facility that transmits such information is required to be installed in solar PV
systems.
Besides the power system expansion, countermeasures by the solar PV system are
expected for the grid stability. A solar PV system has a possibility of unexpected trip
when a power system disturbance (voltage sag, etc.) occurs, which can cause the
power system collapse. To prevent such problem in the power system, FRT is
equipped, which is essential facility for PV systems.
2.1.3 Practices in RE-Advanced Countries
Recently, the impacts of renewable power systems on supply-demand balance and

gird stability attract attention. In Germany and Spain, the total capacity of wind power
is increasing in the grid and the impact is remarkable and not negligible.
The generated power is liable to variation caused by unstable natural phenomena,

which affects stability of the grid. The impact and countermeasure of wind power in
Germany and Spain should be considered for planning of the construction of PV
power system.
(1) Impacts on Grid Stability
The impacts on the grid and countermeasures are summarized in Table 2.1-1, and
detail is described below.
2 Fault Ride Through
2-2
1) Impact-1: Excessive supply generated by RE
The power generated by conventional power plants (such as nuclear, thermal

and hydro) is reduced to meet the demand, if the power generated by RE is to be
consumed in the first place. When the power by RE decreases, the generation of
conventional power plants should be increased timely to cope with the demand.
On the other hand, the capacity of thermal and hydro power should be kept
above certain level in order to keep the grid stability. If the excessive power is
generated by wind/PV power plants, the excess power should be either reduced
or stored. In Germany and Spain, the excessive power frequently appears as a
number of wind power plants have been installed increasingly.
The countermeasures and outlook for the above impact in both countries are as
follows.
- Spain : Power reducing operation of the RE power plants.

Required amount of the reducing power of the RE power plants
will be increased in proportion to increase of their capacities.
- Germany : Storage the excess generated power by battery, pumped storage

power plant, etc., because the generated power by the RE power
plants must be supplied as much as possible in line with the
government policy.
However, operation of the grid will be more difficult as installation of power

storage facilities does not proceed in pace with the growth of renewable power
plants.
2) Impact-2: Heavy power flow causes frequent critical grid condition with
small margin of N-1 criteria 3.
The following matters result in heavy power flow and critical grid condition.
- Many wind power plants are constructed at the same location and the
concentrated power from the plants is transmitted through the same
transmission line.
- The long distance transmission lines are required between the wind power
plants and demand area because the plants are constructed at the location far
from the demand area.
- Generated power by wind power plant is sometimes bigger than the planned
3 N-1 criteria means Criteria on grid condition during shortage of one(1) equipment, such as transmission line or transformer
2-3
power because the wind forecast is very difficult.
Grid stability must be kept sufficient under single fault (N-1) condition. When the
margin between N-1 criteria and actual power flow is not enough, grid operator
should execute emergency operation to keep the stability. Power reducing
operation of wind power plants is one of the countermeasures in the emergency
operation.
In Germany, the frequency of execution of emergency operation is example, 80

times in 2006, 155 times in 2007 and 175 times in 2008. In fact, to solve this
problem, the additional transmission lines should be constructed. However,
construction of new transmission lines often faces opposition of inhabitants and is
difficult to realize. Therefore, the grid condition will be more critical in proportion
to increase of RE power plants.
3) Impact-3: Unexpected power flow caused by concentrated wind power

plants increases in the Germanys grid
Unexpected power mentioned in Impact-1 is transmitted to the main grid which is

connected with the neighbor grids. As a result, the unexpected power flows
appear in places in the connected grids. If the grids go into severe condition by
unexpected power, related TSO 4s in wide area should engage in cooperation.
If the TSOs can get data/information of such severe condition in advance, the
co-operation will become easier. For grid co-operation to maintain the grid stability,
the analyses taking into account of power flow of unexpected power should be
carried out by a joint research unit set up by the related TSOs.
4) Impact-4: Emergency trip at interconnection lines caused by unexpected

trips of many wind power plants
When a fault occurs in a grid, the voltage drops and frequency and power flow
are also disturbed. Under this disturbed grid condition, the conventional power
plants connected to the grid try to keep sending power to the grid, which helps the
grid recover from the disturbed condition. If it drops out of N-1 criteria, the
interconnection lines must be disconnected or the whole grid will corrupts at
worst.
The wind/PV systems do not have the modulation capability, and it stops
operation (parallel off from grid) when voltage drops and/or disturbed frequency
observed. This parallel off means an unexpected trip. When the total capacity of
wind/PV plants that have gone parallel off is too large, the gird collapses. To
4 Transmission System Operator
2-4
solve this problem there is a technology developed which is called FRT function.
This function enables the inverters to keep operations when an instant voltage
drop and/or disturbed frequency encountered.
The FRT function is essential to avoid the unexpected trip and to keep the grid
stability. At present, requirement on FRT function for wind PV system is
stipulated in the grid codes in Germany, Spain and other countries.
Table 2.1-1 Impacts on the Grid and Measures

Impact Measures Outlook
Supply - Impact-1 Power reducing operation of the Required value of the reducing power of
demand Excessive supply generated renewable source power plants. (Spain) the renewable source power plants will
balance by the renewable source be increased in proportion to increase of
power plants their capacity.
Storage the generated power by battery, It will go into the severe condition, even
pumped storage power plant, etc., though new power storage plant will be
because the generated power by the constructed.
renewable source power plants must be
supplied without power reducing
operation comply with government
policy. (Germany)
Grid Impact-2 Power flow operation with/without The additional transmission lines should
stability The heavy power flow causes neighboring TSOs grid operation. be constructed as a drastic measure.
critical grid condition with At emergency condition, power reducing The construction, however, is
small margin of N-1 criteria operation of the renewable source considered hard because of strong
frequently. power plants. (Germany) public opposition.
The grid condition will be more critical in
Power reducing operation of the
proportion to increase of renewable
renewable source power plants. (Spain)
source power plants.
Impact-3 Stability analysis studies are carried out
Unexpected power flow by organization set up by the related
caused by concentrated wind TSOs.
power increases around (Germany)
Germanys grid.
Impact-4 Specified organization for renewable
Emergency trip at the source power plants is established to
inter-connection lines caused control these plants. (Spain)
by the unexpected trips of a
A renewable power plant is obligated to In Japan, requirement of FRT function
large number of the wind
equip FRT function. Requirement of FRT has been prescribed in Grid
power plants.
function is prescribed in Grid Code. interconnection Code since 2011.
FRT function will be required in other
countries.
5
(Source: Research report of study grope presented by METI , Japan)
2.1.4 Locally Appropriate Countermeasures for Grid Protection in Golmud, Qinghai

Province
(1) Necessity of FRT
FRT function of inverter should be required for a 10-MW-class solar PV system as

grid protection to keep grid stability. Not only the FRT function but also the impacts on
a grid by a 10-MW-class solar PV system and the measures to be taken are described
5 Ministry of Economy, Trade and Industry, Japan
2-5
in this section for introduction of the grid protection. Grid stability and necessity of FRT
is described taking Marching people as an allegory.
Now, the five (5) persons are marching hand in hand as Fig 2.1-1-a.
When person C suddenly slips, the following three (3) cases will be occurred.
- Case 1 : person B and D are very strong (Fig 2.1-1-b1)

Person C is quickly helped without falls down, and marching will be quickly
restarted.
- Case 2 : person B and D are strong (Fig 2.1-1-b2)

Person C falls down but person B and C can be standing with the support of person
A and E, and marching will be restarted after person C stands.
- Case 3 : person B and D are weak (Fig 2.1-1-b3)

Person C falls down and person B and C also fall down, in worst case, person A and
E also fall down, and marching cannot be continued.
If the marching line consists of three (3) persons, strength of marching line is weaker
than five (5) persons line, and the Case 3 will frequently occur by slipping accident. If
it consists of seven (7) persons, the strength is stronger than five (5) persons line.
Grid stability is as the same as marching line. In case of large number of generators is
connected in the grid (many persons in the marching line), the grid stability will be
much stronger than in the case of small number of generators is connected.
In addition to the above, the strength of each generator (strength of each person) is
also key point to keep grid stability. PV plants without FRT function are weak for
keeping grid stability (such as Case 3), even though these have large capacity (MW).
When an accident occurs, the PV plants will fall down due to the weakness of the PV
plants (such as person B and D in Case 3). If many PV plants fall down by one small
accident such as slipping, the grid will go into severe condition and in worst case, the
grid will be fully collapsed (Case 3).
FRT function improves the strength of PV plant during accident. The requirement of
FRT function is Continuous Operation (continuous standing such as person B and D
in Case 2) to avoid grid collapse (Case 3), and it is not Recovery of grid fluctuation
(to help slipped person such as person B and D in Case1). Generally, the recovery of
grid fluctuation is one of the tasks of hydro and thermal power plants.
2-6
A B C D E
Five (5) persons are marching in line
A B C D E
Person C slips
Fig 2.1-1-a
A B C D E A B C D E A B C D E
Person B&D help C
Fig 2.1-1-b1: Case 1 Fig 2.1-1-b2: Case 2 Fig 2.1-1-b3: Case 3

Person B and D are Person B and D are Person B and D are
very strong strong weak
Person C is quickly helped Person C falls down but person Person C falls down and
without falls down, and B and C can be standing with person B and C also fall down,
marching will be quickly person A and E support, and in worst case, person A and E
restarted. marching will be restarted after also fall down, and marching
person C stands. cannot be continued.
Fig. 2.1-1 Description of Grid Stability

(taking marching by persons as an example)
2-7
(2) Enhancement Plan of Large Capacity Transmission Lines
In view of the total supply-demand balance in PRC grid, the power supply is in short,
and the new transmission lines are under construction also in Golmud. HVDC 6
system is one of the new transmission lines. Generally, HVDC system has high speed
control system as well as large transmission capacity, and power flow through the
HVDC system can be changed and modulated using the high speed control in timely
manner. This power changing capability and modulation function are useful for
recovery from the fluctuation of grid voltage and frequency and disturbance in grid.
On the above situation, the huge power generated by PV power plants in Golmud will
be sent to the load center nearby and consumed in the areas. The planned capacity of
PV power is too much for demand in Golmud grid and grid operator concerns about
the uneasy grid operation because of huge power of PV systems.
The grid operator intends to reduce power generation efforts and to give trip order to
the PV power plants without prior announcement. The data/information to be acquired
in order to execute the intended operation is required by the grid operator.
2.2 Power Conditioner
2.2.1 Internationally Advanced Technologies for Power Conditioner of the 10 MW

Class Grid-connected Solar PV System
2.2.1.1 Development of Grid-connection Inversion Technology
Research of PV inversion technology was started in the 1950s or 1960s, when SCR 7
based sinusoidal wave PV inverters were used; in the 1970s, GTO/BJT was used in
PV inverters; in the 1980s, single-board computer technology and VMOSFET/IGBT/
MCT devices provided conditions for development of large capacity PV inverters; in
the 1990s, advanced control technologies such as DSP 8 signal processor and
multi-level exchange, vector control, fuzzy logic control and neural networks found
applications in on-grid PV inversion systems, with inversion efficiency of 91 ~ 94%;
since 2000, the development of high performance dedicated on-grid inversion
modules increased the performance of on-grid inverters, with inversion efficiency
being increased to about 96%.
Insulation with normal shock transformer is the main form of grid-connected solar PV
6 High Voltage Direct Current

7 Silicon-controlled rectifier
8 Digital Signal Processor
2-8
power generation, as it retains the main advantages of non-insulated single stage

conversion without transformer, while eliminating the main disadvantages of no
insulation isolation. The SMA Company of Germany developed Sunny Central series
inverters with different unit power ranges, SC 1,000MV inverters can directly connect
to MV grid (10 kV or 20 kV) without the use of a LV transformer, thus lowering the
system cost and increasing power generation efficiency. With the expansion of PV
power generation application scope, inconsistent solar radiation, diversified PV
assemblies and complicated installation conditions (such as BIPV 9 in cities and tree
shading on roof in rural areas) have raised higher requirements on grid-connected
solar PV systems, now Enphase Energy and Microinverter of the UK and Solarmagic
of American Nation Semiconductor are developing micro converters and micro
inverters (assembly inverters), to realize modular and distributed power generation
with modules. At present, development and production of PV grid-connected inverter
products in other countries are mainly concentrated on tracking maximum power and
integrated single stage energy conversion in inversion section, digital control is mainly
adopted in control circuit, and complete protection circuits are provided emphasizing
on system safety, reliability and expandability. PV inverters are developing towards
high efficiency and small size, and using no isolating transformer has become a
mainstream.
Researches on PV grid-connected inverters in PRC have mainly been done in

maximum power tracking and two-stage energy conversion structure with phase
separation in inversion section. Now, inverters of small size in PRC are basically have
a quality of about the same level as those in other countries, and further improvement
is required in inverters of large size. 500kW capacity as maximum inverter has
developed as large size inverter.
2.2.1.2 Research Orientation and Development Trend of PV Grid-connected Inverters
At present, researches on PV grid-connected inverters are concentrated in the

following aspects:
(1) Realizing high quality electric energy conversion, strict consistency of current
frequency and phase output from grid-connected inverters with the grid, so that
the output power factor is as close to 1 as possible;
(2) Realizing safety protection requirements for system, such as output overload
protection, output short-circuit protection, input reversed connection protection,
DC overvoltage protection, AC overvoltage and undervoltage protection, island
9 Building-integrated Photovoltaics
2-9
operation protection and unit self-protection;
(3) Realizing high reliability, now PV grid-connected solar PV systems are installed
mainly in areas with severe natural conditions, therefore inverters should ensure
low fault rate in long time operation conditions, with powerful self-diagnosis ability.
Therefore, the designed inverters shall have rational circuit structure and
elements shall be strictly selected;
(4) Maximum power tracking to make maximum use of PV matrix, so as to increase

the inverter efficiency.
There are the following trends in the development of PV grid-connected inversion
technologies:
1) Reducing energy loss with inconsistent insolation and increasing the

grid-connected inversion efficiency;
2) Increasing system robustness and energy conversion efficiency;
3) Improving reliability and extending service life of power elements, for

example, the high power three-level module Easy and Econo4 series,
IRMOSFET 10 and IGBT 11 products can meet the requirements of 25 years
of operation in PV power generation systems;
4) Use of shunting technology, multi-unit coordinated control technology and

multi-unit island operation detection technology for large power PV
grid-connected inversion systems to detect the insulation status on AC and
DC buses, to prevent current leakage in system, avoid generation of loop
current between inversion systems and interference of high current to driving
signals and sampling signals, performing coordinated control between
inversion systems, active and passive anti-island detection and power
balance between units, to realize overall energy dispatching for MW class
large power distributed PV grid-connected inversion systems.
The main principles for requirements on inverters are: large power inverters on the
basis of high efficiency and low harmonic content, shall have adjustable power factor,
participate in grid dispatching, and also FRT function, able to resist certain grid fault.
10 IROMOS Field-effect Transistor

11 Insulated-gate Bipolar Transistor
2 - 10
2.2.2 Locally Appropriate Power Conditioner Technology
2.2.2.1 Specific Technical Requirements and Suggestions for Inverters
(1) Basic Requirements
1) Inverter Functions:
a) Operate automatically, with high level of visualization of operation status.
b) PV MPPT function 12.
c) DC overvoltage/overcurrent protection, reversed polarity protection,

short-circuit protection, grounding protection (with fault detection function),
undervoltage/overvoltage protection, overload protection, overheating
protection, over/under frequency protection, 3-phase unbalance protection
and alarm function.
d) FRT function and active and reactive power regulation function.
(2) Inverter Efficiency
a) Maximum efficiency: 98.5%
b) Efficiency at 10% rated AC power: 95%
(3) Inverter Input and Output Parameters
a) Max. input voltage: DC 880V
b) MPPT voltage range: 450V ~ 850V (or wider)
c) Output voltage: to be determined by manufacturer (3 phases)
d) Voltage fluctuation: comply with the requirements of Technical

specification for PV power station connection
to grid.
e) Frequency: comply with the requirements of Technical

specification for PV power station connection
to grid.
f) Rated power factor: 0.99
12 Maximum Power Point Tracking
2 - 11
g) Power factor regulation range: 0.95 (leading) ~ 0.95 (lagging)
h) Total current waveform distortion: <3%
i) The AC output side of inverters shall be provided with power generation metering
function, to meet the requirement to measure the power generated by the
connected PV module.
(4) Electrical Insulation Performance
a) DC input to ground: 2000VAC/1min, with leak current <20mA.
b) AC output to ground: 2000VAC/1min, with leak current <20mA.
c) Other indicators
- Power consumption during night: 100W.
- Communication interface: RS485 port.
- Service ambient temperature: -25C +55C (the inverters shall be able to
work continually and reliably within this temperature range).
d) Cooling: air cooling with air duct connections.
e) Communication protocol: MODBUS communication protocol shall be used, which

shall be opened freely to users.
(5) Lightning Protection Ability
Lightning protection devices shall be provided on AC side, with lightning protection

and alarm function (nominal discharge current greater than 20kA, with residual
voltage not higher than 3.8kV); and anti-surge ability, with the equipment able to
withstand 5 impacts with simulated lightning current waveform 8/20s and amplitude
of 20kA, at interval of 1min between lightning and function normally in this condition.
(6) Inverters
Inverters shall have complete function to automatically synchronize with the grid, and
have active power and reactive power regulation ability. It also need to have overload
ability and able to operate over long time at an overload, and can only conduct current
in one direction. Inverters also requires complete protection functions, with
comprehensive protection strategies including DC overvoltage/undervoltage, AC
overvoltage/undervoltage, AC overcurrent, short-circuit, over/under frequency, and
system transient power.
2 - 12
(7) Quality of Electric Energy
The quality of electric energy provided from inverters to AC load shall be under control,
and it shall be ensured to measure all electric energy quality on inverter AC side
(harmonics, voltage deviation, voltage unbalance, DC components, voltage
fluctuation and flicker), which shall meet the requirements of national standards,
industrial standards, and of State Grid Corporation and local power supply
departments.
1) Harmonics and waveform distortion
It is desirable to have low current and voltage harmonic level. High harmonics will
increase the possibility of harmful effect to the connected equipment. The
permissible level of harmonic voltage and current depends on the power
distribution system characteristics, power supply type, the connected loads and
equipment, and the current regulation of the grid. Output from a PV system shall
have low current distortion, to ensure that no detrimental effect will be caused to
other equipment connected to the grid. Harmonics of different orders shall be
limited within the percentages listed in the table below.
Table 2.2-1 Limit on Harmonic Voltage in Public Grid

Grid nominal voltage Voltage total Content of different harmonic voltage (%)
(kV) distortion rate (%) Odd Even
0.38 5.0 4.0 2.0
6
4 3.2 1.6
10
35
3 2.1 1.2
66
110 2 1.6 0.8
The permissible value of harmonic current injected from a PV power station to the
grid shall be distributed according to the ratio of the installed capacity of the
station to the capacity of power supply equipment at this common connection
point.
Table 2.2-2 Permissible Value of Harmonic from PV Power Station

Nominal Reference Harmonic order and permissible value of harmonic current (A)
voltage short-circuit
(kV) capacity (MVA) 2 3 4 5 6 7 8 9 10 11 12 13
35 and
250 15 12 7.7 12 5.1 8.8 3.8 4.1 3.1 5.6 2.6 4.7
12
2 - 13
(The power supply equipment capacity at the common connection point of the
project will be determined later as the connection system has not been
determined.)
2) Voltage deviation
To ensure normal working of local AC loads, the output voltage of inverters in PV

system shall match that of the grid. During normal operation, the permissible
voltage deviation at the connection of PV system with grid shall conform to the
provisions in GB/T 12325.
3) Voltage fluctuation and flicker
The voltage fluctuation and flicker of inverters shall meet the provisions in GB/
T12326-2008 Power quality - Voltage fluctuation and flicker. The limit values of
voltage variation are related to variation frequency and voltage level.
Table 2.2-3 Voltage Fluctuation and Flicker of Inverters

d, %
R, h-1
LV, MV HV
R<1 4 3
1 < r < 10 3 2.5
10 < r < 100 2 1.5
100 < r < 1000 1.25 1
The short time flicker Pst and long time flicker Plt shall meet the limits set forth in
the table below.
Table 2.2-4 Short Time Flicker Pst and Long Time Flicker Plt
System voltage level LV MV HV
Pst 1.0 0.9 0.8
Plt 0.8 0.7 0.6
Notes: 1. In this standard, the measuring cycle for Pst and Plt is respectively taken as 10min
and 2h;
2. Values in brackets for MV are only applicable to cases that all users connected with
PCC are at the same voltage level.
4) Voltage unbalance
When the PV system is operating on grid (only output to 3 phases), the 3-phase
voltage unbalance at the grid connection shall not exceed the values specified in
GB/T 15534, and the negative sequence voltage unbalance at common
2 - 14
connection point shall not exceed 2%, or not exceed 4% for short time. For this,
the negative sequence voltage unbalance caused by the PV power station shall
not exceed 1.3%, or not exceed 2.6% for short time.
5) DC component
When a PV power station is operating on grid, the DC current component fed by

inverters to the grid shall not exceed 0.5% of its rated AC value.
6) Power factor
When the output from the inverters in the PV system is greater than 50% of its
rated output, the average power factor shall be no less than 0.9 (leading or
lagging). The formula of average power factor for a period of time is:
EREAL
Power Factor = 2 2
EREAL + EREACTIVE
Where, EREAL : active electric power (kWh)

EREACTIVE : reactive electric power (kvarh)
7) Response characteristics at voltage anomaly
A large or medium sized PV power station shall have some ability to withstand
voltage anomaly, to avoid disengagement in case of grid voltage anomaly,
causing loss of grid power source. It must be ensured that the PV power station
will not interrupt grid-connected operation when the voltage at the connection
point is in the area of and above the voltage profile line in Fig. 2.2-1, and the PV
power station is permitted to stop supplying power to the grid line when the
voltage at the connection point is in the area below the voltage profile line in Fig.
2.2-1. (T1 = 1s, T2 = 3s)
2 - 15
1.1
1.0
ULO 0.9
0.8
0.6
0.4
0.2
0
-1 0 T1 T2
Fig. 2.2-1 Required Capability on the FRT Function
8) Response characteristics at frequency anomaly
A large or medium sized PV power station shall have some abilities to withstand
frequency anomaly, being able to operate with the frequency deviation in the grid
as shown in the table below.
Table 2.2-5 Required Operation Time for Large or Medium Size PV Power Station
in case of Grid Frequency Anomaly
Frequency range Operating requirements
below 48Hz To be determined according to the minimum frequency at which the PV power
station inverters are permitted to operate or the grid requirements
48Hz-49.5Hz Able to operate at least 10min. when it is below 49.5Hz
49.5 Hz -50.2Hz Continuous operation
50.2 Hz -50.5Hz Each time the frequency is above 50.2 Hz, the PV power station shall be able
to operate continuously for 2min, but also with the ability to stop feeding power
to the grid line within 0.2s, with the actual operation time determined by the grid
dispatching entity; at this time, PV power station originally in shutdown state is
not allowed to be connected to the grid.
above 50.5Hz Stop feeding power to the grid line within 0.2s, and PV power station originally
in shutdown state is not allowed to be connected to the grid.
9) Safety and protection
It shall have corresponding grid protection function to ensure safety of equipment

and personnel in case of anomaly or fault in the PV system or grid.
2 - 16
a) Over current and short-circuit protection
A PV power station shall have certain overcurrent ability, and it shall be able
to work continuously and reliably for no less than 1 min. up to 120% rated
current, and for no less than 10s within 120%-150% rated current. When
short-circuit on grid side is detected, the short-circuit current output from PV
power station to grid side shall be no greater than 150% of rated current, and
the PV system shall be disconnected from the grid within 0.1s.
b) Anti-island operation
In case of loss of voltage in the PV system tied grid, PV system must be

disconnected from the grid within specified time limit, to prevent island
operation. At least one active and one passive protection against island
operation shall be provided. Active anti-island operation protections mainly
include high frequency, variation of active power, variation of reactive power
and impedance variation resulted from current pulse injection. Passive
anti-island operation protections mainly include voltage and phase jittering,
3rd voltage harmonic variation and frequency variation rate. In case of loss of
voltage, the anti-island operation protection shall operate within 2s, to
disconnect the PV system from the grid.
c) Restoration of connection to grid
After system disturbance, the PV power station is not allowed to connect to

the grid before the grid voltage and frequency are restored to normal range,
and after the system voltage and frequency are back to normal, the PV
power station will be connected to the grid after an adjustable time delay,
which is normally 20s to 5min, depending on local conditions.
d) Lightning protection and grounding
The lightning protection and grounding for PV system and grid connection
equipment shall conform to the provisions in SJ/T 11127.
e) Protection against reverse discharge
The system shall have the function to protect the grid from reverse discharge
to the DC side.
2 - 17
2.3 MCM 13
2.3.1 Latest International Technologies for Master Control and Monitoring for
Grid-connected Solar PV System
2.3.1.1 Overall Requirements for Supervisory System
It shall perform data acquisition, tapping and analysis, determine the working status
and attenuation of assemblies, inverters, bus compartments, transformers and power
transmission lines, monitor the station operation conditions in real-time, analyze
methods to increase efficiency and power generation, and optimize the operation of
the grid-connected PV station, direct assembly matrix cleaning and angle adjustment
according to monitoring data, make timely repair and maintenance of bus
compartments, inverters, sun tracking devices and electrical facilities, adjust the
operation strategy of the station, perform remote intelligent monitoring and rational
dispatching, to realize optimized operation of the grid-connected PV power station
and maximum electric energy output.
2.3.1.2 Design Principle for Supervisory System
The supervisory system software in a PV power station performs overall monitoring

and control of the equipment operation status and environment detectors. The system
transmits the operation status information via data acquisition and transmission
module. In the system deployment for PV power station supervisory system, a
three-level pattern is adopted to realize coordinated functioning with a distributed
framework of PV power station, data center and monitoring center.
Level I, data management: the self-reliance data management in the PV power

station, an intelligent data collector is used to acquire and collect PV sensing data in
real-time, and the data are transmitted in real-time to a small sized real-time database.
It also permits view of data via monitors.
Level II, data center: it is the comprehensive management center at substation for all
subordinated PV power station data, mainly deployed with large sized real-time
database and backup real-time database, and historical data with long time duration
are filed into disc matrix. It also performs analysis and statistics of all sampled data, to
provide data basis for decision-making and analysis at high level. Meanwhile, video
server, mail server and printout server are arranged in the network.
13 Master Control and Monitoring
2 - 18
Level III, data monitoring: the monitoring center at control center mainly displays
various data, concurrently providing both access modes as customer based and WEB,
plotters and integrated computer are provided, and dynamic display of data with
rolling play-out on large screen is adopted.
2.3.1.3 Smart Grid Technology
The electric power grids in the world share the same direction of development,
appropriate control and stability. In general, an electric power grid includes all types of
supply power sources (thermal, hydro, nuclear and renewable). Recently, renewable
power is highlighted, because its energy potential is rapidly exploited by recent
technology innovation. One of the latest international technologies of MCM for
grid-connected solar PV system is called as a smart grid.
- In case of a small grid which consists of small, limited demand and dispersed
renewable power source in a small area, and it is controlled efficiently.
- The smart grid is highly expected by its efficiently energy use and goes forward to
the practical use.
Smart grid technology is expected to be introduced to a power grid with PV power

generation with a purpose of improved power quality and this section introduces
model cases tested as below.
(1) Ota City - Clustered PV Power Generation Systems
In this research, a PV power generation system was installed on 553 houses,

respectively (Total system capacity for 553 houses: 2,129 kW) with lead storage
batteries having storable power energy equivalent to approximately 6 kWh attached to
each system, thus verifying the voltage control effect of power distribution lines with
the lead storage batteries. If generated power flows into the power distribution lines
from the PV power generation system side, a voltage on the power distribution line
side will rise, however if the voltage exceeds a reference voltage on the power
distribution line side, the inverter of the PV power generation system will prevent
further voltage rise. Therefore, the system incorporates the voltage rise prevention
function that stops distributing power. If the PV power generation systems are
interconnected locally in a cluster, this function may cause a drop in the operating rate
of PV power generation. In order to avoid the foregoing phenomenon, we conducted
verification of avoiding reverse power flow into the grid by charging the storage
batteries in this research. Since this clustered interconnection of the systems
maintains a balance between generation and demand-supply of power even if the grid
stops operation, conventional independent operation detection systems could disable
2 - 19
detection of independent operation and cut-off of distributed generation systems. For

this reason, an independent operation detection system capable of coping with the
said problem was developed. (see Fig.2.3-1)
Substation Transformer
Pole High-voltage Power

Transformer Distribution Line
Solar Cell Array
Household Distribution Line

Connection Box Load
Junction Box
(Outdoor)
Outdoor Storage
Box
Measuring Instruments
Batteries, Power Conditioner
Low-voltage Power
PV systems installed: 553 units
Total PV capacity: 2,129 kW
Developed a technology that avoids output
Average system capacity: 3.85 kW
restriction for clustered interconnection of
PV power generation systems
Fig. 2.3-1 Demonstrative Research in Ota City, Japan
It will be required to evaluate the influence of interconnection of large scale PV power

generation to power grid on power quality such as fluctuations in voltage and
frequency, and apply output control technologies using a power storage system for
power grid stabilization. Introduced hereunder is a demonstrative research NEDO has
been carrying out for the foregoing issue.
(2) Wakkanai City - Stabilization of PV Power Generation System for Large-scale

Power Supply
PV power output may involve a large

number of comparatively short-period
fluctuations depending on meteorological
conditions. Consequently, with progress
in the interconnection of large-scale PV
power generation and the introduction of
PV power generation concentrating in a
specific area, influence of the said Fig. 2.3-2 Large-scale PV Power Plant
fluctuations on grid voltage will located in Wakkanai City
increasingly rise. For this reason,
Japans first MW-class power plant was constructed and the technologies for
interconnection of grids at an extra-high voltage level were studied.
On a site located in Wakkanai City, Hokkaido, 5MW PV generation facilities were

interconnected to 33kV transmission line, 1.5MW NAS batteries were installed in
order to prevent voltage fluctuations associated with PV power output fluctuations,
2 - 20
and then planned operation of the facilities with the objective of stabilizing PV power
output was conducted taking countermeasures against the peak power in the system
(see Fig. 2.3-3).
Fig. 2.3-3 shows the results of basic output fluctuations preventive control testing with
the use of NAS 14 batteries (PV power generation: 2 MW, NAS batteries power
generation: 0.5 MW). On this site, the preventive control is conducted with the use of
NAS batteries by taking the moving average deviation (moving average time frame:
30 minutes) as a target value for output from the PV power plant. A comparison of PV
power outputs was done and found that outputs from the power plant were smoothed
(the maximum range of fluctuations in PV power outputs of 1,269 kW was reduced to
516 kW in outputs from the PV power plant) and control with NAS batteries was
effective.
5000 100
Remaining capacity of battery PV output
4000
Remaining capacity [%]

Power output [kW]
80
3000
2000 60
Power plant output
1000 40
0
NAS output 20
-1000
-2000 0
4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00
Fig. 2.3-3 Results of Output Fluctuations Preventive Control Testing

(Moving Average Target Control)
On the site located in Hokuto City, Yamanashi Prefecture, a 2MW PV power plant was
constructed and introducing various types of PV modules centering on leading-edge
solar cells to operate and evaluate the plant as well as developed and demonstrated
technologies contributing to future spread and cost cutting of large-scale PV power
generation technologies through the development of a voltage-control,
harmonic-resistant large-scale PV inverter (see Fig. 2.3-4). Particularly, this inverter
became Japans first inverter with built-in FRT function (capability of continuing power
generation without disconnecting PV power generation in case of any system
disturbance).
14 Natlium Sulfur
2 - 21
Fig. 2.3-4 Large-scale PV Power Plant located in Wakkanai City
(3) Lessons learned from Demonstrative Research of Ota City and Wakkanai City
regarding the Smart Grid
Result of demonstrative researches in Ota City and Wakkanai City showed that the
problem of voltage increase of the residential PV system with grid-connection can be
improved economically by installing battery for only limited residents, not for all PV
residents. Applying this idea to a large-scale grid which has solar PV systems
connected to the Grid, it is effective to install the battery in the substations in the areas
that have solar PV systems. Measurement and load control by the smart grid have
been shown effective for stabilization of total power system.
If the estimation of PVs output is possible, "on time tariff" which will change time to
time may be possible by the smart meter. The smart meter can realize this dynamic
tariff system and demand control.
(4) Demonstrative research on microgrid in Los Alamos County
1MW-scale PV power generation system is introduced and storage batteries are

introduced to compose microgrids with different new energy introduction by switching
power distribution lines on site for changing the scale, and then it is analyzed that how
many storage batteries have to contribute to achieve power distribution at the same
time and for the same amount. Real-time price signal system from the EMS 15 of the
power distribution lines is also designed to comprehend how much PV power is
15 Energy Management System
2 - 22
generated, and store power in batteries if necessary. And EMS at households controls
the demand side response.
In the demonstrative research, clustered PV power generation system and storage

batteries that connect between the power distribution substation and the switchgear
are installed, and demonstrate the effect of absorbing variations in solar radiation with
storage batteries. Furthermore, smart distribution equipment on two out of six feeders
in Los Alamos County is installed and the lines are jointly operated with Los Alamos
side. In addition, the storage batteries and PV power generation system are operated
and monitored. Microgrid-EMS for controlling the system is introduced and the smart
equipment on the power distribution lines to simulate distribution lines with a high PV
power generation introduction rate is operated. Various types of experiments with the
use of EMS on Los Alamos side in combination will be conducted. A real-time price
signal used for demonstration house to assign the role in transmitting the signal to the
demonstration house to the smart grid-EMS is also created.
Controlling Charge & Discharge

(Outputting Charge/Discharge Price Signal (Transmitting real-time
command so as to control PV price signal interlocking with PV
output) fluctuations)
Output Monitoring
Line Monitoring (-EMS) (Monitoring fluctuations
in PV output)
PV System 1MW Stationary storage NEDO House HEMS, 3kW

(@100 kW/10 types) batteries 1MW (NAS PV, 20kWh power & thermal
& Lead storage cells) storage
Power Flow Monitoring

(Controlling power flow
fluctuations at microgrid (Demonstrating the power
Substation interconnection points) storage system interlocking
with real-time price signal
and PV output)
Price Signal Price Signal
Microgrid
5MW
Price Signal
Small Commercial PV System 1MW (US side) General House (with smart
Building meter equipped)
Fig. 2.3-5 Demonstrative Microgrid in Los Alamos County
(5) Demonstrative research on smart house in Los Alamos County
Demonstrative research on smart house is intended to demonstrate superiority in

energy utilization efficiency compared to that of general houses. A demonstration
house with EMS using 3kW PV power generation system & storage batteries, heat
pump/hot water heat storage system, smart meter technology has been constructed,
and real-time pricing in combination as well as a home/ external communication
2 - 23
system has been constructed.

Furthermore, demonstrative experiment
to maximize demand response through
strategic system operation using an
HEMS16 has been conducted.
(6) Demonstrative Research on Power

Distribution Lines and Industrial
Buildings in Albuquerque City
Distributed power generation systems Fig. 2.3-6 Residence Area

in Los Alamos County
such as cogeneration system and
thermal equipment in an industrial building in the emerging development area called
Mesa del Son are introduced and ancillary service that absorbs fluctuations in PV
power generation by receiving a signal from the EMS of the distribution line is
provided. In addition, independent operation of the systems using a building as
microgrid and expecting to continue uninterruptible power supply in case of power
failure in the transmission line is performed. Since the site is located on a plateau
1,600 meters above sea level, demonstrative operation of the distributed power
generation systems that cannot be experienced in Japan is performed.
This demonstrative research is implemented in collaboration with PNM17 (a local

electric power company) and Sandia National Laboratories. In the research, at office
building, independent operation system by installing fuel cells in case of line trouble, a
gas engine cogeneration system, a heat storage tank, storage batteries, and a PV
power generation system are constructed.
For normal operation, an urban-type microgrid is composed by installing EMS, and

links it with EMS on the building side via an information line. The microgrid is operated
by receiving from PNM side a signal that monitors the operating conditions of a PV
power generation system to be installed by PNM and a direct control command for
fluctuation absorption amount from EMS. Thus, solution of fluctuations in output from
the PV power generation system which can be absorbed by the equipment on the
building side, including fuel cells, a gas engine cogeneration system, a heat storage
tank, and storage batteries is demonstrated.
16 Home Energy Management System

17 Public Service of New Mexico
2 - 24
Operation command to Distributed Power

Generation Systems and Heat Storage
System (Outputting Charge/Discharge Direct Load Control Signal (Demand
command so as to control PV output) ON/OFF signal interlocking with PV
fluctuations)
Line Monitoring (-EMS)
Commercial Building Allowing Independent

Operation PV 100kW, Gas engine NEDO House Future option
cogeneration, BEMS, Thermal storage
Power Flow Monitoring

(Controlling power flow
fluctuations at microgrid (Demonstrating the power storage
Substation interconnection points) system interlocking with load
control signal and PV output)
Output Monitoring
(Monitoring fluctuations
Microgrid
in PV output)
5MW
Management on
US side
Commercial Stationary Storage

Building PV System (US side) General House (with smart meter
Batteries (US side) equipped)
Fig. 2.3-7 Configuration of Microgrid in Albuquerque
2.3.2 Locally Appropriate MCM System in terms of Reliability, Efficiency and Cost
2.3.2.1 Scope of Monitoring and Control and Operation Control Mode
(1) Scope of Monitoring
Under normal operation conditions, a PV power station shall provide at least the
following signals to the grid dispatching center:
1) Telemetering quantities
- Total active and reactive power of the PV power station

- Active power, reactive power, voltage and current of individual inverters
- Meteorological information of the PV power station (radiation, air temperature
and air pressure)
- Expected turn-on capacity
- Active power, reactive power, current and voltage of grid connection line (if
any)
- Active power, reactive power and current of interbus, segment and bypasses (if
any)
- Voltage and frequency of each bus level
2 - 25
- Active power, reactive power and current of step-up transformer

- Reactive power and current of var compensator
- Active power, reactive power and current of station transformer
2) Remote signaling quantities
- General accident signal

- Inverter operation status and position signals
- Main transformer and line protection signals
- Status and position signals of circuit breakers, isolating switches and earthing
switches on grid connection lines
switches on interbus, segments and bypasses (if any)
- Status and position signals of bus earthing switches and PT switches
switches of lines
switches of var compensator
switches of station transformer
3) Remote control quantities
- AGC 18 function enabling

- Real-time output (active and reactive) of PV power station
- Permissible AGC control signal of PV power station
- Enabling AGC control signal of PV power station
- Current output limit of PV power station
- Regulation rate (rising and descending) of PV power station
- Output increase blocking signal and output reduction blocking signal of PV
power station
- Active set point return value of PV power station
- AVC 19 operation status and current control mode, etc.
4) Electric energy quantities
Bidirectional active power electric energy and bidirectional reactive power electric
energy of 10kV line
18 Active Generation Control

19 Active Voltage Control
2 - 26
(2) Operation Control Mode
Operation control of the whole PV power station is realized in the central control room
and from remote dispatching center. When monitoring and control are normal, the
operation of all levels, equipment operation status and breaker status are all under the
monitoring by the computer supervisory system. When local operation is performed,
operation of station control level should be blocked. In case of a fault in the
supervisory system, a signal shall be immediately sent to the dispatching side and the
remote control is blocked.
2.3.2.2 System Configuration
The station control level equipment of a solar energy PV power station mainly
consists of system host computer and operator stations, engineer management
station, printer, GPS 20 time calibration device and network system. The bay level of
the PV power station is divided as primary cells, where all equipment and devices
shall meet the relevant IEC 21 standards.
2.3.2.3 System Network Structure
The computer supervisory system consists of the station control level, bay level and
network equipment. The bay level network structure is in a ring structure. The station
control level is the monitoring, measurement, control and management center of
equipment in the whole station, it is located in the control center and connected via
optical cables with bay level. The bay level is arranged in corresponding switching
cabinets in a relatively independent way by different voltage levels and electrical cells,
and in case of failure of station control level and network, the bay level can still
independently perform monitoring and circuit breaker control functions.
2.3.2.4 System Functions
The computer supervisory system realizes reliable, rational and complete monitoring,
measurement and control of the PV power station, and also has all remote functions
for telemetering, remote signaling, remote control and remote regulation, able to
exchange information with the dispatching communication center. Each substation
room is provided with a communication manager computer, the information of bay
level equipment is uploaded via optical fiber ring net to the central control room, for
communication with the system via communication interface devices.
20 Global Positioning System

21 International Electrical Commission
2 - 27
(1) The computer supervisory system shall have the following functions
1) Real-time data acquisition and processing

2) Database establishment and maintenance
3) Control operation
4) Alarm processing
5) SOE 22 recording and accident recall PDR (data records of 30min during power
interruption, with time before and after the fault adjustable)
6) Picture generation and display
7) Online calculation and tabulation
8) Electric quantity processing and electric quantity integration
9) Remote functions
10) Clock synchronization
11) Man-machine interface
12) System self-diagnosis and self-restoration
13) Remote diagnosis
14) Interface with other equipment
15) Operation management function
(2) Real-time Data Acquisition and Processing
1) Type of acquired signals
Types of acquired signals are in analog and status quantities (digital quantities),
and the scope of acquisition is as follows:
a) Analog quantities (communication transmission):
The specific configuration is as follows:
- 10 step-up transformers: LV side current, voltage, active power, reactive

power, frequency and transformer temperature
- 10kV bus: voltage
- 10kV incoming and outgoing lines: 3-phase voltage, current, frequency,
active power, reactive power, active electric energy, reactive electric
energy and harmonic distortion rate
- DC bus: voltage
- Inverters (AC side): voltage, current, frequency, power factor and
harmonic distortion rate
22 Sequence of Event
2 - 28
b) Status quantities (digital quantities, for communication transmission):
All microcomputer protection, DC system, UPS system and fire alarm system
signals.
Electric energy quality analysis:

On the 10kV line, measure the harmonic distortion rate of voltage and
current, and transmit the relevant data remotely to system background for
analysis, calculation and saving; it has fault wave recording function, able to
record trend curves and trap waveforms, and also perform 31/63 order odd
harmonic analysis.
Electric energy quantities:

Electric quantity acquisition points are arranged on 10kV outgoing line and all
off-station working power sources, and current transformers will have an
accuracy class of 0.2S.
The electric quantity in the whole station is collected by intelligent 0.2S class
electronic energy meters, and information is sent to electric quantity collector
via RS485 interfaces or by optical fiber communication. The electric quantity
collecting device transmits information to the supervisory system via RS485
interfaces or by optical fiber communication.
2) Processing of acquired signals
The computer supervisory system divides the collection of real-time data by

electrical equipment cells, and each measuring and control unit is a relatively
independent intelligent small system.
a) Acquisition and processing of analog quantities
i) Acquisition at fixed time: data are acquired at fixed time according to

scanning cycle, with corresponding conversion, filtration, precision
inspection and database refreshing, and the scanning cycle shall meet
the requirements of performance indicators.
ii) Overlimit alarm: dead zone determination and overlimit alarm are
performed by time period according to the set limits, and the alarm
messages shall include alarm text, parameter values and alarm time.
b) Acquisition and processing of status (digital) quantities
i) Acquisition at fixed time: inputs are acquired at rapid scanning cycles,

and status check and database refreshing are performed.
ii) Equipment anomaly alarm: in case of change with status of the
2 - 29
monitored equipment, equipment change indication or anomaly alarm

will appear, and the alarm messages shall include alarm text, event
nature and alarm time.
iii) SOE records: for digital quantities such as circuit breaker position
signals and relay protection operation signals that require rapid
response, SOE recording shall be made according to the time sequence
of the changes.
iv) When the breaker accidental trips or opening operations have reached
the designated number, an alarm message should be sent to alert the
user to make maintenance.
(3) Database Establishment and Maintenance
1) The computer supervisory system shall establish the following databases:
a) Real-time database: it is loaded with real-time data collected by the computer

supervisory system, and the values are kept on refreshing according to the
real-time changes of operation conditions, to record the current status of the
monitored equipment. The refreshing cycle of real-time database and data
precision shall meet the project requirements.
b) Historical database: important data for long-term reservation will be stored in

the historical database. The recording cycle will be 5 minutes.
2) Maintenance requirements
a) It shall be convenient to expand and maintain the databases, and

consistency and safety of data shall be ensured; it shall be possible to online
modify or offline generate databases; data entries in the databases can be
modified and added or deleted in MMI 23 mode. Main contents that can be
modified are:
- Numbers of data entries,

- Text description of data entries,
- Status description of digital signals,
- Definition of input alarm processing,
- Limit values for analog quantities,
- Acquisition cycle of analog quantities,
- Dead zone for analog overlimit processing,
- Calculation coefficient for analog quantity conversion,
23 Man-Machine Interface
2 - 30
- Definition of normal and abnormal digital quantity status,

- Parameters for calculation of electric energy quantities, and
- Parameters of output control.
b) Logic operation definition for multiple digital and analog quantities, etc.
c) Convenient interactive inquiry and calling shall be possible, and the

response time shall meet the project requirements.
(4) SOE Recording
Fault and short-circuit in primary equipment will result in environmental protection

operation and breaker trip, and the SOE recording function shall record, store, display,
print out the operation sequence of equipment during the event with time tags, and
generate event recording report for inquiry. The system will reserve SOE record text
for 1 year. The event resolution shall be 2ms. The SOE records shall have time tags
and be sent to the main dispatching station in a timely manner.
(5) Picture Generation and Display
1) Picture display
a) Electrical system diagram of the whole station

b) Power distribution room and substation room wiring diagram
c) Real-time and historical curve display
d) Bar charts (voltage and load monitoring)
e) Cell unit and station alarm display diagram
f) Supervisory system configuration and operation condition charts
g) DC system diagram
h) Report display (including alarms, accidents and conventional operation data)
i) Form display (such as equipment operation parameters and various
statements)
j) Operation permit display
k) Display of calendar, time and number of safe operation days
2) Output mode and requirements
a) The main electrical wiring diagram shall including real-time values of

electrical quantities, equipment operation status, load flow direction,
positions of breakers, switches and ES, and position of local/remote
changeover switch.
b) Text on picture display shall be written in Chinese.
c) It shall be possible to store and make hard copies for graphs and curves.
2 - 31
d) Users can generate, make and modify graphs. A graph made at one
workstation can be sent to other workstations.
e) The time scale and sampling cycle of voltage bar chart and curves can be
selected by user.
f) Each graph shall be indicated with calendar time.
g) Data lacking in the graphs can be manually inserted.
(6) Online Calculation and Tabulation
1) Online calculation
a) Calculate the primary values of electrical quantities I, V, P, Q, f, COS and

Wh, Varh, and also calculate the maximum and minimum values in a day,
month and year with the occurring time
b) Accumulated kWh value and value by time section (time section can be set
arbitrarily)
c) Daily, monthly and annual voltage on-spec rate
d) Power totaling and electric energy totaling
e) Inflow and output load and electric quantity balance rate of PV power station
f) Number of normal and accidental trips, outage time and monthly and annual
operation rate of circuit breakers, etc.
g) Calculation of house load power consumption
h) Total of safe operation days
i) Statistics and calculation of integrated electric quantity
2) Report and forms
a) List of real-time values

b) List of values at hours
c) PV station load operation log
d) Electric energy form
e) Report to power dispatching
f) List of SOE records
g) List of alarm records
h) List of main equipment parameters
i) Self-diagnosis report
3) Output mode and requirements
a) Real-time and fixed time display

b) Printout at call and at fixed time
c) Forms can be defined, modified and made at main monitoring station
2 - 32
d) Various forms
e) Forms shall be stored by time sequence, and the storage quantity and time
shall meet user requirements. It shall be 1 day for hourly value reports, 1 day
for daily reports and 1 month for monthly reports.
4) Remote functions
The computer supervisory system shall have remote functions, and the remote
information, main technical requirements, information transmission mode and
channels shall meet the real-time, safety and reliability requirements for grid
dispatching.
Remote interface equipment shall have operation and maintenance interfaces,

with online self-diagnosis, remote diagnosis, remote configuration and
communication monitoring functions.
The inverter shall realize successful joint commissioning with the dispatching side,
and simulation test shall be passed before factory acceptance.
(7) Clock Synchronization
The station will be provided with GPS time calibration equipment, and time calibration
for all bay level equipment will be based on network.
(8) Man-machine Interface
Man-machine interface is the window for dialogue between people and computer, and
dialogue with computer can be done conveniently via mouse or keyboard on the
LCD 24 screen. Man-machine interfaces include:
- Call, display and copy various graphs, curves and forms,

- Send operation control commands,
- Database definition and modification,
- Definition and modification of parameters in various application programs,
- View historical values and set points,
- Generation and modification of graphs and forms,
- Alarm acknowledgment and exit/restoration of alarm points,
- Set date and clock,
- Edit and make operation files, and
- Any computer can record operations at other computers.
24 Liquid Crystal Display
2 - 33
(9) System Self-diagnosis and Self-restoration
The computer supervisory system can perform online diagnosis of operation

conditions software and hardware, and alarm messages can be displayed and printed
out in a timely manner in case of anomaly or fault, and they will be displayed with
different colors on operation condition chart.
Self-diagnosis covers the followings.
- Fault in measuring and control unit and I/O acquisition module

- Fault in external equipment
- Fault in power supply
- System clock synchronization fault
- Network communication and interface equipment fault
- Software operation anomaly and fault
- Fault in data communication with remote dispatching center
- Fault in remote channel
- Grid control status monitoring
- Equipment self-restoration shall cover the following
- Automatic restoration to normal operation in case of software operation anomaly
- Self start and restoration to normal operation in case of software blocking
- Able to automatically switch to backup equipment for operation in case of software
or hardware fault with online equipment when equipment has redundant
configuration.
In addition, the system shall have disconnecting points to facilitate testing and fault
isolation. Measuring and control units at bay level can be maintained with portable
computer.
(10) Operation Management Ability
The computer supervisory system can realize the following management functions
according to operation requirements:
1) Running operation guidance: put forth directive processing ideas for typical
equipment anomaly/accident, prepare technical statistics form on equipment
operation, and provide corresponding operation guidance graphs;
2) Accident analysis retrieval: perform classified retrieval and relevant analysis for
large number of alarm signals produced in a sudden event, and an accident
guiding graph should be provided directly for typical accidents;
3) Online equipment analysis: analyze operation records and historical record data
2 - 34
of main equipment, and put forth equipment safe operation report and repair plan;
4) Simulated operation: provide relevant layout, wiring, operation and maintenance

for primary and secondary electrical systems and rehearsal before actual
electrical operations, to conduct operation training for operators with
corresponding operation graphs.
5) Other daily management of monitoring main station, such as operation log

management, equipment operation status, defects, repair record management
and rules and regulations.
6) The management functions shall meet user requirements, and be suitable,
convenient and can share resources. It shall be possible to store, retrieve, edit,
display and print out various files.
(11) Remote Diagnosis Function
It shall have remote diagnosis function and remote diagnosis software shall be
provided.
2.3.2.5 Hardware Equipment
The computer supervisory system shall be based on advanced hardware equipment

that is in general use in power systems, reliable and complies with industrial
standards.
(1) Host and Operator Station and Engineer Station
There will be 2 operator stations, including 1 as engineer station and concurrently

operator station and 1 operator station. The twin hosts have the main processor and
server functions, being the data collection, processing, storage and sending center at
station control level. Operator stations are the main MMI for station computer
supervisory system, and are used to display graphs and forms, record events, display
and inquire alarm status, inquire equipment status and parameters, guide operations,
interpret and issue operation and control commands. Operators on duty can realize
operation monitoring and control for equipment in the whole station via the operator
stations. The engineer station is mainly designed for system maintenance by
computer system manager, and it can perform database definition and modification,
system parameter definition and modification, form making and modification, as well
as network maintenance and system diagnosis work.
2 - 35
(2) Clock Receiving and Clock Synchronization System
The station is provided with a satellite clock synchronization system, to receive the B
code standard timing signal from the GPS system, to calibrate clocks in the station
computer supervisory system and relevant equipment such as relay protection
devices. The time calibration error between units shall be less than 1ms. Combined
soft and hard time calibration method will be used, clock expansion will adopt
synchronization and active contact mode, providing microcomputer-based protection
and fault wave recording for the whole station and pulse time calibration contacts for
other intelligent equipment.
(3) Basic Requirements on Hardware
Host and operator station: CPU with main frequency 2.6G or over, memory 2G or over,
hard disk 320G or over; monitor: 21 color LCD monitor (1280 1024); and dual
network cards.
Engineer station: the same configuration as the host and operator station.
(4) Software System
The computer supervisory system shall use internationally prevailing and advanced
industrial software with standard version and software license, and it shall be in
modular structure, with good openness, reliable and mature, convenient and suitable.
It shall be possible for user to install and generate software system.
2.3.2.6 System Software
The workstations at station control level shall use a mature and open multi-task
operation system, which shall include operation system, compiling system, diagnosis
system and various software maintenance and development tools. The compiling
system shall be easy to interface with system supporting software and application
software, and support multiple programming languages. A real-time operation system
complying with industrial standard shall be used at bay level. The operation system
shall be able to prevent data file loss or damage, support system generation and user
program loading, support virtual memory and be able to effectively manage a number
of peripheral equipment.
(1) Supporting Software
Supporting software mainly includes database software and system configuration

software.
2 - 36
The database software shall meet the following requirements.
1) Real time performance: it can quickly access to database and also meet the
real-time function requirements even in parallel operations.
2) Maintainability: database maintenance tool shall be provided, to enable the user

to perform online monitoring and modification of data in the database.
3) Restorability: after the elimination of accident in the computer supervisory system,

the contents in database can be quickly restored to the status before the
accident.
4) Parallel operation: parallel access to the same data in the database by different
programs (tasks) shall be permitted, and completeness of database in parallel
mode shall be ensured.
5) Consistency: when data in the database is modified at any workstation, the

database system shall modify relevant data in all workstations automatically, to
ensure data consistency.
6) Distribution: the intelligent monitoring units at bay level shall be able to

independently implement all data required by local control, so that local operation
control can be performed when the central control level is put out of operation.
7) Convenience: the database system shall provide two database generation tools
for interactive and batch processing, as well as database dumping and loading
functions.
8) Safety: operation authority shall be set for modification of database.
9) Openness: the buyer shall be allowed to perform secondary development using

the database.
10) The system configuration software is designed for graph programming and data
generation. It shall meet requirements of all functions of the system, to provide
user with an interactive, object-oriented, convenient and flexible, easy to master
and diversified configuration tool, and some programming means similar to
macro and multiple practical functions shall be provided, to expand the functions
of the configuration software. It shall enable user to generate and modify online
graphs, curves, forms and reports with great convenience.
(2) Application Software
Application software shall meet the functional requirements. It shall be in module
2 - 37
structure, with good real-time response speed and expandability. It shall have error
detection ability. In case of error in any application software, it shall not affect the
normal operation of other software, except for prompt error message. Application
programs and data shall be mutually independent in structure. System backup disk
shall be provided.
(3) Communication Interface Software
The computer supervisory system has much communication interface drive software,
mainly:
1) The communication interface software with dispatching center;

2) The communication interface software with electric energy metering system;
3) The communication interface software with protection and safety automatic
devices;
4) The communication interface software with intelligent DC system;
5) The communication interface software with PV system monitoring unit;
6) Interface software with UPS system
7) The communication interface software with 400V system monitoring unit;
8) The communication interface software with fire alarm control system;
2.3.2.7 Technical Requirements for Cabinets
Cabinets (or panels), including all complete set equipment or individual assemblies
mounted on them, shall have sufficient mechanical strength and be mounted in a
correct manner. It shall be ensured that cabinets (or panels) will not be damaged
during lifting, transport, storage and installation. The general technical conditions for
relay cabinets and panels in power system shall be satisfied.
2.4 Assessment Tools
2.4.1 Assessment of Insolation and Estimation of Power Generation
Tilt angle of PV array is generally designed to have the same angle as the latitude of
the site. When the diffused sunlight is taken into account, optimum tilt angle of PV
array may be different from the latitude. In this subsection, an assessment method
employing fish eye projection picture taken at the PV site is introduced, and features
of diffused sunlight are explained.
Assessment of insolation using fish-eye lens is effective in the case that the solar PV
2 - 38
system surrounded by the obstacles which disturb direct sunlight to the solar PV
system. It is programmed that the solar PV system accepts diffused sunlight and
direct sunlight. In general assessment of insolation has three ways shown as below;
i) Assessment of insolation data of neighboring meteorological observatory, which

is based on the meteorological observatory data and in Japan there are many
observatory points in the narrow area and it is possible to use those data for the
assessment.
ii) Assessment of insolation at the specific point by the observation of satellite which
is using data from the satellite and the data from the meteorological observatory
are combined and all area insolation can be assessed in the world.
iii) Assessment of insolation by using fish-eye lens which is using fish-eye lens is not
easy to assess insolation but it can assess the natural characteristics of
environment. It is necessary to use the three kinds of assessment methods case
by case.
2.4.1.1 Measurement of Sunlight in Golmud Site using Fish-eye Lens
(1) Fig. 2.4-1 shows the picture taken at the south west corner of 10MW pilot PV pilot
project site, facing the southern direction.
tower
picture : 2011/0713
Fig. 2.4-1 Southern View from 10MW Pilot Project Site
2 - 39
There are no mountains near the candidate site, no other PV power stations or
any constructions can be seen up to the foot of mountains except a slim tower
with the height of more than 100 meters for measuring wind velocity. There is no
obstacle to disturb direct sunlight. The land for 10MW pilot PV site is very dry and
seems to be the desert. Generally, obstacles to PV arrays are not easy to find
because solar orbit is changing day by day through a year and the location of the
sun is changing minute by minute. (Fig. 2.4-2)
Fig. 2.4-2 Shadow made by Obstacles of the Surroundings
Fish eye projection picture is drawn by the program developed. A solar orbit is
shown on the fish eye lens. An illustrative picture is shown below. Fish eye
projection picture is to be considered as the representation of the sunlight orbit. It
is the same projection on the PV module. (Fig. 2.4-3)
Obstacles
(Building, tree, etc.)
The Horizon Sunlight Orbit
Fig. 2.4-3 Illustrative Picture of Sunlight Orbit Projection
2 - 40
(2) PV module generates electric power not only by direct sunlight but also diffused
sunlight reflected by objects (building, tree, etc.). Some kind of objects in the
atmosphere, especially cloud makes diffused sunlight and it will reach 20 ~ 30%
of total intensity. The area of the sky covered by clouds is presented in solid
angle (the surface area of a sphere). (Fig. 2.4-4)
Cloud
Direct Sunlight
Diffused Sunlight
Fig. 2.4-4 Direct Sunlight and Diffused Sunlight
Fig. 2.4-6 was taken by the camera using fish-eye lens. Fish eye lens and
camera for it is shown as in the Fig. 2.4-5.
Lens is facing the southern

direction and tilted at the
angle of 35 from the ground.
This is the same sky view
observed by the PV array
with tilt angle 35 set on the
ground facing the southern
direction.
Fig. 2.4-5
Single-lens Reflex Camera and Fish-eye Lens
2 - 41
sun
tower
horizon
picture: 2011/07/16
Fig. 2.4-6 View of Fish-eye Lens with Tilt Angle 35
The photo shows the surroundings of the PV array which is to be set and sky and
sun at the same time. From Fig. 2.4-6 it is seen that there is nothing to disturb the
sunlight orbit passing on PV arrays. The tower seen in Fig. 2.4-1 is too slim to
disturb the sunlight reaching PV array in this picture. The visible area of fish-eye
lens is wide enough to see all direction from the PV site. As shown in Fig. 2.4-7,
the scenery of semi-sphere is covered by one picture.
2 - 42
North
East West
South
picture: 2011/07/13
Fig. 2.4-7 Visible Fields using Fish-eye Lens
Using this picture it is possible to estimate insolation not only by direct sunlight,
but also diffused sunlight projected on the fish-eye lens (= the PV array). Cloud
near the sun is gleaming and this kind of cloud contributes to the diffused
sunlight.
2.4.1.2 Solar Orbit
(1) Feature of fish eye lens

The feature of fish eye lens is shown as below.
Fish eye
- 360 visual field

- The picture taken by fish eye lens keeps the
information on the celestial sphere.
- The fish eye lens is able to express the position of p p p
the sun.
Picture
Solar orbit is drawn as in
Fig. 2.4-8 Solar Orbit
Fig. 2.4-8.
2 - 43
Dots in the picture show the position of the sun at every hour. The orbit of the sun on
22/03/2011, the day of the spring equinox, is shown in a straight line in Fig. 2.4-9.
North
East West
1 hour interval
: Winter
: Spring
Horizon
: Summer
South
Fig. 2.4-9 Solar Orbit on Fish-eye Lens
The picture overlaid on the fish eye lens is Fig. 2.4-10, which shows whether any
obstacles for PV power generation are existent or not.
2 - 44
North
East West
: Winter
: Spring
: Summer
South
Fig. 2.4-10 Solar Orbit on Fish-eye Lens at the 10MW Pilot PV System Site
The tower located in the south which will give influence to sunlight orbit is negligible
as the obstacle because the tower is not seen in Fig. 2.4-10. Although the picture was
taken on July 16, 2011, the orbit of the sun from sunrise to sunset in every season can
be shown on the picture. This is the most important factor in the estimation of
generation of solar PV system.
2.4.1.3 Resource Forecasting
Estimation of insolation for the site for 10 MW Pilot Project by QBE25 was presented
in their Feasibility Study Report (see Table 3.1-2 of Section 3.1.1.1). Comparing
26
their result with NASA 's 25 years average data, and the estimation with fish-eye lens
method shown in Table 2.4-1
Table 2.4-1 Insolation Estimation by Three Different Methods

(kWh/m for each month and yearly total)
2
Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Total
QBE site 145.3 147.2 179.7 201.8 214.5 199.4 201.7 210.1 193.0 195.6 165.2 143.3 2197
NASA 176.7 168.3 196.9 193.8 186.3 167.4 170.5 172.1 168.0 198.4 179.1 169.0 2146
fish-eye 135.2 129.9 169.6 183.6 189.7 173.4 197.8 222.0 221.7 209.3 179.4 147.9 2159
25 Qinghai Brightness Engineering

26 National Aeronautics and Space Administration
2 - 45
Fish eye lens method makes reference to NASA's yearly anticipation data. Three
different methods give different results for each month, but yearly insolation is not so
different and within a margin of a few per cent. Table 2.4-2 shows ratios of monthly
insolation estimation made by three different methods. Estimation by QBE value is
expressed 1.00 as basis index.
Table 2.4-2 Difference of Estimated Insolation in proportion to QBEs Estimation

QBE site 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
NASA 1.21 1.14 1.10 0.96 0.87 0.84 0.85 0.82 0.87 1.01 1.08 1.18 0.98
fish-eye 0.93 0.88 0.94 0.91 0.88 0.87 0.98 1.06 1.15 1.07 1.09 1.03 0.98
2.4.1.4 Estimation of Power Generation
Using fish-eye lens projection system, power generation is estimated through the
whole year.
(1) Estimation Procedure
1) Estimation of insolation of direct sunlight was calculated by the solar orbit of each
month and hourly change of sunlight projection.
2) Diffused sunlight was evaluated using statistical weather data.
3) The power generation was calculated by the estimated insolation considering the
temperature rise of PV panel which reduced power generation. The result is
shown in Table 2.4-3.
Table 2.4-3 Estimation of Power Generation using Fish-eye Lens (Tilt angle 35)
Insolation with Average Power generation on Power generation on
month tilt angle 35 temperature direct current side alternative current
[kW/m2day] [C] [kWh/month] side [kWh/month]
1 4.36 -6.2 1,209,688 1,149,204
2 4.64 -3.1 1,140,868 1,083,824
3 5.47 1.9 1,450,160 1,377,652
4 6.12 7.2 1,539,550 1,462,572
5 6.12 11.6 1,535,355 1,458,587
6 5.78 16 1,381,272 1,312,208
7 6.38 18.6 1,536,558 1,459,730
8 7.16 17.7 1,707,878 1,622,485
9 7.39 12.9 1,752,311 1,664,696
10 6.75 6.4 1,681,482 1,597,408
11 5.98 0.7 1,484,350 1,410,133
12 4.77 -3.9 1,288,771 1,224,332
Total 70.93 6.65 17,708,243 16,822,830
2 - 46
Table 2.4-4 Estimation of Power Generation using Fish-eye Lens (Tilt angle 25)
Irradiation with tilt Average Power on direct Power on alternative

month angle 25 temp. current side current side
[kW/m2day] [C] [kWh/month] [kWh/month]
1 4.46 -6.2 1,236,729 1,174,893
2 4.72 -3.1 1,159,484 1,101,509
3 5.56 1.9 1,469,995 1,396,495
4 6.20 7.2 1,559,248 1,481,286
5 6.21 11.6 1,554,799 1,477,059
6 5.87 16.0 1,399,562 1,329,584
7 6.47 18.6 1,555,423 1,477,652
8 7.25 17.7 1,727,017 1,640,666
9 7.49 12.9 1,771,441 1,682,869
10 6.86 6.4 1,706,466 1,621,142
11 6.13 0.7 1,519,082 1,443,128
12 4.90 -3.9 1,323,061 1,256,908
Total 72.11 17,982,306 17,083,191
Estimated energy at the tilt angle 25 was slightly bigger than that of tilt angle 35.
Suggestion that the maximum power generation by the pilot PV system can be
attained with tilt angle somewhere between 35 and 25. Therefore it is recommended
to observe the insolation by using test PV panels which are set at different tilt angles
between 35 and 25.
2.4.2 Prediction of Power Generation
The relationship between supply and demand control and prediction factors is shown
in Fig. 2.4-11.
As output fluctuation is one of the central issues of solar PV systems, prediction of

power generation naturally attracts attention. Prediction of power generation means
prediction of insolation, or weather in a broader sense, for solar PV systems. The
concept of generation prediction and its use in the context of Smart Grid is illustrated
in Fig. 2.4-11.
2 - 47
Input Data Control Interval Explanation of Control
Past data of the RE power To make the operation plan of

Generation plan
generation the each power plant based on
Past data of the electricity (Every 30 minutes) the input data shown as the
demand left.
- Order of one day generation output of

the power plant
- The target generation amount of
sending and receiving power
Amount of sending and If the data shown as below has

Long periodic interval control
receiving power between big deference among them,
outside the smart grid and (1minute to several minutes re-arrangement of output of
the smart grid interval) the power plant is needed.
Output of the RE Between actual output of
the grid-connected solar PV
- Ordered output of system and planned output
the each power plan of it
(adjustment) Between actual power
demand and planned power
demand
Amount of sending and Following rapid output change

Short interval control
receiving power between of the grid-connected solar PV
outside the smart grid and (a second level interval) system, each generation plant
the smart grid controls the output.
- Ordered output of the
each power plan
(Final order)
Each power plant
Fig. 2.4-11 Prediction of Power Generation
(1) Insolation Prediction by Weather Forecast
Insolation estimation is important for supply and demand control. Since several
kinds of estimation period (every 30 minute, 1 minute to several minutes interval, one
second level interval) are required for appropriate supply and demand control,
weather forecast methods for these periods have to be developed.
As mentioned above, accuracy of prediction of the solar PV system is different

depending on which step is applied to and prediction method proposed at present is
shown in the Table 2.4-5.
1) As for short interval control (second level interval), the control based on the short
period prediction is difficult to apply and the high speed response equipment (the
battery and electric double layer capacitor and so on) is developed for this short
period fluctuation control.
2 - 48
2) Insolation measurement method respond to long interval control (one minute to

several minutes level) is predicted based on the past weather forecast and the
area weather forecast.
Table 2.4-5 Prediction Method of Insolation and Quick Demand/Supply Control

Method in Japan
Control interval Outline of prediction method and control method Source
Prediction method that based on the weather data
IEEEJournalVol.2, No.1,
supplied by ECMWF 27, solar PV power output is
pp2-10 (2008)
predicted every one hour.
The insolation data of the next day is predicted
IEEJ Annual Meeting,
Generation Plan every 30 minutes by the territorial data of the Japan
2009, No.7-049 (2009)
Meteorological Agency.
The insolation data of the specific time is predicted IEEJ Trans. PE, Vol. 127,
based on the area weather forecast of every three No. 11, pp.1219-1225
hours of the Japan Meteorological Agency. (2007)
Long interval IEEJ Technical Meeting on
control 5 to 15minutes interval insolation prediction is tested
Power System
based on the data base of the past weather forecast
(1 to several Engineering, PSE-11-17
and the area weather forecast in rather short time.
minutes interval) (2011-01)
IEEJ Trans. PE, Vol. 127,
Short interval The power storage system (battery and electric No. 3, pp.451-458 (2007)
control double layer capacitor) which quickly responds to
fluctuation of the Grid power for compensation of IEEJ Trans. PE, Vol. 129,
(second level
active power is applied. No. 12, pp.1553-1559
interval)
(2009)
(2) Cloud Prediction
Solar PV system generates electricity by direct and diffused sunlight and the strength
of diffused sunlight is 20 ~ 30% of the strength of direct sunlight. When the shadow of
cloud is projected on the PV array, power generation is reduced rapidly. This
phenomenon is the biggest problem for the power grid administrator in maintaining
the stability of the power grid. Therefore it is very important to predict the abrupt
change of generation power before it happens. In this subsection prediction of cloud
and its impact on power generation is described.
1) Macro Prediction
It is possible to predict the movement of cloud for a few hours or for a few days in
a macro view. However, it is impossible to acquire the concrete influence of a
small cloud at the PV site even by using satellite imagery.
Fig. 2.4-12 shows illustration of satellite photo. It is possible to predict roughly the
27 Europe Center of Meteorological Weather Forecast
2 - 49
amount of power generation by evaluating cloud movement at the PV site by the

prediction of cloud monitored by the satellite.
Fig. 2.4-12 shows rough prediction of the cloud influence by 100 km scale
evaluation and it is applicable to the satellite photos in Golmud.
15hour, 04/03/2012
Met-satellite
Cloud
PV site Control Center
Fig. 2.4-12 Macro Prediction System Fig. 2.4-13 Graphics by the Weather
Satellite
2) Micro Prediction
On the satellite photo of this scale even the large PV power stations is merely a
dot. To predict the shade of cloud it is necessary to measure the shade at the site.
To predict the influence of cloud, the shade of clouds on the ground must be
forecasted for next minute or hour. Fig. 2.4-14 shows a possible way to predict
the shade. To forecast a cloud that interrupts the sunlight it is necessary to locate
clouds continuously and set them on the way of the sun path.
2 - 50
North
summer solstice
A
B
C
East West
equinox
winter
A : Cloud location of X hours before

B : Present cloud location
C : Cloud location of X hours after
South
Fig. 2.4-14 Sun Orbit and Movement of Cloud
It is possible to predict influence of cloud to power generation if the movement of

cloud is predicted on the fish eye lens since the position of the sun at any time
can be located on the image.
Fig. 2.4-14 shows the sun orbit in Golmud. It is possible to evaluate influence of
PV power generation to observe the site. Macro and micro prediction methods
are combined, and it provides useful information to predict power generation and
supply and demand control of the power grid.
3) Statistics of Cloud in Golmud
For evaluating the sunlight of the site, it is important to assess the weather of the
site. In general meteorological data shows monthly days of fine, cloudy and rainy.
The condition of the weather is specified by amount of cloud. Evaluation of

diffused sunlight in Golmud was evaluated and shown below. The effect of cloud
on generation was evaluated with statistical frequencies of fine, cloudy and rainy
sky at every three hours and averaged for the month. It is indispensable to
estimate number of each day (fine, cloudy and rainy) for evaluating insolation
using fish-eye lens. This information was obtained from NASA data and is shown
in Table 2.4-6 to Table 2.4-8.
2 - 51
Table 2.4-6 Monthly Probability of Fine Sky

Monthly Averaged Frequency of Clear Skies at Indicated GMT Times (%)
Lon 94 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.
<10%@ 0 * n/a n/a n/a 30.1 24 26.8 30.2 34.4 n/a n/a n/a n/a
<10%@ 3 28.7 16.8 12.7 21 19.3 24.7 27.1 31.6 31.8 26.2 33.4 26.6
<10%@ 6 18 14.4 12.1 17.2 14.6 14.5 18.4 27.1 29.5 29.4 29.5 27.2
<10%@ 9 12 8.03 6.3 9.55 10.4 15.6 16.1 24.1 25 20.8 27.1 18.4
<10%@12 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
@number: GMT (Greenwich Mean Time), * <10%@ 0: Area in the sky covered by cloud at GMT 0 is less than 10%
Table 2.4-7 Monthly Probability of Cloudy Sky

Monthly Averaged Frequency of Broken-Cloud Skies at Indicated GMT Times (%) *
10-70%@ 0 n/a n/a n/a 30.6 29.3 19.7 20.9 22.6 n/a n/a n/a n/a
10-70%@ 3 43.8 42.6 29.6 24 27.4 16.3 21.4 20.9 20 33.5 43.3 42.2
10-70%@ 6 44.1 36.1 26.5 20.3 19.3 18.9 18.7 21.4 22.8 34.3 42.1 39.1
10-70%@ 9 40.1 32.6 21.7 20.4 15.8 17.7 18.3 20.8 25.9 37.5 37.4 38.5
10-70%@12 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
* Broken-cloud means the sky is partially covered by clouds
Table 2.4-8 Monthly Probability of Rainy Sky*1

Monthly Averaged Frequency of Cloud overcast Skies at Indicated GMT Times (%) *2
>= 70%@ 0 n/a n/a n/a 30.6 29.3 19.7 20.9 22.6 n/a n/a n/a n/a
>= 70%@ 3 27.4 40.5 57.6 54.8 53.2 58.9 51.4 47.3 48.1 40.1 23.1 31
>= 70%@ 6 37.8 49.3 61.2 62.4 65.9 66.5 62.7 51.4 47.5 36.2 28.3 33.5
>= 70%@ 9 47.8 59.3 71.9 70 73.7 66.6 65.5 54.9 49 41.6 35.4 42.9
>= 70%@12 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
*1 : the sky of rainy day
*2 : the sky is mostly covered by clouds or rainy day
Looking at these data, there is higher possibility that the sky is cloudy or rainy than
fine at Golmud. Cloud is one of major source of diffusion sunlight and having clouds in
the sky may not hinder PV generation that much.
2.4.3 Reflection Light from Solar PV System
It is often said that reflection of sunshine from PV modules disturbs driver who is
driving a car or gives uncomfortable feeling to some people in Japan. When such
case happened, the azimuth of PV panels is obliged to change. Fish-eye lens is
enabled to see whether reflection light of PV modules happens or what time it
happens. How to obtain reflection sunlight is shown in Fig. 2.4-15.
2 - 52
Picture image
Reflection
sunlight Center line
Reflection
Incident sunlight
2
1 sunlight
L1
center
Incident
Fisheye lens sunlight
L2
Tilt angle
incident angle 1= reflection angle 2 Reflection sunlight is symmetric to incident

sunlight with center of picture. L1=L2
Fig. 2.4-15 Method of Getting Reflection Sunlight
Fig. 2.4-16 shows that reflection of sunlight projection to which gives the influence to
the objects (cars and/or people) is shown only in the morning and evening at summer
season. Thus, the fish eye lens can evaluate reflection of sunlight which affects
influence to the objects (cars and/or people) through a year.
North
Reflection
sunlight
projection
East West
These parts in summer

season give the
influence to the objects
South
Fig. 2.4-16 Reflection Light at 10MW PV Site (Tilt Angle 35)
2 - 53
2.5 Assessment Tools for Solar PV System Economics
Generated energy (kWh) of a solar PV system depends on amount of the insolation

and ambient temperature of the site, and it has a direct impact on a project viability.
Therefore it is necessary to have a useful assessment tools in a feasibility study to
check the cost and benefit of a PV project. Free simulation tool named RETScreen28
is an easy to use example for preliminary study, based on downloaded solar PV
generation data of various locations of the world. In this section, the use of
RETScreen is demonstrated. Note that the financial exercise shown in this section is
for demonstration purpose only.
2.5.1 Outline of RETScreen
RETScreen is a tool that makes it easier for planners, decision-makers and industry to
consider energy efficient and RE technologies at the critically important initial planning
stage. This tool provides the following functions:
Enables assessment of possible projects at low cost

Free-of-charge to users around the world via the Internet & CD-ROM
Training & technical support available via an international network of RETScreen
Trainers
Industry products & services accessible via an Internet Marketplace
RETScreen can simplify preliminary evaluations with relatively little user input and
calculate key technical and financial viability indicators automatically. Based on cash
inflows, such as energy sales, fuel savings, incentives and production/GHG29 credits,
and cash outflows, such as equity investment, annual debt payments, O&M payments
and periodic costs, RETScreen shows NPV30, simple payback, IRR31 and etc. as
indicators. It also draws the curve of cumulative cash flow. A demonstration of
RETScreen usage for a PV project is shown below:
2.5.2 Input of Project Information
Basic project information such as project name, location, technology and type are
input as shown in Fig. 2.5-1. A user has to enter information in the yellow cells, but the
blue cells are optional. Here, in the cell of Analysis type, "Method 1" is a simplified
single spreadsheet option, and "Method 2" is a more detailed approach. After
specifying Golmud for Climate data location, and by selecting select climate data
28 This can be downloaded from RETScreen International. : http://www.retscreen.net/

29 Greenhouse Gas
30 Net Present Value
31 Internal Rate of Return
2 - 54
location, the Golmud site data is downloaded from the Internet and shown as in Fig.
2.5-232. Fig. 2.5-1 and 2.5-2 are in the Start sheet of RETScreen.
Fig. 2.5-1 Input of Project Information
Fig. 2.5-2 Site Data by NASA (downloaded automatically)
2.5.3 Specifying Energy Model
In the Energy Model sheet (Fig. 2.5-3), Dairy solar radiation tilted (kWh/m2/d) is
shown and by specifying some technical parameters for PV system and inverter,
monthly Electricity exported to grid is calculated. Annual exported electricity to grid is
estimated to be 15,008MWh 33 in this case, a little smaller than the result of
Consultants study in this report. And user specifies Electricity export rate here.
32 In Fig. 2.5-2, Heating design temperature is the minimum temperature that has been measured for a frequency level of at
least 1% over the year, and Cooling design temperature is the minimum temperature that has been measured for a
frequency level of at least 99% over the year. Both parameters are used to estimate heating/cooling energy demand and are
not used in Golmud case.
33 This value is smaller than 16882.8MWh in Table 2.3-1, because latter value is estimated by the analysis with fish-eye lens to
take into account diffusion lights.
2 - 55
Fig. 2.5-3 Input of Energy Model
2.5.4 Input of Cost Data
Fig. 2.5-4 is the Cost Analysis sheet. A user specifies all the initial and operating
costs here. Cost estimation of 10MW Pilot PV system for Golmud is shown in Table
4.2-1. Total of equipment installation, building construction and other construction cost
are entered in Road construction cell, and ones of power conditioner, other
equipment and central control in the user specified Power Conditioner, Other Equip.
& Central Control cell. O&M cost is 7% of years depreciation as shown in the Section
4.2.
2 - 56
Fig. 2.5-4 Input of Cost Data
2.5.5 Financial Analysis
In the Financial Analysis sheet, a user specifies Financial parameters (Fig. 2.5-5)
and Annual income (Fig. 2.5-6). In 10MW Pilot Project case, there are not only
income tax but also VAT and additional tax. Unfortunately RETScreen doesnt have a
cell in which VAT and additional tax are input, so these values are entered in the cells
Other income (cost). In the Section 4.2, annual deterioration of output of the PV
system is assumed at 0.8%. To take this into account, -0.8% is input in the cell
Escalation rate in Electricity export income and Other income (cost).
Fig. 2.5-5 Input of Financial Parameters Fig. 2.5-6 Input of Annual Income
2 - 57
Fig. 2.5-7 shows Project costs and savings/

income summary. RETScreen calculates
indicators that look at revenues and expenses
over the life of the project. The simulation
outputs are provided in Fig. 2.5-8 to Fig.
2.5-10. In Fig. 2.5-8, it can be seen after-tax
IRR equity is 3.3%, simple payback is 12.3
years and Equity payback is 14.3 years. In
comparison with the Section 4.2, this IRR is
smaller. The reason for the difference possibly
comes from the smaller generated energy
estimated with RETScreen than the expected
energy used wherever else in this report, the
latter of which takes into account the diffusion
light effect. In Fig. 2.5-9, cash flows in pre-tax,
after tax and cumulative are shown in table, Fig. 2.5-7 Costs & Income
Summary
and cumulative cash flow is drawn in a graph
as shown in Fig. 2.5-10.
Fig. 2.5-8 Financial Viability Fig. 2.5-9 Yearly Cash Flow
2 - 58
Fig. 2.5-10 Cumulative Cash Flow Graph
2.5.6 Risk Analysis
At an early stage of feasibility study, we often have many uncertainties about many
project variables. The result of financial analysis is subject to errors and variations
due to such uncertainties. A user can check risks on uncertain input data by the Risk
Analysis sheet of RETScreen.
Fig. 2.5-11 Sensitivity Analysis
2 - 59
RETScreen can show how the viability of the project changes when two key input
parameters vary simultaneously. Fig. 2.5-11 is an example of such a sensitivity
analysis. A user can evaluate the impact on the after-tax IRR-equity of fluctuations of
initial cost and electricity export rate, O&M cost and other cost (VAT 34 & additional
tax) for plus/minus 25% deviation. If we have the higher tariff at CNY 35 1,420 per
MWh shown in Table 4.2-4, the after-tax IRR-equity can be improved to approx. 6%.
To attain IRR more than 9%, initial cost have to be reduced by 25% and electricity
export rate shall be raised by 25%.
This kind of exercise can be made without special knowledge with RETScreen.
Fig. 2.5-12 Impact Analysis (After-tax IRR-equity)
Tornado chart shown in Fig. 2.5-12 is generated by RETScreen as well. It shows

which parameters have the most influence and how much the changes in the
parameters affect after-tax IRR-equity. In this example, a user can easily identify
electricity export rate and initial cost have great impact on after-tax IRR-equity.
RETScreen has a Risk Analysis Model based on a Monte Carlo simulation which is
a method whereby a probability distribution of possible financial indicator outcomes is
generated by using randomly selected sets of values as input parameters, within a
predetermined range, to simulate possible outcomes. A predetermined range is
specified as Level of risk, the percentage of probability that the values fall outside
the confidence interval (e.g., an 80% confidence interval has a 20% level of risk). An
example of Monte Carlo simulation result on after-tax IRR-equity is shown in Fig.
34 Value Added Tax

35 Chinese Yuan
2 - 60
2.5-13 36. With this result, we can see that the IRR will fall within the range of 3.40.4%
with approx. 12.5% probability, and there is only a 20% probability that the IRR will fall
outside the range between 1.7% and 5.0%.
Fig. 2.5-13 Distribution of Key Indicators (After-tax IRR-equity)
36 In Fig. 2.5-13, vertical axis is Frequency and horizontal axis is After-tax IRR-equity.
2 - 61
Renewable Energy Development Chapter 3 Capacity Development in the Planning, Design,
Final Report Construction, and O&M of a Grid-connected Solar PV System
CHAPTER 3
CAPACITY DEVELOPMENT IN THE PLANNING,

DESIGN, CONSTRUCTION, AND O&M
OF A GRID-CONNECTED SOLAR PV SYSTEM
CHAPTER 3 CAPACITY DEVELOPMENT IN THE PLANNING, DESIGN,

CONSTRUCTION, AND O&M
OF A GRID-CONNECTED SOLAR PV SYSTEM
3.1 Performance Assessment of the Selected Grid-connected Solar PV System
3.1.1 300kW Grid-connected Solar PV System in Xining, Qinghai
(1) Objective of the Demonstrative Project
There is a concern over a large-scale introduction of solar PV systems to the power

grid, as solar PV systems inherent fluctuation in output may pose serious problems of
power quality of electric power system. The demonstrative project was implemented
in Qinghai Province, PRC to assess the effectiveness of stabilization with the
integrated control system utilizing EDLC 1 . In this demonstration project, EDLC
featuring compact design and high maintainability is used as a system that
demonstrates its functionality in reducing short-term output fluctuations.
(2) System Configuration of the Demonstration Project
The system consists of i) 300-kW solar PV system (PV system), ii) 75-kW output
power stabilization system (EDLC system), iii) 300-kW bi-directional inverter
(converter) for grid connection, iv) Inverter to supply power to loads, v) Monitor and
control system, and vi) Low-voltage incoming panel all shown in Fig.3.1-1.
1 Electric Double-Layered Capacitors
3-1
Chapter 3 Capacity Development in the Planning, Design, Renewable Energy Development
Construction, and O&M of a Grid-connected Solar PV System Final Report
v) Monitor and control system

High-voltage distribution line
Solar radiation Plant control device
meters/Temperature (including
stabilization control)
indicator
Monitor and measuring device

vi) Low-voltage
incoming panel
iii) Bidirectional
CNV inverter
300kVA (converter) for
DC bus bar (DC unit) grid connection
CHP CHP INV

400kVA iv) Inverter to
75kW 10kVA supply power
to load
Power Power
collector collector
Electric double-layered
capacitor, 1 kWh
ii) Output power stabilizing Load

system (EDLC system) : Power line
300-kW PV : Control signal line
i) PV power generation system (PV : Measuring signal
system) line
Fig. 3.1-1 300kW Grid-connected Solar PV System
The system shown above is designed to output electric power that is output from the
PV system (i) and smoothed by the EDLC system (ii) to the low-voltage power
distribution line via the Converter (iii) and the low-voltage incoming panel (vi), and
also to supply power from the inverter (iv) to load using the DC bus bar as the powder
supply. The monitor and control system (v) is designed to record and make
measurement of system protection/control data such as voltages and currents of all
sections as well as analysis/assessment data such as the amount of solar radiation
and temperatures, and further to control the whole system.
3-2
Fig. 3.1-2 Configuration of Test Circuit for Real Facility Tests

Power (kW)
Elapsed time (sec)
at 1-Hz Frequency (With EDLC not controlled)
3-3
Power (kW)
Elapsed time (sec)
at 1-Hz Frequency (With EDLC controlled)
(3) Lessons learned from this Demonstrative Project
The technical knowledge obtained in this demonstrative research is a technology

useful in stabilizing power output to be distributed to the grid system even for a short
period of time when RE with unstable output such as solar PV system power
generation is increasingly interconnected to the grid system.
The achievements of this demonstrative research are as follows.
1) With regard to compensation of output fluctuation, output power stabilization and

control system using the EDLC were developed and verified that the system
could stabilize a short period fluctuation of the output of the solar PV system. In
addition, measurement of efficiency of the EDLC was made and it was proved
that no changes were observed during this demonstrative operation period.
2) With regard to integrated control, it was verified by analyzing data on

demonstrative operation over one year that fluctuation in DC bus voltage and
output-point voltage on the inverter (converter) AC side is within the given range
(DC bus voltage: 10% of reference voltage / Output-point voltage on the
converter AC side: 7% of reference voltage).
3) It was verified that the inverter started up in a period of 1.14 seconds for the
targeted value of the order of 2 seconds. As conclusion, when the RE, such as
solar PV system is increasingly interconnected to the power grid system, the
EDLC equipment combining the solar PV system is very efficient to compensate
output of solar PV system and stability the grid system.
3-4
As condition, when the RE, such as solar PV systems are increasingly interconnected
to the power grid system, EDLC equipment combining solar PV system is very
efficient to compensate output of solar PV system and stabilize the power grid.
3.1.2 Sakai Mega Solar PV Power Station
(1) Premise
To supply electricity to the customers is most important obligation of the electric

power company. Quality of electricity is explained as follows;
- Frequency: appropriate frequency

- Voltage: appropriate voltage
- Reliability: sustainable electricity supply
On the other hands features of solar PV system are
- Fluctuation: power generation depends on the weather condition. As it is

impossible to store generated capacity output control of solar
PV system is difficult.
- Surplus: As power generation depends on the weather condition, large

scale introduction of solar power generation may lead to
excess electricity through the entire power system.
- Reverse power flow: Excess electricity flow back into the power system.
(2) Verification Items for Sakai Mega Solar Power Station
The KANSAI Electric Power Co., Inc. constructed a 10 MW solar PV system in Sakai
City, Osaka Prefecture, Japan (Sakai Mega Solar PV Power Station).
3-5
Table 3.1-1 Verification Items

Item Verification
Facility Construction - Reduction of construction cost
- Decision of plant specification as an industrial use facility (Japans first
industrial-use solar power generation plant)
Operation - Reduction of maintenance and management cost
System Fluctuation in - Analysis of output fluctuations at a mega solar power generation
frequencies
Fluctuation in - Analysis of normal system voltage fluctuations at a mega solar power
voltages generation plant
- Verification of effectiveness of the countermeasures against normal system
voltage fluctuations, operating method of power conditioners, etc.
High Harmonic - Verification of high harmonic occurrence level due to the interconnection of
multiple inverters
Drop out of all - Verification of voltage decline rate due to a failure at the upper voltage system
generators and the range of continuous operation of power conditioner
(3) Reduction of Construction Cost
Different types of solar panels have different conversion ratios. The area required to
install a 10MW solar panels depend on the type of panel. Even if the cost of solar
panel is lower, high land cost and high construction cost may result in rather
expensive total cost. Table 3.1-2 shows the relationship between type of solar panel
and occupied area for 10 MW and Fig. 3.1-5 shows relationship between cost and
efficiency of solar panel.
Table 3.1-2 Type of Solar Panel and Occupied Area

Type of solar battery Conversion ratio Occupied area for 10MW
Crystalline system Approx.15% Approx.70,000m2
Thin-film system Approx.8% Approx.130,000m2
3-6
Power output (energy)

Conversion
ratio Incidence energy (consistent per unit area)
Total cost
Cost
Cost of solar batteries

(as more expensive as
higher efficiency)
Land and construction work cost

(As less expensive as higher
efficiency)
Low efficiency High efficiency
Fig. 3.1-5 Cost and Efficiency of Solar Panel
(4) Comprehensive Evaluation in Selecting the Type of Solar PV System
The value of solar PV system is comprehensively evaluated taking into account the
bid price and degradation ratio of PV panel in addition to predetermined system cost
and annual production.
System cost
Solar Panel Cost Cumulative total of
Unambiguously determined
Manufacturers bid + + land cost and
considering the conversion ratio and
price property tax
Evaluated value panels of solar battery
=
(yen/kWh) Degradation ratio
Annual energy Manufacturer's declared value
x x 20 years
production (20-year guarantee equivalent to
Western countries)
Fig. 3.1-6 Evaluated Value for the Solar PV System Cost
(5) Development of Mounting Hardware which can accommodate Unequal

Settlement
There is unequal sinking at the basement of the solar PV system and special
mounting hardware was developed for its countermeasure.
3-7
1. Substructure
Conventional substructure: A steel platform supports the solar battery
panel frame. Solar battery
Solar battery
Hardware on the
Used metal 700t solar panel side
Hardware on the
Current substructure: directly fixed on the concrete concrete block side
foundation using mounting hardware
Backward concrete Hardware on the Rotation
foundation (50cm high) solar panel side Concrete block Lateral shear
Mounting hardware
Front concrete
Mitigate strain due to settlement by lateral shear and rotation.
foundation (20cm high)
Possible to correct shear following unequal shear.
2. Demonstration
test
Before After
settlement settlement
Rotation
Shear
Forced
stettlement
The mounting hardware can accommodate a 6 ~ 8cm unequal settlement without any problem
with its applicability.
Fig. 3.1-7 Countermeasure of Unequal Settlement
(6) Easy Installation of the Solar PV Panels
Compact basements of the solar PV panels can realize easy installation of the solar
PV panels.
Fig. 3.1-8 Installation Condition
3-8
(7) Improvement of Fluctuation Ratio
Although the fluctuation ratio of solar insolation at individual location points is rather
high, the averaged fluctuation becomes smaller due to off-setting effect. It is planned
to analyze the data to development of supply and demand control system.
Toyooka Office Locations of pyranometers Hikone Office

in Kansai Electric supply area
Fluctuation ratio
Fluctuation
ratio
Kobe Substation Higashisumiyoshi
Office
Fluctuation ratio
ratio
Fluctuation
*Assuming 1000W/m2 solar
Fluctuation ratio averaged over 60 points
radiation as 100%
Decreasing fluctuation ratio
Fig. 3.1-9 Measured Solar Radiation
(8) Technology to predict Amount of Insolation (Prediction of PV Output)
The measured solar radiation will be utilized to verify and improve the accuracy of the
method of prediction of PV output. Research programs are under progress on the
prediction of insolation by means of the weather forecasting system. With a high
level of errors in the prediction, it is necessary to develop new technologies to improve
the accuracy of prediction.
3-9
Amount of solar radiation

Predicted and measured amount of solar radiation
Predicted value
Meteorological satellite, Measured value
Himawari A large error
[Numerical prediction]
Data on atmospheric pressure,
Attenuation by
temperature, wind transmitted
radiation
Amount of solar
atmosphere
from all over the world are
Atmospheric pathway
processed by the computer to
Amount of water vapor
predict future weather
Degree of air pollution
conditions.
Attenuation by clouds
Amount of upper clouds
Amount of mid-level
clouds
Amount of lower clouds 7 8 9 10 11 12
Water vapor
Comparing with the actual amount of solar radiation measured on the roof of
Kansais Research institute (one point), some predicted values deviate from
the measurement. It is planned to verify and improve the accuracy of
Ground observation data prediction based on the amount of solar radiation measured at several points.
Atmospheric pressure,
Satellite data temperature, wind
Visible image Amount of solar radiation
Fig. 3.1-10 Prediction of PV Output
(9) Outline of Sakai Mega Solar Power Station
Operator: Jointly operated by Sakai city and Kansai Electric

(public relations: Sakai city, construction & operation: Kansai Electric)
Location: Industrial waste landfill in Sakai No. 7-3 District
Area: approx. 20ha
Power output: 10MW (10,000kW)
Generated electricity: approx. 11million kWh/year
Installation: on ground
Operation schedule: partially started on October 5, 2010 (approx. 2.85MW)
planned to fully start on October 2011
Fig. 3.1-11 Outline of Sakai Mega Solar Power Station
3 - 10
(10) Location of Sakai Mega Solar PV Power Station
Sakai No.7-3 District
Sakai Mega Solar Power

Generation Plant
Forest of co-
existing
Windmill square Eco town
Minato Sakai
Green Square
Sakai No.7-3
District
Fig. 3.1-12 Location of Sakai Mega Solar PV Power Station
(11) Lessons Learned
Sakai Mega Solar PV Power Station in the Demonstration project of KANSAI Electric
Power and there are several items to be verified shown in Table 3.1-1.
1) Construction cost is consist of several elements (solar panel cost, land cost, etc.)
Therefore to integrate those element costs and to evaluate total cost is essential.
2) Installation method which is variable due to the site condition also give influence
to the total construction cost. In Sakai case, special hardware which can fix the
PV panel easily to the concrete foundation and compact foundation were
developed.
3) Geographically spread PV systems make their total output fluctuation smaller than
each output fluctuation due to off-setting effect. For Qinghai Province, which has
vast area, geographical smoothing effect can possibly be an interesting option for
stabilization of total output of PV systems connected to the grid.
4) Insolation forecast by means of the weather forecast is under research and it is

necessary to improve the weather forecast system.
3 - 11
3.2 Capacity Assessment of the Implementation Agency
3.2.1 Solar Radiation and Other Resources
Insolation Estimation
Insolation is automatically estimated using computer program of QBE. The input data
is gotten from meteorological neighboring observatories.
Input items are shown as below.

a) Longitude of the site
b) Latitude of the site
c) Altitude of the site
d) Reflection rate from the ground
e) Monthly direct irradiation
The result is shown in Table 3.2-1.
Table 3.2-1 Insolation at Golmud Site

(MJ/m2)
tilt angle 36 tilt angle 36
Jan. 523.113 Sep. 694.949
Feb. 530.068 Oct. 704.14
Mar. 647.011 Nov. 594.694
Apr. 726.419 Dec. 515.868
May 772.344 Winter half year 3514.894
Jun. 717.901 summer half year 4394.102
Jul. 726.001 total year 7908.996
Aug. 756.488
This estimation way seems to be standard in PRC. Therefore, it is converted to kWh

as Table 3.2-2.
3 - 12
Table 3.2-2 Insolation at Golmud Site (Conversion Megajoule to kWh)

(kWh/m2)
Jan. 145.31 Sep. 193.04
Feb. 147.24 Oct. 195.59
Mar. 179.73 Nov. 165.19
Apr. 201.78 Dec. 143.30
May 214.54 Winter half year 976.36
Jun. 199.42 summer half year 1220.58
Jul. 201.67 total year 2196.94
Aug. 210.14
Insolation value is very good, and if it is compared with other areas insolation,
Golmud site will be one of the best places to get insolation in the world.
Best tilt angel 36 is calculated by QBE.
3.2.2 Evaluation of the Site Analysis
(1) Site Selection
Joint site reconnaissance of Golmud 10 MW Pilot Project Site was conducted with
QBE engineers and the Consultant in July 2011. Golmud is a vast barren area and
there seems to have little rain throughout the year by the data of neighboring
observatories. There is also NASAs data available for the region but the
precipitation is not known from satellite-image based on NASAs data.
(a) Eastern view (b) Southern view (c) Western view

Fig. 3.2-1 10MW PV Sight View
Generally speaking, appropriate site conditions for PV power generation are listed
below;
1) Good insolation,
2) Sufficient flat land to install PV modules,
3 - 13
3) Existence of no obstacles that cast shadow on PV modules throughout a year,

4) Proximity of electric grid with sufficient capacity to send the generation power to
the demand,
5) Access to the site to transport equipment and construction machines,
6) Availability of water for installation and maintenance,
7) Appropriate climatic conditions, mild wind in particular,
8) Existence of less sandy dust.
Golmud site satisfies conditions 1) to 3) mentioned above. For the condition 4) a solar
PV system developer has to construct transmission line to the nearest substation at
his own responsibility. This is a standard procedure in PRC. For the condition 5) there
are no big rivers or high mountains on the way from main road to site that may hinder
the transportation of equipment, etc. For the condition 6) although there is no water
supply available at the site, some alternative measures, such as using water tank to
transport water to the site, is exist. For the condition 7) the meteorological data shows
that there is relatively strong wind from west. According to the design engineer of
QBE, there has not been reported that PV arrays of the existing solar PV power
stations were damaged by strong western wind in the past at the site. For the
condition 8), sandy wind at the site can be a matter of concern. In the maintenance
of solar PV power station, cleaning the accumulation of sandy dust on PV modules
can be a problematic issue.
Although there are some conditions at the site that are not favorable to solar PV
power generation, Golmud site is considered as very suitable site for solar PV power
generation.
(2) Tilt Angle of Solar PV Panel
(i) It is well known that solar PV system generates power not only by the direct
sunlight but also diffused sunlight from surroundings. However there is no
standard evaluation method of diffuse sunlight. There are many solar PV systems
which tilt angle of the solar panels is the same as the latitude of the site but the
diffused sunlight should be considered for power generation of the solar PV
system. If defused sunlight effect is counted into power generation of solar PV
system, it is better that the tilt angle of the solar panels is lower than the latitude.
(ii) Recommendation
Therefore it is recommended to have lower tilt angle of the solar panel for the
Golmud PV system to increase of power generation of the solar PV system.
Further, lower tilt angle of solar panel reduces the cost of support structure and
makes maintenance of solar panels easy. The lower tilt angle of solar panel helps
cleaning the surface of the solar panels.
3 - 14
3.2.3 Design Ability of 10MW Solar PV System
QBE has obtained a necessary license to be an operator of 10 MW solar PV system.

There are engineers in QBE who are licensed to provide consulting services by the
Government. Also, QBE has many experiences of installing isolated solar PV systems
over 100 sites already.
(1) PV System Configuration
QBE provided the Consultant some drawings from their F/S report of 10MW Pilot
Project. The system configuration is shown Fig.3.2-2.
From operation and maintenance point of view, this configuration is clear and will not
cause misunderstanding, which is an important element in designing solar PV system
configuration.
Fig. 3.2-2 Main Electric Circuit
(2) Island Operation
QBE engineers designed island operation protective function in the inverter.

However, there needs an argument, in terms of economy, whether one set of
3 - 15
protection relay is placed at secondary side of the main transformer or each inverter
has one set of protection relay inside the inverter. The Consultant found that they
need to discuss with power utility company whether the islanding detector is
necessary or not, but there was no chance available to do so. The Consultant is of
the opinion that islanding phenomena would not happen in this solar PV system
configuration, because there are no loads between the solar PV system and the
substation which receive power from the solar PV system.
Fig. 3.2-3 illustrates a possible condition of occurrence of islanding phenomena. Fig.

3-2-3 (b) shows islanding phenomena can happen under the condition such as P = D1
+ D2 + D3. In the Golmud case (c), there is no demand power of consumer between
PV site and substation. PV-generated power, P, has no chance to be equal to the
size of demanded power. Therefore, islanding phenomena would not occur. Of
course, this judgment should be supported by the power utility and the authority.
P
D1 D3
S/S
D2
(a) normal condition
P
D1 D3
S/S
D2
Islanding condition P D1+D2+D3

(b) islanding condition
S/S
(c) 10MW solar PV system in Golmud case
P: PV generation power
Fig. 3.2-3 Islanding Phenomena
D: Demand power by consumer
and Possibility of Occurrence
3 - 16
(3) Structural Design
According to QBE engineers experience, the largest of PV system installed by them

was 300 kW. PV array diagram was not provided to the Consultant to evaluate. The
reason given was that PV module manufacturer had not been decided. Apart from
main equipment, basic data in Golmud such as wind pressure, earthing resistance,
etc. to have been considered in QBEs design which was shown to the Consultant for
review.
10MW Pilot Project was designed to withstand the wind load of 0.45N/m2. This design
factor comes from the technical standard of PRC. Wind load was evaluated with
reference to the load code for the design of building structure. Design wind in the
code is for the extreme wind with recurrence period of 100 years.
PV system of 10 MW Pilot Project was divided into 10 sets of 1MW subsystems.

This setting gives more reliable as the whole system continues to be operated even
when some subsystems are broken. (Fig. 3.2-4)
PV array Switch
board
Switch Power
board conditioner Lower voltage
panel
Transformer
Fig. 3.2-4 Configuration of a PV System in 10MW Pilot Project
3 - 17
(4) Electric Supply for Station Use
It is designed that all the power generated by the pilot solar PV project is to be sold to
the grid and on the other hand the auxiliary power for the system is to be purchased
from the grid. This is because the power generated by pilot solar PV is sold to the grid
by higher tariff than the tariff of the power for auxiliary use is purchased from the grid.
Fig. 3.2-5 shows diagram of receiving system.
Fig. 3.2-5 Electricity for Station Use at a Pilot 10MW Solar PV System
(5) Earthing Design
The resistance of national regulation for earthing requires less than 4 , and the
10MW pilot solar PV project will be 0.18 ~ 0.28 by their earthing design. It is very
satisfied because earthing value changes season by season. After the rain the
earthing resistance is decreased and in dry season it is increased. The earthing
resistance of the 10 MW solar PV system is satisfied in all season.
(6) Selection of Capacity of Each Equipment
As discussed in detail in Chapter 4, there were rooms for rationalization identified in

the design of the Pilot solar PV system done by QBE. Specifically, capacities of
inverters, transformers and circuit breakers can be made smaller, if we consider the
real operational conditions and the allowance incorporated in the standard design of
these equipments. Selecting equipment of smaller rated capacity often results in large
3 - 18
reduction of procurement costs. This kind of knowledge is important in efficient design

of electrical systems including PV systems, but is not widely available outside the
organizations deeply engaged in the use of electric equipment, such as electric
utilities.
3.2.4 Construction
The construction of 10 MW Pilot Solar Project had to be finished by the end of

December 2011. There has been no information given to the Consultant concerning
this project and its construction. Therefore, the Consultant had no chance to discuss
about construction work of a solar PV system.
3.2.5 Operation and Maintenance
Although the information on the organization for operation and maintenance of 10MW
Pilot PV Project has not been disclosed, the Consultant assumed that QBE acquired
sufficient operation and maintenance experiences and knowledge with their own 300
kW installation. Their experience and knowledge of operation and maintenance with
300kW plant were enough to operate and maintain a 10 MW pilot solar PV system. A
10MW pilot solar PV system demands more sustainability and efficiency. The
Consultant expects QBE accumulate more experience with larger solar PV system
and verify the performance of 10 MW Pilot Solar PV Project.
3.3 Technical Guidance and a Capacity Enhancement Module
3.3.1 System Configuration
(1) Inverter Capacity
Design total loss before the inverter was 10%. Then the capacity of inverter could be
enough to have 90% of the capacity of the solar PV panels. Specifications of inverters
may be offered unilaterally by the inverter manufacturer; still it is important here that
the user engineers understand each item of the specifications. Users understanding
of the specifications of inverter should be at the same level as manufacturers
engineers. There are several steps to be taken to improve the knowledge of user
engineers.
a) The first step

Introduce installation conditions based on the specifications
3 - 19
b) The second step

Introduce necessary function for the solar PV system at the site.
c) The third step

Understand specifications of the equipment in detail
understand specified value gained from testing method
d) The fourth step

Consider appropriate combination of devices, to achieve high efficiency, low cost,
long life time, easy maintenance, etc.
(2) Transformer Capacity
The life of a transformer is estimated based on the maximum utilization factor and the
load factor and the life measurement method of transformer is established at present.
Considering the fact that the utilization factor of the solar PV system in the night
period is zero, less than 90% of inverter capacity is good enough for the capacity of
the transformer. Generally speaking, a transformer has overloading capacity. It
depends on the insulator used in transformer, the load factor and ambient
temperature. Load factor of a transformer used for a grid-connected PV system will
be less than 0.3, and air temperature is not high in Golmud compared with Japans
case. It may be worth considering transformer capacity with smaller capacity than
PV system capacity. Of course there is a need to investigate how much the
maximum power is, how many hours the continuous operation is, and how often
appear in appropriate period.
After these process, a transformer with smaller capacity may be introduced to PV

system. Using smaller-capacity transformer will reduce, not only installation cost,
but also transformer's electric loss. QBE engineers seem to have sufficient
experiences and knowledge to design large-scale PV systems. However, it is
necessary to consider the items below.
A life time of dry-type transformer is expressed as below.

Y = ae-bH
Where, H : maximum temperature of winding wire

a : constant
b : constant that depends on the insulation class
Example of class F insulation
Half life time period of Class F insulation transformer depends on every +8C rise.
3 - 20
ln2
b= = 0.0866
8
Maximum temperature of winding wire is expressed as below.
H = k1.6 (o + g) + a
Where, k : load factor

a : equivalent ambient temperature (C)
0 : average temperature rise under rated load (K)
g : difference between maximum winding temperature and average
temperature rise (C)
In Japanese standard, each temperature is generally given as below.
a = 25C o = 95K g = 25C
Under continuous operation at a rated load, the life time of transformer Y0 will be 20 ~
30 years. Life time of different load factor Y is expressed as below.
Y
= e-b(-145) = e-0.0866 (-145)
Y0
Load factor (%) Highest temp. of coil (C) Ratio of lifetime

100 145 1
105 155 0.421
110 165 0.177
This is the result of continuous overloading condition. Using load factor 0.3,
transformer lifetime is estimated over 1000 years by this calculation. Purchasing a
transformer of this life time is not economical. Therefore, the size of the transformer
can be reduced, by allowing to have some over-loading situations.
3 - 21
< Reference >
The case of oil filled transformer overloading operation is shown in Fig.3.3-1.

Overloading Scale Factor
Fig. 3.3-1 Overloading Capacity of Transformer
(3) Circuit Breaker Capacity
In case of fault occurred, the fault current is flown into the circuit breaker from not only
upper side of the power grid but also from other solar PV systems. It is necessary to
discuss with the reasonable power company about the short circuit capacity as the
short circuit current depends on the impedance of transmission lines.
(4) Lightning Protection
The consultant considers that the lightning protection of 10MW Pilot Project has been
designed well. However, arresters should be carefully chosen.
Fig. 3.3-2 and Table 3.3-1 show the wave shapes of the test current which represent
direct lightning current and induced surge current.
3 - 22
100kA
10/350s
8/20s
10s
t (s)
Fig. 3.3-2 Test Wave
Table 3.3-1 Test Wave and Current

Wave shape 10 350s 8 20s
Imax kA *100 ~ 200kA *5 ~ 20kA
Standard IEC 62305-1 IEC 62305-2
The type of wave shape depends on design of LPZ2 as follows.
LPZ 0 LPZ 1
LPZ 2
LPZ 3
Wiring Home appliance Precision Instrument
Fig. 3.3-3 LPZ Partition
2 Lightning Protection Zone
3 - 23
LPZ (IEC 60664-1 Ed 1.2:2002)
LPZ 0 Zone where the threat is due to the unattenuated lightning electromagnetic field
and where the internal systems may be subjected to full or partial lightning surge
currents.
LPZ 1 Zone where the surge current is limited by current sharing and by SPDs 3 at the
boundary. Spatial shielding may attenuate the lightning electromagnetic field.
LPZ 2 Zone where the surge current may be further limited by current sharing and by
additional SPDs at the boundary. Additional special shielding may be used to
further attenuate the lightning electromagnetic field.
LPZ 3 Zone where the surge current may be further limited by current sharing and by
additional SPDs at the boundary. Additional spatial shielding may be used to
further attenuate the lightning electromagnetic field.
To change LPZ needs some kind of SPD at boundary of partition.

LPZ0 LPZ1 needs class 1 SPD
10 MW Pilot Project has been designed to be installed with SPD in each joint box.
This is an agreeable design in order to prevent PV arrays from lightning hazards.
Some array which was hit by lightning would spread the impact to other arrays.
Lightning strike
Fig. 3.3-4 Propagation of the impact of Lightning
It might happen to flash over between frame and PV cell of PV arrays shown above.
Surge will be passed on to other PV arrays.
SPD
Fig. 3.3-5 SPD Protecting Lightning Impact to Propagate
3 Surge Protect Device(s)
3 - 24
To avoid damage by lightning, SPD is effective. Function of SPD is to equalize

potential between equipment and the ground, which prevent the occurrence of flash
over.
(5) Reactive Power Absorption
For alterative current circuit, there are two kinds of power supply. One is effective
power and the other is reactive power. The PV system of 10MW Pilot Project will
supply only effective power, but transmission line needs reactive power because
there is line inductance and capacitance to the ground in transmission line. For this
reason, it is very appropriate to install SVC 4 in the substation to compensate the lack
of reactive power. For 10MW Pilot case, a SVC should be located at the transmission
line's end.
(6) Wiring between PV Modules
When the Consultant visited several solar PV plants in Golmud, wiring between
modules were not in good condition. Wiring is vibrating and rubbing against PV frame
because wiring was not firmly fixed. This condition damages the insolation of wiring.
Therefore, wiring needs some more length for setting to absorb vibration and to avoid
rubbing against PV frames..
Fig. 3.3-6 Wiring between Modules
Wiring would be set over safety regulation of IP45.
(7) Tilt Angel of PV Arrays
PV system generates electric power with the total intensity of the sun light. Total
intensity consists of direct sun light and diffused light. The source of diffused light is
everywhere on the earth. Cloud is one of the major sources of diffused light. Fish
eye lens projection image can estimates cloud amount as solid angle of sky.
4 Static Var Compensator
3 - 25
(a) Tilt angle 35 (b) Tilt angle 25

solid angle of sky 4.67 steradian solid angle of sky 5.12 steradian
Fig. 3.3-7 Solid Angle of Sky by Different Tilt Angle
Tilt angle of PV array was set at the same angle as site latitude for the 10MW Pilot
Project. This counts for direct sunlight only. But, to harness the total intensity of
sunlight which includes diffused light, the tilt angle may be set a little flatter. As
shown in Fig.3.3-7, solid angle of sky becomes larger as the tilt angle becomes
smaller, meaning PV modules catch more of diffused light. This design method was
developed in Japan about 10 years ago. In Fig.3.3-8, the relationship between
radiation of diffused sunlight and solid angle of cloud is shown.
The relationship between diffused light and other objects was investigated and there
is clear relation. Total radiation on PV modules is the sum of direct sunlight from the
sun and diffused sunlight from the sky. Diffused sunlight intensity is not so small to
be negligible as on a cloudy day PV system generates reasonable power.
diffusion light
solid angle of cloud
Fig. 3.3-8 Relation between Diffusion Sunlight and Solid Angle of Cloud
3 - 26
The Consultant suggests that observation of insolation should be conducted at

Golmud site.
The method is as follows.
Observation of insolation with a few PV modules with different tilt angles, other things
be in equal. This observation should be continued for at least one year to obtain
reliable results.
senso
tilt angle 25
tilt angle 30
tilt angle 35
Fig. 3.3-9 Method of Set Sensor
(8) DC Protection.
DC circuit generally needs insulation to the ground and some monitoring and
protection might be necessary.
However for PV system it is not clear how to apply insulation system because there is
no regulation in guidelines for solar PV system in Japan and in PRC as well.
270kV/350V
Transformer
Grounding
DC fault current
Fig. 3.3-10 Direct Fault Current Flow
When grounding accident happens in the DC circuit of a solar PV system, the DC fault
current flows from PV array through transformer to the ground. DC fault current flows
in the transformer as shown in Fig.3.3-10. In this case the transformer may
experience insulation deterioration quickly by DC fault current which is dangerous for
maintenance people or other people working for solar PV systems. If someone
touches the wiring of DC circuit and the wiring does not have enough insulation,
electrical shock may happen to this person. Although there is no regulation in Japan,
3 - 27
some manufacturers install detection relay inside the inverter.
Even if the inverter does not have this function, it is possible to set this function
outside the inverter, such as DC OVGR 5.
(9) Short Circuit Current Protection at Substation
transformer but also other transmission lines that are connected to PV system.
Therefore, the capacity of circuit breaker should be designed to be large enough tp
handle the total current.
PV System PV System PV System PV System

B : Short circuit current from PV system through other transmission
(10) Spare Parts
For maintenance of PV system, some stock of spare parts is necessary.
Exchange number / month

S= a N M
S: number of spare parts
D in stock
a: coefficient ( >1 )
At first "a" will be
Delivery time : month desirable 1.5 ~ 2.
Fig. 3.3-11 Safety Stock
5 Over Voltage Ground Relay
3 - 28
Long term operation and maintenance requires not only human resources but also
spare parts, especially PV module and inverter parts. Long term maintenance
requires more skill in handling complex devices such as power conditioners.
Generally, a power conditioner has several electronics boards inside and replacing
such boards requires specific skills. If replacement of parts is conducted by
manufacturers engineer, we will have to allow for 2 or 3 days minimum before arrival
of engineers at the site. Unfortunately the skill of manufacturers engineer is a fruit of
special training, it would be the good chance to obtain the special training in the
guarantee period. Through the repeated discussions held between the Consultant
and QBEs engineers about operation and maintenance methods of PV systems, the
Consultant confirmed that the knowledge of engineers of QBE were significantly
increased.
(11) Further Consideration
When many PV modules with individual characteristics are connected in series, total
generation output becomes smaller than the output calculated in theory. This fact is
explained using the figures below.
50
40 Voc=90 V
Vop=70 V
30 Isc=50A
Current
Iop=40 A
Pmax=2800 W
20 FF=0.62
10
0
-10 10 30 50 70 90
Voltage
Fig. 3.3-12 I-V Approximation Curve
Using characteristic of PV modules shown in Fig.3.3-12, total power of serial

connection is calculated. Even if the standard of characteristics is the same among
PV modules, there are some differences. For example, there are three modules that
have the same Pmax 2800W but three modules have their own characteristic shown
as below and Fig. 3.3-13.
- Module1: Vop is 70V, and Iop is 40A ( Standard)

- Module2: Vop is 5% higher than 70V
- Module3: Iop is 5% higher than 40A
3 - 29
Series connection of different Iops and Vops decrease total power generation shown
as the black curve in Fig. 3.3-13.
3000
2800
2600
2400
STADARD
POWER
2200 Vop + 5 %
2000 Iop +5 %
SERIES
1800
1600
1400
1200
CURRENT
Fig. 3.3-13 Power of Serial Connection
This means that a PV array should consist of the modules with the same Vop and Iop
values. As a solar PV system is expected to be in operation for long time, we should
be careful when replacing PV modules with different model.
3.4 Solar PV Supply Chain
3.4.1 Overall Comments
The quality of upstream manufacturing process of solar cell impacts upon its
conversion efficiency and long term reliability. The consultant team assessed the
upstream local manufacturing process and observed opportunity for further
improvement in its quality. It is difficult to avoid the yellow sand flies into the factory by
the nature of the locality in Qinghai, PRC. Therefore, appropriate countermeasure is
devised to prevent the yellow sand getting into the building, especially the cleaning
lab of materials and the pull-up lab of mono-crystalline silicon, and to keep the
factories as a whole cleaner. Required quality of mono-crystalline silicon necessary
for IC semiconductor and solar cell is different, but converting measure of
poly-crystalline silicon into mono-crystalline silicon is the same.
It is important to get more reliability of products and also to pay more attention to the
cleaner conditions of workers, equipment, facilities, etc. to improve the reliability of
the products.
3 - 30
3.4.2 Outline of the Ingot Factory
Pull-up Pot 64 pots (32 pots each in Factory 1 and 2)
Production 45t/month is produced with yield of 70% by full operation of 64 pots.

Capacity
45t is planned for 165mm ingot only.
Sizes of pulled-up ingot are 0.5~3.0cm and 3.0~6.0 cm. (but
0.5~3.0cm is major size)
Number of batch (Bt) pulled up per month is 1,071Bts judging from
consumption of melting pots
Production capacity per pot:
1,071Bt/64 pots = 16.7Bt/month/pot
Since material consumption is 60kg per ingot,
60kg 70% 16.7Bt = 701.4kg / month/pot
Cycle time is 43hr/Bt
Employee Since one employee takes charge of 2 pots, one group to take
charge of whole pots consists of 642 = 32 employees/group.
Therefore, number of employees for pulling-up can be estimated as
64 employees for 2 groups, and 96 employees for 3 groups. It
seems that there are too many employees because process from
material to cleaning except for pull-up is conducted manually (by
MAN POWER).
3.4.3 Manufacturing Process of Solar Cells
(1) Manufacturing Process of Polycrystalline / Monocrystalline Cells
Pull up with
rotating
Mono-
Ingot Wafer Crystalline
Cell
Polycrystalline
Silicon
Solid
Polycrystalline
Silicon Poly-
Ingot Wafer Crystalline
Cell
Fig. 3.4-1 Manufacturing Process of Polycrystalline / Monocrystalline Cells
3 - 31
In manufacturing process of monocrystalline cells, seed crystalline silicon is thrown

into melted polycrystalline silicon to pull up a monocrystalline ingot. Then the ingot is
thinly sliced (0.3 ~ 0.4mm) to be monocrystalline cells. On the other hands,
polycrystalline cells are manufactured by slicing polycrystalline ingot.
MONOCRYSTALLINEINGOT POLYCRYSTALLINEINGOT
Fig. 3.4-2 Photos of Monocrystalline / Polycrystalline Ingots
(2) Solar Cells
Formation of Formation of
PN Junction Electrode Junction
Electro
Diffuse N-type Produce N-type

phosphorus electrodes on
to form front and
N-type layer back
P-type surfaces of a P-type
solar cell
Electro
Phosphorus is diffused for photoelectric effect. Electrode is put on the manufactured

cell to make electric outlet.
3 - 32
(3) PV Module
PV Module
Solar Cell
Power generation capacity of a 10 cm square solar cell is approximately DC 0.5V, 3A.

Solar cells are connected in series to form a PV module.
3.4.4 Instructions and Suggestions
Following instructions and suggestions were provided to improve the production yield
of monocrystalline silicon.
(1) Material Cleaning
- It is suggested that outside air is blocked to avoid the material contamination.

- Cleaning process should be improved to remove acid or foreign substances on the
materials easier. Consequently, quality of the materials will be improved.
(2) Pull-up Lab
- It is recommended to take countermeasures such as blocking outside air, installing

air shower at the entrance, wearing a dustproof clothing, etc., in order to keep the
working room clean. Consequently, production yield of monocrystalline silicon will
be improved.
(3) Improvement of Production Process
- It is suggested that residual quantity of melted polycrystalline silicon in a pot is

decreased in order to extend the length of pulled-up silicon.
- It is suggested that pull-up speed of monocrystalline silicon is decreased and the

temperature of melted polycrystalline silicon is increased in order to extend the
length of pulled-up silicon.
3 - 33
(4) Melting Pot
- It is recommended to conduct an inspection when melting pots are delivered so that

a low quantity pot is excluded. Consequently, the possibility of deformation of a pot
can be decreased.
(5) Instructions for Manufacturing Semiconductor Crystal in the Future
Currently, Qinghai China Silicon Energy manufactures monocrystalline silicon for

solar cells.
- It is required to remodel the laboratories such as material lab., drying lab, packaging
lab., filling lab., and pull-up lab. into clean rooms. It is also required to replace the
working wear in the laboratories with dustproof clothing.
3.4.5 Assessment of Capacity and Quality and Provision of Technical Guidance
3.4.5.1 Cleaning Lab
(1) Flowchart of Cleaning
Material
delivered Acid Pure
Virgin Polysilicon Cleaning Water PH Check Dry
HNOHF
Recycle Polysilicon Cleaning
for 1 minute OK
Pot Scrap NG PH67
As for pot scrap, it is PH6
subject to 24 hours
later after HF cleaning
Fig. 3.4-3 Flowchart of Cleaning
(2) Instructions and Proposal
Re-cleaning can be avoided by management of discharge of pure water (/min) and

time for cleaning according to type of material in order to obtain PH7. Proposal for
discharging pure water appropriately is shown as figure below.
<Current situation>
Pure water is discharged from above, so it is difficult to remove acid attached to
materials at the bottom.
<Proposal>
Pure water is discharged from below, so it enables to remove not only acid but other
contamination by overflow. (This method is adopted in Japan)
3 - 34
Fig. 3.4-4 Method of Cleaning Material
3.4.5.2 Pull-up Lab
(1) Dust carried into Pull-up lab.
Pull-up machines and carts are very dusty. The reasons of the pollution must be as
follows.
a) Yellow sand gets into the room because the windows are kept open due to hot
temperature inside the room. Sometimes the room temperature would be above
40C.
b) After opening the oven, dust of SiO and carbon occurs by cleaning the Lab.
c) By yellow sand and other dusts which are carried into the room through the
workers cloths make pollution.
[ Solution ]
- As the corrective measures of the above issue a) installation of air conditioner in

the pull-up lab is desirable, but it needs much time and cost. Therefore, after the
countermeasure of lowering the temperature of the pull-up lab is taken, the
windows of the pull-up lab should be kept closed. Then, it is suggested to make a
clean booth partially to avoid the dust contamination before filling the quartz pot
with material.
In that case, however, it requires an apparatus to set up carbon pot
+ quartz pot + material (60kg) in the oven.
- Two methods of setting a melting pot are shown to the engineers.
3 - 35
Material
Melting pot
Carbon pot
Fig. 3.4-5 60 kg Materials previously filled in a Melting Pot
- Method 1. Using a vacuum cleaner

Suction pads are attached at 3 places on a carbon pot by a vacuum
cleaner to hang and set up by a crane or wire of pull-up pot.
Melting pot
Carbon pot
Suction pad
Wire hook for

hanging by crane
Plane Figure
Fig. 3.4-6 Using a Vacuum Cleaner
- Method 2. A carbon pot is bundled by a band with a taper covering R-curve and
straight line to hang and set up by a crane or wire of pull-up pot.
3 - 36
Carbonpot
Wirehook for
hangingbycrane
Meltingpot
Carbonpot
Band
Band
Plane Figure
Fig. 3.4-7 A Carbon Pot is bundled by a Band
- As for the issue b) it would be much improved by removing the carbon parts and
cleaning in another room after they cool down.
- The issue c) would be solved by installation of an air shower at the entrance to

remove dusts on the workers cloths or putting on a clean wear. In the case of the
latter, the workers will complain about the heat unless the issue a) is solved.
The Consultant concerned about the current situation of the factory that the products
and small silicon crystals which become products are placed directly on the floor, and
heated carbon parts taken out of the oven are put on a steel plate. The reason why
clean environment throughout the process from the materials to mono-crystalline
silicon pulled-up must largely affects the yield of mono-crystalline silicon. In fact, the
ratio of mono-crystallization is lower and loss time is longer due to contamination
which is visible in melted silicon.
3.4.5.3 Guidance for Corrective Measures Applicable Immediately
(1) Yield Improvement
1) Residue in a pot
If residue in a pot is decreased

from 3kg to 1kg, ingot length
(product length) will be extended to
2kgs and the yield will be improved
2kg / 60kg = 3.33%. Residue 3kg Residue 1kg
Fig. 3.4-8 Yield Improvement
3 - 37
2) Crack occurred at the monocrystalline silicon
For example; there was a trouble shown

as below.
In the case that mono-crystalline silicon

ingot is cut off at the point of 600mm
during pull-up at the speed of 1.2mm/min,
they increase the pull-up speed into
3.0mm/min to separate from the silicon
melted. Then a crack occurs at mono- Silicon
crystalline silicon ingot.
This is up to the weight of monocrystalline

silicon to be pulled up. It would be
discussed at the next visit, but please
confirm it if this measure is effective.
It is suggested that not increasing the
raising pull-up speed but raising Fig. 3.4-9 Prevention of Crack
temperature of the pot, and separating the
monocrystalline silicon ingot from silicon melted (until a certain length is pulled
up). (until silicon ingot becomes a certain length)
(2) Cleaning Inside of the Oven
It should be conducted to confirm the validity of the current cleaning method and
occurrence of contamination from the equipment. The method of check out is as
follows. After usual cleaning, place a mirror glass inside of the quartz pot without
filling the material.
1) To vacuum the oven and confirm the contamination on the mirror glass
Check out whether the current method of cleaning is appropriate.
Vacuum
Confirm
Conditions of
usual cleaning
Contaminations
Mirror glass or Wafer

Fig. 3.4-10 Confirmation of the Contamination
3 - 38
2) Rising and falling the wire of the ingot and confirm the contamination on
the mirror glass
Check out whether metal particles fall on the mirror glass on wafer
Vacuum Riseandfall
thewireofthe
ingotto
confirm
MirrorglassorWafer
Fig. 3.4-11 Confirmation of the Contamination
This checking method has been already explained to the factory employees.
The route of contamination into the oven can be found by this checking method.
3.4.5.4 Issues of Pot Scrap, Deformation of Ingot
(1) As for the issues of pot scrap, deformation of ingot, and crack occurred when
ingot is detached, the engineer consulted about deformation of the pot since
June.
Fig. 3.4-12 Issues of Pot Scrap and Deformation
The cause of deformation is not found because the Consultant has not
experienced this before. The presumption of the cause is shown as below;
3 - 39
Ba is applied on the surface of the pot thinly (0.5mm) inside and thickly (
2mm) outside. (5mm at the bottom). Ba was applied inside for the purpose of
preventing direct contact between quartz and contamination in the pot and also
applied outside.
(2) Refer to the following figures about the cause of deformation the Consultant
presumed. Thickness of Ba inside and outside of the pot shown in Fig. 3.4-13
was not measured accurately. Deformation in both of Fig. 3.4-13 and Fig. 3.4-14
does not occur throughout inside of a melting pot. It can be considered that air
hole shown in the Figures below occurred because of 90kW power. Outside of
the pot where heat-resistant material Ba was applied thickly, was not deformed.
For reference, comparison with solvent power in Japan is shown below.
60kg/Bt (Qinghai China Silicon Energy)80kg/Bt (Japan) = 1 > 0.78
Balayer
Transparentlayer
2
Translucentlayer
8
Balayer
Fig. 3.4-13 Condition of a Melting Pot before Deformation (Image)
Airhole
ItwascausedprobablybecauseBawas
notcompletelybondedonquartz.
Thickness ofBa0.5
Transparentlayer
Translucentlayer
Fig. 3.4-14 Condition of a Melting Pot after Deformation
3 - 40
Air hole
It can be caused by
expansion of air bubble
Thick ness of
Ba2
Ba layer
Transparent layer
Translucent layer
Thickness of Ba
45 Ba layer
Fig. 3.4-15 Condition of a Melting Pot after Deformation
(3) Deformed Outline Inside of a Melting Pot with a Engineering Person
a) The gap was happened at strainer part of both pots (carbon pot and melting
pot) and direction was circular direction.
b) Some different reaction occurred at

the corners of both pots
R(Outside diameter of
On the drawing, inside diameter of a a melting pot)
carbon pot is equal to outside
diameter of a melting pot.
However, even if the pot with the
conditions of R > R1 or R < R1 are
purchased, the factory could not R1 (Inside diameter of
a carbon pot)
prevent it because there was no
inspection when they were delivered.
Fig. 3.4-16 Structure of Pots
That is to be the cause of deformation
this time.
(4) The deformation occurred in 50% out of whole Bts (1,071 Bt = 1,071 pcs) in June,
and furthermore, deformation throughout circumference occurred in half of Bts.
In July, deformation was decreased but still occurred. Some of the pot did not fit
carbon pots at the corner, and it depends on manufacturers and Ba application.
It is assumed that his estimation is correct. Factory uses a carbon pot divided into
3 parts and thickness of the inside becomes thinner gradually during the usage.
Therefore, gap occurs accordingly at the place of contacting outside of the
carbon pot.
3 - 41
Meltingpot Melting pot
Meltingpot Thicknessbegins tobe Thicknessbeginstobe

smallerthanthatofA smallerthanthatofB
Carbonpot Carbonpot Carbonpot
A Newcarbonpot
B Mediumusage count
C Highusagetobe
Highusagecount
Lowusagecount Abouttobechanged
changed
Fig. 3.4-17 Steps of Usage of Carbon Pot
(5) Factory should examine if usage count of carbon pots affect deformation of
melting pots or not. Therefore, the Consultant suggested that Factory prepare a
model of carbon pot for inspection when
they are delivered.
(6) Proposed method of inspection for

carbon pots and melting pots when they
are delivered.
- Method 1: Confirmation of inside

diameter of a carbon pot (Carbon pot is
fixed)
1) 10 measurement points are set out Fig. 3.4-18 Measurement of

for examples as shown in the left Carbon Pot Parts, 1 to 10
Figure. Length of these 10 lines
should correspond to the drawing. Half
shape
2) If length of a new carbon pot
corresponds to the drawing at all 10
measurement points when it is
Model
delivered or before used, it can be Full
judged that R-curve angle of the shape
carbon pot is correct.
3) Half-shaped model of a melting pot is

Carbonpot
prepared with a material with 5mm
thickness correspond to inside
Fig. 3.4-19 Method I Confirmation
3 - 42
diameter of a carbon pot, which keeps its shape without being deformed by
some influence.
4) If there is no gap between outline of the model and inside diameter of a

carbon pot, the carbon pot will pass the inspection.
- Method II: Confirmation of outside

diameter of a melting pot (Melting pot is
fixed)
Melting pot
1) Carbon pot model of full-shaped in
height and half-shaped in width is Full-
shape
prepared with a material with 5mm
thickness correspond to outside
diameter of a melting pot, which Model
keeps its shape without being

deformed by some influence. Fig. 3.4-20 Method II Confirmation
2) If there is no gap between inside diameter of the model and outside diameter
of a carbon pot, the melting pot will pass the inspection.
3.4.5.5 What is required for Manufacturing Seed at their Own Factory in the Future?
(1) To utilize the existing factory is impossible to improve the quality of silicon ingot
because the present ingot production must not be stopped and it is necessary to
construct a new factory.
(2) At least the conditions mentioned below are necessary to construct the clean
factory.
To construct clean rooms for

- Raw material cleaning Lab.
- Raw material dry-up Lab.
- Raw material stock Lab.
- Raw material packing Lab.
- Raw material fill up Lab.
- Pull-up Lab.
Worker in the clean rooms must wear dust protection cap, dust protection
wears and shoes and when workers enter the clean room they need to have air
shower to eliminate the dust from the outside.
Raw material which is carried into the clean also needed to have air shower.
3 - 43
3.4.5.6 Material Lab. ~ Pull-up Lab
(1) Types of Material
1) New material purchased Leftpartofwafer
from a manufacturer
2) Recycled material of
mono- crystal (A, B, C,
E) NGline
3) Pot scrap (D)
These material (D) is divided

into 60kg material. Fig. 3.4-21 Material in the Pull-up Lab
Material (A) ~ (E) is classified and controlled by resistance value.
There are 2 types of pull-up specification for 0.5 ~ 3.0cm and 3~6cm.
Type (I) 0.5 ~ 3.0 cm Type Type (II) 3 ~ 6 cm Type

Target value of resistance: 2 Target value of resistance: 40.2
cm cm (3.8~4.2 cm)
Actual performance: 2.1 ~ 3 When actual performance is 3.8
cm cm, there is a large possibility
that resistance at A part will be
3 cm.
In that case, resistance between
A ~ B is out of target, but it will
not be a loss because it can be
used as type (I).
Fig. 3.4-22 Type (I), (II) Materials
When the Consultant asked the engineer if they have had two types of material, which
resistance was out of criteria, he replied engineers have never experienced that
resistance was out of criteria for 4 years since they started the operation. if the
engineer considers manufacturing IC semiconductors in the future the Consultant
suggests that they must improve process capability of resistance value by SPC6
management.
6 Special Purpose Company
3 - 44
The engineer showed inspection certificates of material. Purchase amount from each
manufacturer (A, B) is unknown.
Company A: N 300 cm (P 1000 cm)
Company B: N >40 cm (P > 200 cm)
According to the above value, abnormal resistance will not occur by using As material
in 60kg charge. On the other hand, resistance will be out of criteria by using Bs
material unless it is classified by resistance value.
(7) Effective Example for the Countermeasure of Crack Appearance at the Ingot in
Japan
1) Decrease the pull-up speed by 10 ~ 20% and raise the

temperature of material.
2) Pull-up an ingot as this figure to round off the bottom.
3) Raise the temperature of material.
4) Pull-up to the level of a melting pot keeping the speed
after parting from the surface of material. NGLine
* Pull-up speed should be adjusted according to the
diameter of mono-crystal and the weight up to NG line. Fig. 3.4-23
Even in the case of large diameter, it is successfully pulled up by decreasing the

speed to 0.3 mm/min.
(8) Suspended Contamination (Particle of Carbon, Particle of Quartz, SiC, Ba, etc.)
Mono-crystal is not available at first

because contamination is suspended in
Bts. So, they pull up mono-crystal after
removing the contamination attached to a
part of crystal, like this shape of materials
(Fig.3.4-24) to take out of the pot. It causes
time loss and yield loss.
Fig. 3.4-24 Cristal pulling up
< Case 1 > Process
A + B = 4kg
When crystal is pulled up without any contamination
60kg/Bt(4kg + 3kg)
= 88.3%
60kg/Bt
3 - 45
< Case 2 >
A+B=4kg
When crystal is pulled up after a part of crystal (6kg) which has contamination like
this is taken out of a pot
60kg/Bt(4kg + 3kg + 6kg)

= 78.3%
60kg/Bt
In both ways, "10%" yield loss will occur even when crystal can be pulled up to the
end as this figure. As for time loss, the employees make a calculation themselves to
understand about the impact on production by contamination, and work seriously to
look for the route that such contamination get into the pot.
3 - 46
Final Report Review of Grid Connectivity of MW Class Solar PV System
CHAPTER 4
REVIEW OF GRID CONNECTIVITY

OF MW CLASS SOLAR PV SYSTEM
CHAPTER 4 REVIEW OF GRID CONNECTIVITY OF MW CLASS

SOLAR PV SYSTEM
4.1 Design of MW Class Solar PV System
4.1.1 System Configuration Design of Substation
(1) Transmission Line
According to the Review comments for connection system of 20MW large-scale PV

power station of Haixi CPI Huajing Golmud phase I project and 20MW pilot station of
Guodian Longyuan Golmud PV Power Project, a new 110kV step-up substation was
built at the eastern exit of Golmud area, and for PV system connection, a single loop
110kV transmission line between combiner station ~ Golmud 220kV Substation will be
built for a length of about 24km with conductor size 400mm2.
Two solar PV power stations of CPI Huajing and Guodian Longyuan will be connected
to the 110kV combiner station at Golmud eastern exit with two 35kV lines.
(2) Scale of Substations
1) For main transformers, two 63MVA transformers will be selected, and they will be
installed at one time;
2) There will be finally two 110kVA outgoing lines, one of which will be built to
connect to Golmud Substation and another line will be connected to the planned
110kV Nuomuhong Substation in the near future (no specific plan);
3) There will be finally eight 35kV outgoing lines (reserved for expansion), and four
will be built soon, with two connected to CPI and Longyuan each. The remaining
four lines are reserved for future expansion.
(3) Configuration of Var Compensator
For Golmud East combiner switchyard var compensators of 2*10MVar will be

installed.
(4) Selection of Bay on Opposite Side
The incoming line to the combiner station was designed to be connected to the fifth
110kV bay from the south at the Golmud 330kV Substation. This is an exiting bay,
originally planned for Nachitai II outgoing line, and in this design, the associated
electrical equipment should be completed.
4-1
Review of Grid Connectivity of MW Class Solar PV System Final Report
N 110kV
Golmud-Yushuihe
Reserved for Xiyu
Xiyu
Golmud-Qarham II
Golmud-Qarham I
Golmud-Baiyang I
Golmud-Nachitai
Golmud Gas-fired I
Reserved for Diantie
Reserved for Diantie
Golmud Gas-fired II
Golmud Plant
Golmud Refinery
original Nachitai II
Golmud Refinery II
Golmud-Baiyang II
Reserved for
Reserved for
PV Station
Fig. 4.1-1 Schematic Diagram of Arrangement of 110kV Outgoing Line Bays in 330kV
Golmud Substation
(5) Short Circuit Capacity
1) Calculation principles and conditions
a. The reference year for calculation is 2020;

b. The rated voltage is average voltage, and the rated capacity is 100MVA;
c. The short-circuit value of Golmud Substation at 110kV bus system in 2020
based on the short-circuit calculation for the whole Qinghai grid was
completed recently.
2) Calculation result
The short-circuit capacity and short-circuit current of the system to relevant

substation buses in 2020 calculated are as shown in Table 4.1-1.
Table 4.1-1 Calculation Result of Short Circuit Level in 2020

for Relevant Substation Buses
Bus 3-phase short-circuit Single phase
Substation name voltage Short-circuit Short-circuit Short-circuit
(kV) capacity (MVA) current (kA) current (kA)
330kV Golmud Substation 110 2262.9 11.36 11.38
110 941.7 4.94 3.68
Golmud East Combiner Station
35 316.3 4.94 -
The breaking capacity of the existing circuit breaker in the area grid can meet the
requirements of safety operation of the system. As no short-circuit level of various
bus voltage levels in new substations will exceed the existing equipment level, they
can be selected from conventional equipment.
4-2
(6) Selection of Conductor Size
A single loop 110kV power transmission line of Combiner Station ~ Golmud 220kV
Substation will be built, with a length of about 24km and conductor size 400mm2.
(7) PV System Configuration of a Pilot Solar PV System
System configuration of the 10 MW Pilot Solar PV System was well designed in terms
of safety, reliability and cost effectiveness.
- One unit consists of two PV arrays and each unit has one transformer and one
circuit breaker,
- DC goes into one bus and after converted into AC, is stepped up to 31.5 kV. The
power is fed to 3.15 kV/220 kV substation.
4.1.2 System Components
One of the most important components of PV system is PV module, but manufacturer

had not been selected yet.
It is very important that the voltage of PV array interface is in balance with the input
voltage of inverter for effective power generation. Although there is no information
about PV module, it is possible to design the rest of the system as it is possible to
arrange PV array interface on the basis of the specifications of the inverters. The
specifications of other components are as shown below.
(1) The specifications of DC convergence control box are shown in Table 4.1-2.
Table 4.1-2 Specifications of DC Convergence Control Box

No. Specifications Values
1 Voltage range of entering PV array 200-1000V
2 Largest PV array of inputs in parallel 16
3 maximum current of every PV array 10A
4 Protection class IP65
5 Ambient temperature -25C ~ +55C
6 Humidity 0 ~ 99%
7 The total output of the DC Air Switch yes
8 Photovoltaic module dedicated mine yes
9 Series Current Monitoring yes
10 Failure to monitor mine yes
11 Communication Interface RS485
12 Volume 600 500 800
13 Weight 27kg
4-3
(2) The specifications of step-up transformer are shown in Table 4.1-3. In these
specifications the rated capacity of transformer seems too large, because it is
lager than PV array capacity (1000kW).
Table 4.1-3 Specifications of Unit Step-up Transformer

1 Equipment Type Vacuum casting dry-type transformers
2 Model SCB-1100/38.5/0.27/0.27
3 Rated Capacity 1100kVA
4 Rated input voltage 0.27/0.27kV
5 Rated output voltage 38.52.5% kV
6 Voltage mode Sub-connector of no-load decomposition on high voltage side
7 Impedance voltage 6%
8 Connection Group Y,D,D
9 Frequency 50HZ
(3) The specifications of circuit breaker are shown in Table 4.1-4. These
specifications are adequate considering the local conditions of the substation.
Short circuit current on the primary side will not be as small as the secondary
short circuit current of substation transformer.
Table 4.1-4 Specifications of Circuit Breaker

1 Rated voltage 40.5kV
2 Rated current of 35kV Circuit breaker switchgear 630A
3 Rated short-circuit breaking current 25kA (RMS)
4 Rated short circuit current peak 63kA
5 4S 25kA
6 Rated peak withstand short-circuit current 63kA
(4) Quantities of electric equipment are listed in Table 4.1-5. Lightning protection
was designed, and SPD seems to be very well chosen.
4-4
Table 4.1-5 Main Electrical Equipment List

No. Name Model and specification Quantity
1 DC Lightning convergence box 16 output 1 input 220
2 Grid-connected inverter 500kW 20
3 DC Lightning distribution cabinet 500kW 20
4 Low Voltage Distribution Cabinet 1000kW 10
5 Plant transformer S10-220/35/0.4 200KVA 1
6 Unit transformer SCB-1100/38.5/0.27/0.27KV 10
7 High Voltage Switchgear JYN-35-04(GY) 12
10 Low Voltage Switchgear GGD1-05(GY) 1
11 Low Voltage Switchgear GGD1-36(GY) 2
12 Monitoring system 1
13 Integrated Device IPAS2000 1
14 DC panel 100Ah 2
4.1.3 Inverter
(1) The specifications of inverter in the feasibility study are shown in Table 4.1-6.
Inverter is as important a component as a PV module for grid connected PV
system.
Table 4.1-6 Specifications of Grid-connected Inverter

1 Power 500kW
2 Maximum DC input power 580kWp
3 MPPT 450-820V
4 Maximum DC input voltage 900V
5 Maximum array input current 2591A
6 DC over-voltage protection yes
7 Protection class IP20 (Indoor)
8 Maximum efficiency 98.50%
9 Current harmonics <3%
10 Allowable voltage operating range 3270 10%
11 Allowable frequency operating range 47-51.5HZ
12 Power factor 0.99
13 Volume 28002120850
14 Weight 1800kg
15 Over/under-voltage protection yes
16 Over/under- frequency protection yes
17 Anti-islanding function yes
18 Power restored and network functions yes
19 Short Circuit Protection yes
20 Reverse power protection yes
21 Communication yes
22 Operating temperature -25C ~ +55C
4-5
(2) For No.10 item of the table above, the operating range (270 10%) is too low for
10MW system. Inverters manufactured in PRC produce output voltage either at
380V or 270V. 270V type inverter does not have insulation between DC and AC,
while 380V type does. It is necessary to raise the output voltage above 270V.
(3) There are some specifications difficult to comment.

- Max DC input power.
- Max efficiency.
(4) Inverter input voltage should be carefully checked and balanced with PV array
voltage.
4.1.4 Control
Control system is one of the most important elements for the pilot solar PV system.
There should be two types of communication lines. One is to connect the system
with the electric utility by optic fiber, and the other is to connect the system to internet.
Electric utility has the authority to open or close the circuit breaker at the grid
connecting point. There are many PV projects in Golmud and the total output will
reportedly reach 2 GW. Therefore the stability of the grid will be the largest concern
of the utility, and there will have to be a means to control solar PV power stations in
the area. It will be necessary for the electric power utility to establish an absolute
control over the power stations in the area. Fig. 4.1-2 is the total control system for
the pilot solar PV system.
(1) System Structure
Diagram of monitoring system structure designed by QBE for the pilot solar PV
system is shown in Fig. 4.1-2.
4-6
Fig. 4.1-2 Control System Structure
In order to realize monitoring work economically and effectively, the whole monitoring
system was designed to be made of three layers:
1) Station-level control layer
Station-level control layer is the center of monitoring, measurement, control and

management, the network transmission, receiving power measurement
information and environmental parameters which are needed to be acquired at
the site. This layer needs primary and secondary servers to monitor and operate,
then to complete online maintenance and modification of system software and
database. Using Ethernet switch to connect with other equipments, a solid
foundation of information, resource sharing and online, real-time monitoring
operation are necessary.
2) Network communication layer
The second layer of the system is for data acquisition, communications and
networking. Network system was designed on the ISO model in which
transmission rate is 100M bps. Monitoring host is connected with spacer
equipment in order to achieve resource sharing. System backbone uses Fast
Ethernet: communication management unit, monitoring host, terminal server and
network printer are connected together by a network integrator.
4-7
3) Field control layer
All equipment needs space for configuration of the interval unit monitoring device,
environment detectors, metering equipments, grid inverters, intelligent
convergence boxes and other intelligent devices, which are transmitted to the
main networks, located in the central control room, among protection and
monitoring devices, measuring and other intelligent devices. Substation
automation technology is being developed rapidly. Intelligent devices are used
extensively. Data exchange between intelligent devices and systems is
becoming more and more important. Data communication equipment, which
connects equipment and systems and their management are necessary in
substation automation system.
Through a communication manager, serial servers, intelligent monitoring unit,

grid-connected inverter concentrator optical switches are connected with other
intelligent devices. RS485 is used for the interface. In monitoring, each unit
has its responsibility as follows:
- signal acquisition of AC current and voltage by intelligent meter,
- signal of switch position and work status of the Intelligent Circuit Breaker,
- alternating current, voltage, power and operation status can be under the
control of the Inverter control unit.
Parameters of DC voltage and current can be received after monitoring

convergence box.
(2) System Function
Data acquisition
1) In this monitoring system, information to be collected are as follows:
- Signal indicator: including integrated device signal of distribution panel, other

signal monitoring equipment, smart device signal, switch lights of universal
circuit breaker and so on,
- Environmental parameters: Indoor and outdoor temperature, wind speed, light,

humidity etc.,
- Data of convergence box: input information of every DC current, voltage,

temperature; alarm signal and fault information,
- Data of inverter: DC input current, voltage and power, three phase output
current change and voltage, AC input power, Frequency, Running, etc.
4-8
2) Information necessary managing the pilot solar PV system will be collected and
analyzed.
The information items to be analyzed are shown below:

a) kWh value
b) system monitoring record
c) operation record
d) maintenance record
e) efficiency
4.1.5 Cost Effectiveness and Efficiency
For designing a solar PV system, cost effectiveness and efficiency of equipment (PV
module, inverters, circuit breaker, etc.) should be considered.
Loss of electric power at wiring and efficiency decrease due to temperature rise are
small, but must be considered to evaluate the cost effectiveness and efficiency of the
design of a solar PV system.
(1) Wiring
Voltage drop between PV array and inverter is designed to be 3% or less. This

requirement is commonplace, but if this value is changed to 2%, its impact on the
system efficiency is large. Rough estimation of this impact on yearly sales of the
electricity to the utility company is shown below. Yearly power generation has been
estimated to be about 17 million kWh in the FS report of QBE.
17,000,000 (0.03-0.02) = 170,000 kWh per year

Tariff assumed is 1.15 CNY
170,000 1.15 = 195,500 CNY per year
This amount can be an avoidable loss, and it continues over 20 years.

Of course wiring cost will be higher than the case of voltage drop 3%.
(2) Temperature of PV Module Surface
Local temperature of the site of the pilot solar PV system has large variation in a year.
The effect of temperature on generation efficiency of PV module is not negligible. It
should be carefully considered in the design.
4-9
4.1.6 Proposition of Other Improvement in Design
(1) DC Power Generation
Rated output power of PV module was estimated in QBEs F/S Report under the
standard condition. Here, monthly peak generation is reconsidered.
Assumptions for recalculation are as follows.
- Insolation is 1.1 kW/m2
- Daily peak power appears when the ambient air temperature is at its peak,
- Temperature of PV module is 30 degree higher than the ambient temperature

(From the Consultant experience),
- Temperature coefficient of PV power is -0.5% for + 1 degree of PV module in

terms of generation efficiency,
- Combination loss of PV modules is 5%. There are some differences of

efficiency due to the individual PV module characteristics.
- Wiring loss is 3%. From the QBEs design of 10MW Pilot Project.
The calculation result is shown in Table 4.1-7.

It is also assumed that the maximum PV power is to be equal to the rated power.
Table 4.1-7 Maximum Power of Direct Current (DC) Side

PV : 1000kW Base
Month 1 2 3 4 5 6
Ambient Temp. (C) -1 2 9 15 18 22
Module Temp. (C) 29 32 39 45 48 52
Max. Power (kW) 993 978 943 912 897 877
Month 7 8 9 10 11 12
Ambient Temp. 25 23 20 12 5 0
Module Temp. 55 53 50 42 35 30
Max. Power (kW) 862 872 887 927 963 988
A.M.T. : Average Maximum Temperature
(2) Inverter Capacity

Table 4.1-8 Rated Output
Inverter specifications in QBEs design are AC 500kW
shown in Table 4.1-8. Maximum DC input power 580kW
Maximum DC input voltage 900V
500 kW inverter means 500kW output power
Maximum efficiency 98.5%
at alternate current side. There is loss inside
4 - 10
the inverter, as in 10 MW solar PV system case, input voltage is higher than output
voltage.
The capacity of the inverter is designed equal to the capacity of the solar PV panels.
In case of Golmud, maximum insolation appears from March to September and the
temperature of solar PV panel surface becomes 40 degree Celsius.
Loss of PV panel by temperature effect :

- 0.5%/C : power reduction/ current (A) by C
- 25C : rated temperature of solar panel
- 0.5%/C (40C 25C) = 7.5%
Wire loss between PV panel and inverter = 3 %
Therefore total loss before the inverter is 10 %
Then the capacity of inverter is enough to have 90 % of the capacity of the solar PV
panels. However over load is to be considered for the inverter but the inverter has
input restriction function to avoid over load for input power. In operational condition,
the inverter efficiency would be 90% or a little larger. The capacity of inverter can be a
little smaller than the rated output of PV modules connected to the inverter.
In most of cases the capacity of the transformer is designed as the same capacity of
the solar PV panels but it is too big capacity. In general transformer is designed to
resist against the short time over load capacity and it is standardized. Its capacity is
able to be reduced less than the capacity of the inverter. The life span of the
transformer is estimated based on the maximum utilization factor and the load factor
and the life measurement method of transformer is established at present.
Considering the utilization factor of the solar PV system in the night period is zero,
less than 90% of inverter capacity is good enough for the capacity of the transformer.
10 MW solar PV system produces power of about 0.9 10 MW on AC side, and the

transformer capacity can be smaller than 10 MW. In addition, transformer can be
operated under overloading condition.
Then regarding breaking capacity of the circuit breaker, it should be considered much
more than the transformer. In case of fault occurred, the fault current is flown into
the circuit breaker from not only upper side of the power grid but also from other solar
PV systems. It is necessary to discuss with the area power company about the short
circuit capacity because the short circuit current is depends on the impedance of
4 - 11
transmission lines.
(5) Proposition on Inverter Capacity and Transformer Capacity
The Consultant identified other areas of improvement in the design of 10MW Pilot
Project.
a) Inverter capacity: can be made smaller

b) Transformer capacity: can be made smaller
a) and b) requires analysis on the operation data. The data collection interval should
be 10 minutes or less. a) can be measured at input point of inverter, and b) can be
measured at output of inverter.
- AC output of PV system is not as large as DC input generated by PV modules.

- Inverters output does not exceed the power at DC side.
- Transformer has some overloading capacity.
When these factors are considered, simple inequality formula is made as follows.
DC generation > Inverter output > Transformer capacity
Meanwhile, the design of 10MW Pilot Project is as follows.

DC generation = Inverter output < Transformer capacity
This kind of system arrangement is not peculiar, as the price of transformer is not that
high compared with that of other equipment. However, transformer loss is not
negligible, especially when the capacity of the transformer is large. There is also iron
loss even the system is not in operation and only charged by electricity.
4.2 Power Grid in Golmud Area
4.2.1 Overview of Power System in Golmud Area
The overview of the power system in Golmud, such as substations and transmission
lines, is described below.
Construction of new substations and transmission lines were ongoing and further
expansion being planned in the area. The grid will be reinforced and able to mitigate
the impacts of huge solar PV stations connected after these constructions.
Especially, 750kV transmission project and 400kV HVDC project should be in place to
ensure the stability of grid conditions. In addition to the above, application of smart
Grid Technology are envisaged being studied in PRC. The state grid companies are
4 - 12
the hub authority of its development. The information is described in the website of the
state grid (http://www.sgcc.com.cn/ ztzl/newzndw/).
According to the website, the enhancement and accelerated construction of

transmission systems to carry the huge power is one of the main pillars of the smart
grid development. And the studies of grid control/protection and peak shift are
included in the increase of proportion of clean energy. Preferable areas for the
wind/PV power stations are identified in the western regions of PRC as well as
resources of thermal/hydro power. Therefore, the construction of transmission lines
is of top priority.
The power grid in Haixi is divided into central, eastern and western parts. The
central and eastern grid are supplied mainly by four 330kV substations at Ulan, Bayin,
Yanhu and Golmud, also by some local small hydropower and thermal power stations.
The western grid is further divided into three isolated supply grids, with power sources
mainly of local oil (gas) fired power stations, which are built, managed and used by
the enterprises themselves.
In the central part, Golmud area was connected with the main grid of Qinghai in 2001,
with 330kV Golmud substation as the main supply source. At present, the grid in the
area is connected with the main grid via the following 330kV transmission lines.
- Longyangxia-Ulan-Golmud
- Huangyuan-Mingzhu -Ulan-Bayin-Yanhu-Golmud
In 2009, the maximum power consumption in Haixi grid was 265.1MW, and it supplied
energy of 1,583 GWh, with sold electric energy of 1,524 GWh.
The grid associated with the pilot solar PV system is the Golmud grid in the central
part of Haixi. The Golmud grid was connected with the main grid of Qinghai at the end
of 2001, with 330kV Golmud substation as the main supply source, and assisted with
some local gas-fired power plants and small hydropower stations.
Substations and transmission lines associated with this project are described below.
1) Golmud 330kV Substation (existing)
- Transformers : 2 150MVA (final and current)
- Busbar : 1 and 1/2 configuration (330kV), double configuration (110kV)
- 330kV feeder : 2 outgoing lines (to Ulan substation and Yanhu substation)
(final: 6 outgoing lines)
- 110kV feeder : 9 outgoing lines (to Nachitai substation, Refinery substation,
4 - 13
Gas fired power plant II, Gas fired power plant I, Baiyang
substation, Qinghai Potassium Fertilizer power plant, Yushuihe
substation, Qarham I-II Ulan substation and Yanhu substation)
2) Baiyang 110kV Substation (existing)
- Transformers : 2 50MVA (final and current)
- Busbar : single configuration (110kV)
- 110kV feeder : 4 outgoing lines (to Golmud substation, Guangming substation,

Xiaogangou substation and Golmud Refinery substation)
3) 750kV Transmission Line to Qinghai (under construction)
4) DC 400kV HVDC System to Tibet (under construction)
According to the grid development plan of Qinghai Province, it was planned to

construct around 2010 to transmit the huge power supply in Golmud area to
eastern regions of PRC through Qinghai (750kV) and to Tibet (HVDC).
5) Yakou 330kV Transmission Project (planning)
To meet the load growth in Kunlun Development Zone and Metallurgical

Industrial Park, it is planned to build Yakou 330kV substation in 2013. As most
load in the park will be heavy ones demanding high energy consumption,
according to the industrial layout of the park, a location for a 330KV substation is
reserved, and Yakou substation will be built within the metallurgical zone. The
main transformer capacity should be 2 360MVA, and the 330kV double circuit
line will be installed from 750kV Golmud substation.
6) 110kV Transmission Project for Golmud Kunlun Development Zone

(planning)
To supply power to the high purity magnesium oxide project and other planned
industrial projects in Kunlun Development Zone, it was planned to construct
Kunlun Development Zone 110kV substation (2 50MVA) in 2010, and one main
transformer will be installed in the initial period. The dedicated two transmission
lines will be installed from the 330kV Golmud substation.
7) 110kV Golmud Central Transmission Line (planning)
According to the development plan of Qinghai Province, the focus of
4 - 14
development will be placed on construction of Golmud City, therefore the power

consumption in the urban area will increase substantially. So it was planned to
construct Central 110KV substation (2 40MVA) in 2011, with one main
transformer in the initial phase. For the system connection, connected substation
of the Guangming - Yushuihe lines will be changed from Yushuihe substation to
330kV Golmud substation (Yushuihe side), and opposite side (Guangming side)
will be connected to the Central substation. In addition to this, a new line Kunlun
Development Zone - Center will be installed.
8) 110kV Nachitai ~ Wudaoliang ~ Tuotuohe Line II (planning)
To meet the power demand along Golmud - Tuotuohe section of the Qinghai -
Tibet Railway and improve power supply reliability, it is planned to construct the
110kV Nachitai - Wudaoliang - Tuotuohe line II in 2012.
9) 110kV Nuomuhong Transmission Project (planning)
At present, Nuomuhong area is supplied by stages I and II hydro stations in

Nuomuhong. Because of unbalanced economic and social development and
restriction by historical and natural geographic conditions, Nuomuhong area has
not been connected to the main grid today. This situation has seriously restricted
the social and economic development and improvement of people's living
standard in the area. To solve the power imbalance in this area, it is planned to
construct Nuomuhong 110kV substation during the Twelfth Five-year Plan
period, for the system connection, a new Golmud - Nuomuhong single loop
110kV line will be installed in the initial phase, and in future, it will be connected to
the planned Yakou 330kV substation.
The overview of the Qinghai Grid is as follows.
Table 4.2-1 Qinghai Grid

Items Outline
Transmission Grid Voltage: 750/330/110 kV
Transformer capacity: 18,370 MVA
Transmission line: 13,541 km (at end of 2008)
Peak Load (Demand) 6,654 MW (at 2011.06)
Rate of increase: 19 % (2011.06/2010.06)
Consumption 3887 GWh (at 2011.06)
Power Trade between Export: 933 GWh
provinces Import: 284 GWh (at 2011.06)
Generator Capacity Total 12,660 MW
(Source: Qinghai power company Web site)
4 - 15
4.2.2 Demand Forecast and Power Balance (Supply-Demand Balance) in Golmud Area
Studies on demand forecast and power balance were carried out to check the
necessity of the PV power stations. The results of the studies are shown in Fig. 4.2-1,
Table 4.2-2, Table 4.2-3.
Demand will increase rapidly with construction of factories under the endorsement by
the government policy. The supply will be on the short side in near future if PV power
plants will not be installed even though some new hydro/thermal power plants will be
constructed. Therefore, the PV power plants should be constructed while power
balance is being kept.
The following matters were taken into account in the study;
1) Construction plan of industrial projects in Golmud,
2) The general demand in the area was forecast according to its development of
national economy with a certain growth rate,
3) Power consumption in industrial projects was directly added to the loads,
4) A 600 kt/year methanol project is about 1km away from Baiyang substation, and it
will be supplied by this substation,
5) A 300 kt/year methanol project will be supplied by the substation at Golmud

Refinery,
6) According to the regional grid plan, the 110KV Center substation and Kunlun
Development Zone substation will be constructed in the urban area of Golmud
around 2012, and by when completed, some load can be transferred from
Baiyang and Guangming substations to these new substation,
7) The PV power stations at the eastern and southern areas of Golmud are
incorporated to the 330kV Golmud grid. These PV stations as well as hydropower
and thermal power stations, which are under construction and planning, were
taken into account in this power balance,
8) The winter season has a peak demand period and the demand decreases during
summer season. On this situation, the forecast maximum demand is applied to
winter season and demand for summer season is decreased using the ratio
previously observed,
9) In summer season, generated power by all small hydro power plants is assumed
almost at rated capacity, and the number of operating generators of Golmud
Gas-fired power plant is decreased from two (2) to one (1) for economical
4 - 16
consideration,
10) The two situations on the PV power plants are taken into account: one is no PV
output (PV power is included in supply side), and another is full PV output (PV
power is excluded from supply side).
[MW]
Legend
Power balance (Winter) [MW] Power balance (Summer)
Demand
Supply
(excluding PV
power)
Supply
(including PV
power)
Fig. 4.2-1 Power Balance in Golmud Area
Table 4.2-2 Demand Forecast in Golmud Area

Unit: MW
No. Substation name 2009 2010 2011 2012 2013 2014 2015
1 Guangming Substation 22.0 24.0 26.0 27.0 29.0 32.0 36.0
2 Baiyang Substation 25.0 28.0 31.0 35.0 38.0 42.0 48.0
3 Qarham Substation 55.0 55.0 60.0 60.0 60.0 60.0 60.0
4 Lanke Substation 1.0 2.0 3.0 4.0 5.0 6.0 7.0
5 Beiletan Substation 3.0 4.0 5.0 6.0 7.0 8.0 8.0
6 Dongtai Substation 1.0 2.0 3.0 4.0 5.0 7.0 8.0
7 Yushuihe Substation 9.0 11.0 15.0 20.0 24.0 28.0 30.0
Zhongzhao Thermal Power
8 1.2 1.2 1.2 1.2 1.2 1.2 1.2
Substation
9 Gansen Substation 1.2 --- --- --- --- --- ---
Qinghai Potassium Fertilizer
10 15.5 15.5 15.5 15.5 15.5 15.5 15.5
Plant Substation
11 Golmud Refinery Substation 29.5 29.5 29.5 29.5 29.5 29.5 29.5
12 Xiyu Non-ferrous Substation 8.0 8.0 8.0 8.0 8.0 8.0 8.0
13 Nachtai Substation 1.5 1.5 1.5 1.5 1.5 1.5 1.5
14 Wudaoliang Substation 1.2 1.2 1.2 1.2 1.2 1.2 1.2
15 Tuotuohe Substation 1.2 1.2 1.2 1.2 1.2 1.2 1.2
Kun Development Zone
16 15.0 20.0 25.0 30.0 35.0
Substation
17 Central Substation 15.0 20.0 30.0 35.0
18 Guoxiang Substation 15.0 20.0 ---
19 Nuomuhong Substation 22.8 33.0 33.2 33.4 33.6
I Amount of substations 175.3 184.1 238.9 282.1 319.1 354.5 358.7

Demand taking into account
II 149.0 156.5 203.1 239.8 271.4 301.3 304.9
diversity factor
III Max. demand in the area 159.4 167.4 217.3 256.6 290.4 322.4 326.2
4 - 17
Table 4.2-3 Power Balance in Golmud Area (Summer)

Unit: MW
No. Project name 2009 2010 2011 2012 2013 2014 2015
I Max. power supply load in area 140.3 147.3 191.2 225.8 255.6 283.7 287.1
II Output from power plants in area 227.3 300.3 330.3 330.3 330.3 330.3 350.3
(I) Output from hydropower plants in area 92.3 92.3 102.3 102.3 102.3 102.3 102.3
1 Naijili Power Station 12.0 12.0 12.0 12.0 12.0 12.0 12.0
2 Dagangou Power Station 20.0 20.0 20.0 20.0 20.0 20.0 20.0
3 Xiaogangou Power Station 32.0 32.0 32.0 32.0 32.0 32.0 32.0
4 Yixiantian Stage I Power Station 7.5 7.5 7.5 7.5 7.5 7.5 7.5
5 Yixiantian Stage II Power Station 8.0 8.0 8.0 8.0 8.0 8.0 8.0
6 Nanshankou Stage I Power Station 12.0 12.0 12.0 12.0 12.0 12.0 12.0
7 Nanshankou Stage II Power Station 10.0 10.0 10.0 10.0 10.0
Nuomuhong Stages I and II Power
8 0.8 0.8 0.8 0.8 0.8 0.8 0.8
Stations
(II) Output from PV Station in area 73.0 93.0 93.0 93.0 93.0 113.0
1 Qinghai New Energy PV Station 10.0 10.0 10.0 10.0 10.0 30.0
2 Guodian Longyuan PV Station 10.0 20.0 20.0 20.0 20.0 20.0
3 Junshi Energy PV Station 10.0 10.0 10.0 10.0 10.0 10.0
4 Huaneng PV Station 10.0 10.0 10.0 10.0 10.0 10.0
5 CPI PV Station 10.0 20.0 20.0 20.0 20.0 20.0
6 QDI (Datang) PV Station 5.0 5.0 5.0 5.0 5.0 5.0
Yellow River Upstream Company PV
7 5.0 5.0 5.0 5.0 5.0 5.0
Station
8 Shenguang New Energy PV Station 3.0 3.0 3.0 3.0 3.0 3.0
9 Qinghai Baike 10.0 10.0 10.0 10.0 10.0 10.0
(III) Output from gas-fired station 135.0 135.0 135.0 135.0 135.0 135.0 135.0
1 Golmud Gas-fired Station 135.0 135.0 135.0 135.0 135.0 135.0 135.0
Power balance (no PV output)
87.0 80.0 46.1 11.5 -18.3 -46.4 -49.8
surplus (+) short (-)
III
Power balance (full PV output)
87.0 153.0 139.1 104.5 74.7 46.6 63.2
4 - 18
Table 4.2-4 Power Balance in Golmud Area (Winter)

Unit: MW
No. Project name 2009 2010 2011 2012 2013 2014 2015
I Max. power supply load in area 159.4 167.4 217.3 256.6 290.4 322.4 326.2
II Output from power plants in area 319.7 392.7 417.3 417.3 417.3 417.3 437.3
(I) Output from hydropower plants in area 49.7 49.7 54.3 54.3 54.3 54.3 54.3
1 Naijili Power Station 6.0 6.0 6.0 6.0 6.0 6.0 6.0
2 Dagangou Power Station 16.0 16.0 16.0 16.0 16.0 16.0 16.0
3 Xiaogangou Power Station 12.8 12.8 12.8 12.8 12.8 12.8 12.8
4 Yixiantian Stage I Power Station 3.2 3.2 3.2 3.2 3.2 3.2 3.2
5 Yixiantian Stage II Power Station 3.5 3.5 3.5 3.5 3.5 3.5 3.5
6 Nanshankou Stage I Power Station 6.6 6.6 6.6 6.6 6.6 6.6 6.6
7 Nanshankou Stage II Power Station 4.6 4.6 4.6 4.6 4.6
Nuomuhong Stages I and II Power
8 1.6 1.6 1.6 1.6 1.6 1.6 1.6
Stations
(II) Output from PV Station in area 73.0 93.0 93.0 93.0 93.0 113.0
1 Qinghai New Energy PV Station 10.0 10.0 10.0 10.0 10.0 30.0
2 Guodian Longyuan PV Station 10.0 20.0 20.0 20.0 20.0 20.0
3 Junshi Energy PV Station 10.0 10.0 10.0 10.0 10.0 10.0
4 Huaneng PV Station 10.0 10.0 10.0 10.0 10.0 10.0
5 CPI PV Station 10.0 20.0 20.0 20.0 20.0 20.0
6 QDI (Datang) PV Station 5.0 5.0 5.0 5.0 5.0 5.0
Yellow River Upstream Company PV
7 5.0 5.0 5.0 5.0 5.0 5.0
Station
8 Shenguang New Energy PV Station 3.0 3.0 3.0 3.0 3.0 3.0
9 Qinghai Baike 10.0 10.0 10.0 10.0 10.0 10.0
(III) Output from gas-fired station 270.0 270.0 270.0 270.0 270.0 270.0 270.0
1 Golmud Gas-fired Station 270.0 270.0 270.0 270.0 270.0 270.0 270.0
Power balance (no PV output)
160.3 152.3 107.0 67.7 33.9 1.9 -1.9
III
Power balance (full PV output)
160.3 225.3 200.0 160.7 126.9 94.9 111.1
4 - 19
Golmud Location
Golmud
Fig. 4.2-2
Only passed through
Map : Google
4 - 20
Site 1 : Qinghai New Energy, and Qinghai Junshi Energy (Junshi Energy)
Site 2 : Baike Solar Power (Baike SP) - China Science and Technology PV Power
Site 3 : China Longyuan Golmud New Energy Development (Guodian NED)
Final Report
Site 4 : SDIC Golmud Solar Power (SDIC) - CPI Huajing Power Holding
Site 5 : Xinguang New Energy Service (Xinguang NES)
Substation : East Golmud 110kV Collected Step-up Substation (110kV Substation) Huaneng International Power Development
Site 4
Site 2 AC750kV Substation
Substation
Site 1 DC400kV Converter Station
Site 3
Site 5
4 - 21
Map : Google Map
Chapter 4
Review of Grid Connectivity of MW Class Solar PV System
Fig. 4.2-3 PV Power Plant Map

Table 4.2-5 Solar Power Station
Chapter 4
Site 1 Site 2 Site 3 Site 4 Site 5

Junshi Energy Baike SP Guodian NED SDIC Xinguang NES
20 20 3=(0.9+2.1)
First Stage [MW] 5 100
Total Output Power (2011.05) (2010.04) (2011.06)
Final Statge [MW] 50 200 50 200 Non
Type Thin Film Thin Film Crystal (18.5M) Crystal Crystal
PV Module(Main)
Angle Fixed (36 degree) Fixed (36 degree) Fixed (30 degree) Fixed (36 degree) Two (2) Axis
Rated Max. Power [W] 50 5 % 50 5 % 230.0 3 % 230 3% 440 5 %
Vm [V] 43 43 29.5 29.2 41.1
Rating of PV Panel Im [A] 1.17 1.17 7.80 7.87 10.7
(Main) Max. System Voltage [V] 1,000 1,000 1,000 1,000 600
GS-SOLAR [*1] GS-SOLAR [*1] YINGLI SOLAR[*2] SDsolar [*3]
Manufacturer (Made in China)
(Made in China) (Made in China) (Made in China)
Thin Film(1.5M)
Review of Grid Connectivity of MW Class Solar PV System
Remarks Two (2) Axis

One (1) Axis
Rated Power [kW] Not Operate Not Operate 500 500 -
4 - 22
Emerson Network
Inverter Power,SSL0500 [*5]
Manufacturer -
[*4] (Made in China)
Oil Dry
Type Not Operate Not Operate Dyn11-dyn11 Dy11y11
Transformer for PV 5 Tap 5 tap
Rated Power [W] 1,000(500+500) 1,250
Rated Voltage [V] 38,500/380-380 35,000/270-270
110kV Substaion
Main Transformer 2 units, (110/38.5kV, 63,000kW, YNd11, 17tap)/1unit
110kV Bay 4 Bays (2 Line, 2 Transformers)
35kV Bay 17 Bays (10 Lines including 2 spear, 2 Transformers, 2 SVCs, 1 Bus section, 2 PTs)
SVC 2 units, 10,000kVar/1unit
*1 http://www.gs-solar.com/freefieldsolarfarm.html *2 http://www.yinglisolar.com/
*3 http://www.gdsolar.com/ *4 http://b2b.bjx.com.cn/8434505/product-199690.html
Final Report
*5 http://www.emersonnetwork.com.cn/Pages/Default.aspx
4.2.3 Grid Code
The grid operation code (DL/T 1040 - 2007) and related regulations and standards
are applied to the PV power plants to be connected with the grids. There is no
stipulation and description on a PV power plant in the Grid Code while those of
hydro/thermal power plant are stated. For this reason, some technical stipulation on
hydro/thermal power plants was applied to PV power plants.
4.2.4 The PV Power Plants
The following six (6) PV power plants are under planning or already operating in the
eastern area of Golmud City.
1) China Science and Technology Photovoltaic Power Holding Co., Ltd., 10MW
2) CPI Huajing Power Holding Co., Ltd., 20MW
3) Guodian Longyuan Golmud New Energy Development Company, 20MW
4) Qinghai New Energy Group Corporation, 10MW
5) Huaneng International Power Development Company, 10MW
6) Qinghai Junshi Energy Co., Ltd., 10MW
The 110kV substation, called Golmud East 110kV combiner station, has been
constructed to consolidate and step-up (35/110kV) the power from six (6) PV power
plants and to connect with the 110kV grid. The owners, construction and operation
scheme of the PV power plants and the 110kV combiner station are shown in Fig.
4.2-4.
The site of Qinghai New Energy Group (10MW) is on broad plain covered with dry
sand. There is no obstruction at the site. (The photos are shown in the Site Visit
Report.) Main load from the center of Golmud city to the construction site of the PV
power plant is large enough to transport the equipment. Access road from the main
load to the site has been constructed by neighbor PV power plants although its
surface is rough. A well with pumping equipment is necessary for construction work
and living. The authority surveyed and studied the availability of water in Golmud to
invite the PV power plants. They confirmed the large scale ground water flow to be
found as deep as 100 - 180 m. The electricity for construction work will be provided
from the 35 kV substation near the site as the same manner as other PV power
plants.
The Grid Code is applied at the connection point of the 110 kV lines and the combiner
station. The design of the combiner station was carried out by PV power companies
and it was reviewed and approved by the grid company. The monitoring and control
4 - 23
are implemented from the dispatch center of grid company, so only guardsman is
located at the substation. The operating information/data is transmitted to the dispatch
center via the substation using the optical fiber line.
The 35 kV switchgears are also operated by the grid company, and the grid company
informs switchgears operation to PV power plant by telephone before operation
except for emergency situation.
Table 4.2-6 Grid Owner, Construction and Operation

Equipment Owner Construction Operation
a. 110 kV Transition
Power Grid Company Power Grid Company Power Grid Company
lines
Six (6) PV power plant
b. 110 kV Substation Power Grid Company*1 Power Grid Company*1
companies
Six (6) PV power plant Six (6) PV power plant Six (6) PV power plant
c. 35 kV Transition lines
companies companies companies
Six (6) PV power plant Six (6) PV power plant Six (6) PV power plant
d. PV power plant
companies companies companies
*1 : Six (6) PV power plant companies entrust construction work and operation of the substation to the grid power company.
a. 110 kV Transition lines
b. 110 kV Substation
110 kV Substation
PV1 PV2 PV3 PV4 PV5 PV6 d. PV power plant
Fig. 4.2-4 Owner, Construction and Operation Scheme
4 - 24
4.2.5 Detail of Golmud East 110kV Combiner Station
(1) Main Circuit
Golmud East 110kV combiner station is connected with 330kV Golmud substation
through two 110kV transmission lines, and the configuration is as follows.
- Transformer : 2 units, (110/38.5kV, 63,000kW, YNd11, 17tap)/1unit
- Busbar : Single configuration (110kV and 35kV)
- 110kV Bay : 4 Bays (2 Line, 2 Transformers)
- 35kV Bay : 17 Bays (10 Lines including 2 spears, 2 Transformers, 2 SVCs, 1 Bus
section, 2 PTs)
- SVC : 2 units, 10,000kVar/1unit
(2) Protection System including Associated Equipment
The major facilities for the grid protection and operation, such as line protection relays,
recording facilities and remote automation facilities, are described in this item.
All facilities are designed in compliance with the Grid Code, Technical Code and
requirement of the grid operating company. For example, the protection system is
designed in compliance with GB14285-2006 Technical code for relaying protection
and security automatic equipment.
1) 110kV line protection
Microcomputer-based optical fiber pilot differential line protection is applied as the

main relay and the dedicated optical fiber core is used for the protection channel.
As the backup relays, three-segment inter-phase distance protection, three-
segment grounding distance protection, four-segment zero sequence current and
direction protection, three-phase primary reclosing (with synchronization or
no-voltage detection) are installed.
2) 35kV line protection
Microcomputer-based optical fiber pilot differential line protection is applied as the

main relay and dedicated optical fiber core is used for the protection channel. As
the backup relays, three-segment inter-phase distance protection and
three-segment direction and overcurrent protection, and three-phase primary
reclosing (with synchronization or no-voltage detection) are installed. Reasonably,
the above relay is required to the PV power plants because the plants are
connected with the 110kV combiner station using the 35kV lines. And low
4 - 25
frequency and low voltage disconnection device is also installed at the Guodian
Longyuan and CPI (both PV power plants are already operated).
3) Microcomputer fault wave recording device
The station will be provided with a microcomputer fault wave recording device, to
record the faults of the 110kV line and the main transformer. It is required to have
the fault analysis, remote transmission and GPS satellite time calibration
functions.
4) Remote automation
The requirement for the remote automation is as follows.
a) Dispatching management
The dispatching management of the 110kV combiner station is operated by

the provincial dispatching center.
b) Acquisition of remote information
Remote information for the combiner station is designed according to the

relevant provisions in DL5002-2005 Technical specification for dispatching
automation design of regional grid and DL5003-2005 Technical
specification for dispatching automation design in electric power systems.
Microcomputer integrated automation system is applied for the secondary

control, and the acquisition of substation remote information is taken into
account in conjunction with the integrated automation.
c) Remote information transmission method and channel
According to the requirements on remote information transmission, the

remote transmission method for the combiner station is determined as via
power data net channel.
The remote operation host is connected to the power data net via data net
connection equipment, to send remote information to the provincial
dispatching center, with transmission rate no less than 2Mbps, and error
code rate not exceeding 10-7. The application level protocol is based on the
ministry issued standard DL476-92 and IEC60870-5-104, and TCP/IP be
adopted for network level protocol.
d) Miscellaneous
To ensure safe and reliable operation of the computer real-time systems at

the provincial and regional dispatching centers, a pilot authentication
4 - 26
encryption device, a fire wall and corresponding software should be

considered for the secondary system of the combiner station. The pilot
authentication encryption device shall have the functions of status indication,
self-check at powering-on, fault alarm, plain and encrypted text
communication, and selective encryption for encrypted network
management; support 10/100M self-adapting Ethernet port; accept remote
monitoring and management and support software upgrading.
5) Communication facilities
Optical fiber communication is applied between the combiner station and 330kV
Golmud substation, a 16-core OPGW optical cable and corresponding
communication equipment is used. The information from the combiner station is
transmitted via this channel to the Golmud substation, and then connected to the
existing power optical fiber net and then it is transmitted to the Qinghai Provincial
dispatching center and Haixi regional dispatching center.
4.2.6 FRT Function
The grid condition including power system and equipment of the 110kV combiner
station is in beside consideration mentioned above Section 4.1.2.5, items 1) to 5).
The FRT function which has already regulated in PRC (the voltage recover time is 2.0
Sec, remained voltage is 20 %) is not yet applied to the RE (wind, solar PV). However,
FRT function is essential to keep grid stability and it is to be applied to the wind/PV
power plant in other countries which have huge scale of wind/PV power plants, and
the grid operator in Qinghai also intends to do so.
(1) Requirement on FRT Function
Grid-interconnection code in many developed countries including Japan requires for a

solar PV power generator to control frequency fluctuation and voltage drop within the
certain regulated range, and demands to equip with FRT function. Fig. 4.2-5 and Fig.
4.2-6 below is illustrated requirement in Japan, which will also be stringent after 2017.
4 - 27
Requirement on voltage drop

[%] Continuous operation is required
100
*1
UVR
Remained Voltage
setting value
*1: UVR: Under Voltage Relay

30
[Sec]
0.0 1.0
Start time Time
of voltage drop
Requirement on recovery time (remained voltage: over 30%)

[%]
Required time and voltage
100
Remained Voltage
80
Within
1 Sec
0.0 0.5 [Sec]

Start time
of voltage drop
Requirement on recovery time (remained voltage: under 30%)

[%]
100
Remained Voltage
80
Within
1 Sec
[Sec]
0.0 1.0
Start time
of voltage drop
Fig. 4.2-5(a) Requirement on FRT Function (before March, 2017)
4 - 28
Requirement on Frequency (In case of step rise) [50Hz bass]

[Hz]
Continuous operation is required
50.8
Frequency
50.0
0.06 [Sec]
(3 cycles) Time
Start time
of frequency rise
Requirement on Frequency (In case of ramp rise) [50Hz bass]

[Hz]
51.5
Frequency
50.0
Change rate of frequency: 2Hz/Sec
47.5
[Sec]
Time
Start time
of frequency rise
Fig. 4.2-5 (b) Requirement on FRT Function (before March, 2017)
4 - 29
Requirement on voltage drop

[%] Continuous operation is required
100
*1
UVR
setting value
Remained Voltage
*1: UVR: Under Voltage

20 Relay
remark
0.0 1.0 [Sec]
Start time Time
of voltage drop
Requirement on recovery time (remained voltage: over 20%)

[%] remark
100
Remained Voltage
80
Within
1 Sec
remark
[Sec]
0.1
0.0 Time
Start time Voltage recovered
of voltage drop
Requirement on recovery time (remained voltage: under 20%)

[%] remark
100
Remained Voltage
80
Within
1 Sec
[Sec]
0.0 1.0
Start time
of voltage drop
Fig. 4.2-6 (a) Requirement on FRT Function in Japan (after April, 2017)
4 - 30
Requirement on Frequency (In case of step rise) [50Hz bass]
Same as before March, 2017

[Hz]
50.8
Frequency
50.0
0.06 [Sec]
(3 cycles) Time
Start time
of frequency rise
Requirement on Frequency (In case of ramp rise) [50Hz bass]
Same as before March, 2017

[Hz]
51.5
Frequency
50.0
Change rate of frequency: 2Hz/Sec
47.5
[Sec]
Time
Start time
of frequency rise
Fig.4.2-6 (b) Requirement on FRT Function (after April, 2017)
The requirement on FRT function in PRC technical standard is shown in Fig. 4.2-7.
The differences of the requirements between PRC and Japan are stated in the above
Fig. 4.2-7 and shown below.
1) LVRT 1 level : PRC (20%) < Japan (30%)

2) Recovery time : PRC (2.0Sec at 90%) < Japan (0.5Sec at 80%)
1 Low Voltage Ride Through. Value of remained voltage to be continuous operation.
4 - 31
Although the requirement in PRC is appropriate, Further the voltage recovery time of
FRT will be modified from 2.0 Sec to 0.5 Sec in consideration of more stable operation
in immediate future.

100
90
Remained Voltage
80
Within
1 Sec
China
30
Japan
20
0.0 0.5 2.0 [Sec]

Start time
of voltage drop
Fig. 4.2-7 Requirement on FRT Function (PRC)
(2) Block Diagram of Control System
Assessing the grid condition either it must be paralleled off or must be operated
continuously, is the key point to ensure safety operation of FRT function.
1) When a fault occurred in the connected transmission line, the PV power plant
must be paralleled off.
2) When a fault occurred in other transmission lines with voltage drop, the PV power
plant must be operated continuously.
The PV power plants in PRC should have a complete and efficient line protection in
compliance with the relevant Code and requirement by a grid company. This line
protection can catch a fault in the case of 1) above easily and quickly. The proposed
block diagram of the control system designed is shown in Fig. 4.2-8 and the result of
factory test is shown in Fig. 4.2-9. Grid protection circuit integrated in this block
diagram is designed to meet the requirements to connect with low voltage circuit
(6.6kV) without circuit breaker. Under this connection, control system of inverter must
have the grid protection.
4 - 32
Vdc / Idc Vout / Iout / Fout

Inverter
PV-Array Grid
Detection Circuit
Drive Circuit of
for Vout & Fout
Inverter
Grid Protection
Circuit
Control Control
for for
1
MPPT* Vout & Iout
Control
for
FRT Operation
*1 : Maximum Power Point Tracking
Fig. 4.2-8 Block Diagram of Control System
Recovery operation
Continuous operation
by FRT function Usual operation
Grid voltage
Output current
of inverter
Keep the stable output current
Fig. 4.2-9 Result of Factory Test of the FRT Function
4 - 33
Final Report Economics of Solar PV Power Plant
CHAPTER 5
ECONOMICS OF SOLAR PV POWER PLANT

CHAPTER 5 ECONOMICS OF SOLAR PV POWER PLANT
5.1 Financial Assessment and Financial Options
Financial assessment of the 10MW Pilot Project had been done by the project
proponent, QBE, in the feasibility study. The Consultant followed some of its basic
assumptions of analysis, while the Consultant also referred to a set of conditions
instructed by NDRC, to build a financial model.
5.1.1 Financial Analysis
(1) Framework of Analysis
As mentioned above, there had been a study carried out by QBE whose conditions do
not completely agree with the set of conditions shown by NDRC as a guideline for
prospective PV project investors. The settings of two methods are shown below.
1) QBE's preliminary feasibility study
QBE's feasibility study adopted financial conditions shown below.
Proportion of loan to total investment 61.29%

Repayment Period 10 years
Interest of Loan 5.346%
Operation period 25 years
Depreciation 10 years for electric facilities
and 30 years for buildings, etc.
Residual value of fixed assets 5%
Operation cost 0.2% of total investment cost
VAT 8.5%
Income Tax 25%
Additional tax city construction tax 7%, education tax 3%
2) Guideline of NDRC
NDRC published a set of conditions of financial analysis for those who wish to
apply for a license of PV projects as shown below.
Proportion of loan to total investment 60%

5-1
Economics of Solar PV Power Plant Final Report
Depreciation 20 years
Residual value of fixed assets 5%
Operation cost 7% of year's depreciation
VAT 17%
Income Tax 25%
Additional tax 8%
IRR of profit after tax 11 12%
Although QBEs feasibility study report does not specifically mention, their profit
and loss calculation includes "subsidy" in income, equivalent to CNY 0.09 per
kWh, limited for the period from the commencement of operation to the end of
12th year into operation. Aside from that, QBE's conditions are different from
Guideline's in many ways. Significant differences are; operation period, loan
conditions (repayment period, interest rate), depreciation period, etc.
In the following analysis, conditions set out by NDRC were used as they presented
tougher conditions on financial prospect of the project, except interest rate of domestic
commercial bank loan, which was revised upward in the analyses here, at 6.55% per
annum, referring to Peoples Bank of Chinas long-term loan interest rate. Also, an
alternative reference value for IRR on equity, 8% per annum, was considered as an
alternative, lower threshold in the following analyses.
The base year of the analyses was set at 2011.
(2) Project Cost
1) Investment cost
Estimation of investment cost was based on QBEs study results as follows;
Major equipment quotations of manufacturers of PV modules and

inverters
Installation work Qinghai Province Construction Work Unit Cost 2004
Transmission line wok rural power grid works track records
Building cost unit cost of similar works
Land acquisition CNY 3 per square meter
Cost of materials, equipment and etc.
price level of the first quarter in 2010
The result of the estimation is summarized in the table below.
5-2
Table 5.1-1 Cost Estimate of 10 MW Pilot Project

Description Amount CNY Remark
1 PV module cost 95,000,000 CNY 9.5 per Wp
2 Power Conditioner 17,000,000 CNY 850,000.0 per 500kW unit
3 Other Equipment 6,802,000
4 Substation related 5,346,100
5 Central Control 375,000
6 Equipment Installation 3,789,700
7 Building Construction 18,368,800
8 Standard Spare Parts 4,856,000
9 Transmission 540,000
10 Other Construction Cost 12,844,500 Include land acquisition cost
11 Grid Connection 1,800,000
Total 166,722,100
Figures in CNY
This investment cost estimate may not be quite up-to-date for the base year of
the analysis, 2011. The total CNY 166,722,100 is equivalent to US$24.6 million
and, in term of per-kW unit cost, US$ 2,460 per kW. This is quite low even when
compared with the international market price for the year 2012 1. However, in
PRC the price level of PV equipment has been falling drastically, and there is a
possibility that the investment cost for the Pilot Project could be lower than this
estimate. The effect of such a possibility was discussed in the later section.
2) O&M cost
O&M cost of this project are based on the instruction of NDRC. Each cost is
calculated as follows:
O&M cost is calculated at 7% of year's depreciation. The components of the

operation cost are not specifically explained by NDRC Guideline. However, 7% of
year's depreciation gives almost the same value as what QBE assumed in his
preliminary feasibility study where the operation cost consists of asset-related
fixed cost, generated energy-related variable cost, and human-resource cost.
Depreciation is calculated with the straight-line method for twenty years with five
per cent residual value. The interest rate of domestic commercial bank loan,
6.55% per annum, was used to express a cost of loan in calculating WACC 2.
Taxes are VAT on sales 17%, sales additional tax 8% on VAT, and income tax
25%.
1 For example, National Renewable Energy Laboratory of the US reports in July 2012 that the average unit installation cost
($/kW) of PV projects with the size range of 1 to 10 MW is $3,383, while QBEs estimate in 2010 was $2,463.
2 Weighted Average Cost of Capital
5-3
(3) Generated Power and Revenue
Power generation was estimated in the study by QBE. Annual generated energy for
the first year is 17.85 GWh, subject to an annual deterioration of output at 0.8% for
years onward. The first year output corresponds to the capacity factor of the plant
20.4%. Annual decrease of output at the rate of 0.8% amounts to 8% in ten years and
15 % in twenty years.
On the other hand, the Consultants estimate of annual generated energy was a little
smaller than this, at 16.82 GWh annually, as shown in Chapter 2, Table 2.3-1. For the
purpose of the following analyses, the Consultants estimate was used.
Generated power is assumed to be sold to the provincial utility at CNY 1.15 per kWh,
which is a concession rate offered by the provincial government of Qinghai in July
2011 for those prospective PV power plant operators who would start power
generation by the end of 2011.
(4) Financial Sources
According to PRC's relevant laws for domestic power projects, equity to capital ratio
must be over 20%. NDRC also instructs to PV power plant proponents that the equity
has to be at least 40% of total capital requirement. Therefore, 40% of capital is
assumed to come from the proponents own finance (equity). The remaining finance
comes from domestic bank loan, whose conditions are as mentioned earlier.
(5) WACC
The WACC was calculated using the conditions mentioned above. The cost of equity
is assumed at 11.0%, interest rate of domestic bank loan 6.55%, income tax rate 25%,
all as instructed by NDRC except the interest rate. Inflation rate is assumed at 3.8%.
Thus WACC of 3.42% was obtained.
Table 5.1-2 Calculation of WACC

Financial Component Domestic Loan Equity
Weighting 60% 40%
Nominal Cost 6.55% 11.00%
Income Tax Rate 25.00%
Tax-adjusted Nominal Cost 4.91% 11.00%
Inflation Rate 3.80% 3.80%
Real Cost 1.07% 6.94%
Weighted component of WACC 0.64% 2.77%
WACC 3.42%
5-4
(6) FIRR 3
Projection of revenue and cost are laid out for coming twenty years to calculate FIRR
(see the table below). FIRR obtained was 4.95%, higher than the calculated WACC
3.42%. Financial NPV calculated using the discount rate 3.42% was CNY 22 million.
However, we should not take this result at face value. This analysis method was
based on the assumption that the financial projection was valued in real terms: under
the inflationary condition, the interest rate of bank loan was converted to real terms
when WACC was calculated, and the O&M cost was considered to be constant in real
terms. One factor that does not go along is the income. The concession rate of power
purchase, CNY 1.15 per kWh, is likely to be inflexible upward in nominal terms, even
under very high inflation. Therefore, applying a constant concession rate in the
analysis for the whole project life may lead to overestimate of the income. One simple
approximation to avoid overvaluing of the result is to remove the inflation adjustment
in WACC, which leads to the WACC 7.35%. FIRR obtained, 4.95%, was much lower
than this, and Financial NPV would fall negative. Under the inflationary environment
with upward-inflexible price of main product, judgement on the result of the analysis is
not quite straightforward.
Table 5.1-3 Calculation of FIRR

year Electricity Capital O&M cost Sales & Income Total Net
Generated Cost Other Tax Tax Revenue Revenue
(GWh) (after tax)
2011 (166.722) (166.722)
2012 16.823 0.552 3.036 1.969 19.346 13.789
2013 16.688 0.552 3.012 1.937 19.192 13.692
2014 16.555 0.552 2.988 1.905 19.038 13.594
2015 16.422 0.552 2.964 1.872 18.886 13.498
2016 16.291 0.552 2.940 1.841 18.735 13.403
2017 16.161 0.552 2.916 1.809 18.585 13.308
2018 16.031 0.552 2.893 1.778 18.436 13.214
2019 15.903 0.552 2.870 1.747 18.289 13.121
2020 15.776 0.552 2.847 1.716 18.142 13.028
2021 15.650 0.000 0.552 2.824 1.685 17.997 12.936
2022 15.525 0.552 2.802 1.655 17.853 12.845
2023 15.400 0.552 2.779 1.625 17.710 12.755
2024 15.277 0.552 2.757 1.595 17.569 12.665
2025 15.155 0.552 2.735 1.565 17.428 12.576
2026 15.034 0.552 2.713 1.536 17.289 12.488
2027 14.913 0.552 2.691 1.507 17.150 12.401
2028 14.794 0.552 2.670 1.478 17.013 12.314
2029 14.676 0.552 2.648 1.449 16.877 12.228
2030 14.558 0.552 2.627 1.421 16.742 12.143
2031 14.442 9.103 0.552 2.606 1.392 16.608 21.161
(figures in Million CNY) FIRR= 4.95%
3 Financial Internal Rate of Return
5-5
(7) FIRR/e 4
Another index of financial performance of a project is introduced here, which is the

FIRR/e. Income and expense projections were made in nominal terms with loan
repayment schedule, and cash flow was calculated to obtain the return on equity. Only
O&M cost was adjusted for the inflation. The resulting IRR (FIRR/e) should be
compared with cost of equity in nominal terms.
FIRR/e obtained for the same setting as in the preceding subsection was 4.46%. This
is much lower than NDRC Guideline value of 11% or the alternative lower threshold
8%. The project does not seem to be financially viable.
To turn this condition around, we considered two ways to improve financial

performance of the Pilot Project. One was to extend the project life from twenty years
to twenty five years. The other was to increase the income by acquiring the carbon
credit, CER 5 . As discussed in the later section, operation of PV power plant is
expected to realize a lifecycle reduction of CO2 emission at a rate of 840g-CO2 per
kWh. The Chinese Designated National Authority of CDM 6 sets its basic price of CER
at EUR 7.0 per t-CO2. This price is equivalent to CNY 0.05 per kWh using CNY-EUR
exchange rate averaged for the first six months of the year 2012, that is 8.17. The
table below shows the result of such income-increasing efforts. Two methods
increase the values of FIRR/es but still fall below 11% or the lower threshold 8%. The
return on investment at this level may be diminished by the inflation.
Table 5.1-4 Improvement of FIRR/e by Longer Project Life

and Additional Income from CER
change FIRR/e
(a) original case 4.46%
(b) Longer Project Life 25 years 6.02%
(c) Additional Income from CER CNY 0.05/kWh 5.39%
(d) Both of (b) and (c) 6.85%
It is required for further profit-increasing, or cost-decreasing, measures for the Project

to become attractive to private investors. A new financing scheme was considered. In
the preceding analysis, 40% of fund was assumed to come from the investor and 60%
from domestic commercial bank loan. This bank loan portion is divided into two; 10%
from commercial bank and 50% from international financial institution with softer loan
conditions (hereafter called soft loan). The loan conditions of an international
financial institution were assumed as below;
4 Equity Internal Rate of Return

5 Certified Emission Reductions
6 Clean Development Mechanism
5-6

Repayment Period 20 to 25 years including Grace Period of 5 years
The conditions of commercial bank loan were the same as before except that the
amount is now reduced to 10% of initial investment.
The result of the introduction of soft loan is shown below along with that for cases with
longer project life and additional income from CER.
Introduction of soft loan increases FIRR/e above the lower threshold value of 8%.
Extension of operation period for five years further improves FIRR/e. Combined with
the effect of additional income from CER, the Project will attain FIRR/e above 11%.
Table 5.1-5 FIRR/e with Soft Loan

change FIRR/e
(a) With Soft Loan 50% of investment cost 8.73%

(b) + Longer Project Life 25 years 10.72%
(c) + Additional Income from CER CNY 0.05/kWh 10.05%
(d) + Both of (b) and (c) 11.89%
(8) Effect of Smaller Investment Cost
Preceding analyses were all based on the initial investment cost estimated by QBE in
2010. In a fast changing market environment of PV industry in PRC, this estimate may
no longer be relevant and the current cost level of PV equipment in PRC can be lower,
although QBEs estimate is much lower than the latest international market price level.
Examination was made to find the effect of smaller investment cost on project
financial performance, without resorting to such measures as introducing soft loans.
FIRR/es calculated for cases with lowered initial investment cost are shown below.
The additional income from CER was not considered here.
Table 5.1-6 Effect of Smaller Investment Cost on FIRR/e

Reduction in Investment Cost 0% -5% -10% -15%
Unit Investment Cost ($/kW) 2,463 2,340 2,216 2,093
FIRR/e for 20 year project 4.46% 5.41% 6.46% 7.62%
FIRR/e for 25 year project 6.02% 6.86% 7.80% 8.84%
There are a few cases where FIRR/e is close enough to or exceeding the lower
threshold 8%. If the initial investment cost were 10 to 15% lower than QBEs estimate,
5-7
we may have the Pilot Project financially viable without the additional CER income,
although at least the project life would have to be extended to twenty-five years.
5.1.2 Risk Assessment and Lifecycle Analysis
(1) Sensitivity Analysis
In the preceding section, the financial performance of the Pilot Project was assessed
with equity IRRs (FIRR/es) in nominal terms. The Pilot Project was found to give the
return lower than private investors expectations. Some measures for improvement
were considered; extending the project life to twenty-five years, securing additional
income from CER, and finally introducing softer loan in initial investment funding.
Each measure increases FIRR/e. But for the Pilot Project to attain FIRR/e larger than
11%, all of these measures should be employed.
In this subsection the result of the sensitivity analysis conducted for cases with
conditions shifting to adverse side. The base case is the case shown in Table 4.2-5,
using QBEs investment cost, with 50% of fund comes from a soft loan.
Income-increasing measures as an extension of the project life and additional income
from CER were handled as options.
Cases were considered for; (a) base case, (b) capital cost overrun by 10%, (c) benefit
(total revenue) lowered by 10%, (d) output of PV system deteriorate at faster rate at
1.5% per annum, (e) project implementation delayed for one year, (f) the CER income
reduced by 10%, (g) interest rates of loans increased by 10%, (h) combination of all
aforementioned conditions, (i) power conditioners needed an unscheduled whole
replacement (re-purchase) in 10th year, and (j) combination of d and i.
The most adverse conditions are represented by case (h), where FIRR/es in four
options fall to the lowest level but keep positive values. In case (e), the project
implementation was assumed delayed for one year, and the operation period
shortened. The second largest impact on FIRR/es was seen in the case.
Developing PV power station is a capital intensive project with still-expensive

technologies. Therefore, time is needed to recover heavy investment concentrated in
the beginning of the project. The longer the operation period is, the better the financial
performance of the project becomes. In the 10MW Pilot Project case, twenty years
instructed by NDRC does not seem to be long enough to recover the investment and
the longer operation is very much desired.
5-8
Table 5.1-7 Sensitivity Analysis of FIRR/e with Soft Loan Introduced

FIRR/e
(a) Base case 8.73% 10.05% 10.72% 11.89%
(c) Lower benefit -10% 6.04% 7.31% 8.34% 9.46%
(h) All of conditions above 1.11% 2.01% 3.11% 3.97%
(i) Renew power conditioners 6.85% 8.28% 9.36% 10.62%
(j) Combination of (d) and (i) 5.37% 6.86% 8.03% 9.34%
Having longer operation period surely increases the chance of better return. Problem
is that the Consultant do not know what may happen to Mega PV power plants after
ten to twenty years into operation, as the Consultant do not yet have many of such
cases. Such an option would bear extra risks related to time. Majority of such risks
may be attributable to deterioration of output and/or unexpected breakdown of
equipment. In base case the output of PV modules is assumed to fall by 0.8% every
year, corresponding to output falling to 92% in ten years and 85% in twenty years.
Considering the recent industrial standard of PV module manufacturers guarantee of
90% output for 10 years and 80% for twenty years, this assumption seems reasonable
but leaves some possibility of falling under more difficult situations. Such case was
considered in (d) where deterioration rate was set almost twice as fast. With 1.5%
deterioration rate, output will fall to 86% in ten years and 74% in twenty years, the
level that entitles the project owners to claim manufacturers guarantee. Further,
unexpected replacement of power conditioners in 10th year was considered in (i).
Combining (d) and (i), that is the case (j), FIRR/es in four options were shown to stay
above the level that seem not be very attractive, but not discouragingly low either, to
private investors.
Longer operation period may also raise a question of continuity of policy measures.
Qinghai Provinces July 2011 offer of CNY 1.15 per kWh is, although drastically lower
than offers for PV projects in the past few years, much more expensive than a
reference price for thermal power, CNY 0.35 per kWh in the country. The main
purpose of the high concession price for power purchase is to stimulate the market
and lower the cost of investment. Once this target is achieved, what would happen to
the policy measures while they are putting heavy burden on the budgets of the
5-9
governments? Commitment of the governments and consistency of policies are the

crucial factors in the investment decisions.
Just to confirm the advantages of measures discussed above, another series of cases
was considered: for the concession tariff at CNY 1.0 per kWh. With the original
funding plan, FIRR/e fell to 2.01%. The results of sensitivity analysis are shown in the
table below. The lowered tariff at CNY 1.0 is 13% down from CNY 1.15, which gives
harsher condition than the case (c) in Table 5.1-7. For the cases where the project life
is set at twenty years, FIRR/e's all fall below the level of inflation if any of adverse
conditions comes to existence. And when all these conditions turn up together, FIRR/s
turns negative. However, with extended project life for twenty-five years, FIRR/e's all
stay above the inflation rate except in the case (h), and the project is unlikely to go
bankrupt.
Table 5.1-8 Sensitivity Analysis of FIRR/e with Soft Loan, tariff at CNY 1.0
FIRR/e
(a) Base case 5.18% 6.63% 7.59% 8.86%
(c) Lower benefit -10% 2.58% 4.00% 5.34% 6.56%
(h) All of conditions above -1.93% -0.64% 0.00% 1.31%
(2) Lifecycle Analysis
Electricity in PRC is produced predominantly by coal, which is the most

carbon-intensive fuel. Carbon dioxide emission of coal-fired power plants was
estimated to be approximately 900 g-CO2 per kWh in PRC in 2009 7. 10MW Pilot
Project is estimated to generate energy in its life span of twenty years 310 GWh and if
the life span is extended to twenty-five years it would exceeds 370 GWh. Assuming
that this energy simply replaces the energy production of coal-fired power plants, the
reduction of carbon dioxide emissions due to this replacement will be 279,000
ton-CO2 for 20 year operation and 337,000 ton-CO2 for 25 year operation.
Meanwhile, PV power generation also emits carbon dioxide in its lifecycle mostly
7 CO2 Emissions from Fuel Combustion Highlights, International Energy Agency 2011
5 - 10
attributable to PV cell production process. This emission is estimated to be around 50

to 60 g-CO2/kWh 8 for crystalline PV cells, approximately 6% of coal-fired thermal
power plant emissions.
Table 5.1-9 Reduction of CO2 Emission

Unit 20 year 25 year
Generated energy by Pilot Project GWh 310 374
9
Saved emission from coal plants t-CO2 279,404 337,024
Lifecycle PV plant own emission t-CO2 16,764 20,221
Lifecycle reduction of emission t-CO2 262,639 316,803
From the discussion above, we obtain a lifecycle reduction of CO2 emission due to PV
power plant operation to be 840 g-CO2 per kWh of generation.
Emissions of carbon dioxide and resulting climate change are considered to bring
about positive and/or negative changes to our lives and economic activities depending
on the regions and climate. And their net effect on global average is considered to be
negative. There are many efforts to evaluate the effect in monetary term, and IPCC 10
reported its finding from many researches estimates; the average of social cost of
CO2 emissions estimates to be US$ 12 per t-CO2 (the range from 100 estimates is
large (-$3 to $95/tCO2), and the net damage costs of climate change are projected to
be significant and to increase over time). Lifecycle reduction of social cost, in other
word social benefit, due to PV power plant operation is calculated to be 1.01 cent per
kWh of generation, that is CNY 0.068 per kWh.
As 10MW Pilot Project is just financially feasible at power selling rate of CNY 1.15 per
kWh, and this price is higher than the reference power production cost of CNY 0.35, it
is considered to pay CNY 0.8 extra cost to realize social benefit of CNY 0.068, which
is obviously very inefficient.
Whether the estimate of social cost of CO2 emission US$ 12 per t-CO2 is correct or
not, its magnitude will be larger in the future. The cost of fossil fuel and fossil fuel-fired
power production will be increasing as well. With decreasing PV generation cost, the
gap between expenditure on, and gain from the reduction of CO2 emissions will be
closing. For the time being, we could also narrow the gap, by choosing and investing
in better planned/designed PV projects, more efficiently operate and manage, and
extending life spans of working PV plants.
8 A guide to life-cycle greenhouse gas (GHG) emissions from electric supply Technologies, IAEA
9 As most of lifecycle emission of CO2 from PV power generation originates in PV cell production, the emission volumes should
be almost the same for 20 and 25 year operation. In this table, 6% of unit emission of coal-fired thermal power plant
emissions, that is 54 g-CO2/kWh, was used in both cases.
10 Fourth Assessment Report (AR4) of Intergovernmental Panel on Climate Change (IPCC), 2007
5 - 11
5.1.3 Consideration on Tariff and Financial Needs of Pilot Project
(1) Appropriate Tariff and its Affordability
As discussed in the preceding sections, envisaged income and expenses of 10MW

Pilot Project is not quite well balanced. The Consultant cannot be sure exactly
whether it was because of too high the estimate of the initial investment cost or too
low the concession tariff of CNY 1.15 per kWh. QBEs estimate of the initial
investment cost is not quite up-to-date, but still much lower than current investment
cost seen in other countries. The analyses above showed that if QBEs estimate was
overvalued for more than 10% than the actual cost, the Pilot Project can be financially
viable at the concession tariff of CNY 1.15. If not, the investor would receive the
dividend which may be diminished by the inflation unless he took up on some
income-increasing, or expense-decreasing, measures.
Now we look, from administrative perspective, at the adequacy of the concession tariff
CNY 1.15 per kWh for the PV projects connected to the grid by the end of 2011in
Qinghai Province. In order to support the concession tariffs for RE power development,
the Government has set an electricity price surtax of CNY 0.004 per kWh. The gap
between the reference power production cost of coal-thermal power plant (CNY 0.35
per kWh) and the concession tariff is approximately CNY 0.8 per kWh. This means
that to fill this gap, the power production and sales from coal-thermal power plants
connected to the Qinghai grid should be more than 200 times larger than the energy
sold by PV projects connected to the grid in 2011. In other words, PV produced
energy should be less than 0.5% of total energy consumption. The total electric
energy consumed in the Qinghai grid in twelve months from July 2010 to June 2011
was 47,944GWh. The expected annual production of energy by the Pilot Project is
16.8GWh, and assuming the same efficiency, PV projects of 2GW capacity in total
may produce 3,360GWh, which is 7% of energy consumed in the Qinghai grid. This
amount is 14 times larger than the level supportable (0.5%) by the collection of the
surtax. According to this simple calculation, the surtax will have to be raised to CNY
0.056 per kWh just to support the concession tariff for PV projects whose total
capacity is said to reach 2MW by the end of 2012.
(2) Financial Needs
Promotion of PV power generation requires active participation of private sector. And

the private sector requires appropriate returns on their investment. As discussed
above, proponents of 10MW Pilot Project or any other similar projects may face
financial difficulties under the current price level of equipment and the tariff level.
There will be positive return on investment expected even under some adverse
conditions, but at a level that may be diminished by the inflation. But it was shown that
5 - 12
there were some measures to turn this around. Such measures shown effective
include; extending the project operation period from twenty years to twenty five years,
seeking additional income from CER, and as the most effective one, securing soft
loan for the fund for initial investment. For capital intensive PV projects, relieving the
burden of funding is crucial for the better financial performance. Investors will benefit
from access to foreign fund offering lower interest rates, longer repayment period and
grace period. At the moment, PV projects being promoted seem to have too many
uncertainties. For those new concession projects to prove themselves to be
creditworthy and bankable, disclosure of financial performance of preceding ongoing
projects can be effective and even necessary.
5.2 Policy Implication
We see today a rapid development of PV power generation in Qinghai Province.

Despite the fact, we have almost no information on how these projects were planned
and how they have been financially performing so far. The financial exercises in this
section suggest that, for a PV project to be financially viable, or the investors can sit
comfortable when faced with adverse conditions, there should be some measures
taken to improve the cash flow for a concession tariff even with CNY 1.0 per kWh.
One measure found effective is to extend project life. Longer project life will not only
improve the financial performance of projects, but also contribute to the reduction of
carbon dioxide emission for most of carbon dioxide emission from PV power
generation comes from production and installation processes of the equipment.
Another effective and important measure is an introduction of soft loan in funding. For
capital intensive, expensive PV projects it is quite important to have funds available at
favourable, softer conditions. However, the financial conditions of ongoing PV projects
are not quite visible to outsiders, and international financial institutions may not see
them bankable. As these concession projects have been given tariffs way above the
tariffs for conventional power plants, by the fund collected from general users of
electricity, their basic financial position should be disclosed to public. The authorities
in charge of awarding concessions to projects may also benefit from monitoring the
financial performance of concession projects. Research on financial structures of
current PV projects will surely help formulate promotion policy for coming years.
Promotion policy may have to be revised as PV projects are expanding very rapidly.
The discussion is above points to a possibility of shortage of funds for concession
tariff. Although funds can be made available inter-province, the imbalance in Qinghai
Province is too large and may become unsustainable even nation-wide.
5 - 13
Final Report Policy Note, Key Findings, and Recommendation
CHAPTER 6
POLICY NOTE, KEY FINDINGS,

AND RECOMMENDATION
CHAPTER 6 POLICY NOTE, KEY FINDINGS, AND RECOMMENDATION
6.1 Outlook of Solar Energy Development in the PRC and the Qinghai Province
The government direction for the decarbonized power sector. The power sector
in the PRC has grown rapidly in tandem with the economic growth. Installed power
capacity has expanded by about 70% in the past five years alone. 1 Since the power
sector relies heavily on coal-fired power generation which accounts for more than
75% of total power, 2 the rapid expansion in capacity has caused large increase in
Carbon Dioxide (CO2), the major greenhouse gas (GHG) responsible for climate
change. 3 Promoting more diversified energy mix with higher share of renewable
energy is the core priority to decarbonize the countrys power sector to meet its
carbon intensity reduction target which is set at 40%-45% reduction by 2020
compared with 2005 levels. In 2005, the Renewable Energy Law of the PRC enacted
to kick start large scale renewable energy development in the country. It provides a
set of incentives to promote renewable technologies, specifies grid-feed in
requirements and standard procedures, and establishes supervisory measures. In
2007, the National Development and Reform Commission (NDRC) issued the
Medium and Long-Term Development Plan for Renewable Energy in the PRC, which
aims to increase the share of renewable energy in the total primary energy
consumption to 15% by 2020. 4 The Twelfth Five-Year Plan, 2011-2015, has set an
intermediate targets to increase share of renewable energy to 11.4% in 2015, and to
decrease carbon intensity by 17% by 2015 compared with 2005 levels to meet the
larger 2020 targets.
Huge solar PV production capacity and growing domestic market. The PRC is
the world largest solar cell producer with huge production capacity which shares
around 50% of 29.5 GW solar cell productions in the world as of 2011. Although the
worldwide solar cell market is estimated to be shrunk from 2012 and onward due to
aggressive cut feed-in-tariff (FIT) incentive in European countries, domestic huge
production capacity in PRC will continuously contribute to domestic solar PV market
expansion. With ambitious long term target in expanding solar energy install capacity,
and feed-in-tariff for solar energy project announced in 2011, the PRC has witnessed
a significant growth in domestic solar photovoltaic (PV) market where solar
photovoltaic (PV) installed capacity has surged by 2.9 GW from 0.9 GW in 2010.
During the Twelfth Five Year plan (2011 2015), the PRC has newly set a target for
1 National Energy Administration (2011) Report on Chinas Energy Development for 2011, Economic Science Press, Beijing.
2 National Energy Administration (2011) Report on Chinas Energy Development for 2011, Economic Science Press, Beijing.
3 GHG emission from energy sector in PRC accounts for 46.9% (or 3,376.7 MtCO2e) of total GHG emission.
4 Current installed capacity of renewable energy is 261 GW, which is 27% of total installed capacity or 18% of total power
generation in 2010. Targets of renewable energy install capacity by 2020 for wind, solar, hydro, and biomass are more than
150 GW, 20 GW, 380GW, and 30 GW respectively.
6-1
Policy Note, Key Findings, and Recommendation Final Report
solar PV install capacity by 20 GW. As long as such surging trend continues, solar PV
market in PRC will be on rapid growth trajectory in high case scenario or be fallen
between Medium and high case scenario as in Fig.6.1-1.
Low plan
Medium plan
High plan
Required annual average growth rate
Fig. 6.1-1 Solar PV Diffusion Scenario till 2020
Grid parity for Solar PV and evolving off-take tariff level. Huge solar cell
production capacity and the expanding solar PV market in PRC will also enable solar
PV cost of energy to decline significantly. Though speed of decline in its cost of
energy depends on global and domestic solar PV market condition, and on the
presence of effective incentive policy for sustainable solar PV investment, solar PV
could still be competitive with thermal power plant and could reach CNY 0.6/kWh of
grid parity by 2020 as is in Fig. 6.1-2.
A decline in grid connected solar PV off-take tariff has been very impressive since
2007. Current CNY 1.0 per kWh of solar energy FIT is composed of benchmark tariff
(CNY 0.304/kWh) derived from thermal power plant off-take tariff and the government
subsidy (CNY 0.696/kWh) sourced from the renewable energy electricity price surtax.
In 2007 and 2008, National Development and Reform Commission (NDRC) approved
4 solar PV projects up to 1MW in two batches, including 2 in Shanghai and each in
Inner Mongolia and Ningxia, for which the electricity price to the grid of CNY 4.0 per
kWh was applied. In 2009, the government of PRC launched the first concession
bidding program for 10MW pilot grid-connected PV project in Gansu. The average bid
price from the 13 bidders was CNY 1.42 per kWh, and the awarded off-take price was
CNY 1.09 per kWh. The second batch concession bidding program for total 280 MW
in 2010 induced further decline in off-take price which was between CNY0.73 - 0.98
per kWh. In July 2011, the National Development and Reform Commission issued the
Circular on completing policies on electricity price to the grid for solar energy PV
power generation, which introduces a national unified benchmark off-take tariff to the
6-2
grid connected PV. It specifies that, for PV projects approved for construction before
July 1, 2011 and able to complete before December 31, 2011, off-take tariff to the grid
of CNY 1.15 per kWh is applied, and for those not meeting the above conditions,
off-take tariff to the grid of CNY 1.0 per kWh would be adopted except for those in
Tibet.
Price [CNY /kWh]
Realize price parity for

self-consumed power in
industrial and commercial Realize parity price
enterprises around 2014 for self-consumed
power for residential
around 2018
Realize parity
price around
Price of average PV Conventional power Residential Power Power for Industrial
Fig. 6.1-2 Forecasted Solar PV Cost of Energy and Grid Parity
Qinghai province a major driver for solar energy development. Qinghai Province,
which is located in the northeastern part of the Qinghai-Xizang plateau in the western
part of PRC, has abundant mineral and natural resources, while its Gross Regional
Domestic Product (GRDP) is the second lowest of all the provinces in PRC. To
enhance economic development by utilizing these resources in environmentally
sustainable manner, the Qinghai Provincial Government has set a development
agenda for promoting solar energy, which would supply clean electricity to the load
centers in the eastern part of PRC, and for developing a solar PV-related supply-chain
industry, utilizing more than 20GW of solar power resource potential with around
2,000 kWh/day of solar irradiation resources and the rich silica deposits in the Qinghai
Province. The installed capacity of grid-connected solar PV systems in Qinghai
Province reached to 1,010MW by the end of 2011 which was 47.2% of total solar PV
installed capacity in PRC, and 1,000 MW additional solar PV power plants will be in
operation by the end of 2012. Qinghai provincial government plans to concentrate the
grid-connected solar energy power plants in Qaidam basin in Haixi prefecture to add
solar energy install capacity by 1,000 MW per year during the twelfth five-year plan
(2011-2015) period. By 2015, the planned solar energy install capacity will be 4,000
MW comprised of 3,500 MW of the grid-connected solar PV power plants, 300 MW of
the concentrating solar thermal power plants, and 200 MW of distributed solar PV
6-3
systems. The solar energy install capacity is planned to be expanded by 10,000 MW

in 2020 and by 20,000 MW by 2030. By the end of 2011, solar PV installed capacity in
Qinghai province reached 1,010 MW which was 47.2% of total solar PV installed
by the end of 2012.
Qinghai province has been and will continuously be a major driver for solar energy
development in PRC. But challenges lie ahead, in view of grid-connectivity and
stability, electricity yield risk, financial viability, system quality assurance, and
development planning, to realize sizable grid connected MW and GW class solar PV
investment as planned in twelfth five-year plan (2011-2015) and onward till 2020.
6.2 Key Findings and Recommendations for Sustainable Solar PV Development

in Qinghai Province
6.2.1 Enhancing Grid Connectivity: Stable Solar PV Power Evacuation
Given that solar energy power plant

will continuously be concentrated in
Golmud, Haixi prefecture, current
330 KV transmissions and
substation capacity is no longer
sufficient enough to evacuate
power from mushrooming solar PV
power plants with more than 1,000
MW installed capacity in total which
will be surged by 3,500 MW by
2015. Limited grid capacity for
power evacuation risks stable
power generation and project cash flow, which will be a significant bottleneck of
sustainable investment in solar PV development in Qinghai. Thus, the presence of
upgraded and expanded transmission lines and substations are essential to evacuate
surging power supply from sizable solar PV plants. HVDC system which has high
speed control system as well as large transmission capacity, and power flow through
the HVDC system can be changed and modulated using the high speed control in
timely manner. This power changing and modulation is useful for recovering from the
fluctuation of grid voltage and frequency and disturbance of grid. 750 KV transmission
line and 400kV HVDC system are currently under construction in Golmud should be in
operation to keep pace with solar PV penetration into the grid in accordance with
install capacity target in provincial twelfth five-year plan.
6-4
6.2.2 Upgrading Grid Code which requires FRT Function: Improving Grid Stability
and Safety
When a fault occurs in a grid, the voltage drops and frequency and power flow are
also disturbed. Under this disturbed grid condition, the conventional power plants
connected to the grid try to keep sending power to the grid, which helps the grid
recover from the disturbed condition. If it drops out of N-1 criteria, the interconnection
lines must be disconnected or the whole grid will corrupts at worst. The solar PV
systems do not have the modulation capability, and it stops operation (parallel off from
grid) when voltage drop and/or disturbed frequency observed. This parallel off is an
unexpected trip. When the total capacity of PV plants that have gone parallel off is too
large, the gird collapses. To solve this problem there is a technology developed which
is called Fault Ride Through (FRT) function. This function enables the inverters to
keep operations when an instant voltage drop and/or disturbed frequency
encountered. The FRT function is essential to avoid the unexpected trip and to keep
the grid stability. Since the grid code to date does not require FRT function for solar
PV power plants, upgrading the grid code in which FRT function is compulsory
requirement for grid connection is urgently needed. On top of it, as grid-connected
solar PV is expected to be sharply increasing even within a couple of years, low
voltage recovery time (LVRT) is also suggested to be shortened from 2.0 Sec to 0.5
Sec in immediate future for enhancing grid safety.
Requirement on LVRT level recovery time

100
90
Remained Voltage
80
Within
1 Sec
China
30
20 Japan
0.0 0.5 2.0 [Sec]

Start time
of voltage drop
Fig. 6.2-1 Proposed FRT Requirement
6-5
6.2.3 Solar PV based Micro-grid System Development: Another Pathway for

Large-scale Solar PV Application
The micro grid system has small size power grid and controls supply and demand
power within the system. It connects multiple power-generating facilities and electrical
storage devices, including natural-energy sources such as solar power, thereby
ensuring a stable supply of electricity. The micro-grid system provides optimal control,
adjusting and maintaining the balance between demand and supply to ensure a stable
supply of electricity. The micro grid system is also effective to reduce the influence
caused by the fluctuation of the large solar PV system to the wide range power grid.
In case of micro-grid system in Los Alamos County in the United States which is up
and running in September 2012, solar PV power generation system and storage
batteries (1 MW of NAS batteries and 0.8 MW of lead batteries) are introduced to
compose micro grid system with around $37 million of initial investment cost.
Real-time price signal system from the Energy Management System (EMS) of the
power distribution lines is also designed to monitor solar PV power generation, power
storage volume in the secondary batteries, and electricity consumption inside the grid
system. In this micro grid system, clustered PV power generation system and storage
batteries that connect between the power distribution substation and the switchgear
are installed, and demonstrate the ability to control variations in solar radiation with
storage batteries. EMS for controlling the system is introduced and the smart
equipment on the power distribution lines
to simulate distribution lines with a high
PV power penetration into the grid is
operated. In case of Qinghai, the similar
concept of Los Alamos micro grid is
applicable. Golmud city could be the
candidate for the micro grid system as
the pilot testing location, using abundant
solar PV electricity supply capacity from
adjacent solar park and the natural gas
resources as back-up.
6.2.4 Stringent Technical Specification Standard and Institutional Strengthening:

Enhancing Quality Control of Solar PV Power Plant
Technical standard for solar PV system in design, construction, and quality

acceptance have not been unified and enforceable, in spite of rapid increase in solar
PV installed capacity. Anecdotal evidence from domestic solar PV project owners has
raised concern over unpredictable deterioration in solar cell conversion efficiency and
6-6
inverter loss at DC-AC conversion, which will be resulted in a decline in overall plant
efficiency over time. Such possible quality deterioration in grid connected solar PV
performance will directly impact on electricity generation and economics of power
plant as a whole. Qinghai provincial government authority has made necessary
arrangement for grid connection and acceptance, water supply, access road, and
peak regulation. But, due to the absence of stringent and enforceable technical
specification standard, limited experience of developers, and very narrow construction
timeframe, a possible decline in the plant output over the times needs to be
anticipated without effective quality control measures.
Developing stringent and unified technical standard is suggested on a basis of

performance evaluation for grid-connected solar PV power plant in operation, and of
international technical standard such as the one issued by Technical Committee 82
(TC 82) of the International Electrotechnical Commission (IEC) which covers wide
range of solar PV system quality standard from design, construction, commissioning,
operation and maintenance, and disposal.
In parallel, building technical guidance and supervision team under the provincial
government authority is also suggested to conduct technical evaluation of whole
project cycle including construction and operation, and strengthen supervision and
guidance for solar PV owners who fail to attain originally predicted annual power plant
output. Moreover, solar energy projects using unique and variety of technology such
as various type of concentrating solar thermal power (CSP), concentrating PV (CPV),
micro-grid are expected to be emerging in immediate future. As less down 50 MW
solar energy project is fallen in provincial government approving authority, continuous
capacity enhancement of such the provincial technical team and the local design
institute will also be essential to assure quality and performance of solar energy
projects in Qinghai.
6.2.5 Strengthening Metrological Observatory System: Mitigating Risks in Solar

Resource Forecasting
Reliable solar irradiation data is essential to predict electricity yield throughout more
than 20 years of solar PV project life. Project site selection and electricity yield
forecasting are always based on historical solar irradiation data and changes in
weather patterns from year to year, and long term data are desirable for determining a
representative annual data set. Currently, solar irradiation forecasting uses the
approach (i) comparing locally measured ground data (at site and at metrological
station less than 10 km from the site) to the satellite-derived data for the same time
interval, and (ii) correcting any bias in the satellite data to generate the improved solar
irradiation data set. In Qinghai, only 3 out of 54 meteorological observatory stations in
6-7
operation have solar irradiation measurement function. But, in such a case, the solar
energy developer is likely to confront a lack of reliable solar irradiation and related
weather data sets due to limited number of metrological stations near by the potential
site, and short and discontinuous period of times of data sets. Ground measurement
data at the site over 12 months would not have good fit with satellite-derived data in
general due to short period of data accumulation and measurement error. Relaying
upon satellite-derived data is likely to cause more than 20% of high uncertainty in
solar irradiation forecasting, which will be resulted in the reduced electricity yield and
deteriorated financial performance of the project. Unreliable solar irradiation
forecasting will also disturb stable grid operation accordingly.
Considering the provincial government has set 20,000 MW of solar energy install
capacity by 2030 and has planned to concentrate solar energy power plant in Golmud,
enhancing metrological observatory system in Qinghai by (i) increasing number of
metrological observatory stations (one station in each 10 km mesh is desirable), and
(ii) accumulating continuous time series solar irradiation and related weather data set
will be a great help to gain developers and transmission operators confidence in
irradiation resource and electricity yield forecasting for sustainable solar PV
development in Golmud.
6.2.6 Credit Enhancement: Improving the Project Financial Performance
Financial assessment for the pilot 10 MW solar PV power plant indicates that financial
rate of return (FIRR) of 4.95% at base case scenario, which is higher than 3.42% of
weighted average cost of capital (WACC). Setting appropriate tariff level taking into
consideration latest static investment cost trend and leveraged cost of energy (LCOE)
will be essential for sustainable solar energy development. But, if credit enhancement
support will be in place, the project could become financially viable even with CNY 1.0
per kWh of off-take tariff level.
One approach found effective is to
extend loan tenor and project life
from 20 to 25 years. Longer loan
tenor and project life will not only
improve the financial performance
of projects, but also contribute to the
reduction of carbon dioxide
emission for most of carbon dioxide
emission from PV power generation
comes from production and installation processes of the equipment. Another effective
and important approach is an introduction of soft loan in funding plan. For capital
intensive, expensive PV projects it is quite important to have such funds having low
6-8
cost and long term tenor terms. Given that (i) extension of loan tenor and project life
from 20 to 25 years, and (ii) 2.6% of interest rate with 25 years tenor (including 5
years grace period) are considered, the equity IRR improves to 7.59% from 2.01% in
the original case. If certified emission right (CER) is considered, the equity IRR further
improves 8.86%. Providing that all credit enhancement supports are accommodated
(2.6% interest of low cost and 25 years of long term loan with CER revenue),
sensitivity analysis shows that the equity IRR of the project would decrease to (i)
6.78% if there were a capital cost overrun 10%; (ii) 6.56% if revenue decreased by
10%; (iii) 7.63% if deterioration accelerated by -1.5%, (iv) 6.78% if there were 1-year
delay in construction; (v) 8.73% if CER price declined by 10%; and (vi) 8.48% if
interest rate hiked by 10%. The project is considered financially viable and
sustainable under various adverse scenarios. Credit enhancement support will greatly
improve the project financial performance.
Provincial government is encouraged to collaborate with domestic and international

financial institutions having low cost and long term credit product for supplying credit
enhancement assistance to continuous but large scale solar PV development in
Qinghai. But, since the project FIRR will be close or below 3.42% of WACC if couple
of adverse scenario combined, provincial government is also expected to supply risk
mitigation support in power evacuation, grid stability and safety, quality control, and
solar irradiation forecasting as suggested in previous paragraphs, so that the several
risks assumed in adverse scenario can be controllable or foreseeable.
6-9
Final Report Appendices
APPENDICES
Renewable Energy Development Appendix 1
Final Report Terms of Reference
APPENDIX 1
TERMS OF REFERENCE
TERMS OF REFERENCE
1. The technical assistance (TA) will be implemented over 14 months. The TA will require
the services of 16 person-months of international and 16 person-months of national
consultants.
2. Asian Development Bank (ADB) will recruit the consulting firm (including international
and national consultants) in accordance with its Guidelines on the Use of Consultants
(2010, as amended from time to time) through a quality- and cost-based selection
method to provide the services for implementation, management, and progress
monitoring of the TA. The terms of reference of the consulting services will include:
A. International Consultants
3. Solar Photovoltaic (PV) Planner (Team Leader) (international, 4 person-months). The

expert should have a postgraduate degree in engineering or a related field, and at least
15 years of experience in solar PV development, preferably in planning a 10-MW-class
grid integrate solar PV system. The expert will:
(i) demonstrate assessment tools to estimate solar radiation, including cloud

prediction; draw sun path diagrams; and determine tilt and azimuth angles of solar
array;
(ii) demonstrate simulation tools to evaluate various options and to determine the
optimal system configuration of grid-connected solar PV in terms of technical and
economic feasibility;
(iii) prepare recommendations for development planning, funding, and investment
incentives for solar PV development in Qinghai Province;
(iv) conduct a comprehensive pre-feasibility assessment of the priority solar PV system;
(v) prepare brief technical guidance notes and a capacity enhancement module, and
conduct capacity development training for relevant counterpart staff, in consultation
with the implementing agency (IA); and
(vi) prepare a policy note, including key findings and recommendations on the basis of
activities conducted under the TA, and organize workshops with potential investors,
grid operators, and provincial (including other provinces) and central government
officials to disseminate information.
4. Solar PV Engineer (international, 3 person-months). The expert should have a

postgraduate degree in engineering or a related field, and at least 10 years of experience
in solar PV system design, preferably in the planning, design, and operation of a
grid-connected solar PV system. The expert will:
(i) conduct a performance assessment of the selected grid-connected solar PV

systems in Qinghai, and a capacity assessment of the IA on (a) solar radiation
estimation and cloud prediction, including local meteorological data management,
analysis, and resource forecasting; and (b) site analysis, including sun path
assessment and tilt and azimuth angles of solar array, to identify the core capacity
needed for the development of a 10-MW-class grid-connected solar PV system;
(ii) conduct a capacity assessment of the IA on (a) grid-connected solar PV system
configuration design, including solar module, power conditioner, and monitoring
systems; (b) grid-connected solar PV plant design and construction; and (c)
A1 - 1
Appendix 1 Renewable Energy Development
Terms of Reference Final Report
operation and maintenance (O&M) of a grid-connected solar PV system, to identify

the core capacity needed for the development of a 10-MW-class grid connected
solar PV system;
(iii) develop benchmark standards and criteria for selection of priority PV solar
investment projects, evaluate priority investment projects, and undertake a
Comprehensive pre-feasibility assessment of the priority solar PV system;
(iv) coordinate with the team leader to prepare technical guidance notes and a capacity
enhancement module, and to conduct capacity development training for relevant
counterpart staff, in consultation with the IA; and
(v) coordinate with the team leader to prepare a policy note, including key findings and
recommendations based on activities under the TA.
5. Solar PV System Designer (international, 4 person-months). The expert should have a

in solar PV system design, preferably in the planning and design of a 10-MW-class
grid-connected solar PV system. The expert will:
(i) introduce internationally advanced power conditioner technologies for the

10-MW-class grid-connected solar PV system, and propose locally appropriate
power conditioner technologies in terms of capacity, durability, cost, and
performance;
(ii) introduce internationally advanced technology for the Master Control and Monitoring
(MCM) system for operating and monitoring the 10-MW-class grid connected solar
PV system, and propose locally appropriate MCM system design in terms of
reliability, efficiency, and cost;
(iii) review the detailed design of the pilot 10-MW-class grid-connected solar PV system,
and provide technical guidance, including (a) resource forecasting and site
selection; (b) system configuration design; (c) applied inverter technology, including
a Maximum Power Point Tracking control design; (d) applied power conditioner
technology; (e) applied MCM system design; and (f) cost effectiveness and
efficiency;
6. Solar PV Supply-Chain Specialist (international, 2 person-months). The expert should

have a postgraduate degree in engineering or a related field, and at least 10 years of
experience in solar PV supply-chain development. The expert will:
(i) assess the capacity and quality of the solar PV supply chain, including silicon solar
wafer and solar cell production;
(ii) provide technical guidance to develop a feasible solar PV supply chain for a
10-MW-class grid-connected solar PV system in Qinghai Province;
(iii) coordinate with the team leader to prepare technical guidance notes and a capacity
(iv) coordinate with the team leader to prepare a policy note, including key findings and
A1 - 2
7. Transmission Engineer (international, 2 person-months). The expert should have a

in grid connection and protection, preferably for a 10-MW-class grid-connected solar PV
system. The expert will:
(i) introduce international best practices for grid protection design and system
configuration for a 10-MW-class grid-connected solar PV system;
(ii) assist the IA with liaising and discussing grid codes with grid operators, and with
identifying the required grid protection system design;
(iii) review the detailed design of the pilot 10-MW-class grid-connected solar PV system,
and provide technical guidance on grid protection system configuration and design;
recommendations based on the activities under the TA.
8. Financial Analyst (international, 1 person-month). The expert should have a

postgraduate degree in economics or a related field, and at least 10 years of experience
in energy sector assessment and analysis, preferably in analytical work on renewable
energy development. The expert will:
(i) conduct a financial analysis of the pilot 10-MW-class grid-connected solar PV

system, including a pre-feasibility assessment for a priority solar PV system,
incorporating a cost effectiveness and efficiency assessment, commercial and
resource risk assessment, and lifecycle analysis;
(ii) identify an appropriate off-take electricity tariff, including affordability, and risk
mitigation measures for the pilot 10-MW-class grid-connected solar PV system, and
assess financing needs and types of financing to lower cost barriers of the pilot
10-MW-class grid-connected solar PV system;
(iii) review a provincial development plan for renewable energy, focusing on solar PV,
and identify performance gaps, challenges, and opportunities; and prepare a policy
note on development planning, funding, and investment incentives to develop
renewable energies, focusing on solar PV in Qinghai Province; and
(iv) coordinate with the team leader to prepare a policy note, including key findings and
B. National Consultants
9. The national consultants will comprise (i) a deputy team leader and solar PV planner (4
person-months), (ii) a solar PV engineer (3 person-months), (iii) a solar PV system
designer (4 person-months), (iv) a solar PV supply-chain specialist (2 person-months),
(v) a transmission engineer (2 person-months), and (vi) a financial analyst (1
person-month). They will work with the corresponding international consultants. They will
also assist the international consultants in reviewing relevant reports, data, policies, and
regulations, and will translate relevant documents into English.
C. Reports
10. The consultant shall submit the following reports to ADB (in English) and to the EA and
IA (in Chinese):
A1 - 3
Terms of Reference Final Report
(i) Inception Report. It will be submitted within 4 weeks after commencement of

services. The report includes a detailed work program plus any major
inconsistencies in the terms of reference, staffing problems, or deficiencies in the
IAs assistance.
(ii) Interim Report. It will be submitted within 7 months after commencement of

services. The report includes a preliminary result of activities, updated work program,
and any issues and concerns.
(iii) Draft Final Report. It will be submitted within 12 months after commencement of
services. Upon submission of the draft final report, a final workshop will be held,
attended by relevant stakeholders, to get feedback on the report.
(iv) Final Report. It will be submitted within 1 month after receipt of comments from
ADB and the government on the draft final report. The final report shall take into
consideration the comments of ADB, EA, and IA. A summary report, of a maximum
of 10 pages, should be included in the final report.
A1 - 4
Final Report National Development Plan and Provincial Development Plan
APPENDIX 2
NATIONAL DEVELOPMENT PLAN

AND PROVINCIAL DEVELOPMENT PLAN
NATIONAL DEVELOPMENT PLAN AND PROVINCIAL DEVELOPMENT PLAN
1. National Development Plan
Large-scale centralized grid-connected photovoltaic power station (PV power station) is

an important form of photovoltaic power generation. Since the beginning of the 21st
century, many centralized grid-connected PV power stations of MW class have been
built in various countries over the world, and the plans to construct 100MW class and
even GW class PV power stations are now ready to be implemented. China has also
worked out many programs to construct MW class centralized grid-connected PV power
stations. Large-scale grid-connected PV power stations have become one of the
important development policy pillars for photovoltaic power generation in the world today.
1.1 Renewable Energy Law and its Revision
The Renewable Energy Law of China coming into effect on January 1, 2006 clearly
indicates the strategic significance of developing renewable energy, and put it clearly
that This law has been formulated with the purpose to promote the development and
utilization of renewable energy resources, increase energy supplies, improve energy
structure, safeguard energy security, protect the environment and realize the sustainable
development of economy and society. The Renewable Energy Law mainly establishes
the basic system framework, and the fundamental method to support the development of
renewable energy is compulsory supply to the grid, purchasing in total amount,
implementing categorized electricity price and distribute their costs over the whole grid".
After practice for a certain period of time, in December 2009, the NPC revised the
Renewable Energy Law, which mainly responds to some questions about operability in
local areas, in addition to its further completion.
The revised version clearly set forth the centralization of formulation of plan, review and
approval authority: the department in charge of energy under the State Council shall, in
conjunction with the national power regulatory authority and finance authority, determine
the proportion of renewable energy power generation in the total power generated that
should be introduced in the planned period according to the national program to develop
and utilize renewable energy resource, and also work out the specific methods to
dispatch in priority and purchase in total amount of the power generated utilizing
renewable energy by enterprises in the grid, and the department in charge of energy
under the State Council will supervise its implementation during the year in conjunction
with the national power regulatory authority. The peoples committees at all localities
shall prepare their own programs based on the national plan and the medium and
A2 - 1
National Development Plan and Provincial Development Plan Final Report
long-term targets in the regions, and submit them to the department in charge of energy
management under the State Council and the national power regulatory authority for
filing, and organize their implementation. Technological development has been
emphasized and capital sources were specified. The state will set up renewable energy
development fund as governmental foundation, which will come from earmarked funds
arranged by the national finance for the year and the surtax for renewable energy
electricity price collected, and purchasing in full amount will be modified as guaranteed
purchasing in full amount.
By guarantee, it specifies clearly the responsibilities and obligations of the three parties
of grid enterprises, power generation enterprises and the government. The government
shall formulate programs and make administrative permission, the power generation
enterprises will obtain permission or make filing and supply electric energy complying
with standard according to the program and also ensure the safety for grids. Grid
enterprises purchase the power in full amount according to program, and permit and
strengthen grid construction.
Therefore, the Renewable Energy Law and its revised version have established the
basic system framework for renewable energy in China, including the total quantity target
system. The government is required to formulate development programs and put forth
total quantity targets, the fixed electricity price and cost amortizing system. It is required
to combine governmental pricing with electricity price determined by bidding, and the
extra cost be shared by all users; financial allowance system: allowance can be granted
by finance at both central and local levels, the central government can establish
renewable energy development fund and some local governments can also set up their
renewable energy development funds, and tax preferential system: preferential
conditions for VAT and income tax.
1.2 Specific Supporting Policies for PV Power Generation
As the cost of photovoltaic power generation is far above the present purchasing price at
grid for hydropower and thermal power in China (CNY 0.35 -0.45 per kWh), and also
higher than the wind power generation cost (CNY 0.5-0.6 per kWh), after the
implementation of the Renewable Energy Law, the formulation and implementation of
specific policies on PV power generation in China now lags behind wind power and
biomass power, and is in the conditions of consultation on case by case basis.
The National Development and Reform Commission (NDRC) issued document Fagai
Jiage [2007] No. 44 Tentative measures for allocation of renewable energy electricity
price surtax income on January 17, 2007, which specifies that the allowance for
renewable energy electricity price will be paid from the renewable energy electricity price
surtax, which will be levied at CNY 0.002 per kWh in the whole country since June 2008
A2 - 2
(now it has been raised to CNY 0.004 per kWh). It is specified in the document that the
later period operation and maintenance expenses for off-grid power generation system
constructed with state investment will also be paid from the renewable energy power
surtax. The concept of quota transaction was also put forth. The document defined the
bid electricity prices or government-determined prices for wind power (about CNY
0.4-0.6 per kWh), the benchmark electricity price for biomass will be increased by CNY
0.25 per kWh, slightly higher than that of wind power (CNY 0.5-0.7 per kWh), but the
document did not specify the electricity price for grid-connected PV power generation.
On August 31, 2007, document Fagai Nengyuan [2007] No. 2174 Medium and
long-term development program for renewable energy was issued, in which the planned
accumulated installed capacity of PV power generation was to be only 300MWp in 2010
and 1.6GWp in 2020. Now it is known that these targets were too low.
On November 22, 2007, document Fagai Nengyuan [2007] No. 2898 Circular on
relevant requirements on construction of large-scale grid-connected pilot PV power
stations was issued to 8 provinces and autonomous regions, which required that power
stations shall be constructed on non-cultivated land such as desert and Gobi, and their
size shall be no less than 5MW. The document specifies that electricity price to the grid
will be determined through bidding, and the cost exceeding the price can be shared
nationwide via the income of renewable energy electricity price surtax. This circular
started the prelude of constructing large-scale PV power stations in desert areas.
In 2007 and 2008, NDRC approved four PV power station projects up to 1MW in two
batches, including 2 in Shanghai and one each in Inner Mongolia and Ningxia, for which
the electricity price to the grid of CNY 4 per kWh would be applied, and the part above
the benchmark electricity price of local desulfurization coal-fired units will be shared
nationwide.
.
At the end of 2008, the National Energy Administration issued Zong Han [2008] No. 70
documents Reply letter from National Energy Administration for the construction of
10MW pilot grid-connected PV power generation project in June 2009 at Gansu
Dunhuan, launching the bid invitation for the project. The average price from the 13
bidders was CNY 1.42 per kWh, and the awarded electricity price to the grid for the two
10MW PV power stations approved in June 2009 was CNY 1.0928 per kWh.
In August 2010, bids were called for the concession right for the second batch of thirteen
ground PV power station projects totaling 280MWp, and the awarded electricity price to
the grid was between CNY0.7288 and 0.9791 per kWh.
During the same period, the electricity price to the grid of other administratively licensed
A2 - 3
projects in northern China was CNY1.12 -1.15 per kWh.
In April 2011, in the circular for 930 Projects in Qinghai, the electricity price to the grid of
CNY 1.15 per kWh was adopted.
In July 2011, the NDRC issued the Circular on completing policies on electricity price to
the grid for solar energy PV power generation, deciding to adopt a national unified
benchmark electricity price to the grid for PV power generation, and it specifies that, for
PV power generation projects approved for construction before July 1, 2011 and able to
complete before December 31, 2011, an electricity price to the grid of CNY 1.15 per kWh
would be adopted, and for those not meeting the above conditions, an electricity price to
the grid of CNY 1 per kWh would be adopted except for those in Tibet, and this circular
also specifies that PV power generation projects for which owners are determined by
competitive bid for concession right would be given the bid awarding electricity price,
which shall not be higher than the above-mentioned benchmark electricity price.
Concurrently, to support pilot PV power generation projects, incentive measures with

financial subsidy to the initial investment have also been launched in China, including:
on March 23, 2009, the Ministry of Finance issued Tentative measures for management
of financial support funds for constructing PV generation facilities, which specified that
the central finance would provide a part of project funds from earmarked funds for
renewable energy, to support the pilot projects and to disseminate PV generation
facilities in the urban and rural areas.
On July 16, 2009, the Ministry of Finance, Ministry of Science and Technology and
National Energy Administration jointly issued Circular on implementing Golden Sun Pilot
Program, making clear that the central finance can provide some project funds from
earmarked funds for renewable energy, to support the pilot application of PV power
generation technologies in various fields and the industrialization of key technologies.
A2 - 4
Table 1-1 Bid Prices for Large-scale Desert PV Power Stations in 2010
Installed Lowest price Next lowest Highest Average
Construction
capacity Bidder offer price offer price offer price offer
location
(MWp) (CNY//kWh) (CNY//kWh) (CNY//kWh) (CNY//kWh)
Yellow River Upper Reaches
Qinghai Gonghe 30 Hydropower Development Co., 0.7288 0.8595 1.2100 1.0227
Ltd.
Yellow River Upper Reaches
Qinghai Henan 20 Hydropower Development Co., 0.8286 0.8377 1.2000 1.0092
Ltd.
China Power International New
Gansu Baiyin 20 0.8265 0.8812 1.2000 1.0484
Energy
Gansu Jinchang 20 Huaneng New Energy Industry 0.7803 0.8010 1.0900 0.9128
China Power International New

Gansu Wuwei 20 0.8099 0.9089 1.5100 1.0388
Energy
Shaanxi Yulin 20 Guohua Energy Investment 0.8687 1.0765 1.4000 1.1380
Inner Mongolia Alxa 20 Inner Mongolia Guodian Energy 0.8847 0.8899 1.0600 0.9588
Inner Mongolia Baotou Luneng Bayan Obo Wind

20 0.7978 0.8539 1.1545 1.0016
Baotou Power
Inner Mongolia
20 Inner Mongolia Guodian Energy 0.8444 0.8950 1.1040 0.9920
Bayan Nur
Xinjiang Hamid 20 CPI Xinjiang Energy 0.7388 0.7950 1.1600 0.9769
Xinjiang Turpan 20 CPI Xinjiang Energy 0.9317 0.9576 1.2800 1.0642
Xinjiang Hotan 20 CPI Xinjiang Energy 0.9907 1.1100 1.2950 1.1508
Ningxia Qingtongxia 30 Huaneng New Energy Industry 0.9791 1.0745 1.3500 1.1417
1.3 Planning for Renewable Energy during Twelfth Five-Year Plan Period
The year of 2011 is the first year to implement the "Twelfth Five-Year Plan for Economic
and Social Development in China. Although the Twelfth Five-Year Plan for renewable
energy has not yet been officially published, the total quantitative target of PV power
generation has been basically determined, i.e. the total installed capacity of PV power
generation in China will be 10GW by the end of 2015, and for long term, the planned
target is 50GW for the year 2020. These will be minimum figures. In the photovoltaic
development projection map of China prepared by some institutions, higher targets were
set as 15-20GW in 2015 and 100GW in 2020, which are realistic targets.
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Low plan
Medium plan
High plan
Fig. 1-1 Development of PV Power Generation in China with Three Scenarios
There are many reasons to make such estimation. First, the base quantity of installed
capacity on photovoltaic market in China is quite low, but the development momentum in
recent years has been strong. If an annual average growth rate of 62% can be
maintained, the target of high scenario among the plans above can be realized. As a
comparison, the global annual average growth rate of installed capacity of PV power
generation is 55.5% during the past decade, and is about 68% during the last 5 years.
Secondly, China has fairly good commercialized development experience for the off-grid
PV power generation, thus in the coming decade, the era of parity price to grid for PV
power generation will come, and marketization will progress rapidly.
Price [CNY /kWh]
Realize price parity for

self-consumed power in
industrial and commercial Realize parity price for
enterprises around 2014 self-consumed power
for residential around
2018
Realize parity
price around 2021
Price of average PV Conventional power Residential Power Power for Industrial etc.
Fig. 1-2 Line Map for Parity Price to Grid for PV Power Generation in China
A2 - 6
The above figure shows that, in China realization of parity price to grid can be expected
in around 2014 for industrial and commercial power (user side), around 2018 for
residents power (user side) and around 2021 for selling power to the grid (power
generation side).
1.4 Status of PV Power Generation Development
(1) Historical Conditions in the Development of PV Market in China
The application of PV power generation technologies on ground in China was

started in 1973, but the growth was very slow due to restriction by high cost. And it
was mainly used in special places where power supply was not available and as
independent systems with very small installed capacity. Since 2000, due to
investment by the government in power supply projects to areas previously without
power supply and the public support to commercialized development of photovoltaic
products in rural and pasturing areas, China has achieved fairly substantial results in
supplying power to such areas with PV technologies. The specific practice includes
government purchasing PV systems to supply power to counties and townships
without electricity, implementing pilot off-grid PV projects via international aid and
cooperation, and supporting with subsidy PV enterprises in pilot operation of
commercial projects to disseminate PV interchangeable power supply systems to
scattered users, farmer and pasturing households lacking power supply, to make
available basic human needs of power for residents in the border and remote areas.
According to the statistics at the end of 2008, at least 850,000 solar home systems
were installed in total, at nearly 1000 village as independent power stations,
benefiting at least 1.15 million households.
Since the implementation of Renewable Energy Law in 2006, as no specific

measures on PV power generation have been issued, the capacity of PV systems
installed in China in 2007 was about 20MWp, only accounting for 1.84% of the
domestic solar cell production in the same year, i.e. over 98% of PV module
products were exported. Starting from 2008, some projects were approved to adopt
electricity price to the grid, and preparation was made to launch the concession right
tendering, driving up the incentive of some enterprises to invest in PV power
generation projects, and the installed PV system in China reached 40.3MWp, an
increase of 102% over the previous year. However, it also only accounted for 1.54%
of the solar cell production in the year, with proportion of export still remaining over
98%. By the end of 2008, the total installed capacity of PV systems in China reached
140.3 MWp, less than 1% of the share in the world. As the base was low, the market
size was still quite small. And most of these projects were commercial off-grid
systems for special applications, only including some grid-connected PV projects
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constructed for research and pilot purposes by some PV enterprises or existing

large-scale power enterprises. Therefore before 2008, PV systems in China were
mostly scattered small sized off-grid systems. Toward the end of 2008, only several
dozens of grid-connected power generation systems were built, with installed
capacity of several kW, and the 1.5MWp as the largest. Most of them were PV
power generation systems in conjunction with buildings. These systems mostly were
connected to grid at low voltage side, for self-consumption. Relevant policies of the
state were expected for large-scale installation and selling power to the grid. At the
end of 2008, the total market share of those grid-connected was only 17.8% of the
total installed capacity.
The year 2009 was the start of large scale application in the PV development in
China. Good achievements were obtained for PV technologies in power supply in
rural areas and commercial application in special fields, with fair market foundation,
the detailed rules for implementation for Renewable Energy Law were issued
before the end of 2008, and policy environment was basically established. In 2008,
four PV grid-connected projects obtained electricity price subsidy. The concession
right tendering for the first 10MWp PV power station in China was conducted at the
beginning of 2009, the photovoltaic building pilot program and Golden Sun pilot
program of the state were started in succession in 2009. In November 2009, the
surtax for renewable energy power was increased from 0.2 fen/kWh to 0.4 fen/kWh,
and many local governments issued various preferential policies and prepared the
PV industry development plans for the areas, promoting the PV application in larger
scale in China. Although most of the above-mentioned national programs were not
completed in 2009, apparent heat could be felt in PV market in 2009.
The installed capacity in 2009 in China reached 160.2 MWp, four times larger than
that of the previous year, and exceeding the total of previous years, bringing the total
installed capacity to 300MWp by the end of the year, and PV systems developed
were for grid-connected operation and large-scale ones. In 2009, large PV power
stations sized at 5MWp, 10MWp and 20MWp were completed starting its
generation.
The implementation of specific policies such as pilot of PV electricity price to the grid
and Golden Sun pilot program gave rise to expectation for larger scale PV
applications. In 2010, the added installed capacity reached 530MWp, including the
two 10MWp desert PV stations completed for operation as the first batch of
concession right tendering by the National Energy Administration and some PV
systems completed with national project support for initial investment, plus the PV
projects supported by local policies and the marketized PV applications.
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Table 1-2 Development of PV Industry in China during Past Years

Year 2005 2006 2007 2008 2009 2010
Annual production (MWp) 200 400 1088 2600 4011 8000
Export (MWp) 195 390 1068 2560 3851 7500
Proportion of export (%) 97.5 97.5 98.2 98.5 96.0 93.7
New capacity installed (MWp) 5 10 20 40 160 530
Annual growth rate 100% 100% 102% 297.5 231.3
Accumulated installed capacity (MWp) 70 80 100 140 300 830
In 2011, the initiative of many enterprises in China to construct PV power generation

systems under the incentive policy environment continued to rise, especially in
areas with specific supportive policies from local governments. In July, after the
issuance of the benchmark electricity price to grid of the state, investing enterprises
changed their original probing and wait-and-see attitude, and have become active in
the investment and construction, so that large-scale PV power stations can be
constructed in a centralized manner in the western region of China with rich solar
energy radiation resources. It is expected that large-scale PV power stations with
capacity of 1.2 - 1.5GW are to be constructed and put into operation by the end of
the year.
Meanwhile, for the national pilot PV project in the form of subsidy for initial
investment, about 1030 MW was approved for construction during 2009-2010 and
about 800MW in 2011, as the specific final completion time was determined for
projects launched in batches, it is estimated that the installed capacity completed in
2011 will be about 800-900MW.
Table 1-3 National Projects with Subsidy for Initial Investment

Year 2009 2010 2011
Installed Installed Installed
No. of No. of No. of
Project capacity capacity capacity
projects projects projects
(MWp) (MWp) (MWp)
Photovoltaic building pilot program 111 90 99 90 118 110
Golden Sun pilot program 236 578 272 690
When other local projects and commercial projects are added, the increased PV
installed capacity in China in 2011 will at least exceed 1.5GWp, with high probability
to reach 2GWp.
As the state started to implement concession right tendering of PV generation,
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photovoltaic building pilot program and Golden Sun pilot program projects, PV
systems are developing for grid-connected operation and large-scale systems. At
the end of 2008, only several dozens of grid-connected power generation systems
were built, with installed power being several kW, and the 1.5MWp as the largest.
Most of them were PV power generation systems in conjunction with buildings.
These systems mostly were connected to grid at low voltage side, with anti-reverse
devices, for self-consumption of the power generated. In 2009, large sized ground
PV power stations of 5MWp and 10MWp were completed for operation, and the
20MWp PV power station at Xuzhou was put into operation at the end of the year,
which obtained support for electricity price to the grid by Jiangsu Province.
The implementation of specific policies such as pilot of PV electricity price to the grid
and Golden Sun pilot program gave rise to expectation for larger scale PV
applications. In 2010, the added installed capacity reached 530MWp, including the
two 10MWp desert stations completed for operation as the first batch of concession
right tendering by the National Energy Administration and some PV systems
completed with national project allowance in initial investment, plus the PV projects
supported by local policies and the marketized PV applications, and this brought the
total installed capacity to 830MWp.
Table 1-4 Some PV Power Generation Projects in China

Tendering Initial
Allowance to initial investment or
Project or investment
Location Project category awarding electricity price to the
description determining (10000
grid
time CNY/kWp)
Full amount investment by the
Power to rural 8 western
Apr. - July, 10-150kWp state, later period operation
areas by the provinces and 8-10
2002 independent stations expense for some areas at 3000
state regions
CNY/kWp.year
Power to rural
Apr. - July, 10-100kW Full amount investment by the
areas by the Tibet 10-12
2002 independent stations state
state
4 projects
including Shanghai and 100-1000kWp grid
May 2008 No detail 4 CNY/kWh
Chongming Inner Mongolia connection system
Island
PV system in Competition
Beijing Olympic 2008 venues in Total scale 2MWp
Games Beijing
Shanghai World Pavilions in

2009 - 2010 Total scale 4.8MWp
Expo Shanghai
2 10MWp desert
First concession Mar. ~ May Gansu
grid-connected About 1.9-2.1 1.0928 CNY/kWh
right tendering 2009 Dunhuang
stations
2 30MWp and 11
Second 6 western
June ~ 20MWp desert
concession right provinces and About 2.0 0.7288-0.9791 CNY/kWh
Sept. 2010 grid-connected
tendering regions
stations
5MWp; 10MWp Built by power
Pilot project 2009 Ningxia etc. desert grid-connected generation 1.15 CNY/kWh
stations enterprise
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(2) Proportion of Grid-connected Power Generation
With the continuous increase of capacity of PV systems, the PV market in China has
been transiting gradually from off-grid systems to grid-connected systems as the
main. In 2008, although the electricity price to the grid and grid purchasing price
were basically not opened, installed capacity of PV grid-connected systems
increased substantially, with the proportion rising from 10% in previous year to about
47%. The share of accumulated installed capacity also reached 17.8%, and in 2009,
grid-connected systems accounted for about 85% of the annual total, with
accumulated share exceeding 50%. In 2011, grid-connected systems have become
further dominated.
Off-grid Grid-tied
142.0
InstallationMW
150.0
100.0
50.0 21.0
17.8 19.0 18.0
8.8 1.2 7.4 1.5 9.0 1.0 2.2
0.0
2004 2005 2006 2007 2008 2009
Year
Fig.1-4 Market Distribution of Off-grid and Grid-connected PV Systems during Past

Years
(3) Substantial Decrease of Initial Investment Cost and Power Generation Cost
The electricity price to the grid for the four PV systems for connection to grid
approved by the state in 2008 was CNY 4 per kWh. Affected by the financial crisis
originated in the USA, the prices of PV products dropped substantially at the end of
2008 and beginning of 2009, greatly reducing the initial investment cost for
constructing PV power stations. According to estimation at the time, in some areas
with good radiation and land conditions in western China, the unit initial investment
cost for constructing PV power stations could be about CNY 20000~25000 per kWp,
and the reasonable electricity price to the grid should be in the range of RM 1.2-1.6
per kWh.
In March 2009, in the concession right tendering launched by the National Energy
Administration, a bidding electricity price to the grid of CNY 1.0928 per kWh was
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appeared. No matter how this price really reflected the original intention for
sustainable development reasonable cost plus reasonable profit, the fact that the
unit investment cost for PV systems and power generation cost have decreased
substantially is worth to be noted. The two 10MWp projects in Dunhuang were
connected to grid for power generation in 2010.
After the financial crisis, the global PV market restored quickly, and the market price
of PV products rose slightly. Although PV modules have been in short supply for
demand since mid 2009 as driven by the international market, their prices remained
at the level slightly above the price that at the beginning of 2009 (for which
expanded production and technological progress played major roles, and if the tight
supply of silicon materials could be lessened, the price of PV modules would
decrease further). In the ground PV power stations subsequently approved with
consultation case by case, electricity price to the grid of CNY 1.15 or 1.12 per kWh
was given, and in some provinces with relatively inferior resources conditions,
electricity price to the grid of about CNY 1.7 per kWh was offered. In 2010, in the 13
projects sized 20-30MWp in western provinces and regions in the second batch of
concession right tendering launched by National Energy Administration, electricity
price of CNY 0.7288-0.9791 per kWh was awarded under the principle of awarding
with lowest price.
In general, calculation is required on how to determine the reasonable electricity

price to the grid for specific projects, however, during 2009-2011, the power
generation cost on PV market in China dropped substantially with the incentive
policies. The initial investment of grid-connected PV systems installed on the ground
and PV systems installed on the roofs of buildings have decreased to CNY
10000~15000 per kWp, and in areas with good resources conditions, electricity price
to the grid has approached to CNY 1 per kWh. The initial investment for off-grid
systems has also dropped to about CNY 20000~25000 per kW.
(4) Economy of Scale
Since the state launched the concession right tendering for construction of
large-scale PV power stations, state and local power companies and energy
investment groups including the five major power groups all show great attention to
the realistic and potential market of PV power generation and are actively participate
in it. The concession right tendering results and the investment and construction of
large-scale desert PV power stations show that these large-scale state-owned
enterprises have absolute adavantage. Large-scale power enterprises not having
been awarded with contract are in active work to build bases in areas with good
resources conditions, and most power enterprises have formed specialized solar
energy companies to construct pilot and research projects of different sizes, to pave
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the way for future development. Before the national benchmark electricity price was
issued, a number of large-scale projects have been completed. For example, the
Solar Energy Company of CGNPC has built a 10MWp PV power station at Gansu
Dunhuang (with concession right bidding) and Qinghai Xitieshan, and it also has
projects of 70MWp under construction. Ningdian Group also built some 5MWp and
10MWp PV power stations at Shizuishan and Taiyangshan, and is building
upstream industries. Guodian Longyuan, Huaneng, Huadian and Datang Power
have also constructed some 5-40MW PV power stations, which are now in trial
operation.
Investment in PV power generation is becoming diversified. Local finances are

obviously increasing investment to PV projects, and some real estate developers
have started caring the application of PV systems on commodity houses, and there
is continuous increase of PV systems in combination with buildings with state
program support or by self-investment.
(5) Application of PV Power Generation Technologies and its Diversification
In the newly built PV systems, application of various PV modules and PV systems

with different installation methods are demonstrated, laying a good technical
foundation for further development of PV market in the future.
Crystal silicon solar cells remain the mainstream product in market application, and
in addition to the traditional fixed inclined mounting method which is still being widely
adopted, plate tracking systems with double shafts, flat single shaft and inclined
single shaft are also been applied in many projects. Due to gradual improvement of
sun tracking technology, tracking precision and reliability indicators have been
improved, high multiple concentrating photovoltaic system (CPV) is been gradually
marketed, and in some enterprises, gallium arsenide high multiple (available in 300,
500 and 1000X) concentrating modules and systems are being made and installed.
Great progress was also achieved for the market application of film solar cells in
2009, and silicon based film cells and CIGS cells have gained more applications in
building integrated PV (BIPV). Some practical BIPV projects with different features
have been completed by some companies.
(6) PV Application Market Size
Although the PV application market growing speed has accelerated, in comparison

with international development, it is still small in total quantities and fails to match the
growth rate of PV manufacturing industry in China. Solar cells made in China were
exported over 96% in five consecutive years during 2005-2009, with less than 2-4%
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installed in the country. In 2010, PV modules exported exceeded 8GWp, while about
0.53GWp were installed in the country, accounting for only about 6%. In 2011, the
PV export will possibly reach 10GWp, and proportion of domestic installation will
possibly increase to 15%-20%, with installed capacity of 1.5 - 2GWp during the year.
Current Year [MWp] Accumulated capacity [MWp]
China PV market gradually shaped with policy incentives
Implementation of Launching concession

state power to rural right tendering and
areas program Golden Sun pilot
Implementation of
Support by scientific and Renewable energy program
technological programs Law
and international program
Fig. 1-4 Gradually Shaping PV Market with Policy Incentive
2. Provincial Development Plan
Qinghai Province is located in the western China, with very rich solar energy and land
resources, and ready conditions to build large-scale PV power stations. In the design and
construction of large-scale photovoltaic power generation projects, the power generation
efficiency is low in many projects in China in general. With the power generation cost
higher than that of traditional forms of power generation, increasing the efficiency of the
whole system will be the main issue to cut power generation cost. In this research
subject, the local policies and grid conditions will be expounded in conjunction with the
actual local conditions, and policy notes and suggestions on design of photovoltaic
system are proposed.
2.1 Comparison of Development in Domestic Regions in China
Over a long time, due to investment by the state in power supply projects to areas
previously no access to electricity and the support to commercialized development of
photovoltaic products in rural and pasture areas, China has achieved fairly substantial
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results in supplying power to such areas with PV technologies. The PV systems

disseminated are mainly distributed in nine western provinces and regions of China, and
Qinghai Province was the most concentrated area of PV system production, marketing
and installation in early years. In 2009, work in this aspect was further pushed forward in
Tibet, Qinghai, Xinjiang and performance, including financial subsidy of CNY 4000 per
kWp per year as later period operation expense for rural PV power stations built in the
early electric power to township program, and further disseminating solar energy PV
interactive power systems in rural and households in pasture area with no or lacking in
power supply in border and remote areas, and mainstream model of about
100Wp-120Wp per household, to provide basic power for their life and meet their daily
increasing demand for electricity. According to the statistics at the end of 2008, at least
850,000 solar home systems were installed in total, with nearly 1000 village independent
power stations, benefiting at least 1.15 million households, and nearly 1 million
households use independent PV power supply for domestic electricity use in lighting,
radio and TV. Since 2009, the work has been mainly focused to expand the popularity
and upgrade or expand systems, so that the power consumption level by rural and
households in pasture area in the border and remote areas has been somewhat raised.
Before the national unified benchmark electricity price was issued, some provinces and
regions formulated policies to encourage PV application projects, to push the
implementation of PV projects in local areas. Among them, Jiangsu, Zhejiang and
Shandong with good economic conditions and concentrated PV enterprises formulated
specific policies on PV electricity price to the grid, therefore, some PV power stations
connected to the grid were constructed during 2009 to 2011 in these provinces, with the
maximum single station size being 20GWp. However, not many projects were approved
due to the limitation of available subsidy for capital requirements offered by local
governments.
Ningxia Hui Autonomous Region obtained the approval of specially licensed temporary
electricity price to the grid from the NDRC in 2009, and built a number of PV power
stations, with total installed capacity of 50MWp.
Projects of Golden Sun pilot program and photovoltaic building pilot program that
encourage connection to grid on user side (low voltage side) and self-consumption are
distributed throughout the country.
As there are richer solar energy and land resources in the western part of China, more
electric power can be obtained in these areas with PV systems with the same size,
therefore investors for large-scale PV power stations started to concentrate their
attention to the west. The state selected Dunhuang of Gansu Province for the first
concession right tendering for construction of PV power stations, and selected 6
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provinces and regions of Qinghai, Gansu, Shaanxi, Inner Mongolia, Xinjiang and Ningxia
for the second concession right tendering.
Table 2-1 Comparison of PV Electricity Price to the Grid by Provinces and Regions
with State Electricity Price Policy
Electricity price to the grid Target
Region Year (CNY/kWh) installed Remarks
Ground Roof BIPV capacity
Concession 2007 - Shanghai, Inner Mongolia,
4.0
electricity price 2008 Ningxia, etc.
Jiangsu 2009 2.15 3.7 4.3 400MWp
2010 1.7 3 3.5
2011 1.4 2.4 2.9
Zhejiang 2010 1.16 50MWp
2011 -
1.43
2012
Shandong 2010 1.7 10/Wp 150MWp
2011 1.4
2012 1.2
Ningxia Concession temporary electricity
2009 -
autonomous 1.15 50MWp price to the grid
2010
region
Qinghai 900MWp To be completed before 2011
2011 1.15 already Dec.31 (previously scheduled to
approved complete before 2011 Sep.30)
Concession right Gansu Dunhuang
2009 1.0928 20MWp
tendering 1
Concession right 0.7288 - 13 projects in Gansu, Qinghai,
2010 280MWp
tendering 2 0.9791 Ningxia and Inner Mongolia
National unified Those approved before 2011.07.
2011 1.15
benchmark 01 and completed before Dec 31
electricity price Electricity price of 1.15 CNY/kWh
2012 1.0 will still be applied in Tibet
2.2 PV Development Policy and Status in Qinghai Province
Starting in 2008, many PV power station investors saw the good prospects of solar
energy and land resources for construction and the grid and power transmission and
transformation conditions of Qinghai Province, believing that it is the best area in
comprehensive conditions to construct large-scale PV power stations in China. They
came one after another to Haixi Prefecture and other areas with good conditions in
Qinghai to sign letter of intent for cooperation, and started registering power generation
companies and securing land for construction, to start construction of PV power stations
at appropriate time.
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1900 1800
2000
1700
2000
Fig. 2-1 Solar Energy Resources Distribution in Qinghai Province
Relevant departments of Qinghai Provincial Government also actively prepared PV

industry development plans and formulated relevant policies, to be prepared for receiving
investment, launching large-scale construction of PV projects in Qinghai Province and to
promote local economic development. They have completed nearly 10 development
plans at the provincial and prefectural levels related to PV.
Table 2-2 Preparation of PV Related Plans in Qinghai Province

Issuance
Description of plan Prepared by Main target
date
Outline of Twelfth Five-year Plan for Qinghai Provincial Peoples
national economy and social development Government
in Qinghai Province
Overall plan for comprehensive utilization
of solar energy in Qinghai Province
Application plan for development and Issued by Qinghai Provincial Peoples
popularization of solar energy industry in Government
Qinghai Province Economic Relations and Trade
Commission of Qinghai Province
Plan report for 10GW PV power generation
base in Tsaidam Basin of Qinghai Province
Plan for Tsaidam Basin pilot PV power Development and Reform Commission
generation base in Qinghai Province of Qinghai Province
Plan for Golmud in Qinghai Province as a Development and Reform Commission
new energy pilot city of Qinghai Province
Grid planning for "Twelfth Five-year Plan"
for Haixi Prefecture
PV development plan for Haibei Prefecture In review
in Qinghai Province
Plan for comprehensive energy system in
Tibetan areas of Qinghai Province
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Though the government has not issued supporting policies for electricity price to the grid
for PV power generation, investing enterprises were active in preparing for start of works.
However, large-scale construction action could not be started, and only some companies
started research projects. In May 2011 when Qinghai Province notified project
companies locally registered and approved that projects completed before September 30,
2011 could enjoy the electricity price to the grid of CNY 1.15 per kWh, 26 (now 27)
enterprises submitted applications and obtained approval. These projects were the
Qinghai 930 projects as referred to by outsiders.
Table 2-3 Registered Companies and Applied Projects of Qinghai 930 Projects
in Haixi Prefecture
Planned
New Project for 1.15 electricity
No. Project owner total Location
capacity price
capacity
1 Longyuan Golmud New Energy Development Co., Ltd. 30 200 20 + 30 = 50 Golmud
2 Yellow River Upper Reaches Hydropower
200 1000 200 Golmud
Development Co., Ltd.
3 Guodian Power Qinghai New Energy Project
10 200 10 Golmud
Preparatory Office
4 China Three-gorge New Energy 5 10 5 Golmud
5 Beijing Beikong Green Science and Technology
20 50 20 Golmud
Industrial Co., Ltd.
6 Qinghai Water Conservation and Hydropower Group 10 20 10 Golmud
7 CPI Golmud Photovoltaic Power Generation Co., Ltd. 30 200 20 + 30 = 50 Golmud
8 Jinzhou Sunshine Energy 20 20 20 Golmud
9 Qinghai Project Preparatory Office of Datang
20 20 20 Golmud
Shandong Branch
10 Huaneng Golmud Photovoltaic Power Generation Co.,
30 200 30 Golmud
Ltd.
11 Qinghai Baike Photoelectrical Co., Ltd. 8 10 2 + 8 = 10 Golmud
12 China Huadian Photovoltaic Power Generation Co.,
10 10 10 Golmud
Ltd.
13 Zhejiang Zhengtai Solar Energy Science and
20 20 20 Golmud
Technology Co., Ltd.
14 Qinghai Jingneng Construction Investment Co., Ltd. 20 100 20 Golmud
15 Shengguang New Energy Co., Ltd. 2 20 1+2=3 Golmud
16 Qinghai Datang International Energy Project
20 20 20 Golmud
Preparatory Office
17 Qinghai New Energy Group Corporation 10 10 10 Golmud
18 Qinghai Junshi Energy Co., Ltd. 8 10 2 + 8 = 10 Golmud
19 Qinghai Provincial Development and Investment Co.,
2 2 2 Golmud
Ltd.
20 Yellow River Upper Reaches Hydropower
30 50 30 Ulan
Development Co., Ltd.
21 CEC Solar Energy Co., Ltd. Da
10 10 10
Qaidam
22 Guodian Qinghai Branch 20 20 20 Delingha
23 Qinghai Linuo Solar Energy Power Co., Ltd. 30 30 30 Delingha
24 China Wind Power Group 30 50 30 Delingha
25 CEC Solar Energy 20 200 20 Xitieshan
26 CGNPC Solar Energy Development Co., Ltd. 90 100 10 + 90 = 100 Xitieshan
760
(including 45MW at
Total 705 2582 Golmud and 10MW at
Xitieshan already
connected to grid)
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In fact, after NDRC issued the national unified PV benchmark electricity price in Aug.
2011, all Qinghai 930 projects were covered, and their completion date was naturally
extended to Dec. 31, 2011. Because they were started early, Qinghai Province got the
first priority in the construction of this round of PV projects, becoming the area with most
concentrated PV power stations being constructed in China. On September 16, 2011 at
the PV development conference called for by the Qinghai Provincial Government,
officials of the provincial government declared that in 2011, it would be ensured that PV
power generation systems of 0.9GW should be completed for production by the end of
the year, and further efforts would be made to realize a higher target of 1GW.
3. PV Policy Note Development Plan and Status in Qinghai Province
In early July 2011 when statistics were started for this study, PV power stations of
Longyuan with 20MW, CPI Golmud with 20MW, Baike with 2MW and Shenguang (CPV)
with 1MW at Golmud had been connected to grid, with 45MW already connected to grid
in Golmud, and the 10MW project at Xitieshan was also connected to grid. If the new
projects of 705MW could be completed on schedule, the installed capacity in Haixi
Prefecture during the year will be 760MW. With projects in other places of Qinghai
Province, the applied installed capacity of 930 projects in the province will be about
900MW. However, as investing enterprises doubted whether Qinghai Province would
finally make good the promise of CNY 1.15 per kWh electricity price to the grid, and also
the schedule to complete by September 30, 2011 was too tight, we estimate that only
about 500MW can be completed out of 930 projects. The issuance of the state
benchmark electricity price eliminated the doubt of investors and granted additional 3
months as construction schedule, so large-scale construction of PV power stations
immediately went into full swing in Qinghai Province. In the present progress of
construction, there is a high possibility that PV power stations completed and connected
to grid for power generation by the end of the year reach 0.9GW in Qinghai Province.
Although the electricity price to the grid in 2012 will possibly decrease to CNY 1 per kWh
(if no extra subsidy is provided by local governments), investing enterprises are still at
high initiative for subsequent construction. By now, Qinghai Provincial Energy Bureau
has received project application reports for a total of 4GW, and it plans to approve
projects of about 1GW out of 4GW to be constructed in 2012. Therefore, the installed
capacity of PV power station in Qinghai Province will reach 2GW by the end of 2012.
A2 - 19
Table 3-1 Summary of Projects under Construction and Proposed in Qinghai Province
Installed
Description of project capacity Origin of project Owner
(MWp)
PV power station in Gonghe Yellow River Upper Reaches
30 Concession right tendering
County of Hainan Prefecture Hydropower Group
PV power station in Henan Yellow River Upper Reaches
20 Concession right tendering
County of Huangnan Prefecture Hydropower Group
Approved by Qinghai
2011 benchmark electricity price 900 Investing enterprises
Provincial Energy Bureau
To be approved by Qinghai
1,000 Investing enterprises
Photoelectrical building pilot
2012 benchmark electricity price
program
Golden Sun pilot program
Total 1,950
4. Recommendation for Development Planning, Funding and Investment Incentives
Rapid development of PV power generation construction in Qinghai Province will greatly

spur the PV industry development in China, also with important significance to improve
energy structure, energy conservation and emission reduction, environmental protection
and to promote local economic development. The international background of European
financial crisis, made freeze of PV market in Europe and some US enterprises launching
Double Counter Investigation has also brought opportunities for the PV manufacturing
industry of China to expand domestic market. However, too rapid growth is also
accompanied with some problems deserving our attention.
First, to concurrently implement many projects in a short period of time with tight
schedule and heavy work tasks, investing enterprises will subject to pressure from
aspects of materials procurement, transport, supply of labor, construction organization
and cost control. Second, as construction standards, project specifications and quality
acceptance standards have not been unified, some projects were started in haste to
catch up with schedule, and working in winter, there will be some hidden perils to project
quality.
Although Qinghai Province has make arrangement on preparation for connection, grid
acceptance ability, peak regulation method and total quantity target control, due to tight
schedule, large amount of work and insufficient experience, unexpected problems will
possibly occur when large number of power stations are connected to the grid almost at
the same time. Therefore, countermeasures have to be worked out in advance.
A2 - 20
At present, all existing technical plans, installation methods and PV modules can be
found in the projects in Qinghai. As prior tests and evaluation data are lacking, it should
be verified if the expected technical and economic indicators can be reached. If they can
be operated reliably for long time after completion, this will bring some risks to investing
enterprises.
Therefore, it is suggested that department in charge in Qinghai Province organize

technical teams in a timely manner, to conduct technical evaluation for projects during
implementation, strengthen the supervision requirements on construction, strengthen the
safety education in construction enterprises, and provide better service for investing
enterprises, to ensure the healthy development of the whole program.
5. Promotion of Large-Scale Grid connected Solar PV Development in Qinghai

Province
5.1 Gap between Policies and Reality, Opportunities and Possibilities
In early July, 2011 when statistics were started for this research program, PV power
stations of Longyuan with 20MW, CPI Golmud with 20MW, Baike with 2MW and
Shenguang (CPV) with 1MW at Golmud had been connected to grid, with 45MW already
connected to grid in Golmud, and the 10MW project at Xitieshan was also connected to
grid. If the new projects of 705MW can be completed on schedule, the installed capacity
in Haixi Prefecture during the year will be 760MW. With projects in other places of
Qinghai Province, the applied installed capacity of 930 projects in the province will be
about 900MW. However, as investing enterprises doubted whether Qinghai Province
would finally make good the promise of 1.15 yuan/kWh electricity price to the grid, and
also the schedule to complete by Sept. 30 was too tight, we estimate that only about
500MW can be completed in 930 projects. The issuance of the state benchmark
electricity price eliminated the doubt of investors and granted additional 3 months as
construction schedule, so large-scale construction of PV power stations immediately
went into full swing in Qinghai Province. In the present progress of construction, there is
a high possibility that PV power stations completed and connected to grid for power
generation by the end of the year 2011 reach 0.9GW in Qinghai Province.
Although the electricity price to the grid in 2012 will possibly decrease to 1 CNY/kWh (if
no extra allowance is provided by local governments), investing enterprises are still at
high initiative for subsequent construction. By now, Qinghai Provincial Energy Bureau
has received project application reports for a total of 4GW, and it plans to approve project
of about 1GW out of 4GW to be constructed in 2012. So, the installed capacity of PV
power station in Qinghai Province will reach 2GW by the end of 2012.
A2 - 21
Table 5-1 Summary of Projects under Construction and Proposed in Qinghai Province
Installed
Description of project Origin of project Owner
capacity (MWp)
PV power station in Gonghe 30 Concession right tendering Yellow River Upper Reaches
County of Hainan Prefecture Hydropower Group
PV power station in Henan 20 Concession right tendering Yellow River Upper Reaches
County of Huangnan Hydropower Group
Prefecture
2011 benchmark electricity 900 Approved by Qinghai Investing enterprises
price Provincial Energy Bureau
1000 To be approved by Qinghai Investing enterprises
2012 benchmark electricity
Photoelectrical building pilot
price
program
Golden Sun pilot program
Total
A2 - 22
Final Report Capacity Development Training
APPENDIX 3
CAPACITY DEVELOPMENT TRAINING

Capacity Development Training
1. Schedule
(1) The First Training
Date : April 25 to 28, 2011, (4 days)
(2) The Second Training
Date : July 04 to 30, 2011, (27 days)
(3) Overseas Training in Japan
Date : October 24 to 30, 2011, (7 days)
2. Contents of the Training
(1) The First Training
1) Capacity development training for planning, design, construction, operation and

maintenance (O &M) of solar PV system.
Solar photovoltaic (PV) planner, solar PV engineer, solar PV system designer.
Transmission engineer and Financial analyst were trained regarding planning
and construction of solar PV system, and were provided technical guidance on
their 10 MW class grid-connected solar PV system.
2) Capacity development training for solar PV supply-chain

Solar PV supply-chain specialists provided assessment of the capacity and
quality of the solar supply chain and gave technical guidance on their solar PV
supply chain.
3) Financial analyst made economic analysis on a 10 MW class grid-connected

solar PV system and identified appropriate off take electric tariff level and
assessed financing needs and type of financing.
Then he gave advice to the QBE based on the result of analysis.
1) Solar Photovoltaic (PV) Planner, Solar PV engineer, Solar PV system designer

and Transmission engineer visited Golmud where QBE was going to construct a
10 MW class grid-connected solar PV system and had the site survey.
A3 - 1
Capacity Development Training Final Report
Then they gave technical assistant to QBE regarding planning, construction and
O&M of a solar PV system, and gave technical guidance on their 10 MW class
grid-connected solar PV system.
2) Capacity development training for solar PV supply-chain

Solar PV supply-chain specialists gave assessment of the capacity and quality
of the solar supply chain of the Qinghai China Silicon Energy (QCSE) and
provided technical guidance to develop a feasible solar PV supply chain to
QCSE.
3) Financial analyst gave economic analysis on a 10 MW class grid-connected

solar PV system and identify identified off take electric tariff level and assessed
financing needs and type of financing.
Then he gave advice to the QBE based on the result of analysis.
1) EA(Qinghai Provincial Finance Department) and IA( Qinghai Brightness

Engineering) members came to Japan and visited the PV manufactures which
had the latest technology for the Power conditioner (including inverter) and PV
panel production and Electric Power Company (KANSAI Electric Power
Company) in Kansai area, Japan which had already installed a 10 MW
grid-connected solar PV system. Then they had fruitful discussion about solar
PV grid-connected system with engineers who were working at those firms and
the Electric power company.
3. Overseas Training Schedule and Members
(1) Overseas training schedule is shown in the Table 3-1.
1) Duration: October 24 October 30, 2011, (7days)

2) Schedule
A3 - 2
Table 3-1 Overseas Training Schedule Itinerary in Japan
Day Schedule Lodging Place
Oct. 24 (Mon) Arrival of engineers in Japan (OSAKA) OSAKA
- Briefing on the Project and Schedule of inspection visit OSAKA

Oct. 25 (Tue)
- Inverter Manufacturer Factory Visit KYOTO
- SAKAI MEGA Solar PV P/S Visit (KANSAI)
Oct. 26 (Wed) OSAKA
- SAKAI KO Power Station Visit (KANSAI)
- Central Control Center (KANSAI)
Oct. 27 (Thur) OSAKA
- Technical discussion of Mega PV P/S with KANSAI
Oct. 28 (Fri) Solar Module Manufacture Factory Visit OSAKA
Oct. 29 (Sat) Internal Wrap Up Meeting OSAKA
Oct. 30 (Sun) Departure of trainees from Japan(KANSAI) -
KANSAI: THE KANSAI ELECTRIC POWER CO., INC.
(2) Member table is shown in Table 3-2
Table 3-2 Nominated Member for Overseas Training
A3 - 3
Final Report Presentation Materials
APPENDIX 4
PRESENTATION MATERIALS
Renewable Energy Development Appendix 4 : Presentation Materials
Final Report Appendix 4-1 : Seminar
APPENDIX 4-1 : SEMINAR
1) Integrated Control Technology for a Large-scale

Photovoltaic System in Xining
2) Construction Project of Sakai Mega Solar Power
Generation Plant
3) The Latest Technology of Solar Radiation Evaluation
4) Financial Assessment of PV Power Station
Integrated Control Technology
for a Large
Large--scale
Photovoltaic System in Xining
April 27,2011
Yukao TANAKA
NEWJEC Inc.
1
Todays Topic
1. Background of the Project

2
2. Outline of System
3. Project Schedule
4. Site Layout/System Layout
5. Configuration of Major Equipment
6. Typical Daily Operation Pattern
7. Compensation by Capacitor
8. Fast Operation of PV System
9. Achievements
10. Training for Operation and Maintenance
A4-1 - 1
2
Background of the Project
Promotion of renewable energy

for the environmental problems
Reducing the affection to the power system
from the photovoltaic (PV) generation
A rationalized power supplying system

making good use of renewal energy
-- Outline of system -- 3
Compensating the PV Power Fluctuation by Capacitor
with Rationalized PV system
Purpose of the Project 10kV Line
Indicator of power frustration:
frustration:
Compensation of PV Power fluctuation
Project System Faster interconnection of PV system
Summarized control equipment

Character
High Speed Stabilizing Control CNV
300kW
DC Bus Adaptation of Capacitor for
INV
CHP CHP 10kVA
compensation of PV power
300kW 75kW
fluctuation
Junction Junction
Box Box Rationalized system with
EDLC connections in DC side
1kWh
Load
PV300kW High Speed connection after
Large PV system EDLCElectric Double Layer out of service
Capacitor
A4-1 - 2
4
Project Schedule
2010
2007 2008 2009 (up to
March)
Feasibility Study
Site survey and Specification study
Production and transportation of PV panels

Production and installation of
like the indoor equipment
Demonstrative Operation
Training of Operation and Maintenance
Completion Ceremony Workshop
-- Site Layout/ System Layout -- 5

Reverse Power Flow to 10kV Distribution Line
Control House XEDTA
300kW PV Plant
10kV Distribution line
166m 60
Site Layout
T Branch from 10kV distribution line
A4-1 - 3
-- Site Layout/ System Layout -- 6
Photovoltaic Module / 14 series and 108 circuits
166m Demonstration System Transformer 10kV/0.4kV
P.C.BOX
60m Low voltage
High voltage
Sub-Array
10kV Line
B D
Number of PV module
module1,512
1 512 pcs.
pcs A C
Component of circuit:14
circuit:14 module (series)/circuit Component of sub
> Num. of Circuit:108 circuit array
Component of sub array :4(2)circuit/sub array
> Num. of Sub array:28 sub array
Component of P.C.BOX:4-
P.C.BOX:4-5 sub array / P.C.BOX(16
P.C.BOX(16
20
circuit/P.B.BOX) > Num. of P.B.BOX: 6 units
PV Sub Array Capacity of PV system: about 300kW
-- Configuration of major equipment -- 7

Photovoltaic Generation System
(PV modules is composed of 14 series and 108 Circuits. )
DC/DC Converter for PV System
P.C.BOX 1-6

108 Circuits
PV modules is composed of 14 series

Specification of PV module Specification of DC/DC Converter for PV System
Item Specification Items Specification
Module Total Rated power
(DC bus side) 400 kW
Maximum power 200W 302 4kW
302.4kW
Maximum power Rated voltage 400V
voltage 26.3V 368.2V
DC input Voltage range for 280V460V
Maximum power (PV side) rated output
current 7.61A 821.88A
Voltage range for 280V600V
Open circuit interconnection
current 32.9V 460V
DC output 280V
Short circuit (DC bus side)
current 8.21A 886.68A
Type of control Step-down chopper control applying
IGBT
A4-1 - 4
Electric Double Layer Capacitor (EDLC) System
EDLC modules is composed of 5 series 5 parallels, 2 sets
To DC/DC Converter for EDLC Panel
-
Specification of Electric Double

Layer Capacitor (EDLC)
Item Specification 60F 54V module 60F 54V module
5 series 5 parallels 5 series 5 parallels
Connection 5 series 5 parallels, Specification of DC/DC Converter for EDLC System
2 sets
Item Specification
Maximum charge
voltage 54V Rated power 75kW
(Module rating ) (DC bus side)
Maximum voltage 270V
Maximum voltage 270V DC input
of EDLC system (EDLC side) Voltage range for 90V260V
rated output
Maximum current 600A
of EDLC system DC output 280V
(DC bus side)
Capacity 120F1.215kWh
Type of control Step-up chopper control applying IGBT
Converter for Interconnection

Specification of Converter
for Interconnection
Item Specification
Three-phase, three-wire
AC rated voltage
380Vrms
Rated frequency 50Hz
AC rated power 342kVA

DC rated voltage DC280V
Conversion Not less than 90% (DC
efficiency 280V/ AC300kW, power
factor =1)
Control functions
a) Constant-voltage control (DC 280V) and power factor 1 control
b) Constant reactive power control
A4-1 - 5
10
Typical Daily Operation Pattern
- Small change in PV output (on a fine day) -
Output of PV Generation Frequency
Freqquency(F)
PV OUTPUT(kW)
TimeH)
Voltage
Voltage
V)
TIME (H) TimeH)
Summary of Maximum and Minimum Averages

Min. Max. Ave.
PV generation (kW) 0 79 251
Frequency (Hz) 49.93 50.01 50.08
Low voltage on AC side (V) 378.8 381.6 384.9
Date:13 July,2009
11
- Sharp Changed in PV Generation -
Output of PV Generation Frequency

Freequency(F)
PV OUTPUT(kW)
TIME (H)
Voltage
Voltage
V)
TIME (H) TIME (H)

Min. Max. Ave.
PV generation (kW) 0 79 303
Frequency (Hz) 49.94 50.01 50.06
Date1 July, 2009
A4-1 - 6
12
- Cloudy Day -
Output of PV Generation
Frequency
Freequency(F)
PV OUTPUT(kW)
TIME (H)
Voltage
Voltage
V)
TIME (H) TIME (H)
Min. Max. Ave.
PV generation (kW) 0 15.15 112
Frequency (Hz) 49.93 50.00 50.05
Date10 July,2009
-- Compensation by Capacitor -- 13
Development of Power Stabilization Control
Control for stabilization as follows

1. Detection of PV power
2 EDLC Power out put for compensation()
2. PV Power Output Output to Power
system
3. Out put Power to the power system
Power System
EDLC Power out put
Power
Stabilizing Control
Equipment

Time
Image of Compensation control for PV

Power fluctuation
EDLC
PV System
System
Stabilizing power fluctuation under a few seconds using EDLC
A4-1 - 7
-- Fast Operation of PV System -- 14
Development of Inventor Control Method
for Faster Restarting of PV Operation
Distribution Image for Restart of PV Power Generation
System
Conventional Control System

Voltage
Clear of Accident
Test Equipment
Inverter for Start of

Connection generation
Accident
Developed Control System Usually around

10seconds
Voltage
Clear of Accident
Junction Junction Load
Box Box
Accident
Around 2 second
Faster Deviation Detection of Voltage and Phase
Development for fast restart of PV Operation
-- Achievements
Achievements-- 15
Case: 1Hz fluctuation of DC/DC Converter for PV System
System
In USE Stabilization Control using EDLC No USE

200
PV CNV [CNV] AC P
[CNV] DC P
PV
[PV] DC bus P
200 [CNV] AC P
[PV] DC bus P
[EDLC] DC bus P
150 150
[EDLC] DC bus P
100
100
Power (kW)
W)
W)
Power (kW)
50
50
0
0
CNV EDLC
-50
-50
-100
EDLC
-100 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 sec)
sec)
Time (sec) Time (sec)

EDLC Effect with PV output forcedly varied at 1-Hz frequency (using FFT)
Ampplitude
EDLCDC/DC Converter for

EDLC System
PV DC/DC Converter for PV System
CNV Converter for Interconnection
AC SIDE
Frequency (Hz)
Output power variations per second (1 Hz) were reduced to 1/10 for
the capacity of the output power stabilization system
A4-1 - 8
-- Achievements
Achievements-- 16
(Case: PV output makes a sharp change (270 kW to 0 kW))
PV Output
PV Output
DC Voltage
DC Voltage
Enlarge
During the demonstrative operation period. As a result, we could verify

that DC bus voltage show within the given power quality objectives and
good integrated control was achieved.
-- Achievements
Achievements-- 17
Development of Inventor Control Method
for Faster Restarting of PV Operation
Time axis: 50 ms/div.
Restart time: 1.14s
CH1 (red): Converter for Interconnection Output Voltage U-V 200V/div.

CH2 (green): DC Bus Bar Voltage P-N 50C/div.
CH3 (blue): Converter for Interconnection Gate Block Signal (H: Gate Block occurrence / L: Gate Block cancel)
We could achieve the target with the fastest time of 1.14 seconds.
A4-1 - 9
18
Training for Operation and Maintenance
Training to operator
Preparation of operation manual (Chinese
Chinese version
version)
On the Job training using real equipment at site
Report system to Japan when trouble happened
Making daily repot by operators
Workshop
Enlightenment of Photovoltaic
generation technology
Operation Manual
Chinese version)
(Chinese version
19
Training for Operation and Maintenance
(On the Job training using real equipment at site)
Explanation of display/ meter Explanation of parts of panel

on the panel inside
Explanation of method of sucking

Explanation of operation up the detailed data
(using touch panel) (For troubleshooting)
A4-1 - 10
20
THE END
A4-1 - 11
Construction Project of Sakai Mega Solar
Power Generation Plant
April 27, 2011
Takao Shiraishi
NEWJEC Inc.
Table of Contents 2
1. Issues related to mass interconnected solar power generation system

(1) Outline of power generation equipment and operation of electric power
system
(2) Characteristics and issues of solar power generation from the viewpoint of
electric power system
2. Construction of Sakai Mega Solar Power Generation Plant

(1) Business plan and current project status of Sakai solar power plant
(2) Technical verification toward resolving the issues related to solar power
generation at Sakai plant
A4-1 - 12
Outline of Electric Power Facilities 3
Electricity generated by a power plant is distributed via intermediate/distributing substations after being fed
through transmission lines to ultrahigh voltage/primary substations where its voltage is gradually reduced.
Before being supplied to customers, the voltage is furthermore reduced to 100200V by pole transformers.
Hydropower station Mega factory Mega factory Small factory
Ultrahigh voltage substation Primary substation Intermediate substation Distributing substation Pole transformer
Nuclear power station
Rail substation
Building, mid-scale factory
Housing
Thermal power station
Reference: FEPC website
Mission of Operating Electric Power System 4
To deliver quality electricity by;

Maintaining appropriate frequencies
Implementation rules of Electricity Business Act (METI
order)
Maintain frequencies equivalent to the standard
frequency of electricity being supplied
Internal reference frequencies
59.9Hz60.1Hz (residence ratio: 95% or more)
Maintaining appropriate voltages

Implementation rules of Electricity Business Act (METI
order)
100V: no more than 1016 V
200V: no more than 20220 V
Internal reference voltages
As same as the above
Ensure the reliability

(sustainable supply of electricity)
A4-1 - 13
Table of Contents 5

system
2. Construction of Sakai mega solar power generation plant

Characteristics of Solar Power Generation from the 6

Viewpoint of Power System
Hidaka Energy park Sunny Power generation depends on the weather condition. As it
Occasionally cloudy
is impossible to store the generated electricity, output
Rainy
adjustment is difficult.
Fluctuation
Period of heavy Period of light

loading loading
Demand Demand
Excess electricity is As power generation depends on the
Pumped hydropower generated.
Minimum thermal power Minimum thermal power
weather condition, large scale
Pumped
Pumped hydropower
Solar power
Pumped hydropower Solar power
hydropower introduction of solar power
electricity
Thermal power
electricity
generation may lead to excess
Surplus Thermal power
electricity through the entire power
Wind power
Wind power
Hydropower Hydropower
system.
Nuclear power
Nuclear power
Excess electricity will flow back into the

power system.
Electricity
Excess
electricity
Reverse power Solar panel
flow
Consumption Generated
electricity
Reverse
power flow
A4-1 - 14
Fluctuation in Solar Power Generation 7
Reference: Data from Sakai Solar Power Generation Plant
Sunny (November 4)
As it depends on the weather condition,
the adjustment of power output is Occasionally cloudy (November 23)
difficult.
Occasionally rainy (November 22)
Power
output (kW)
Clock time
Solar power generation can provide stable power on sunny days. However, on cloudy or
rainy days, a high level or stable output cannot be expected.
Influence of Power Fluctuation 8
Fluctuations in solar power generation are compensated by increasing/decreasing the power output of adjustable
electric sources (thermal power generation, etc.). Large-scale introduction of solar power generation may lead to an
extended fluctuation, resulting in lack of frequency balance.
Reducing power output by

On sunny days adjustable power sources
IIncrease in
i
frequency
Demand
Demand Supply
Power Electricity generated
generation by solar power Supply
Demand Supply
Existing
electricity
Increasing power output
by adjustable power
sources
Adjustable power
sources (thermal Decrease in
power, etc.) frequency
Supply
Demand Supply
On rainy days Demand
A4-1 - 15
Expected Supply & Demand Balance after Full-Scale
Introduction of Solar Power Generation 9
Unit: 10MW
Summer
Pumped hydropower generation

Electricity demand
Output of thermal power plants

Thermal power generation Rated output
Pumped hydropower Decrease in output factor

generation Solar power generation (degraded fuel economy)
Hydropower generation
Electricity from other utilities + power interchange Plant A Plant B Plant C
Nuclear power generation
(Hour)
Expected Supply & Demand Balance after Full-Scale

Introduction of Solar Power Generation 10
During lightly loaded periods, such as an off-peak month, the electricity generated by base loads and solar power may exceed the demand,
resulting in excess electricity.
If daytime excess electricity accumulates for several consecutive

Unit: 10MW days, the electricity to be stored in a pumped storage power station
will exceed its capacity.
Off-peak period Conceptual drawing of a pumped storage

Upper power station (during storage)
reservoir
Excess
electricity
Electricity demand
The capacity of the

upper reservoir may be Lower
exceeded. reservoir
Pumped hydropower generation

Pumped hydropower Solar power generation
generation
Thermal power generation Hydropower generation
Electricity from other utilities + power interchange
Nuclear power generation
(Hour)
A4-1 - 16
Increase in Distribution Voltage 11
As the distribution voltage increases due to a reverse flow of solar power, output control of solar
power generation occurs.
Flow of electricity Reverse flow of solar power
T
Transformer
f Not allowed to generate
Distributing substation
power even if it is sunny.
Solar panel
Power
Exceeds 107V.
Range of app
control
With a reverse power flow

propriate voltages
Without a reverse power flow
As the distribution voltage increases due to a reverse flow of solar power, output control of
solar power generation occurs.
As solar power generation increases, the frequency of controlling reverse power flow increases,
which results in an increase in claims from customers.
Contents 12

system

A4-1 - 17
Outline of Sakai Mega Solar Power Generation Plant 13
Operator: Jointly operated by Sakai city and Kansai Electric (public relations: Sakai city,
construction & operation: Kansai Electric)
Area: approx. 20ha
Operation schedule: partially started on October 5, 2010 (approx. 2.85MW)
Location of Sakai Mega Solar Power Generation Plant 14
Sakai No.7-3 District
Sakai Mega Solar Power

Generation Plant
Forest of co-existing
Windmill square Eco town
Minato Sakai
Green Square
Sakai No.7-3
District
A4-1 - 18
Verification Items for Sakai Mega Solar Power Generation
15
Plant
Item Verification
Reduction of construction cost

Construction Decision of plant specification as an industrial use facility (Japans first
industrial-use solar power generation plant)
Facility
Reduction of maintenance and management cost

Operation Development of fault diagnosis methods, etc.
Fluctuation in Analysis of output fluctuations at a mega solar power generation

frequencies
Analysis of normal system voltage fluctuations at a mega solar power generation

plant
Fluctuation in voltages
Verification of effectiveness of the measures against normal system voltage
fluctuations; operating method of power conditioners, etc.
System
m
Verification of high harmonic occurrence levels due to the interconnection of

High Harmonic multiple inverters (power conditioners)
Drop out of all Verification of voltage decrease rate due to a failure at the upper voltage system
Technical Issues to be Addressed Regarding Sakai

Mega Solar Power Generation Plant 16
Major technical issues Actions to be taken
Assurance of transparency (taking a fair Selection of solar batteries considering the land cost,
procedure) and economic efficiency (optimized construction cost, power output and other factors
procurement) as a subsidized project* comprehensively.
Placing orders for material and construction work separately based on
the internal design
design.
Construction of a plant at the industrial waste landfill (a Setting the geometry of the substructure which does not require
land impossible to be excavated, possibility of future excavation.
unequal settlement) Design of a plant which can address future unequal settlement
Incorporation of opinions from maintenance and operation divisions

into the design
Construction/operation of a plant for the industrial use
Development of operation management methods and fault detection
techniques
Besides the above technical issues, it is necessary to consider and take the following measures:
To meet the disaster prevention and safety criteria considering harsh weather conditions expected in the waterfront
area (earthquake resistance, lightning protection, measures against high tide and Tsunami, salt resistant design, etc.)
To provide functions which can help the verification of the influence on the power system
(PCS functions to enable/disable control, and necessary instrumentation systems, etc.)
A4-1 - 19
Structure of Sakai Mega Solar Power Generation
Plant Facilities 17
Direct current 440 V alternate 22kV alternate current

6kV alternate current
current
Solar battery Power conditioner Substation of power system

y interconnection
Approx. 70,000 250kW 41 units A single substation

panels
interconnection
Structure of Sakai Mega Solar Power Generation

Plant Facilities 18
Different types of solar batteries have different conversion ratios.

The area required to install a 10MW solar panel depends on the type of battery.
Power output (energy)

Conversion
ratio
Incidence energy (consistent per unit area)
Total cost
Cost
<Example>
Type of solar Conversion ratio Occupied area for Cost of solar batteries
battery 10MW (as more expensive as higher
efficiency)
Crystal system Approx. 15% Approx. 70,000m2
Land and construction work cost
(As less expensive as higher
Thin-film system Approx 8%
Approx. 130 000m2
Approx 130,000m
Approx. efficiency)
Low efficiency High efficiency
Even if the cost of solar batteries is lower, a lower conversion ratio will lead to a high land and
construction work cost, which may result in a rather expensive total cost.
A4-1 - 20
Comprehensive Evaluation in Selecting the Type of Solar 19
Battery
The value of solar battery is comprehensively evaluated taking into account the bid price and
degradation ratio in addition to the predetermined system cost and annual energy production.
Solar battery cost System cost

Cumulative total of land
Unambiguously determined
considering the conversion ratio and cost and property tax
Manufacturers bid price
panels of solar battery
Evaluated value
(yen/kWh)
Degradation ratio
Annual energy Manufacturer s declared value
Manufacturer's
production (20-year guarantee equivalent to
20 years
Western countries)
Installation of Solar Battery Panels at Sakai Plant 20
<Installation method considering local limitations>

As it is the industrial waste landfill, excavation below the surface cover soil (50cm deep) is now
allowed.
The substructure is laid directly on the ground without excavation.
Fixing bracket
Concrete placement using Installing formwork after positioning Mounting solar battery panels on the
formwork using the fixing bracket. substructure using the mounting
hardware.
A test installation was conducted prior to the actual construction work in order to improve the work
quality and efficiency.
A4-1 - 21
Development of Mounting Hardware Which Can 21
Accommodate Unequal Settlement
1. Substructure
Conventional substructure: A steel platform supports the solar battery panel
frame. Solar battery
Solar battery
Hardware on the
Used metal 700t solar panel side
Hardware on the
Current substructure: directly fixed on the concrete foundation concrete block side
usingg mountingg hardware
Backward concrete Hardware on the Rotation
foundation (50cm high) solar panel side Concrete block Lateral shear
Mounting hardware
Front concrete foundation
Mitigate strain due to settlement by lateral shear and rotation.
(20cm high)
Possible to correct shear following unequal shear.
2. Demonstration
test
Before After
settlement settlement
Rotation
Shear
Forced
stettlement
The mounting hardware can accommodate a 68cm unequal settlement without any problem with its
applicability.
Groundwork of Sakai Mega Solar Power Generation Plant 22
It is difficult to use a concrete mixer truck to place the concrete foundation

because of a small formwork.
Concrete placer
A new construction method was developed: concrete mixture equivalent to four
Pouring concrete
foundations (approx. 1m3) is casted into the concrete placer and it is poured
from the 4 corners
from the four corners simultaneously.
simultaneously
Formwork
Casting concrete mixture into

the concrete placer
Steel Formwork
Formwork fixing hardware
A4-1 - 22
Installation of Solar Battery Panels 23
August 2010
Substation 24
August 2010
A4-1 - 23
Arrayed Solar Battery Panels 25
August 2010
Current Status of Sakai Mega Solar Power 26

Generation Plant
January 20, 2011
No 2 zone
No.2
Approx. 3,450kW
(planned to start operation this
spring)
No.3 zone
Under construction (approx. 3,700kW)
(planned to start operation this fall)
No.1 zone
Started operation on October 5, 2010
(output: approx. 2,850kW)
A4-1 - 24
Visitor Center 27
Visitor center building
Observation deck Output display and

four explanatory
panels
l
Arrayed Solar Battery Panels 28
Model solar battery panels (mounted on Output display

the observation deck)
Looking at the plant site from above the Looking at the plant site from underneath the
observation deck observation deck
A4-1 - 25
Table of Contents 29

system
t

Power Generation Records at Sakai Solar Power 30

Generation Plant
November 713, 2010
Sunday, 7th Monday, 8th Tuesday, 9th Wednesday, 10th Thursday, 11th Friday, 12th Saturday, 13th
Cloudy, temporarily fine Cloudy, occasionally Fine with intermittent Fine Clear and sunny Cloudy with intermittent Cloudy
Weather
later fine later rain rain, fine later

Solar radiation
Pow
wer output
Reference: Weather condition in Osaka daytime, Japan Meteorological Agency website
It is planned to accumulate data to evaluate the influence of solar power generation on the power
generation system.
A4-1 - 26
Verification of Influence on Power Systems 31
Active power Harmonic

Sakai Mega Solar Power Ishizugawa S/S
Reactive power Current Generation Plant
Voltage
P/C built-in System Load

instrumentation parameter
Measurement according to recorder
the power conditioner
Function to adjust
reactive power
Solar radiation Solar power from Sakai
Plant
Frequency fluctuation
Analysis of output fluctuations of mega solar power generation
Analysis of voltage fluctuations in the normal system at a mega solar power generation
Voltage fluctuation
Verification of effectiveness of the measures against normal system voltage fluctuations
Control of reactive power by means of power conditioners, etc.
Harmonic Verification of harmonic (waveform strain) occurrence levels due to the interconnection of multiple inverters
(power conditioners)
Measurement of Solar Radiation to Predict Output 32

Fluctuation
Total 60 solar radiation meters are installed in the Kansai Electric
supply area. Measurement
Locations of pyranometers Measured item Frequency
Amount of global solar radiation One second sampling,

(level surface) averaged over 10
yp py
Thermal type pyranometer seconds
(ISO9060 first class)
With time
synchronization
Atmospheric
temperature
The amount of solar radiation on the inclined surface and the electricity
generated by solar power are locally measured.
Pyranometer installed on the roof of Kansai Electric
Human Resource Development Center
A4-1 - 27
Measured Solar Radiation (Example) 33
Locations of pyranometers in Kansai Electric

Toyooka Office Hikone Office
supply area
Fluctuation ra
Fluctuation
ratio
atio
n
Kobe Substation Higashisumiyoshi Office
Fluctuation ratio
ratio
Fluctuation
*Assuming 1000W/m2 solar radiation
Fluctuation ratio averaged over 60 points
as 100%
Decreasing fluctuation ratio
Although the fluctuation ratio of solar radiation* at individual points is rather high, the averaged fluctuation ration
becomes smaller due to off-setting effect.
It is planned to accumulate and analyze data to contribute to the development of supply and demand
control system.
Technologies to Predict the Amount of Solar Radiation 34

(Prediction of Photovoltaic Output)
The measured solar radiation will be utilized to verify and improve the accuracy of the method to predict photovoltaic
output.

Predicted and measured amount of solar radiation
A large error Predicted value

Meteorological satellite, Measured value
Hi
Himawarii
[Numerical prediction]
Data on atmospheric pressure,
Attenuation by
radiation
Amount of solar
temperature, wind transmitted

atmosphere
from all over the world are
processed by the computer to Atmospheric pathway
predict future weather conditions. Amount of water vapor
Degree of air pollution
Attenuation by clouds
Amount of upper clouds
Amount of mid-level clouds
Amount of lower clouds
Water vapor
Comparing with the actual amount of solar radiation measured on the roof of
Kansais Research institute (one point), some predicted values deviate from the
measurement. It is planned to verify and improve the accuracy of prediction based
Ground observation data on the amount of solar radiation measured at several points.
Atmospheric pressure,
Satellite data
temperature, wind
Visible image
Research programs are under progress on the prediction of solar radiation by means of the weather forecasting system. With
a high level of errors in the prediction, it is necessary to develop new technologies to improve the accuracy of prediction.
A4-1 - 28
Research on Power Supply & Demand Control System 35
Utilizing Batteries
A research is being conducted on the possibility of connecting nickel hydride batteries to the power system at Ishizugawa
substation to which Sakai Mega Power Generation Plant is interconnected.
Interconnection with batteries at Ishizugawa substation Ordering the batteries for

Kansai Electric input/output power according to the
Headquarters output fluctuation of mega solar
power generation
Sakai Mega Solar Power 77 kV power system
Generation Plant
Active power Active power
22 kV power system 6.6kV power system
Inverter
Sakai Mega Solar Houses

Power Generation Offices and factories
Plant
Nickel hydride battery
Ishizugawa
substation
Specification of nickel hydride battery
Research subjects Nickel hydride battery stack
Supply & demand control system which Number of stacks
allows mass introduction of solar power
Rated voltage
generation
Service life evaluation and applicability Rated capacity
assessment of batteries as the supply and Energy capacity
demand control tool.
Power output
*Power output as the supply and demand control system being
interconnected to inverters
36
Supply of low carbon emitting power Promotion of electrified society

Realization of a low-carbon
emitting society
Stable operation and Promoting diffusion of high-

improvement of efficiencyy equipment
q p utilizing
g
hydropower stations heat pup technologies
Safe and stable Promotion of renewable

operation of nuclear energies
power plants
Improvement of thermal
efficiency of thermal plants
Promoting diffusion of
electric vehicles
Measures against global warming Development of innovative

taken worldwide technologies
Prevention of global warming
Thank you for your kind attention.
A4-1 - 29
1
The Latest Technology of

Solar Radiation Evaluation
- Estimate of Generation by
y PV System
y -
April
p 27,2011
,
Takashi NAKAZAWA
NEWJEC Inc.
2
Todays Topic
1. Basis of Sunlight 3. Power Increase Method

1-1 Solar Constant
4. Fish eye
y lens and camera
1 2A
1-2 Atmospheric
h i transmittance
i 4-1The feature of using fisheye lens
1-3 Air mass
4-2 The difference
1-4 Solar Spectrum 4-3 Solar orbit image
1-5 Spectral Characteristic of PV 4-4 Layering solar orbit image
1-6 Direct light and scattered light over picture
1-7 Solar radiation intensity 4-5 Estimation of obstacles
1-8 Daily Solar Radiation Intensity and the scattered light
Curve 4-6 Estimation of generation by
2. 2-1 V-I Characteristic of PV PV system
2-2 Generation-Radiation Intensity
Characteristic
2-3 Temperature Characteristic
A4-1 - 30
3
1. Basis of Sunlight
The Earths Axis
Solar Position
The earths axis declines
23 4from
23.4 from the sunlight
sunlight.
The Equator
Summer Spring
Solar tracking Winter
IIn winter
i t the
th altitude
ltit d off
meridian passage is the lowest, North South
and in summer it is the highest
in the year. West
4
1-1 Solar Constant
The solar radiation intensity of outer space is

p
expressed as below.
Io =Isc[1+0.0033 cos{360(n2)/365}]
Isc=1.382 kW/ Solar constant
n a calendar day
Solar constant means solar radiation

intensity that is vertical to the sunlight outer space.
How much power does the earth get from the sun?
A4-1 - 31
5
1-2 Atmospheric Transmittance
Atmospheric transmittance
The sunlight reduces for the sake of scattering and absorption by
many molecules and clouds.
Some amount of greenhouse gas is
necessary for keeping temperature not
so low.
Much amount of them causes global
Greenhouse Gas hot.
O observation
Our b i off atmospheric
h i
transmittance is about 0.5 at Kansai
area in Japan.
In Timor island (Indonesia) 0.50.65
is observed.
6
1-3 Air Mass
Air mass is an indicator of length, through that

sunbeam pass the atmosphere.
Z=1/cos
The Zenith
Air mass is small at meridian

sunlight
Air passage and large in the evening
or morning.
Surface of Earth
We can see the sun in the
evening or morning without
sunglasses.
A4-1 - 32
7
1-4 Solar Spectrum
outside atmosphere
1.38kW/ The sunbeam is partially
blocked by molecules and
at sea level (AM=1.5) debris.
Molecules such as H2O,
1kW/ CO2, O2, etc. absorb
energy and scatter the light.
8
1-5 Spectral Characteristic of PV
Solar spectrum (AM=1.5)
c-Si
a-Si
blue green red infra-red
A4-1 - 33
9
1-6 Direct Light and Scattered Light
PV module produce electric

power by direct light and
scattered
tt d light.
li ht
The intensity of scattered light
is not large, but sometimes it
Direct Light will reach at 2030% of total
intensity. In cloudy day
intensity of light owes from
Scattered Light scattered light.
The scattered light mainly
come from cloud.
10
1-7 Solar Radiation Intensity
Solar radiation intensity is expressed as below.

IIA
Io Solar constant
A Atmospheric transmittance
Air mass
*sin h +0.15 ( h + 3.85)
Solar Altitude
* : an approximation
Solar radiation intensity is important to estimate power generation by PV
system. In this equation, unknown will be A.
1kW/1.38kW=0.72
This means A will be less than 0.72 at the sea level.
A4-1 - 34
11
1-8 Daily Solar Radiation Intensity Curve
Solar Radiation Intensity
1.00
Fine
INTENSITYW/
0.50
Cloudy
Rainy
0.00
6 12 18
TIME
In case of grid connected PV system the power conditioner will operate more than 0.05kW/
. So the system will not operate in rainy days efficiently. In cloudy day power conditioner
will repeat start and shut down.
12
2-1 V-I Characteristic of PV
V-I Characteristic VI Characteristic of PV
Isc is a little larger

g than
Isc
Ipm, so PV module is
Ipm
not broken in the case
Amp.
of short circuit accident.
Pm
Which one is the hottest
Volt.
on a PV surfase?
Vpm Voc
Case 1: short circuit
Isc : short circuit current
Case 2: open circuit
Ipm : current for maximum power
Case 3: power supply
Voc : open circuit voltage
power to some
Vpm: voltage for maximum power
Pm : maximum power
A4-1 - 35
13
2-2 Generation
Generation--Radiation Intensity Characteristic
As radiation intensity
increase,, ppower output
p
increase.
At the same temperature
PV power is linear to
intensity.
PV module is tested
under the condition as
b l
below.
Irradiation: 1kW/
temperature: 25
AM: 1.5
14
2-3 Temperature Characteristic
Power and Voltage depend on temperature of PV.

Power Generation-Temperarture Characteristic
Pm(25)
Power
Pm(75
Voltage
It is said decreasing rate of power will be about -0.4%/,

and voltage will be about -0.5% /.
Increasing rate of current will be about +0.1%/.
A4-1 - 36
15
3. Power Increase Method
Weather condition
Strong solar radiation intensity
Low air temperature
PV array
High efficiency PV module
Array should be installed by same characteristics PV modules.
High voltage PV array and low loss wiring
Power conditioner
High efficiency
MPPT control (with PV array)
Lower loss of transformer
Circumstance
No shadow
16
4. Fish Eye Lens and Camera
Single-lens reflex camera and Fish-eye lens
A4-1 - 37
17
4-1 Feature of Using Fisheye Lens
The feature of fisheye lens

360
360visual
visual field
field.

The picture taken by fisheye
Fish eye keep the information on
the celestial sphere.
The position in circle
ppicture is able to be
p p p expressed mathematically.
poplar coordinates)
Picture p=f()
18
4-2 Difference
south
north
east west
east west
south
A4-1 - 38
19
4-3 Solar Orbit Image
North Solar orbit is expressed

as polar coordinates in
the circle.
summer X=[L]X
Xpv=[R][R]X
East North X: coordinates at
spring, autumn
the Equator
winter X: coordinates at
the
h latitude
l i d
below the horizon
: direct angle of PV
South
: tilt angle
[Rx]: rotation matrix
20
4-4 Layering Solar Orbit Image Over Picture
fish eye picture solar orbit image
obstacles
A4-1 - 39
21
4-5 Estimation of Obstacles
and the Scattered Light
North
In summer direct light will
reach for 12 hours.
In spring and autumn direct
light will reach for 10 hours.
In winter direct light will
reach for 8 hours.
East West
g from cloud
Scattered light
is estimated as solid angle
of the sky.
South
22
4-6 Estimation of Generation by PV System
radiation average monthly DC monthly AC radiation average monthly DC monthly AC

intensity[k air temp. energy[kWh energy[kWh intensity[kW air temp. energy[kWh energy[kWh
month
th W/ d ] []
W/day]
mon.]]
mon.]] month
th / d ]
/day] []
mon.]]
mon.]]
1 2.7 5.5 7,339 6,899 7 4.46 27 10,639 10,000
2 3.28 5.8 7,927 7,451 8 4.69 28.2 11,048 10,385
3 4.35 8.6 11,371 10,689 9 4.16 24.2 9,818 9,228
4 4.91 14.6 12,129 11,401 10 4.01 18.3 9,985 9,386
5 4.95 19.2 12,179 11,448 11 3.24 12.9 8,065 7,581
6 4.38 23 10,339 9,719 12 2.76 7.9 7,378 6,935
Condition
Capacity: 100kW,
100kW
Location: Osaka Japan
Air temp.: data from Osaka Meteorological Observatory
A4-1 - 40
23
THE END
A4-1 - 41
Financial Assessment of
PV Power Station
April 2009
Masaru NISHIDA
NEWJEC Inc.
1
Contents
1. Purpose of Financial Assessment

2
2. What is "Financial Viability"?
3. Economic Assessment vs Financial Assessment
4. Procedure of Financial Assessment of Project
5. Elements of Costs and Benefits to be considered
6. Source of Financing Investment
7. Other Factors related to Costs and Benefits
8. Method of Assessment
9. Uncertainty = Risks
A4-1 - 42
2
1. Purpose of Financial Assessment
To show financial viability of a project

To find a better user of money, to find the best, or better,
option from alternatives
To identify necessary promotion measures, and potential
project risks
It is applicable to Revenue Generating Projects"
2. What is Financial Viability?
For a project to be financially viable.
Availability of adequate funds to finance project expenditures

Recovery of some of the project costs from the project
beneficiaries (users)
Financial
i i l incentives
i i necessary to ensure participation
i i i in i the
h
project
A4-1 - 43
4
Financial assessment:
estimating the profits (revenue minus expenditures) accruing
to project owner (implementing/operating
agencies/companies)
Economic assessment:
estimating the effects of the project on the national economy
5
Financial assessment: subject is the project owner (or

investors)
costs = money that goes out of his wallet
benefits = money that comes into his wallet
Economic assessment: subject is the nation/society

costs = value that is consumed within the society
benefits = value that is generated within the society
A4-1 - 44
6
Financial assessment: subject is project owner (investors)

ex. Tax
= the cost that the investor has to pay
= the money that he lost

Tax
= the money that is transferred within the society
(between the investor and the government)
= no cost to the society
7
Financial assessment: subject is project owner (investors)

ex. Sales of Electricity
= the money that the investor has gained
= the money that the users paid

Sales of Electricity
= the money that is transferred within the society
(between the investor and the users)
= no cost to the society
A4-1 - 45
8
Economic Value of Solar Power

= Electricity + lower Carbon Dioxide Emission
Mechanism such as
- CDM,
- Carbon Credit Market, etc.
Additional Income
(Financial Value)
9
4. Procedure of Financial Assessment of Project
Identify project
Define services to be provided by the project
Find demand and prices for the services
Design physical and organizational components of the project
Schedule construction and operation and maintenance of the project
Estimate project costs in financial terms with the level of detail required
for financial analysis.
Define financial resources (own fund, equities, loans, etc.) available and
their conditions
Calculate streams of expenditures and incomes
Calculate indicators of financial viabilities
A4-1 - 46
10
5. Elements of costs and benefits to be considered
COST (= loss for the project owner)
a) Investment Costs (initial costs, capital costs)

purchase of land procurement of equipment
civil works electrical works
mechanical works
engineering
g g and other pprofessional
f services
start
start--up costs vehicles and equipment
labor others
taxes and duties
11
COST
b)) Recurrent Costs
operation and maintenance costs (salaries of OM staff, fuel, consumables)
replacement costs of worn-
worn-out parts
others
c)) Financial charges

g
bank charges, interest during construction
d) Income tax
e) Contingencies (for budgetary purpose)
provisions for uncertainties
A4-1 - 47
12
BENEFIT (= gain for the project owner)
a) Income from sales of services (electric energy multiplied by tariff)

b) Interest of savings (if any)
c) Salvage (residual) values (when the project is over)
13
6. Source of Financing the Project
own fund
= project owner's
owner s money
equities
= money collected from shareholders expecting dividends
loans
= money borrowed from banks to be repaid on rigid conditions
In local currency / foreign currency
A4-1 - 48
14
7. Other Factors related to Costs and Benefits
Incentive measures to decrease cost.

Subsidy (for investment),
Tax Exemption on (imported) equipment,
To increase benefit
other promotion measures such as Feed-
Feed-In Tariff
FIT :
Power generators using renewable technologies are paid a
premium price for electricity they produce.
Electric grid utilities are obligated to take the electricity and
pay them at the premium price.
15
Cash flow analysis = profit and loss projected for project life
I di
Indicators off Fi
Financial
i l Viabilities
Vi bili i : FIRR = return on the
h
money you spent for the investment
Criteria of viability
The internal rate of return (FIRR) must be larger than the
cost of capital of the project owner (WACC).
If not, you have better way to spend your money than in the
project in question.
A4-1 - 49
16
Other indicators, such as

DSCR (Debt Service Coverage Ratio)
= surplus of the year divided by repayment obligation of the
year
Must be larger than one, typically required to be larger than

1.4
1 4 to 1.6
16
17
Sample of Cashflow Analysis
unit 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Investment M.US$ -57.40 -62.80 0.00 0.00 0.00 0 0 0 0 0 0 0 0 0 0 0
Gross Generation GWh 0.00 0.00 0.00 659.40 659.40 659.4 659.4 659.4 659.4 659.4 659.4 659.4 659.4 659.4 659.4 659.4
Salable Energy GWh 0.00 0.00 0.00 587.50 587.50 587.5 587.5 587.5 587.5 587.5 587.5 587.5 587.5 587.5 587.5 587.5
Power Tariff c/kWh 8.26 8.35 8.43 8.51 8.60 8.684 8.771 8.859 8.947 9.037 9.127 9.219 9.311 9.404 9.498 9.593
Sales Revenue M.US$ 0.00 0.00 0.00 50.00 50.50 51 51.5 52 52.6 53.1 53.6 54.2 54.7 55.2 55.8 56.4
Fuel Cost M.US$ 0.00 0.00 0.00 -37.20 -37.20 -37.2 -37.2 -37.2 -37.2 -37.2 -37.2 -37.2 -37.2 -37.2 -37.2 -37.2
Fixed O/M Cost M.US$ 0.00 0.00 0.00 -0.68 -0.68 -0.68 -0.68 -0.68 -0.68 -0.68 -0.68 -0.68 -0.68 -0.68 -0.68 -0.68
Variable O/M Cost M.US$ 0.00 0.00 0.00 -1.00 -1.00 -1 -1 -1 -1 -1 -1 -1 -1 -1 -1 -1
Earning after operation M.US$ 0.00 0.00 0.00 11.12 11.62 12.12 12.62 13.12 13.72 14.22 14.72 15.32 15.82 16.32 16.92 17.52
Depreciation M.US$ 0.00 0.00 0.00 -6.10 -6.10 -6.1 -6.1 -6.1 -6.1 -6.1 -6.1 -6.1 -6.1 -6.1 -6.1 -6.1
Interest Payment M.US$ 0.00 0.00 0.00 -2.00 -2.00 -2 -2 -2 -2 -2 -1.9 -1.8 -1.8 -1.7 -1.6 -1.6
Principal Repayment M.US$ 0.00 0.00 0.00 0.00 0.00 0 0 0 0 3.4 3.4 3.4 3.4 3.4 3.4 3.4
Earning before Tax M.US$ 0.00 0.00 0.00 3.02 3.52 4.02 4.52 5.02 5.62 6.12 6.72 7.42 7.92 8.52 9.22 9.82
Corporative Income Tax M.US$ 0.0 0.0 0.0 -2.2 -2.3 -2.4 -2.5 -2.6 -2.7 -2.8 -2.9 -3.1 -3.2 -3.3 -3.4 -3.5
Project Cash flow M.US$ -57.4 -62.8 0.0 8.9 9.3 9.7 10.1 10.5 11.0 11.4 11.8 12.2 12.6 13.0 13.5 14.0
A4-1 - 50
18
9. Uncertainty = Risks and Sensitivity Analysis
Project variables
Demand (volume, price), Costs of inputs, construction, etc
"What if" analysis testing which variables are important to project

outcomes (FIRR)
applies to all projects with quantified benefits and costs
involves recalculating project outcomes (FIRR) for different values
of major variables and combinations of variables
when benefits are not valued, may use sensitivity analysis to assess
impact of changed assumptions on unit costs only
19
THE END
A4-1 - 51
Final Report Appendix 4-2 : Interim Workshop
APPENDIX 4-2 : INTERIM WORKSHOP
1) Interim Progress Made, Results and Existing Issues

2) PV Industrys Trend and Market Prospective in China
3) Design of Large Scale Integrated PV Plants in Qinghai
Province Evaluation of PV System in Golmud
4) Financial Study of PV Development
5) Grid Protection and Low Voltage Ride Through
Technology in Japan
6) Inverter Technology in China
Workshop in Xinning, Qinghai province, China 1
Interim Progress made, results and

existing issues
December 7, 2011
Renewable
R bl EEnergy D
Development
l t iin Qi
Qinghai,
h i
Peoples Republic of China
Project Director
Yukao Tanaka
2
Estimation of PV site in Golmud
North
PV site in Golmud will be
one of the most suitable
place
l for
f PV generation
ti
system.
East West
There is no obstacles to
obstruct the sun shine.
South
Golmud is highland, and
seems to have little rain.
A4-2 - 1
3
Estimation of PV system design
10 MW PV system consists of 101MW systems

- From the view p
point of reliability
y and O&M as well
[Less impact on power system in case of accident]
Each equipment is specified in detail.
Grid system is constructed for large scale of PV systems

g gp
Lightning protection system
y will be installed as a best design.
g
Some specifications seems to be penetrated into detail.
Transformer capacity is lager than PV array capacity.
Islanding protective function is installed in each inverter.
Some protection seems necessary on DC side for safety.
4
Proposal to observe insolation
Insolation sensor
Each sensors tilt angle

25, 30, 35
PV arrays will be installed having tilt angle as the same as latitude of Golmud
This method will count on direct sun light mainly.
PV system generates power not only direct light but also diffusion light.
Diffusion light intensity will be larger in smaller tilt angle.
It will be worth to measure insolation by different tilt angle to generate more power.
A4-2 - 2
5
Owner, Construction and Operation Scheme
b 110 kV Substation
b. S b i
110 kV Substation
(110/35kV Transformer) c. 35 kV Transition lines
Six (6) PV companies

Equipment Owner Construction Operation
a. 110 kV Transition lines Power Grid Company Power Grid Company Power Grid Company
b. 110 kV Substation Six (6) PV companies Power Grid Company Power Grid Company
c. 35 kV Transition lines Six (6) PV companies Six (6) PV companies Six (6) PV companies
d. PV power plant Six (6) PV companies Six (6) PV companies Six (6) PV companies
Six (6) PV companies entrust construction work and operation of the substation to the grid power company.
6
Outline of 110/35kV Substation
-110kV Line x 2Feeders
-35kV Income Line x 8 Feeders
-110/35kV, 63MVA Transformer x 2 units
North
110kV Lines 110kV 10MV
-110kV, 10MVar SVC x 2 units
i
35kV Lines
Distant View of 110kV Substation
From Guodian NED From Baika SP
35kV Outdoor Type Switchgears (Total :17 Bays)
35kV Side of The Substation
A4-2 - 3
7
Outline of 110/35kV Substation
Generated Power by PV and other power plants is transmitted to
Tibet and East area through DC 400kV and AC 750kV System
-110kV, 10MVar SVC x 2 units
AC 750kV Lines
Direction : East (Wulan - Riyue, Qinghai) DC 400kV Area
AC 750kV Area
Distant View of AC 750kV & DC 400kV Stations (from North side)

(undrer constructing)
8
Information on the Electric Grid
The following technical maters are concerned and studied by Gird
company to keep stability of the grid and to enhance the development
of clear energy.
- Fault Ride Through (FRT) function on inverter

(This function will be required by grid company to the PV power plant in future)
- Harmonic distortion caused by PV power plants
To submit generation power forecast of the PV power plants

(It will be required to plan dispatch operation in future)
- Grid control/protection and peak shift
Especially, grid company has a deep interest in FRT function
A4-2 - 4
9
Financial Study Framework
Brightness Engineerings Feasibility Study

(10MW
(10MW-preF/S),
F/S) including
i l di costt estimates
ti t andd
financial analysis,
NDRCs Instruction to PV Concession Bidders
Qinghai Governments Invitation

offering power purchase at 1.15 /kWh
for PV operators started generation by E/2011
10
Financial Study - Results & Sensitivity Analysis
- For Base case, Project is just good enough with financial return
(FIRR) slightly over the requirement (WACC)
- Project is vulnerable to adverse conditions; initial cost overrun, lower

benefit, faster deterioration of output(equipment), etc.
Extending operation period (2025yrs) improves FIRR:

-25yr Project achieves FIRR>WACC under various conditions
25yr Project may be more susceptible to problems arise in the long run:
-equipment problems, policy change, etc.
A4-2 - 5
2
Financial Study Tentative Conclusions
- Pre-FS level 10MW Pilot Project can be financially viable at

power purchase rate 1.15 / kWh, but vulnerable to adverse
conditions. (Would like to discuss more in Final Report)
- PV Power Station is a capital-intensive project with low O&M

costs Extending operation period is effective.
What will happen to PV equipment in the long term?
What do we do about the purchase rate 1.15 / kWh ?
- Social Benefit of PV Electricity (CO2 reduction only) =

0.068 /kWh, less than 1/10 of its cost 0.8 /kWh
The gap can be, and will be closer in the future.
PV Technology in Japan 11
- for Reference -
Current Status of
Photovoltaic Power Generation
Technology Development
in Japan
p
A4-2 - 6
NEDO PV2030+ Roadmap 12
Introduction of Inexpensive PV System)
50/kWh
Advancing technology
30/kWh development assuming
Powe
the period of mass-

production
er generation cost
PV power generation cost

Establishing the mass- level by introducing
production system of crystal
silicon, thin silicon, CSS cadmium tellurium cell: Introducing super-efficient
(improved by 40%) PV cells
system and other materials,
and improving their quality
23/kWh
approx $1/1W cell (equal to Accommodating various
Improving the grid
performance by
14/kWh 6/kWh in 10 years) applications while coexisting with
introducing ultra-thin, conventional large size cells
multi-junction or
Achieving high performance 7/kWh
hetero-junction cells
and low cost by introducing the Technology innovation
next generation technology for introducing
advanced performance,
such as new materials PV cells made of new material and of 7/kWh
new structure
Target period (Completion of

2010 or later 2020 (2017) 2030 (2025) 2050
development)
Equivalent to home electric Equivalent to office electric Equivalent to industrial Utilization as general-purpose
Generation cost
power (23/kWh) power (14/kWh) electric power (7/kWh) electricity 7/kWH or less)
Module conversion efficiency Practical module: 16% Practical module: 20% Practical module: 25%
Super efficient module: 40%
(research level) (Research cell: 20%) (Research cell: 250%) (Research cell: 30%)
For domestic market (GW/year) 0.51 23 612 2535
For overseas market (GW/year) 1 3 3035 300
Houses, apartments, public

Commercial purpose, industrial use,
Houses, apartments, public facilities, private sector
Principal use Houses, public facilities for transportation, agriculture, and
facilities, offices business, electric vehicles,
independent power source
etc.
Mass Introduction of New Energy Dispersed Power 13

Sources and Smart Grid Concept
Fusion between power system and information technology
Background
Diversification of electricity market
Mass introduction of new energy dispersed power sources, such as PV
Electric power system in Japan
Before 2000
Development of power system interconnection technologies on an assumption of introducing new
energy on a single-unit basis
20002010
Research and demonstration of p
power system
y interconnection technologies
g for mass new energy
gy
on a multiple-unit basis
2010 and later

Demonstration of smart community incorporating needs of social system
A4-2 - 7
Power System Interconnection Projects 14
Studying voltage fluctuation problem with

clustered PV systems
Verification of electrical storage
Demonstration of clustered PV systems technologies for mega wind power
plant
FY2002-2007
15
Technology development for stabilizing wind

power farm
FY2003-2007
Establishing a regional new energy power
supply system
Verification of problems with mega
Demonstration of regional energy infrastructure PV power system
FY2003-2007
Demonstration of new energy network system

FY2003-2007
Establishing power system voltage control and

quality assurance technologies
Establishing electrical storage technologies Demonstration of PV power system for mass
electricity supply
17
accommodating new energy

FY2006-2010
Development of electrical storage system to

enhance power system interconnection
FY2006-2010
Japan-U.S. smart grid joint

verification in New Mexico 22
FY2010-2014
Intercomparison of islanding detection

systems with Sandia National Laboratory
Demonstration of Clustered Photovoltaic Power Generation 15

Systems1
Demonstration to investigate issues and corresponding countermeasures related to a power

distribution system with clustered PV systems installed at general households
L
Location:
i Josai-no-Mori
J i M i residential
id i l complex,
l O Ota city,
i G Gunma prefecture
f
Photovoltaic panels are installed on the roof of 553 houses generating total 2,129kW
electricity.
A 6kWh lead battery is installed at each house. An experiment to avoid the possibility of
reverse power flow by charging the batteries is conducted.
An effort is being made to develop a function capable of shutting down dispersed power
sources while generated electricity and demand is balanced even if the power system is
shut down in case of a malfunction in the power system (i.e., islanding detection system).
A4-2 - 8
Demonstration of Clustered Photovoltaic Power Generation 16
Systems2
Atomic Advanced islanding

clack detection system
Islanding detection system in the initial stage of development

Ota city Josai-no-Mori residential area
PCS for PV PCS for battery
Islanding detection system

Battery
External battery box installed at each house
Demonstration for Stabilized PV Power System for Mega Power 17

Supply
For the verification of the measures to be taken in connecting PV system of a
megawatt class to a special high voltage power system.
Wakkanai city, Hokkaido
A solar power generation plant with an approx. 5MW capacity is connected to a 33kV transmission
liline.
A 1.5MW NAS battery is installed to control the voltage fluctuation caused by power fluctuation.
Verify the possibility of planned power operation to achieve stabilized PV power

output and power system accommodating peak power output.
Hokuto city, Yamanashi prefecture
Solar power generation plant with an approx 2MW capacity is constructed.
Trial operation is being conducted by introducing various types of PV modules mainly
Trial
consisting of advanced PV cells.
Technology development and demonstration for introduction of mega PV power

generation and cost reduction
The power conditioning system has a fault ride through function.
A4-2 - 9
Demonstration of Stabilized PV Power System for Mega 18
Electricity Supply
Wakkanai site
Wakkanai City Hokuto City
Plant capacity Approx. 5MW Approx. 2MW
Hokuto site Module type 10 types of modules mainly 26 types of modules mainly consisting
consisting of crystal system cells of advanced cells (including 2 types of
tracking cells)
Power storage
P t N Sb
NaS battery:
tt 1
1.5MW-11.8MWh
5MW 11 8MWh -
system
Power 250kW (commercial type) 400kW (newly developed PC: reactive
conditioning Introducing a large PCS with a power compensation, fault ride
1000MW capacity through function, harmonic power
system control function)
Power system 33kV transmission line 66kV transmission line

interconnection
Projection of Based on solar radiation prediction
power generation
Situation of Smart Grid Technology 19

Demonstration in Japan
The terms beginning with Smart
Smart grid
The smart grid is an interconnected system of electricity generation by introducing instrumentation
and control based on information and communication technologies. Generally, it means making the
system between a utilitys power generation plant and a customers meter smart. It may include the
demand side management, electric vehicle battery charging and control of customers PV system from
the utility.
Smart community
The smart community covers a wide range of public infrastructures including heat supply, water
supply and sewerage system, transportation, communication system as well as electricity. The
community means a specified range of area.
Smart city
The smart city
y has a similar meaningg to the smart community.
y The smart city
y is a sort of smart
community as a unit of municipality.
Smart society
The smart society is an extended concept of smart community. As it applies to a wide range, various
types of technologies in different generations will co-exist in the smart society.
A4-2 - 10
20
Concept of Smart Grid
Overseas NEDO Projects for Photovoltaic Power Generation 21

and Smart Grid
Europe
Lyon, France
Malaga, Spain (already
Malaga Chi
China
adopted) Gongqngcheng : under public
Germany and UK: under invitation
investigation Yanqing, Beijing : basic survey
U.S.
New Mexico: under progress 8
Hawaii: adopted
Middle East and India

Delhi, Mumbai: feasibility study
Turk: basic survey adopted
Morocco: basic survey Southeast Asia
Indonesia: basic survey
Vietnam, Malaysia: mission dispatched
A4-2 - 11
General Research Regarding Smart Grid 22
Cyber security
Summarizing the results of smart
grid demonstration projects
Data management
Modeling
Dispersed power sources assessment/safety

assurance technologies
Analyzing the data obtained from verification projects to determine the effectiveness of introducing the smart
grid.
Conducting research aiming at the standardization of cyber security and power system interconnection
technologies.
Analyzing the influence of the location where new energy power systems are installed.
Thank for you attention
A4-2 - 12
PV Industrys Trend and Market Prospective in
China
China Photovoltaic Societyy

Wu Dacheng
07/12/2011 QINGHAI
Contents
1. Development of China's PV products manufacturing
2. China's PV incentives
3. PV market development in China
A4-2 - 13
1 Development of China's
1. China s PV products
manufacturing
The status of crystalline silicon industry chain
Multi-crystal
PV modules power generation
Solar wafer Solar cells
silicon system
Manufacturing equipment Auxiliary material Balance material
A4-2 - 14
The manufacturing capacity of PV products expanded quickly
Polysilicon
produc
ction capacity of 2011
Solar Wafer
Solar
Battery
PV Modules China
producttion capacity of 2009
Polysilicon
Asia
Solar Wafer
Global
Solar
Battery
PV Modules
0 20 40 60 80 100 %
The investments of large enterprise tend to the both ends of industry chain
Industry Chain: Main Products Secondary Products Manufacturing
Company Polysilicon Ingots wafer Battery Module Power

System
Yingli
Suntech
Trina
LDK
Hanwha
Jinko
CSI
DAQO
GCL
Renesola
JA SOLAR
CSUN
A4-2 - 15
The output of Solar cell production is high but the domestic
installation is low in China
Year
Shipments (MWp)
Installed capacity
Export
Export proportion
Domestic Installation
Domestic Export
49%of global
shipments in 2010
2.8%of global
installation in 2010
The main features of the Chinese PV industry
PV module production accounts for about 50% of global PV market and the market
continues to expanding but the volumes is small compared to the world.
The investment in photovoltaic module and solar cells maintain boom and the solar
design capacity is more than 20GW at the end of 2011.
Equipment manufacturing, auxiliary materials localization and new thin-film battery

production have made great progress.
Chinese manufacturer of photovoltaic products was affected by the turbulent of

European PV market. Price reduction demand is transferred to the upstream of
i d t chain.
industry h i
Large-scale PV market began to start.
A4-2 - 16
The contradiction between the volatility of Market expansion and productivity growth
Sunrise industry attracted substantial investment

Applications market rose less than expected
Capacity expansion is greater than the market growth rate
Demands of the price reduction make the profit of industry chain
reduced
Significant fluctuations of profit margins in industry chain
2011 Margin Stack
50%
40%
GrosssMargin%
30%
20%
10%
0%
EPC/Developer
Module
Inverter
Polysilicon
Integrated
Wafer
BoS
Cell
isuppli2011103
2China's PV incentives
A4-2 - 17
China's PV incentives
Incentives Methods and Characteristics The Instance Result and Problem
Policies in Development planning, Franchise bidding Good evaluation on

"China's implementation of administrative Local development of the Investment return project
Renewable g, Internet agreements
licensing, g electricityy price
p p , capital
operation, p efficiencyy and
Energy Law" signed with the grid, price difference National benchmark price the actual effect
subsidies according to the actual
China Feed-In- acquisition of power company the project is relatively small,
Tariff (FIT) the financial subsidies is limited
The initial one-time subsidies In the "Golden Sun A great promotion to the
investment construction; provided the investor Demonstration Project" demonstration of distributed
subsidies with capital subsidy that doesnt power generation. But the
exceed 50% of initial investment "BIPVDemonstration quality and long-term power
generation effectiveness is
P j t"
Project" difficult to assess.
assess There are
policy barriers to grid access.
purchase Photovoltaic products World Bank / GEF REDP Solve more than one million
subsidy in manufacturing enterprises, project families electricity supplying
Commercial international organizations, donor Netherlands' Silk Road living in remote areas without
marketing agencies and government Bright Project " power. But there is no
departments to provide partial Electricity Supporting continuous policy
funding for the purchase projects
The status of China PV power tariff

Province Year Price RMB/kWh) Installation Remark
capacity target
Ground Roof BIPV
Franchise price 2007-2008 4.0 Shanghai, Inner Mongolia and

Ningxia
Jiangsu 2009 2 15
2.15 37
3.7 43
4.3 400MWp
2010 1.7 3 3.5
2011 1.4 2.4 2.9
Zhejiang 2010 1.16 50MWp
2011-2012 1.43
Shangdong 2010 1.7 10/Wp 150MWp
2011 1.4
2012 1.2
Ningxia 2009-2010 1.15 50MWp Franchise price
Qinghai 2011 1 15
1.15 Under Plan to finish on 2011.09.30
2011 09 30
construction (Plan to Finish before
900MWp 2011.12.31)
Franchise bidding1 2009 1.0928 20MWp Dunhuang in Gansu Province
Franchise bidding 2 2010 0.7288-0.9791 13 projects in Gansu, Ningxia and Qinghai

province total in 280MWp
National benchmarking 2011 1.15 Approved before 2011.07. 01 and finished on12.31
price
2012 1.0 Tibet price:1.15 RMB/kWh
A4-2 - 18
China photovoltaic system initial investment subsidies
Year 2009 2010 2011

Project Number Installed Number Installed Number Installed
capacity capacity capacity
MWp MWp MWp
111 90 99 90 118 110

BIPV Demonstration
Project
Golden Sun 236 578 272 600

Demonstration Project
1.74GWp
PV installed capacity of China and policy

implications
3000
MWp
Annual Installed capacity MWp
Accumulated Installed
(MWp) capacity (MWp)
2500
After the
Benchmarking
2000 electricity price
1500 Chinese PV market Inspired by the evolving policy!
Send Electricity Golden Sun

to the Village demonstration
1000 project franchise biding
implementation China Renewable
Technology
Projects and Energy Law
500 International
support
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011E
A4-2 - 19
3 PV market development in China
3.
The Solar Market will Reach 23.8GW in 2011
By iSuppli
A4-2 - 20
Installed capacity in Europe will decline in
2012?
Analysis and forecasting according to iSuppli
China PV Grid Parity Analysis

/kWh
1.6
1.5
1.4 /kWh Commercial and
industrial electricity
8% parity in 2014
1.2
Residential consumption
electricity parity by 2018
1
0.81
0.8
/kWh
0.6
6%
0.54
/kWh
0.4 Sales of electricity to
0.34 the grid parity in 2021
/kWh
0.2 PV on-grid power Conventional power Residential power average Industrial power average
PV
average tariffs

average price price price
0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
According to China PV Grid Parity Roadmap
A4-2 - 21
China is close to Grid Parity
According to China PV Grid Parity Roadmap
Expected to achieve electricity parity for commercial and

industrial (user side) in 2014
Expected to implement residential consumption electricity

parity (user side) by 2018
Expected to achieved sales of electricity to the grid parity

(power side) in 2021
Chinas PV power target requires a sustainable growth

GWp
100GW
Low Goal
Intended Goal
High Goal
Demand of average annual

growth of 62.1%
50GW
51.2%
38.0%
10GW 20GW
0.8GW
Intended Goal may be used as the photovoltaic power target of China New Energy
Development.
A4-2 - 22
The photovoltaic market trend of China
The growth of China solar power will mainly be affected by policy and
subsidies
The large-scale PV power plants onshore will develop rapidly after the introduction
of benchmark on-grid tariff.
Distributed power generation will take the lead in "grid parity" although its difficult
to achieve the feed-in tariff tentatively.
China's PV market has great potential, but there are huge disparity
compared with Europe, America, Japan and other developed countries.
The development of solar industry will stimulate both the commercial
market and the projects with national capital subsidy. With the narrow of
price difference, China PV system installation in next five years is
expected to be more than the total above the target .
Thank You!
wu dacheng@163 com
wu.dacheng@163.com
A4-2 - 23
Design of Large Scale Integrated PV
Plants in Qinghai Province Evaluation
off PV System
in Golmud
December 7, 2011
Renewable Energygy Development
p in Q
Qinghai,
g ,
Project Engineer
Takashi Nakazawa
1. Golmud site visit and investigation

Site visit of PV power site and several investigation is done.
Surrounding of PV site seems vest place for PV generation.
If there is something to worry about
about, it will be sand and there
needs some maintenance.
Site picture taken by digital camera mounted fish eye lens, to
estimate sun orbit and surroundings.
Large scale of PV system needs large capacity of transmission
line to grid connect and substation transformer, so those location
and of grid connected point are investigated
investigated.
A4-2 - 24
1-1 Golmud site still picture
There is a tower
tower which distance
will be over 100m.
And there is
mountains far
Away, from PV
site.
site
Picture was taken at
south-west corner of
site.
2011/07/12
1-2 Picture taken through fish eye lens

Picture was taken using fish eye lens which direction is south
and tilt angle is 35 degree.
This picture is rated as

the sight from PV
modules. Direct light
from the sun and
diffusion light to PV
modules can be seen.
White-tinged seems to
be origin of diffusion
light.
2011/07/16
A4-2 - 25
1-3 Solar orbit
Solar orbit at PV site is
shown as left figure.
Day length in winter,
spring and summer are 8,
12, 12 hours.
In summer day length is
14 hours or so, but
sunrise and sunset time
direct light from the sun
will irradiate backside of
Sun is under module because of its
horizon. tilt angle.
1-4 (1) Estimation of Golmud site
Golmud site is vest place

for a aspect of irradiation.
There is nothing to obstacle
sun light over all season..
When manyy arrays y are

installed this part will be
projected back side of PV
arrays.
A4-2 - 26
1-4 (2) Estimation of Golmud site
Golmud site might be one of the best place for
PV generation.
Power supply by PV system is effective power
only. Although AC circuit needs reactive power
to stabilize circuit, SVC in substation is to
supply or absorb reactive power by electric
utility company control. This concept is very
good.
After completion of every PV site, problem of
sand will be conquered.
1-5 Diffusion light and tilt angle
Direct light Tilt angle=latitude
Diffusion light
Tilt angle<latitude
A4-2 - 27
Solid angle of sky by the difference of tilt angle
Tilt angle : 35Solid angle Tilt angle : 25Solid angle
Pictures of difference of tilt angle are shown.
1-6 Cloud amount in Golmud

Mon th ly Ave rage d Fre qu e n c y O f Cle ar Skie s At In dic ate d GMT Time s ( % )
Lon 94 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
< 10% @0 n/a n/a n/a 30.1 24 26.8 30.2 34.4 n/a n/a n/a n/a
< 10% @3 28.7 16.8 12.7 21 19.3 24.7 27.1 31.6 31.8 26.2 33.4 26.6
< 10% @6 18 14.4 12.1 17.2 14.6 14.5 18.4 27.1 29.5 29.4 29.5 27.2
< 10% @9 12 8 03
8.03 63
6.3 9 55
9.55 10 4
10.4 15 6
15.6 16 1
16.1 24 1
24.1 25 20 8
20.8 27 1
27.1 18 4
18.4
< 10% @12 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Mon th ly Ave rage d Fre qu e n c y O f B ro ke n - c lou d Skie s At In dic ate d GMT Time s ( % )
10 - 70% @0 n/a n/a n/a 30.6 29.3 19.7 20.9 22.6 n/a n/a n/a n/a
10 - 70% @3 43.8 42.6 29.6 24 27.4 16.3 21.4 20.9 20 33.5 43.3 42.2
10 - 70% @6 44.1 36.1 26.5 20.3 19.3 18.9 18.7 21.4 22.8 34.3 42.1 39.1
10 - 70% @9 40.1 32.6 21.7 20.4 15.8 17.7 18.3 20.8 25.9 37.5 37.4 38.5
10 - 70% @12 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Mo n th ly Ave rage d Fre qu e n c y O f N e ar- o ve rc ast Skie s At I n dic ate d GMT Time s ( % )
>= 70% @0 n/a n/a n/a 39.2 46.6 53.4 48.8 42.9 n/a n/a n/a n/a
>= 70% @3 27.4 40.5 57.6 54.8 53.2 58.9 51.4 47.3 48.1 40.1 23.1 31
>= 70% @6 37.8 49.3 61.2 62.4 65.9 66.5 62.7 51.4 47.5 36.2 28.3 33.5
>= 70% @9 47.8 59.3 71.9 70 73.7 66.6 65.5 54.9 49 41.6 35.4 42.9
>= 70% @12 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
A4-2 - 28
1-7 Diffusion light in Golmud
Cloud amount in
Golmud is not so low
according to NASA
data. Actually left
picture shows much
cloud in the sky.
This seems tilt angle
of PV array should
b better
be b tt tto iinstall
t ll
smaller than latitude.
This is noting but one
assumption.
2011/07/12
1-8 Proposal to observe insolation
Insolation sensor
Each sensors tilt angle

25, 30, 35
Sensors will be installed prevent the interference of others.

Observation is desirable to continue over one year.
A4-2 - 29
1-6 Generation by weather condition
Estimation of daily insolation by weather condition (kWh/m2day)
Month 1 2 3 4 5 6 7 8 9 10 11 12
Fine 12.18
12 18 12.61
12 61 13.06
13 06 12.34
12 34 11.42
11 42 10.79
10 79 11.08
11 08 11.9
11 9 12.72
12 72 12 8
12.8 12.19
12 19 11.98
11 98
Cloudy 2.64 3.52 4.45 5.04 5.17 5.13 5.13 5.07 4.67 3.82 2.87 2.36
Rainy 1.41 2.17 2.98 3.56 3.73 3.73 3.71 3.61 3.21 2.43 1.6 1.2
Estimation of daily generation by weather condition (kWh/day: 100kW base)
Month 1 2 3 4 5 6 7 8 9 10 11 12
Fine 933 941 961 907 793 731 776 796 887 891 862 888
Cloudy 231 300 367 408 404 393 387 385 366 308 240 204
Rainy 231 300 367 408 404 393 387 385 366 308 240 204
It is demonstrated to estimate daily insolation and AC generation

by weather condition. This numeric value is not calculated by
standard method. These data should be deal with tendency of
insolation and generation.
1-9 Others
Inspection of other site
Wiring
Module Module
Wiring between modules is not fixed and wobbles. In long time

insulation of wiring or connecting terminal would be damaged.
A4-2 - 30
2. Design of PV system
10 MW PV system consists of 101MW systems. From the
view point of reliability, when some trouble happens total PV
system have a little impact on generation.
Each equipment is specified in detail.
Grid system is constructed for large scale of PV systems.
Lightning protection system will be installed as a vest design.
Some specifications seems to be penetrated into detail.
Transformer capacity is lager than PV array capacity.
Irelanding protective function is installed in each
inverter.
Some protection seems necessary on DC side for safety.
2-1 Lightning protection

External and internal lightning
Lightning protection
LPZ 1
standard is authorized
LPZ 0
LPZ 2
in IEC62305-14.
LPZ 3
Wiring Ho m e appl i an se Pr e c i si o n In st r u m e n t External lightning wave

and internal lightning
wave is defined.
10 0kA Lightning protection
1 0 / 3 5 0 should be designed and
executed as design.
I
( kA)
8 / 2 0
1 0
t( )
Fig . T e s t Wave
A4-2 - 31
Lightning protection in PV system
External and internal protection method
SPD
Protecting equipment from lightning surge is to equi-potentialize

between equipment wiring and ground potential.
2-2 Transformer capacity

Energy conversion to AC electricity
100% 12%
Module Array Wiring Power Grid

Conditioner Connection
Irradiation Connection Wiring Loss Wiring Loss

Spectrum Loss of Inverter Loss
Temperature PV Module Transformer Loss
A4-2 - 32
2-2 (2)Transformer capacity
AC generation by PV system might not so large.
Inverter does not convey over rated power continuously.
Transformer has some overloading ability.
From these consideration transformer capacity might be smaller

than PV module capacity.
DC generation > Inverter output > Transformer capacity
Transformer life depends on its load factor, and transformer

for grid connected PV system will be less than 0.3.
Transformer life time is considered over 20 years at load
factor 1.0.
2-3 Irelanding protection

Every power conditioner is to install irelanding detection.
It seems that one system will be enough, because among of
irelanding detection function they might interfere each other.
Irelanding detection Power conditioner Power conditioner

I. D.
And that there is not necessary case, when active power and
reactive are not balance between supply and receive side.
A4-2 - 33
2-4 DC circuit protection
Recent power conditioner will be designed to protect DC current
flow into AC circuit.
B
Over current flows in transformer.
Over current
DC wiring
If someone touched another wire of
DC circuit, electric shock will
happen.
DC OVGR or some protection function will be necessary.
A4-2 - 34
Financial Study of PV Development
- A case of 10MW Pilot
il Project
j -
December 7, 2011
Renewable Energy Development in Qinghai,
Qinghai
Economist
Masaru NISHIDA
NEWJEC
1
Contents
1. Purpose
p of Financial Study
y
2. Method of Financial Analysis
3. Results and Sensitivity Analysis
4. Lifecycle analysis and Cost effectiveness
5. Tentative Conclusions
A4-2 - 35
2
1. Purpose of Financial Study
To show financial viability of a project

To find a better use of money, to find the best, or better option
from alternatives
To identify necessary promotion measures, and potential project
risks (Policy Makers Point of View)
It is applicable to Revenue Generating Projects"
3
2. Method of Financial Analysis Procedure
Identify project
Define services to be provided by the project
Find demand and prices for the services
Design physical and organizational components of the project
Schedule construction and operation and maintenance of the project
Estimate project costs in financial terms with the level of detail required
for financial analysis.
Define financial resources (own fund, equities, loans, etc.) available and
their conditions
Calculate streams of expenditures and incomes
Calculate indicators of financial viabilities
A4-2 - 36
4
2. Method of Financial Analysis Indicators
FIRR Financial Internal Rate of Return

- Rate
R off Return
R on the
h money spent on the
h investment
i
- Various methods to obtain FIRR various definitions
- ADBs Standard Method used in this study
(F)NPV (Financial) Net Present Value

- Total of discounted income and discounted expenses
- Discount rate to be applied can be an issue.
Criteria of financial viability: FIRR > WACC, NPV > 0
5
2. Method of Financial Analysis Indicators
WACC Weighted Average Cost of Capital
Different sources of finance

Bank Loans Equity
Lower risks Higher risks
Lower return (Possibly ) Higher return
Interest Rates < Expected Returns
Averaged with weights (proportion)
WACC
= Returns that Project has to achieve to satisfy financiers
A4-2 - 37
6
2. Method of Financial Analysis Framework
Brightness Engineerings Feasibility Study

(10MW preF/S), including cost estimates and
10MW--preF/S)
financial study,
NDRCs Instruction to PV Concession Bidders
Qinghai Governments Invitation

offering power purchase at 1.15 /kWh
for PV operators started generation by E/2011
7
2. Method of Financial Analysis Conditions
NDRC Instruction
Loan Proportion
p 60%
Depreciation 20 years, 5% Residual value
Operation cost 7% of depreciation
Value added tax 17%
Income Tax 25%
Additional tax 8%
IRR of profit after tax 11 12%
A4-2 - 38
8
2. Method of Financial Analysis Calculation
year Electricity Capital Cost O&M and Sales Income Tax Total Revenue Net Revenue (after
Generated Tax tax)
(GWH)
2011 (166.722) (166.722)
2012 17.851 4.292 2.089 20.529 14.148
2013 1 08
17.708 4.266
266 20
2.054 20 36
20.365 1 0
14.044
2014 17.567 4.241 2.020 20.202 13.941
2015 17.426 4.216 1.986 20.040 13.839
2016 17.287 4.190 1.952 19.880 13.737
2017 17.148 4.165 1.919 19.721 13.637
2018 17.011 4.141 1.885 19.563 13.537
2019 16.875 4.116 1.852 19.406 13.438
2020 16.740 4.092 1.820 19.251 13.340
2021 16.606 4.068 1.787 19.097 13.242
2022 16.473 4.044 1.755 18.944 13.146
2023 16 342
16.342 4 020
4.020 1 723
1.723 18 793
18.793 13 050
13.050
2024 16.211 3.996 1.691 18.643 12.955
2025 16.081 3.973 1.660 18.493 12.861
2026 15.953 3.950 1.629 18.345 12.767
2027 15.825 3.927 1.598 18.199 12.674
2028 15.698 3.904 1.567 18.053 12.582
2029 15.573 3.881 1.537 17.909 12.491
2030 15.448 3.859 1.506 17.765 12.400
2031 15.325 3.836 1.477 17.623 12.311
(figures in Million CNY) FIRR= 4.99%
9
3. Results and Sensitivity Analysis Results
FIRR
change 20 years 25 years
(a) Base case 4.99% 5.97%
(b) Capital cost overrun 10% 3.99% 5.04%
(c) Lower benefit -10% 3.86% 4.91%
(d) Faster deterioration -1.5% p.a. 4.39% 5.33%
( ) Renew
(e) R power conditioners
diti 4 21%
4.21% 5 32%
5.32%
(f) Combination of (b) and (c) 2.93% 4.03%
(g) Combination of (d) and (e) 3.57% 4.64%
WACC = 4.44%
A4-2 - 39
10
3. Result and Sensitivity Analysis Sensitivity
- Extend operation period (2025yrs) improves FIRR
- 20yr Project is vulnerable to adverse conditions
- 25yr Project achieves FIRR>WACC in most cases
- 25yr Project may be more susceptible to equipment problems

FIRR still exceeds WACC in case (g)
What do we know about PV project in 20 yrs,

function of equipment, incentive policy, etc ?
11
(1) Lifecycle Emission of CO2 by Pilot Project

Although PV is a clean energy
energy, it still emits CO2 in its lifecycle
lifecycle.
Emission is mostly due to production process of materials;
- Extraction, transportation of silicon and other materials,
- Production of PV modules,
- Construction, etc.
Estimate is around 50 to 60 gg--CO2/kWh for crystalline PV cells.
A4-2 - 40
12
Lifecycle analysis and Cost effectiveness
(2) Emission of CO2 by Electricity Production

Electricity in China is produced predominantly by coal,
coal which is the
most carbon-
carbon-intensive fuel.
Estimate is approximately 900 gg--CO2 per kWh.
Electricity production by PV substitutes coal power, reducing CO2
emission.
- Unit Emission from Coal Power Plant = 900 gg--CO2 /kWh
- Unit Emission from PV Power Plant = 50-

50-60 g-
g-CO2 /kWh 840 gg--
CO2 is reduced by 1 kWh power generated by PV.
13
Lifecycle analysis and Cost effectiveness
(3) Lifecycle Reduction of CO2 Emission by Pilot Project
Unit 20 year 25 year
Generated energy by Pilot Project GWh 310 374
Saved emission from coal plants t-CO2 279,404 337,024
Lifecycle PV plant own emission t-CO2 16,764 20,221
Lifecycle reduction of emission t-CO2 262,639 316,803

As most of lifecycle emission of CO2 from PV power generation originates in PV cell production,
the emission volumes in reality should be almost the same for 20 and 25 year operation.
A4-2 - 41
14
(4) Cost effectiveness of Pilot Project
- Reference Cost of Electricity Generation = 0.35 /kWh
- Power Purchase Price of Pilot Project = 1.15 /kWh

0.8 /kWh extra cost is spent on PV electricity
for 840
840--850 g-
g-CO2 /kWh reduction of emission
- Is this efficient ???
15
- Estimates of Social Cost of CO2 Emission;

on average $12 / t-
t-CO2 (ranging -$3 to $95 / t-
t-CO2)
- Social Benefit of PV Electricity = 0.068 /kWh
- Paying 0.8 /kWh extra cost

to realize 0.068 /kWh social benefit
- If SC estimate is correct, it is very inefficient.
A4-2 - 42
16
- Estimates of Social Cost of CO2 Emission;

on average $12 / t-
t-CO2 (ranging -$3 to $95 / t-
t-CO2)
- Social Benefit of PV Electricity = 0.068 /kWh
- Paying 0.8 /kWh extra cost

t realize
to li 0.068
0 068 /kWh social
i l bbenefit
fit
- If SC estimate is correct, it is very inefficient.
- However, this gap will be closing: higher fuel cost, higher SC
17
5. Tentative Conclusions
- Pre
Pre--FS level 10MW Pilot Project can be financially viable at power
purchase rate 1.15 / kWh, but vulnerable to adverse conditions.
p
(Would like to discuss more in Final Report)
- PV Power Station is a capital-

capital-intensive project with low O&M costs
Extending operation period is effective.
What will happen to PV equipment in the long term?
What do we do about the purchase rate 1.15 / kWh ?
- Social Benefit of PV Electricity (CO2 reduction only) =

0.068 /kWh, less than 1/10 of its cost 0.8 /kWh.
The gap can be, and will be closer in the future.
A4-2 - 43
18
THE END
A4-2 - 44

96.5%
2012
A4-2 - 45

250kW
100kW,
2009 250kW
250kW
100kW 250kW

SOLARPACK

500kW
A4-2 - 46
W

320600 Vdc 440880 Vdc
100kW 250kW

94.5%100% 96.8%100%
95.3% 70% 96.9% 70%
94.0% 30% 96.5% 30%
97 0% (
97.0% 97 8% (
97.8%
4%2.5%
PWM

-10~4090%
A4-2 - 47

(

98.00
97.00
96.00
95.00

94.00
93.00
92.00
91.00
90.00
89.00
88.00
0 20 40 60 80 100

A4-2 - 48

W
TR,3,550kVA
250kWPV
MCCB MCTT MCCB 270V11kV

LBS LBS VCB DS PAS
250kWPV

33W
50Hz,11kV
DC1000V
KW
TR,3,550kVA
270V11kV
500kWPV 500kWPCS
MCTT MCCB LBS LBS VCB DS PAS
MCCB

33W
50Hz,11kV
450-900Vdc Transless PCS

PCS

270Vac
270Vac 11kVac
2MWSolar System Basic Skeleton
500kWPCS
High Voltage
4 sets of 500kWPCS Power Grid
500kWPCS
A4-2 - 49
Out Door Packaging Image for 1MW System
Tentative Plan
Top view
550kVA

500kW 500kW
CS CS
550kVA
Air Air
Conditioner Conditioner
Side view Front view

Depth2400mm Width6500mm
Door
Height
2700mm
Air conditioner
(Outdoor unit)
A4-2 - 50

A4-2 - 51

A4-2 - 52

(

98.00
97.00
96.00
95.00

94.00

93.00
92.00
91.00
90.00
89.00
88.00
0 20 40 60 80 100

Solution1
kVar
Mode

Mode
Mode
Solution

Cos0 85
Cos0.85 0 851
0.851
Mode

kW

Solution

0.85,

A4-2 - 53

P,Q

Vs

Vs+Vs Vs
1
s
s
s
Fault Ride Through

FRT
A4-2 - 54
FRT
FRT

V V

66kV 6.6 kV

PV

PCS
1.0p.u.
Precover0.8pu)
V recovery (0.8 p.u.)

V min
0 T1 T2
Vmin0.2puT1=1,T2-T10.1(Vmin>0.2pu,0.2(Vmin<0.2pu

A4-2 - 55

RS-485
RS-
485

FRT
FRT
(275 3LS(0.2 66kV 6.6kV 110WPV-PCS
10W
2km
-PCS
2km 5

3MVar CL
1MW

10 500
500
A4-2 - 56

FRT
FRT
0.2sec

Output current is stable

(100%
3LS
Benesse BL
BL
o.1
o.1
1
2010
2010 2

720kW
720kW 3456
3456

100kW
100kW
7

A4-2 - 57

110kW
100kW 10kW
100kW PCS

100kW
100kW 480
480

10kW
10kW
10kW
55 55

100kW
100kW
110kW
10kW
1

100kW
100kW
5 498kW

45

80kW 20kW
20kW
A4-2 - 58

2012 50075MW/

2011 30060MW/

2010
2010 100
00
13MW
13MW//

2009
2009 20
203MW
3MW//
2013
2013
1000
1000 00MW
00MW

2012
2012
720
720 300MW
300MW

2011
2011
200
200
20MW
20MW

A4-2 - 59

2011
MPPT
A4-2 - 60

A4-2 - 61

1.
2.
3.
4. MPPT
5.

6. ( )
1-1
1-1boost

98%
boost
A4-2 - 62
Boost
1-2
1-2Boost
1
1
2
3
4
5
1-3
1-3boost

99%

A4-2 - 63
3
1-4
1-4
96%
1-5
1-5
96%
A4-2 - 64
5
-1-6
1-6
440V 900V
440V 4400 612 270V
4400.612
270V/10KV

6MPPT
DC-DCMPPT
DC DCMPPT

3%-10%

A4-2 - 65
7
()
BIPV5%
A4-2 - 66

1

2

3

97%~98%

MPPT
A4-2 - 67

1
2
3

4

A4-2 - 68

1 ( )

2

3

4

5

2-2 MPPT

MPPT
2-2
A4-2 - 69
MPPT
2-1
2-1

Labcde
ab c
d e
1
0.35% 0.45%
A4-2 - 70
MPPT

MPPTMax Power Pointer Tracking

U-I
MPPT
MPPT
(Incremental Conductance Algorithms)
P&OPerturb&Observe Algorithms

MPPT

P-U
Pmax
MPPT

99%
MPPT
A4-2 - 71

Low Voltage Ride Through

LVRT

A4-2 - 72
LVRT

A4-2 - 73

LVRT

2008.4
2011.2.24
16598

2011.4.25
A4-2 - 74
CGC/GS004:2011
5.5.1.2

10/

A4-2 - 75
CGC/GS004:2011

A4-2 - 76

20%5%

10%
20ms
1%2%
A4-2 - 77

1 500KW
A4-2 - 78
2
1)
1.1 IGBT
infineon
1.2
A4-2 - 79
1.3
1.4
A4-2 - 80
1.5

10
1.6
IGBT
PN
A4-2 - 81
1.7
1.8 DSP
32CPU(DSP)SPWM
MPPT>99.99%
A4-2 - 82

1 400V
1400V
2
3
4
5
6
6
7
A4-2 - 83

A4-2 - 84
1
PCB

A4-2 - 85
3

30%

30%
A4-2 - 86
5
3%

30%

A4-2 - 87

A4-2 - 88

11

A4-2 - 89
3
A4-2 - 90

A4-2 - 91
200111

501.5290
9011
8633

2011500MW2012800MW2013
2GW20143.5GW20155GW
20114
7000130
20127
2012

863
CGF

A4-2 - 92

2011 8

2010

2009 500KW

2007 15000

2006

2002
20014
1.5kW~5kW 1.5kW~5kW
A4-2 - 93

12KW17KW22.5 KW
50KW-1000KW
GSG-50KTT-TV GSG-100KTT-TV GSG-250KTT-TV
A4-2 - 94
500kW
GSG-500KTT-LV
630kW
GSG-630KTT-LV
A4-2 - 95
1MW
GSG-1000KTT-LV

UPS

A4-2 - 96

10%
3837
11
A4-2 - 97

ISO90012008
RoHs
6S
QCC
A4-2 - 98

200MWp30MW
20MWp
20MWp
20MWp
10MWp
10MWp
10MWp
30MWP
7.5MWp
9.8MWp
10MW
10MW
10MW
10MWp
9.3MW
/7.5MWp
5MWp
3.37MWp
3MW
10MW 30MW6MW
10MW 0.5MW
A4-2 - 99

200MWp
30MW
0.5MW
60MW
201180788

61162
6094
6094
7438
A4-2 - 100

/1000KW
35GW

A4-2 - 101

TUV AS4777
A4-2 - 102

18

A4-2 - 103
Final Report Appendix 4-3 : Final Workshop
APPENDIX 4-3 : FINAL WORKSHOP
1) Final Report
2) 10MW Integrated PV Station of Golmud City
3) Speech on the Final Workshop and Outcome Extension
ADB TA Qinghai Renewable Energy Development Project
4) Prospect of ADB TA Haixi Renewable Energy
Development Project
RENEWABLE ENERGY DEVELOPMENT IN QINGHAI
PEOPLES REPUBLIC OF CHINA
PREPARED FOR
ASIAN DEVELOPMENT BANK

BY
NEWJECINC.
SEPTEMBER,2012
1
Purpose of the Project

The proposed TA aims to increase the capacity of grid-
connected solar PV system development in Qinghai Province,
by (i) introducing advanced technologies to lower barriers for
development; (ii) enhancing local capacity in planning, design,
construction, supply chain, and operation and maintenance
(O&M); (iii) improving the design of 10 MW class grid-connected
solar PV pilot plants; and (iv) improving provincial government
policy for solar PV development in Qinghai Province.
A4-3 - 1
History of Technical Assistance
1. Training
(1) The First Training April 25 to April 28, 2011 4 days
July 04 to July 30, 2011 27 days
October 24 to October 30, 2011 7 days
2. Seminar and Workshop

(1) Seminar April 27, 2011 and April 28, 2011 Xining
(2) Interim Workshop December 12, 2011 Xining
(3) Final Workshop September 11, 2012 Xining
Contents of Final Report
1. Background
2 Advanced Technology for Grid
2. Grid-connected
connected Solar PV
System
3. Capacity Development
4. Review Design of a Pilot Grid-connected Solar PV
System
5. Knowledge Dissemination on Grid-connected Solar
PV Systems
A4-3 - 2
1. Background
Since the beginning of the 21st century, many grid-connected PV

power stations of MW class have been built in various countries
over the world, and the Peoples Republic of China (PRC) has also
worked out many programs to construct MW class grid-connected
PV power stations.
The Qinghai Provincial Government has set a development agenda
for promoting solar energy. The installed capacity of grid-connected
solar PV systems in Qinghai Province will be increased to 920MW
by the end of 2011 and 20 GW whole in China.
2. Advanced Technology for Grid-connected

Solar PV System
2.1 International Best Practices for Grid Protection Design
and System Configuration for a 10MW-class Grid-
connected Solar PV System
2.1.1 Principal of Demand and Supply Power Balance
The system frequency refracts the balance between power

consumption and power generation and it is essential to maintain
the system frequency fluctuation within certain level for avoiding
serious system accident.
A4-3 - 3
Renewable Energy (RE) such as solar, wind, biomass and so on,
has being introduced rapidly into the power system towards
environmental protection for the production of gases such as SOx,
NOx and carbon dioxide.
On the other hand, disadvantage for RE also exists.

Most issue is wide fluctuation of the output power generated by
RE.
Under these situation mentioned, it should be required advanced

grid- connection technology
g gy of Mass PV g generation especially
p y
controlling supply-demand balance during the short and long
periods for supplying stable energy into the power system.
2.1.2 Influence on a Power Grid due to Rapid Expansion

of Solar PV Systems and Countermeasures by PV Power
Stations
In PRC, power demand has been rapidly increasing as rapid social development in the
country. Installation of large-scale solar PV systems is one of the projects to secure the
power supply to meet the increasing demand. However, power supply enhancement by
installation of a large-scale solar PV system in a certain place brings about following
concerns to a power grid.
(1) Supply demand balance
(2) Grid stability
Countermeasures to be taken by solar PV power systems against such issues are

described below.
(1) Transmission of real-time operation data
(2) Equipment of fault ride through (FRT) function
In Golmud district of PRC, power supply would exceed the demand and surplus power
would be generated when a solar PV system is installed. Following measures can be
considered;
1) Output control of the solar PV power system,
2) Expansion of transmission lines
8
A4-3 - 4
It still remains some issues to realize stable operation of the power
grid. As countermeasures against this issue, it is required to collect
and store the real-time operation data and continuous operation
record of the solar PV power system. Therefore, the facility that
transmits such information is required to be installed in the solar PV
system.
Countermeasures by the solar PV power system are expected for

the grid stability. A solar PV power system has a possibility of
unexpected trip when a power system disturbance (voltage sag,
etc.)) occurs,, which can cause the p
power system
y collapse
p at worst.
To prevent such problem in a power system, FRT is equipped,
which is essential facility as increasing PV power system. FRT is
not requested by the electric power company at present, but it
seems to be requested in future.
2.1.3 Impact on a Grid by Renewable Source Power Plant with

Large Capacity
[ Common characteristic between wind power and PV power ]
1) The generated power is liable to variation caused by using unstable natural
source.
2) Non
N capability
bilit tto keep
k grid
id stability
t bilit caused
dbby using
i iinverter
t system
t tto
connect with the grid.
The above characteristics give negative impact on a grid to keep supply-demand
balance and stability.
(1) Supply Capacity and Demand

Table 2
2-1
1 Supply Capacity and Demand in Germany and Spain
Germany Spain
(Area operated by VE-T*1) (Area operated by REE*2)
Demand [MW] 1,100 (at 2007) 4,500 (at 2007)
Supply Wind Power 897 (at 2007) 1,560 (at 2008)
Capacity PV Power N.A. (at 2007) 310 (at 2009)
[MW] Others 2,290 (at 2007) 7,140 (at 2007)
*1: Vattenfall Europe Transmission, One of TSO (Transmission System Operator) in Germany
*2: RED Electrica de Espana, TSO in Spain (Souse: Research report of study grope presented by METI, Japan) 10
A4-3 - 5
(2) Impacts on Grid Stability and Measures
Table 2-2 Impacts on the Grid and Measures
Impact Measures
Supply - Impact-1 Power reducing operation of the renewable source power plants.
demand Excessive supply generated by the (Spain)
balance renewable source power plants Storage the generated power by battery, pumped storage power
plant,, etc.,, because the g
p generated p
power byy the renewable source
power plants must be supplied without power reducing operation
comply with government policy. (Germany)
Grid Impact-2 Power flow operation with/without neighbor TSOs grid operation.
stability The heavy power flow causes critical At emergency condition, power reducing operation of the
grid condition with small margin of N-1 renewable source power plants. (Germany)
criteria frequently. Power reducing operation of the renewable source power plants.
(Spain)
Impact-3 Stability analysis studies are carried out by organization set up by
Unexpected power flow caused by the related TSOs.
concentrated wind p power p plants ((Germany) y)
increases around Germanys grid.
Impact-4 Specified organization for renewable source power plants is
Misgiving of emergency trip at the established to control these plants. (Spain)
inter-connection lines caused by the A renewable power plant is obligated to equip FRT function.
unexpected trips of a large number of Requirement of FRT function is prescribed in Grid Code.
the wind power plants.
(Source : Research report of study grope presented by METI, Japan)

11
2.1.4 Impacts and Measures to be taken into account for Grid

Protection
The impact to be taken account for solar PV systems which

are to be installed in Qinghai Province is Impact-4:
Misgiving of emergency trip at the inter-connection lines
caused by the unexpected trips of a large number of the
wind power plants, and FRT function is required to keep
grid stability.
12
A4-3 - 6
2.2 Power Conditioner
PV grid-connected inverters are concentrated in the following

aspects:
- High quality electric energy conversion,

- Safety protection requirements for system,
- High reliability,
- Maximum power tracking.
The main p principles

p for requirements
q on inverters are: large
g ppower
inverters, on the basis of high efficiency and low harmonic content,
to have regulated power factor, to participate in grid dispatching,
and also to have fault ride through (FRT) function which is able to
resist certain grid fault.
13
2.3 Master Control and Monitoring
2.3.1 Design Principle for Supervisory System

In the system deployment for PV power station supervisory system, a three-level pattern
is adopted, to realize coordinated functioning with a distributed framework of PV power
station data center and monitoring center.
station, center
Level I, data management:

the self-reliance data management in the PV power station, an intelligent data
collector, the data are transmitted in real-time to a small sized real-time database.
Level II, data center:

it is the comprehensive management center for all subordinated PV power station
data,, mainlyy deployed
p y with large
g sized real-time database and backup p real-time
database, and historical data with. Meanwhile, video server, mail server and printout
server are arranged in the network.
Level III, data monitoring:

the monitoring center mainly displays various data, dynamic display of data with
rolling play-out on large screen is adopted.
14
A4-3 - 7
2.3.2 Smart Grid Technology
One of the latest international technologies of MCM for grid-connected

solar PV system is the smart grid.
- In case of a small grid which is consist of small, limited demand and
dispersed renewable power source in a small area, and it is controlled
efficiently, it is called smart grid.
- The Smart grid is highly expected by its efficiently energy use and
goes forward to the practical use.
The smart grid technology is expected to be introduced for the effective

operation of PV power generation and the stabilization of power quality.
quality
New Energy and Industrial Technology Development Organization, Japan

(NEDO) has been conducting demonstrative researches and
technological development.
15
(1) Demonstrative Research on Clustered PV Power Generation Systems
In this research, a PV power generation system was installed on 553 houses,

respectively (Total system capacity for 553 houses: 2,129 kW) with lead storage
batteries having storable power energy equivalent to approximately 6 kWh
attached to each system
Substation Transformer
Pole High-voltage Power

Transformer Distribution Line
Solar Cell Array
Household Distribution Line

Connection Box Load
Junction Box
(Outdoor)
Outdoor Storage
Box
Measuring Instruments
Batteries, Power Conditioner
Low-voltage Power
PV systems installed: 553 units
Total PV capacity: 2,129 kW
Developed a technology that avoids output
Average system capacity: 3.85 kW
restriction for clustered interconnection of
PV power generation systems
Fig.2-1 Demonstrative Research in Ota City, Japan

16
A4-3 - 8
(2) Verification of Grid Stabilization with Large-scale PV Power Generation
Systems
It will be required to evaluate the influence of interconnection of large scale
PV power generation to power grid on power quality such as fluctuations in
voltage and frequency, and apply output control technologies using a power
storage system for power grid stabilization.
(3) Demonstrative Research on Stabilization of PV Power Generation

System for Large-scale Power Supply
A site located in Wakkanai City

Fig 2.2 shows the results of basic output fluctuations preventive control
testing with
ith the use
se of NAS batteries (PV power
po er generation:
generation 2 MW,
MW NAS
batteries power generation: 0.5 MW). We made a comparison of PV power
outputs and found that outputs from the power plant were smoothed.
17
5000 100
Remaining capacity of battery PV output
Remaining capacityy [%]
4000
W]
80
Power output [kW
3000
60
2000 Power plant output
1000 40
0
NAS output 20
-1000
-2000 0
4:00 6:00 8:00 10:00 12:00 14:00 16:00 18:00 20:00
Fig.2-2 Results of Output Fluctuations Preventive Control Testing

(Moving Average Target Control)
18
A4-3 - 9
2.4 Assessment Tools
2.4.1 Insolation and Estimation of Generated Energy
Tilt angle of PV array is in many cases designed to have the

same angle as the latitude of the site. When the diffused
sunlight is taken into account, optimum tilt angle of PV array may
be different from the latitude.
With the assessment method introduced here, a fish eye

projection method, a picture taken with a still camera with fish-
eye lens is used to evaluate the insolation including diffused
sunlight.
19
Table 2-3 Estimation of Power Generation using Fish-eye Lens

(Tilt angle 35)
Irradiation with tilt Average Power generation on Power generation on
month angle 35 temperature direct current side alternative current side
1 4.36 -6.2 1,209,688 1,149,204
2 4.64 -3.1 1,140,868 1,083,824
3 5.47 1.9 1,450,160 1,377,652
4 6 12
6.12 72
7.2 1 539 550
1,539,550 1 462 572
1,462,572
5 6.12 11.6 1,535,355 1,458,587
6 5.78 16 1,381,272 1,312,208
7 6.38 18.6 1,536,558 1,459,730
8 7.16 17.7 1,707,878 1,622,485
9 7.39 12.9 1,752,311 1,664,696
10 6.75 6.4 1,681,482 1,597,408
11 5.98 0.7 1,484,350 1,410,133
12 4.77 -3.9 1,288,771 1,224,332
Total 70.93 6.65 17,708,243 16,822,830
FishEyelensandCamera
20
A4-3 - 10
This estimation was compared with that derived with other methods,
one was NASAs and the other is QBEs Feasibility Study results.
Estimation of insolation for the site for 10 MW Pilot Project by QBE
was presented in their Feasibility Study Report whose excerpts
were p
provided to the Consultant.
Table 2-4 Insolation Estimation by Three Different Models

(kWh/m2for each month and yearly total)
QBE site 145.3 147.2 179.7 201.8 214.5 199.4 201.7 210.1 193.0 195.6 165.2 143.3 2197
NASA 176.7 168.3 196.9 193.8 186.3 167.4 170.5 172.1 168.0 198.4 179.1 169.0 2146
fish-eye 135.2 129.9 169.6 183.6 189.7 173.4 197.8 222.0 221.7 209.3 179.4 147.9 2159
21
Table 2-5 Estimation of Power Generation using Fish-eye Lens

(Tilt angle 25)
Irradiation with tilt Power on direct Power on alternative

month angle 25 Average temp. current side current side
1 4 46
4.46 -6
6.2
2 1 236 729
1,236,729 1 174 893
1,174,893
2 4.72 -3.1 1,159,484 1,101,509
3 5.56 1.9 1,469,995 1,396,495
4 6.20 7.2 1,559,248 1,481,286
5 6.21 11.6 1,554,799 1,477,059
6 5.87 16.0 1,399,562 1,329,584
7 6.47 18.6 1,555,423 1,477,652
8 7.25 17.7 1,727,017 1,640,666
9 7.49 12.9 1,771,441 1,682,869
10 6.86 6.4 1,706,466 1,621,142
11 6.13 0.7 1,519,082 1,443,128
12 4.90 -3.9 1,323,061 1,256,908
Total 72.11 17,982,306 17,083,191
22
A4-3 - 11
2.4.2 Technical Application of the large Capacity Solar PV
System connected to the Power Grid
(1) Task of Grid-connected Solar PV System
There are two issues by the fluctuation for the grid-connected solar PV
system as follows;
- Fluctuation of the power grid voltage caused by the reverse power

flow to the power grid from the solar PV system
- Supply and demand control to regulate the frequency of the grid

connected to the solar PV systems.
systems
23
(2) Countermeasures
1) Restrain of fluctuation voltage
For restrain of fluctuation voltage it is effective to control the voltage
fluctuation at the connection point to the power grid and fix the grid
voltage within specified value according to control reactive power and
install SVC (Static Var Compensator) at the connection point to the
power grid.
id
2) Supply and demand power control
It is necessary to keep the frequency stability at the appropriate level
for supply and demand power control of the power grid connected to
the large solar PV system.
As the counter measure of this difficulty, micro grid technology is
being developed.
In case of the solar PV system, insolation prediction is related to the
prediction of the solar PV system and it is also necessary to consider
the prediction of power generation which changes every hour.
(3) Insolation Prediction by Weather Forecast

Insolation estimation is important for supply and demand control.
24
A4-3 - 12
Table 2-6 Prediction Method of Insolation and Quick Demand/Supply
Control Method in Japan
Control
Outline of prediction method and control method Source
interval
Prediction method that based on the weather data
supplied by Europe Center of Meteorological Weather IEEEJournalVol.2, No.1, pp2-
Forecast ((ECMWF),), solar PV p
power output
p is p predicted 10 ((2008))
every one hour.
Generation The insolation data of the next day is predicted every
IEEJ Annual Meeting, 2009,
Plan 30 minutes by the territorial data of the Japan
No.7-049 (2009)
Meteorological Agency.
The insolation data of the specific time is predicted
IEEJ Trans. PE, Vol. 127, No.
based on the area weather forecast of every three
11, pp.1219-1225 (2007)
hours of the Japan Meteorological Agency.
Long interval
control 5 to 15minutes interval insolation prediction is tested IEEJ Technical Meeting on
(1 to
t severall b
basedd on the
th data
d t base
b off the
th pastt weather
th forecast
f t Power
P S t
System E i
Engineering,
i
minutes and the area weather forecast in rather short time. PSE-11-17 (2011-01)
interval)
Short interval IEEJ Trans. PE, Vol. 127, No.
The power storage system which quickly responds to
control 3, pp.451-458 (2007)
fluctuation of the Grid power for compensation of active
(second level IEEJ Trans. PE, Vol. 129, No.
power is applied.
interval) 12, pp.1553-1559 (2009)
25
2.4.3 Weather Forecast
(1) Cloud Prediction
Solar PV system generates electricity by direct and diffused sunlight and the
g of direct sunlight
strength g is several times stronger
g than the diffused sunlight
g
1) Macro Prediction
for a few hours or for a few days in a macro view
2) Micro Prediction
on the satellite photo
As Golmud site is forming a gigantic conglomerate of PV power stations,stations

establishing such kind of service for the area will be highly valued by both PV
power station operators located in Golmud and the grid operator of Qinghai
province as well.
26
A4-3 - 13
2.4.4 Simulation Tools
Generation amount (kWh) of the solar PV system depends

on amount of the insolation and ambient temperature of
the site,
site and it has a direct impact on a project viability.
viability
Therefore it is necessary to have a feasibility study by
simulation tools to check cost and benefit of a PV project.
Free simulation tool named RETScreen is an easy to use
example for preliminary study. This can be downloaded
from RETScreen International. : http://www.retscreen.net/
27
2.4.5 Outline of RETScreen
This tool provides the following functions:
Enables
E bl assessmentt off possible
ibl projects
j t att low
l costt
Free-of-charge to users around the world via the Internet &
CD-ROM
Training & technical support available via an international
network of RETScreen Trainers
IIndustry
d t products
d t & services
i accessible
ibl via
i an Internet
I t t
Marketplace
28
A4-3 - 14
3. Capacity Development
3.1 Performance Assessment of the Selected Grid-connected
Solar PV System
(1) Insolation Estimation

QBEs engineers estimated insolation for 10MW Pilot Project Site with a
computer program authorized in the PRC.
Table 3-1 Estimated Insolation at Golmud Site

(kWh/m2)
Jan. 145.31 Aug. 210.14
F b
Feb. 147 24
147.24 S
Sep. 193 04
193.04
Mar. 179.73 Oct. 195.59
Apr. 201.78 Nov. 165.19
May 214.54 Dec. 143.30
Jun. 199.42 Winter half year 976.36
Jul. 201.67 Summer half year 1220.58
total year 2196.94
29
(2) Evaluation of Site Analysis
Generally speaking, appropriate site conditions for PV power generation are as

below;
1) Good insolation,
2) Sufficient flat land to install PV modules,
3) Existence of no obstacles that cast shadows on PV modules throughout a
year,
4) Proximity of electric grid enough with sufficient capacity to send the
generated power,
5) Access to the site to transport equipment and construction machines,
machines
6) Availability of water for installation and maintenance,
7) Appropriate climatic conditions, mild wind in particular,
8) Existence of less sandy dust.
30
A4-3 - 15
(3) Evaluation of Site Analysis
1) Tilt Angle of Solar PV Panel

It is recommended to have lower tilt angle of the solar panel for the Golmud PV
system for increase of power generation of the solar PV system.
2) Sample of Mega Solar PV system in Japan
Sakai Mega Solar PV Power Station, KANSAI Electric Power Co., construct 10 MW
solar PV system in Sakai city, Osaka prefecture, Japan and it is the test plant for
electric power company.
Table 3-2 Verification Items
Item Verification
Facility Construction - Reduction of construction cost
- Decision of plant specification as an industrial use facility (Japans first industrial-
use solar power generation plant)
Operation - Reduction of maintenance and management cost
System Fluctuation in - Analysis of output fluctuations at a mega solar power generation
frequencies
Fluctuation in - Analysis of normal system voltage fluctuations at a mega solar power generation
voltages plant
- Verification of effectiveness of the measures against normal system voltage
fluctuations; operating method of power conditioners, etc.
High Harmonic - Verification of high harmonic occurrence levels due to the interconnection of
multiple inverters (power conditioners)
Drop out of all - Verification of voltage decrease rate due to a failure at the upper voltage system
31
Operator: Jointly operated by Sakai city and Kansai Electric

(public relations: Sakai city, construction & operation: Kansai Electric)
Area: approx. 20ha
p
Operation schedule: p
partially
y started on October 5,, 2010 ((approx.
pp 2.85MW))
32
A4-3 - 16
3.2 Capacity Assessment of 10MW PV System
QBE has many experiences of having installed isolated PV

systems over 100 sites already.
- The PV system configuration was well considered to generate

solar power, and main power circuit was well arranged in the
form of unit arrangement.
33
3.3 Solar Supply Chain
The Consultant visited the ingot factory of Qinghai China Silicon Energy
Co. several times and received brief explanations on how the production
process was managed.
- It is considered very difficult to avoid the yellow sand intrusion into the
factory by the nature of the locality in Qinghai, China. Therefore,
appropriate countermeasure is required to prevent the yellow sand
getting into the building.
- Required quality of mono-crystalline silicon necessary for IC

semiconductor and solar cell is different, but converting measure of
poly-crystalline
l t lli silicon
ili i t mono-crystalline
into t lli silicon
ili i the
is th same.
- It is important to improve the quality of products, which requires paying

more attention to the cleaner conditions of workers, equipment,
facilities.
34
A4-3 - 17
3.4 Technical Guidance Note and Capacity Enhancement
Module
(1) Reactive Power

A PV plant supplies only effective power to the power grid. However, to
stabilize the power grid,
grid reactive power is needed.
needed Grid systems in the PRC
seem to have been designed with consideration to this issue as there are
SVCs (Static Var Compensators) installed in the grid, which supply reactive
power.
(2) Lightning Protection

The lightning
g gpprotection of 10MW Pilot Project
j has been designed
g well. 10
MW Pilot Project has been designed to be installed with SPD (Surge
Protective Device) in each joint box.
35
(3) Overloading Operation of Transformer
The result of continuous overloading condition is shown in the Table 3.3. If the
load factor is assumed to be around 0.3, the expected transformer lifetime for the
model chosen by QBE engineers would be over 1000 years. The size of the
transformer can be reduced, by allowing to have some over-loading situations.
Table 3-3 Transformer Life Time

load factor highest temp. of coil
ratio of lifetime
(%) (C)
100 145 1
05
105 155
55 0.421
0
110 165 0.177
36
A4-3 - 18
(4) Wiring between Modules
Wiring needs more length for setting to absorb vibration and to avoid
rubbing against PV frame.
Fig.3-1 Wiring between Modules
37
(5) Tilt Angle of PV Array
Tilt angle of PV array was set at the same angle as site latitude for the 10MW
Pilot Project. This counts for direct sunlight only. As shown in Fig.3.2, solid angle
of sky becomes larger as the tilt angle becomes smaller, meaning PV modules
catch more of diffused light.
(a) Tilt angle 35 (b) Tilt angle 25

solid angle of sky 4.67 steradian solid angle of sky 5.12 steradian
Fig.3-2 Solid Angle of Sky by Different Tilt Angle

38
A4-3 - 19
(6) Direct Current Protection
When grounding accident happens in the DC circuit of a solar PV system, the

DC fault current flows from PV array through transformer to the ground. DC fault
current flows in the transformer as shown in Fig. 3.3. Some manufacturers install
detection rely inside the inverter. It is possible to set this function outside the
inverter,, such as DC OVGR ((Over Voltage g Ground Relay). y)
270kV/350V
Transformer
Grounding
DC fault current
Fig.3-3 Direct Fault Current Flow
39
(7) Short Circuit Current Protection at the Substation
transformer but also other transmission lines that are connected PV system.
Therefore, the capacity of circuit breaker should be designed to have enough
endurance of those total current.
Fig.3-4 PV System PV System PV System PV System

Short Circuit Current
and Circuit Breaker B : Short circuit current from PV system through other transmission
40
A4-3 - 20
4. Review Design of a Pilot Grid-connected
Solar PV System
4.1 Review Design of a Pilot Grid-connected Solar PV System
411 R
4.1.1 Review
i D
Design
i anddT
Technical
h i lG Guidance
id on a Pil
Pilot G
Grid-
id
connected Solar PV System
(1) Resource Forecasting
Table 4-1 Insolation of 3 Types

(kWh/m2for each month and yearly total)
QBE site 145.3 147.2 179.7 201.8 214.5 199.4 201.7 210.1 193.0 195.6 165.2 143.3 2197
NASA 176.7 168.3 196.9 193.8 186.3 167.4 170.5 172.1 168.0 198.4 179.1 169.0 2146
fish-eye 135.2 129.9 169.6 183.6 189.7 173.4 197.8 222.0 221.7 209.3 179.4 147.9 2159
41
(2) Site Selection

Golmud site is considered to offer very suitable site for PV power
generation.
g
(3) System Configuration Design of the Substation

PV System Configuration of the 10 MW Pilot Project was well designed
in terms of safety, reliability and cost effectiveness.
(4) Inverter
It is important here that the user engineers understand each item of the
specifications. Users understanding of the specifications of inverter
should be at the same level as manufacturers engineers.
42
A4-3 - 21
(5) Control
There are many PV projects in Golmud and the total output will
reported to reach 200 MW. Therefore the stability of the grid will be the
largest concern of the utility,
utility and there will have to be a means to
control solar PV power plants in the area.
(6) Cost Effectiveness and Efficiency
For designing a solar PV system, cost effectiveness and efficiency of

q p
equipment ((PV p
panel, p
power condition, circuit breaker)) should be
considered.
43
4.1.2 Power Grid in Golmud and Technical Guidance on Grid

Protection
(1) Demand Forecast and Power Balance in Golmud Area
The supply will be on the short side in near future if PV power plants will not
be installed although some new hydro/thermal power plants will be
constructed. Therefore, the PV power plants should be constructed while
power balance is being kept.
Legend
[MW] Power balance [MW] Power balance
Demand
Supply
(excluding PV power)
Supply
(including PV power)
Winte Summer
Fig.4-1 Power Balance in Golmud Area

44
A4-3 - 22
(2) PV Power Plant
1) China Science and Technology Photovoltaic Power Holding Co., Ltd., 10MW
2) CPI Huajing Power Holding Co., Ltd., 20MW
3) Guodian Longyuan Golmud New Energy Development Company, 20MW
4) Qinghai New Energy Group Corporation, 10MW
5) Huaneng International Power Development Company, 10MW
6)) Qinghai
Q g Junshi Energy
gy Co.,, Ltd.,, 10MW
Fig.4-2
Owner, Construction and b. 110 kV Substation
110 kV Substation
Operation Scheme
T f )

45
(5) Fault Ride Through (FRT) Function

FRT function is
essential to keep the [%] Required time and voltage
grid stability and it is 100
pp
applied to the wind/PV
Remained Voltage
R
90
power plant in the 80
Within
countries, which have 1 Sec
huge scale of wind/PV
power plants, and grid China
30
operator in Qinghai 20
Japan
also intends to do so.
0 0 0.5
0.0 05 2.0 [Sec]
Start time
of voltage drop
*1 LVRT: Low Voltage Ride Though = Fault Ride Through,
Value of remained voltage to be continuous operation
Fig.4-3 Requirement on FRT Function in China

46
A4-3 - 23
Recovery operation
Continuous operation
by FRT function Usual operation
Grid voltage
Output current
of inverter
Keep the stable output current
Fig.4-4 Result of Factory Test of the FRT Function

(designed by Japan Manufacture)
47
4.2 Financial Study of 10 MW Pilot Project
Framework of the Study

1) Subject of the study 10MW Pilot Project
2) Cost information QBECs
QBEC s F/S Report
3) Conditions NRDCs Instruction for PV Project
Proponents
Method of the Study

1) Project FIRR vs WACC not adopted
2) Equity IRR with Sensitivity Analysis
3) Income increasing measures considered
48
A4-3 - 24
Result of Analysis financially unviable (FIRR/e=4.46%)
income-increasing/
expense decreasing measures required
Measures considered (and desirable)

1) expanding project life from 20yrs to 25 yrs
2) additional income from CDM CNY 0.05/kWh
3) introduction of soft loan Loan Period max 25yrs
(50% of Investment Cost) grace period 5yrs
Interest Rate 2.60%
49
Result after measures introduced
change FIRR/e
(a) With Soft Loan 50% of investment 8.73%

(b) + Longer Project Life 25 years 10.72%
(c) + Additional Income from CER CNY 0.05/kWh 10.05%
(d) + Both of (b) and (c) 11.89%
Other implications
1) Concessional Tariff may not be sustainable.
2) Projects need access to foreign funds.
3) Disclosure of information is desirable.
50
A4-3 - 25
5. Knowledge Dissemination on Grid-connected
Solar PV Systems
51
5.1 N ti
National
lDDevelopment
l t Pl
Plan
(1) Specific Supporting Policy for PV Power Generation
In July 2011, the National Development and Reform Commission issued

the Circular on completing policies on electricity price to the grid for solar
energy PV power generation, deciding to adopt a national unified
b
benchmark
h k electricity
l t i it price
i t the
to th grid
id for
f PV power generation, ti it
specified that, for PV power generation projects approved for construction
before July 1, 2011 and able to complete before December 31, 2011, an
electricity price to the grid of CNY 1.15 per kWh would be adopted.
51
(2) Twelfth Five-year Plan Period
The total installed capacity of PV power generation in China will be 10GW by the
end of 2015, 50GW for the year 2020 higher targets were set as 15-20GW in
2015 and 100GW in 2020, which are not impossible to realize.
Low plan
Medium plan
High plan
Fig.5-1 Development of PV Power Generation in China

with Three Scenarios 52
A4-3 - 26
(3) Production of Grid-connected Power Generation
Off-grid Grid-tied
142.0
W
150.0
InstallationMW
100.0
50.0 21.0
17.8 19.0 18.0
8.8 7.4 1.5 9.0 2.2
1.2 1.0
0.0
2004 2005 2006 2007 2008 2009
Year
Fig.5-2 Market Distribution of Off-grid and Grid-connected

PV Systems during Past Years
53
5.2 PV Development Policy and Status in Qinghai Province
Qinghai Province is the best area in comprehensive conditions to

construct large-scale ground PV power stations in China.
China
These projects were the Qinghai 930 projects as referred to by

outsiders. Details of such projects are shown in Table 5-3.
So, the installed capacity of solar PV power station in Qinghai

Province will reach 2GW byy the end of 2012.
54
A4-3 - 27
Table 5-3 Registered Companies and Applied Projects of Qinghai
930 Projects in Haixi Prefecture
Planned total
No. Project owner New capacity Project for 1.15 electricity price Location
capacity
2 Yellow River Upper Reaches Hydropower Development Co., Ltd. 200 1000 200 Golmud
3 Guodian Power Qinghai New Energy Project Preparatory Office 10 200 10 Golmud
5 Beijing Beikong Green Science and Technology Industrial Co., Ltd. 20 50 20 Golmud
9 Qinghai Project Preparatory Office of Datang Shandong Branch 20 20 20 Golmud
10 Huaneng Golmud Photovoltaic Power Generation Co., Ltd. 30 200 30 Golmud
12 China Huadian Photovoltaic Power Generation Co., Ltd. 10 10 10 Golmud
13 Zhejiang Zhengtai Solar Energy Science and Technology Co., Ltd. 20 20 20 Golmud
15 Shengguang New Energy Co., Ltd. 2 20 1+2=3 Golmud
16 Qinghai Datang International Energy Project Preparatory Office 20 20 20 Golmud
19 Qinghai Provincial Development and Investment Co., Ltd. 2 2 2 Golmud
20 Y ll
Yellow Ri
River U
Upper R
Reaches
h Hydropower
H d D
Development
l t Co.,
C Ltd.
Ltd 30 50 30 Ul
Ulan
21 CEC Solar Energy Co., Ltd. 10 10 10 Da Qaidam
760
(including 45MW at Golmud
Total 705 2582
and 10MW at Xitieshan already
connected to grid)
55
5.3 Recommendation for Development Planning, Funding

and Investment Incentives
Rapid development of PV power generation construction in Qinghai Province will

greatly spur the PV industry development in China.
First, to implement many projects in a short period of time with short will be
subjected to pressure from aspects of materials procurement, transport, etc.
Second, as construction standards, project specifications and quality acceptance
standards have not been unified.
1) Therefore, it is suggested that department in charge in Qinghai Province

organize technical teams in a timely manner, to conduct technical evaluation
for projects during implementation, strengthen the supervision requirements on
construction,
t ti strengthen
t th th safety
the f t education
d ti i construction
in t ti enterprises,
t i and
d
provide better service for investing enterprises, to ensure the healthy
development of the whole program.
56
A4-3 - 28
2) The financial exercises in Chapter 4 suggest that, for a PV project to be
financially viable, or the investors can sit comfortable when faced with adverse
conditions, there should be some measures taken to improve the cash flow for
a concession tariff of CNY 1.15 per kWh.
3) One measure found effective is to extend project life. Longer project life will not
only
l improve
i th financial
the fi i l performance
f off projects,
j t butb t also
l contribute
t ib t tot the
th
reduction of carbon dioxide emission for most of carbon dioxide emission from
PV power generation comes from production and installation processes of the
equipment.
4) Another effective and important measure is an introduction of soft loan in

funding. The authorities in charge of awarding concessions to projects may
also benefit from monitoring the financial performance of concession projects.
Research on financial structures of current PV projects will surely help
formulate promotion policy for coming years.
6) Promotion policy may have to be revised as PV projects are expanding very

rapidly.
57
5.4 Technical Recommendations on Problem

of Grid-connected Solar PV System and its
Countermeasures
(1) Main Issues
There are two main issues encountered shown as below;
- Fluctuation of the grid voltage caused by the reverse power flow to the
power grid from the solar PV system
- Supply and demand control to regulate the system frequency against

generation power fluctuation of the solar PV system
58
A4-3 - 29
(2) Countermeasures
1) Reactive power control of the power conditioner for the grid connected
solar PV system and SVC (Statistic Var Compensator) installed at the
connection point of the solar PV system for reactive power control are
effective.
effective
2) Micro grid technology, namely to construct small size power grid and to
control supply and demand power of that power grid is essential to
reduce the influence caused by the fluctuation of the large solar PV
system to the wide range power grid.
3) On the other hands, installation of the electric power storage system

(large capacity of the battery) can compensate the fluctuation of
generation power of the solar PV system.
4) The FRT function is also essential to keep the grid stability.
59
(3) Recommendation
It is recommended to construct the micro grid by existing solar PV

systems and the solar PV systems which will be constructed in the
future in Golmud area, and which control supply and demand of the
micro grid area and to restrain influence of the wide range grid system.
60
A4-3 - 30
5.5 Optimal System Configuration
(1) Design Key Point

It is necessary to design the solar PV systems which meets its
location condition.
condition
(2) Tilt Angle of Solar PV Panel

It is recommended to have lower tilt angle of the solar panel for
the Golmud PV system.
((3)) Inverter Capacity

p y
The capacity of inverter is enough to have 90% of the capacity
of the solar PV panels.
61

Considering the utilization factor of the solar PV system in the
night period is zero, less than 90% of inverter capacity is good
enough for the capacity of the transformer.
transformer

In case of fault occurred, the fault current is flown into the
circuit breaker from not only upper side of the power grid but
also from other solar PV systems.
It is necessaryy to discuss with the area ppower companyp y about
the short circuit capacity as the short circuit current is depends
on the impedance of transmission lines.
62
A4-3 - 31
10MW Integrated PV Station
of Golmud City
Introduction
Qinghai New Energy Group Co., Ltd
Contents
Chapter 1 Outline
Chapter 2 General Plan
Chapter 3 Electrical Design
Chapter 4 Civil engineer
Chapter 5 Fire protection
Chapter 6 Environmental Protection
A4-3 - 32
Chapter 1 Outline
1. Summary
10WMp integrated PV station is built up in Golmud city with the

installation capacity of 10MWp. It took 4 months for the construction.
The operation period is 25 years. It will be integrated with 110KV
collection station from 35 KV wire system.
In September, 2011, Qinghai New Energy Group Co., Ltd finished

working drawings of civil engineer, electrical engineer and monitoring
systems,
y , and finished integration
g in December of 2011.
1.1 The engineering design is mainly based onon

1.1.1 Policies, rules and law, regulation of China
1.1.2 Engineering designing standards of the industry
1.1.3 Designing document of 110 KV Transformer Substation of
East Collection Station of Golmud City
1.1.4 Integration System Plan of PV Station in Haixi Region by
Qinghai Provincial Power Designing Institute, June of 2011
1.1.5Notice
1.1.5Notice of Printing about Review Comments of 10MWp PV
Station integration system of Qinghai Saiwei New Energy Co., Ltd
by Qinghai Power Co., Ltd. No. 1160 2011 20111160
A4-3 - 33
2. Scale of construction and Designing Scope
Scale of Construction
No. Item
1 Installation capacity 100mwp
2 PV
V Module
odu e 220wp
0wp 45600
5600
3 Grid-connection inverter 500kw 20
4 Box transformer 1230kva 35kv/0.4kv 10
5 35KV First outgoing line, single bus line connection line
Designing Scope
1Floor pplan layout

y
2Complex building, central control building and others
3Base and support of PV array
4Electric
5Distribution unit of different level, 35kv switch station and computer monitoring system
6Outgoing line, telecontrol communication system
7Heating and ventilation facility, water supply and drainage facility
8Engineer equipment and main material list
2. Site introduction
2.1 Natural condition
The PV station is located in the east exit of Golmud City, 11 KM
away from Golmud City. National highway No. 109 pass through
the site with convenient transportation.
p The terrain is pplain and
open in general. Geographic environment is good. Situated in the
south side of the Chaidamu Basin, which is defined as Gobi
Desert with a stable geographic strike. The site is 562 meters long
from east to west, 503 meters wide from south to north, with the
total area of 282686 square meters. According to the 30 years
statistics recorded by the weather station ranged from 1971 to
2000, the total radiation of this area could reach to 1806
1806
2077kWh/square
q meters,, the average
g annual radiation could reach
to 1944.5kWh/m2.
A4-3 - 34
2.2 Engineering geology
The site is located in the flood alluvial plain of Kunlun Mountain. The ground elevation is 2862.19
2862.19
2874.47m, relative elevation is 12.28m,high in west and low in east.
2.2.1 Above the site 0.3~0.5m, it is the loose eolian
eolian--sand which should be removed.
2.2.2 sand soil spread in the site with good mechanic property, could be used as the bearing layer. And
around No. 78, 112,113
112,113144 holes, the round sand could be used as the bearing layer. We suggest the
base of the facility should use the independent base . The associated equipment house could use strip
shaped base.
2.2.3 Due to the pretty deep location of the underground water , the impact could be neglected.
2.2.4 The seismic resistance is 7 degree, categorized to group 3. The designed basic seismic added value
is 0.10g, categorized to group
group, the designed characteristic cycle value is 0.45s. No earthquake in the
site happened. Breaking and factors influence the stability of the rock exists, belonging to ordinary site
for the construction.
2.2.5 The standard freezing depth in Golmud area is 1.05m, according to the result of analysis to the soil
sample taken from the site, the moisture content is 4.7~6.1%, averagely 5.4%. The minimum distance
between underground water to freezing ground is is1.50m, average frozen heave factor is1, belong
to the grade 1 as non
non--froze layer
2.2.6 Resistivity of the site soil is 58~163m
58~163m
2 2 7 Sand storm happens in the site
2.2.7 site, which need the active protection from wind storm and sand storm
storm.
A4-3 - 35
2.3 Solar energy
Golmud City is a center city of west Qinghai Province, located in

the east longitude of 91
9125
25
25 95
95 12
12, northern latitude of
35
35 10
10
3737
45. Golmud is 338 km away from the capital city of
Haixi Prefecture, 710 km away from capital city of Qinghai
Province. Golmud has a high atmospheric transparency and less
rainfall, which belongs to the plateau continental climate.
The site is 20 km away from weather station of Golmud, share the
same solar radiation resources. The weather station is the typical
station
t ti for
f engineer
i radiation
di ti analysis.
l i
The solar radiation is strong in the site with long and stable day
length. For the past few years, the total radiation is between6500
MJ/
MJ/ -7400 MJ/
MJ/, the annual average radiation is 6923.42MJ/
6923.42MJ/,
the day length is 2550-
2550-3350h, the sunshine percentage is more
than70%. It is suitable for the utilization of the solar energy.
Table 1-3 Main meteorological elements table of Golmud City (normal value of accumulated year)
Meteorological element Value of Golmud City

Sunshine duration( hour) 3096.3
Normal radiation value of accumulated year(MJ/m2a) 6923.42
Average value of temperature of accumulated year() 5.3
Average value of rainfall of accumulated year(mm) 42.8
Average days of storm of accumulated year(day) 2.9
Average days of dust of accumulated year(day) 13.2
Average cloud of accumulated year% 60
Average value of barometric pressure of accumulated yearhpa 724.7
Average value of water barometric pressure of accumulated yearhpa 3.2
Average value of relative humidity of accumulated year% 32
Average value of wind velocity of accumulated yearm/s 2.8
Maximum wind velocity of accumulated yearm/s 25
Years maximum permafrost depth (cm) 105
Years maximum snow depth (cm) 6
The historical extreme maximum temperature () 35.4Aug.1999
Historical extreme minimum temperature() -29.3In 1961
A4-3 - 36
Chapter 2 General Plan
1. Briefing of the site
The site is located in Golmud City, 11 km away from the east toll gate, and 2 km away from the
national road with a convenient transportation. The total capacity is 10MWp. Generally, it is a matrix
layout. The station is composed with two parts of production area and management area. The entrance
and exit of the station is designed at the west and south side of the station, and connected with the road
outside. The management
g area is in the southwest. The total area of the station is 0.283k
0.283k, the area
for the management area is15824
is15824
2. General layout
On the basis of full consideration of the site and condition, newly built comprehensive building is
located in the southwest of the site, adjacent to the distribution central control room in the west. The
comprehensive building is linked with the distribution central control room by the corridor. The
comprehensive
3. Vertical design
The superficial standard height is 2862.19
2862.192874.47m, relative height is 12.28m, high in west and
low in east. Generally , the site is plain and broad. There are rise and fall in part of the area. On the
basis of the, road standard height refers to the current standard height of the site. The newly built
comprehensive building is 450mm higher than the surface outside of the building.
building
4. Transportation
The transportation system is a loop line with the array as the main part, connected with all buildings.
The average width of the road is 4 m, the minimum turning radius is 6 m.. It is a complete traffic
network with fire ring.
General Arrangement Plan

The main technical and economic indexes
Item Unit Value

Total land area M2 282661
Total building area M2 1215.72
Office building M2 873.0
Central control
distribution room
Inverter room, box M2 267.61
transformer room
Area of guard M2 22.38
entrance
Area of water pump M2 52.73
house
Plot ratio / 0.004
Building density / 0.4%
Greening rate / 4.6%
Parking lot Cars 10
Road surface construction of parking lot refers
to: Qing 02J01-7-Road 4
Paving method of the square refers to: Qing General layout 11000
02J01-9-road 11
Road surface construction method refers to:
Qing02J01-6-Road 1
Curbstone refers to: Qing02J06-67-1
A4-3 - 37
Chapter 3 Electrical Design
1. PV site design
1.1 Electrical design

g of the PV site
The total installation capacity is 10MWp with the way of separate generation and
grid connection. The solar energy modules is composed with the 220 wp
polysilicon solar cell module. The single capacity of the grid connection inverter
is 500KW. The whole array consists 570 pieces of PV square array of
17.6KWp, each PV square array consists 20 columns and 4 squares of solar cell
module with 220Wp.
Every 1MWp PV generation unit is composed with solar cell column, Bus devices,
inverter facility and pressure boosting facilities. The integrated PV station is
composed with 10 generation unit of 1MWp.
1MWp
Each generation unit is composed with PV array of 1MWp, 2 grid connection
inverters of 500kW, 1 booster transformer of 35kV.
The output voltage of the integration inverter is 0.4
0.4kV, after boosting to 35kv by
boosting transformer, deliver to the switch, where the 35kv output will be
conveyed to 110 kv integration new energy 35 KV intervals.
DC System Connection Diagram of PV Site
A4-3 - 38
1.2 PV array framework
Fixed support. The bearing angle of the array is south with the best
angle roll of 33 degree
1 3 PV array design
1.3
2 groups of solar energy group string (20 pieces of each string),
vertically settled and form them to 2 lines and 20 columns, i. e. 40
pieces of solar cell module is formed as an array.
1.4 The design of PV array distance

The pprinciple:
p reduce the area,, to improve
p the utilization of the land
and try not to shelter from each other. On winter solstice , the solar
angle of altitude is the lowest in the whole year. We took the period
from 9AM to 16:38 PM as , no shelter from each other as the
designing evidence. According to the landform of the site, the
distance between the arrays is designed to 6.1m.
Diagrammatic Sketch of Subarray Module Installation
Technical requirement
1. Module type BEST-220P-20, 40 pieces for each subarry
A4-3 - 39
Installation Diagram of PV Array Framework
Installation requirement:
Straightening the connecting rod before installation
All connecting parts need to be well ready and connection needs to be reliable.
The back up plates will be requirement between the connection points for any necessary moment.
The material listed in the sheet are for one subarray (40 modules form for one subarray)
Strengthening brace is installed in the first shelves and sixth shelve, and fastened by the M16 bolt.
The beam is formed with the 6 C type steel numbered as IIIIIIIVVVI, Connection need to be
carried out orderly.
1.5 Annual output of PV Station
Table 2-1 Basic data of PV array
PV module Amount 45600 pieces
Total installation capacity 10.032 mwp
Effective area of PV module Size of module 1642*994*40mm
Effective area of each module 1.63m2
Effective area of each PV subarray 130.6m2
Effective area of PV module of the station 74426m2
A4-3 - 40
According to the calculation, the power generation of the first year could reach to 17
17,,8658
million kWh, 20%
20% declining for 25 use of the system, the total output of 25 years could
reach to 406
406,,285 million kWh, the average output each year is 16 16,,2514 million kWh, the
output of 25 years is as following
following::
Table 2-2 25 each year Grid electricity generation(Ten thousand kwh)
Year Annual Year Annual generation Year Annual

generation
i capacity
i i
generation
capacity (Ten thousand kwh) capacity
(Ten thousand (Ten thousand
kwh) kwh)
1 1786.58 10 1661.99 19 1546.08
2 1772.29 11 1648.69 20 1533.71
3 1758.11 12 1635.50 21 1521.44
4 1744.04 13 1622.42 22 1509.27
5 1730.09 14 1609.44 23 1497.20
6 1716.25 15 1596.56 24 1485.22
7 1702.52 16 1583.79 25 1473.34
8 1688.90 17 1571.12
9 1675.39 18 1558.55
40628.5 Ten thousand kwh
25years Total generating
capacity
An annual generating 1625.14 Ten thousand kwh
capacity
2. 35KV switch station

2.1 Electrical
2.1.1 Designing evidence
1 Technical Regulation on PV Station Integration System GB/Z19964
GB/Z19964--2005
2 Guiding for the Power Transformer GB/T17468
GB/T17468--2008
3 Insulation Coordination for High Voltage Transmission and Distribution GB311.1
GB311.1--1997
4 Designing
D i i Standard
S d d ffor Power
P Supply
S l andd Di
Distribution
ib i GB50052--1995
GB50052
5 Grounding for AC Electrical Facility DL/T621
DL/T621--1997
6 Technical Regulation on General Layout of Transformer Substation DL/T 5056 5056--2007
7 Technical Regulation on Designing of High Voltage Distribution Facility DL/T 5352
5352--2006
8 Technical Regulation on Designing of Conductor and Electrical Facility DL/T 5222
5222--2005
9 Designing Standard of 35110kV Substation GB50059
GB50059--92
10Designing Standard of 3110kV High Voltage Distribution Facility GB50060
10 GB50060--92
11) Designing Standard of 10kV and Below Substation GB50053
GB50053--94
12
12Designing Standard of Electrical Engineer Cable GB50217
GB50217--2007
13
13Designing Standard of Electrical System DL/T5429
DL/T5429--2009
14
14Designing Standard of Parallel Connection Coupling Capacitor GB50227
GB50227--2008
15
15 Technical Regulation on PV Station Integration of State Grid Company ( Trial Use) State Grid No.
747
7472009
2009
16
1618 Countermeasures to Accidents of State Grid (Trial Use) State Grid No. 400
4002005
2005
17
17 Document of Quality /Professional Health/Environmental Management Northwest Survey and
Design Institute 2007
A4-3 - 41
2.1.2 Choice of Booster Station Site
The switch station is going to be built in the southwest of the site.
2.1.3 Main Electrical Scheme of the Booster Station

There are totally 10 power unit of 1 Mwp, each of them is equipped with 1 transformer of
1250kVA V 0.4kV
. V //35KV,V, five
ve of
o them
e will
w be co connected
ec ed in parallel
p e too 1 joint
jo linee unit
u .2
joint line units switches into switch station of 35kV separately, the 35KV will adopt single
busbar, and switch into 110 kv collection new energy 35 kv interval located in the east of
Golmud City.
2.1.4 Reactive Compensation

On the basis of Technical Regulation on PV Station Access Network of State Grid Company,
Company,
the power station needs certain adjustment range excepts the needs for the reactive power
loss. The compensation will be taken place on the side of the busbar of 35kv with the
capacity of 2500kVar, in the way of SVC. The power factor will be no less than 0.9 after
compensation.
compensation
2.1.5 Layout of the electric equipment

The 35kV distribution unit will use the removal switch cabinet and being settled in high
pressure cabinet of central control building. Outline of 35kV will be led by the cable to
terminal pole, and output by the air wire.
Main Connection Diagram of Electric Equipment
A4-3 - 42
Floor Plan of Booster Station
6 Main electric equipment

1Calculation of Short Cut Circuit Current
According to the Closing Report on Preliminary Designing of 110kv Substation
Engineering in the East Collection Station of Golmud City, the calculation result
is as following:
Table 2-3 Short-circuit current calculation result
Short circuit Average voltage three-phase Three phase Initial value of Impact
point of short circuit short-circuit short circuit Cycle component current
bus level point current capacity Of short circuit peak
(KV) (KV) (KA) (MVA) current (KA)
(KA)
2Parameter of main electric apparatus

The site is located on the altitude of 2900m, considering the influence of high altitude to
the insulation discharge voltage
voltage, so this construction adjust the electric equipment on the
level of 3000m.
A4-3 - 43
Unit Transformer
American box transformer substation, outdoor installation.
35kV Switchboard
35kV switchboard takes KYN61-
KYN61-40.5GY Armoured removal AC closed high
tension switchgear. ZN85GY(VEM)-
ZN85GY(VEM)-40.5 vacuum cutout switch is inside with 25
ka drop
drop--out current. Metering point is settled in 35 kv metering cabinet of the
newly built 35 kv high tension switchgear. The metering point of the pass is
settled on the end of the line side. 2 inlet wire switch cabinets, 1 incoming cabinet,
1 capacitor box 1 voltage transformer cabinet will be
2. Secondary Electrical Equipment

2.1 Computer Supervisory Control System
1Designing Principle
The control system is designed unattended. The distributed computer supervisory system is adopted to collect,
supervise, monitor, meter, protect, control and power etc. The computer supervisory system and telemechanical will
be combined and share the same data in an alternative collection.
Clock synchronization system will be adopted for the station, which could synchronize according to the
satellite, and the signal uses directly the IRIG-
IRIG-B interface mode.
The computer supervisory system use distributed open network. The net system is Ethernet, which is accordant with
the international standard of OSI mode and TCP/IP
TCP/IP.
The function like telemetering, teleindication, remote control, remote regulation, remote viewing, man
man--computer
intercourse, telecommunication , signaling, self diagnosis and management etc.
Data collection and processing, read analogue input and pulse input are on basis of Technical Regulation on
Designing of Electrical Measurement and Electric Energy Metering Devices DL/T5137
DL/T5137--2001 and Technical
Regulation on Regional Grid Adjustment Automation DL5002-
DL5002-2005. The switching value is on the basis of Technical
Regulation on Secondary Input of Thermal Plant, Subsation DL/T5136
DL/T5136--2001 and Technical Regulation on Regional
Grid Adjustment Automation DL5002-
DL5002-2005.
Information collection management: categorized collection , deliver level by level.
Collection equipment of electricity and electric power: 11 sets of collection terminals will be designed in this station.
The power quantity measurement system supportIEC60870-
supportIEC60870-5-102; and signed the protocol with local supervision
system MOBUS.
On the basis of Technical Regulation of Power Quantity Measurement System Power Collection Terminals of
Qinghai Province, intelligent and high accuracy with pressure loss timing power measurement meters will be adopted
to improve the level of power measurement and information exchange.
A4-3 - 44
Function Needed for Electricity and Electric Power Collection
To meet requirement of commercial operation of grid, the following function will be needed:
aSystem could receive and process the electricity quantity data and non
non--electricity quantity data sent
by pass or collection terminals.
bThe data pool could store more than 1 year of electric data period by period with the time mark:
including original data,
data partial middle result,
result the processing capability should be no less than 200 points.
points To
form the report sheet according to the requirement and printing or storing in other media.
cSecurity and confidentiality, especially for the store and access data, the mode setting and remode of the
parameters, user permission and access condition, to prevent the illegal access.
dFile all operation from operators.
eGood manman--computer interaction like warning , display of report sheet, timing, call print etc.
fSupervision and automatic warning on the inefficiency of pass measurement and electric quantity
intervals and print the result.
gAutomatic recording when the phone is busy, breakdown of the passageway, wrong report and
transmission etc and could be displayed and checked on CRT.
hSupport application development.
iInterface requirement should be available. When 4 wire line channel adopted, the modem should be
equipped.
The measuring point will be settled in the 35kV measurement cabinet. The measurement loop
concludes 2 three phase automatic electric meters of 0.2 s class and 1 pressure loss timer. The CT
measurement adopts class 0.2s, 0.2 class for PT. The variable voltage measuring two loop is equipped
with 1 three phase four wire low voltage automatic electric meter of class 0.2s. Measuring CT adopts
class 0.2s, and installed in the cabinet of the secondary electric equipment. Cabinet.
a) The comprehensive automation system and interface circuit of the secondary electric equipment: the
abnormal signal of protection, automatic equipment, direct current of the equipment will both send
teleindication and display in the screen of each . The indication panel will not be installed in the
substation. If needed, the automation system could be available.
b) telecommunication and interface: the station control layer adopts Ethernet. The layer has a good
openness. Interval layer adopts industrial control network, which owns the enough transmission speed
and high efficiency. Each interval layer could telecommunicate directly. Network topology should adopts
bus type, ring type or star type, the physical connection between station control layer and interval layer
should adopt star.
c) Control voltage and reactive power regulation: Circuit breaker and all electric isolation switch could
be remote controlled. Voltage and reactive power could be remote controlled by hand; The reactive
power compensation equipment could automatically adjusted; The remote cast and reset, amendment of
protection constant value could be used for the protection equipment. The control way could be switched
and closed automatically.
d) Man
Man--computer interaction: The local monitoring host, display, panel and printer, data storage etc
could
ld be
b installed
i ll d in
i the
h substation
b i for f the
h convenient
i operation.
i
e) Other function like self
self--diagnosis and management etc.
A4-3 - 45
2.2 Configures of computer supervisory system
Computer supervisory system is composed with station control layer and interval control layer.
1) Station control layer
Substation takes single network structure, station control layer is directly connected with the interval
layer, mainly, includes 1 engineer working station, 1 telecontrol master station, 1 warning system, 1
printer and 1 set of timer, network system
Host computer and operators working station adopts the man man--computer interface of station control
layer to collect, process, store the data , and to record report sheet, event and warning display as well as
checking guiding,
checking, guiding explaining and transmitting the control orders.
orders
Telecontrol station directly receive data of I/0, and establish the data pool, and according to the
protocol of dispatch center, through special channel to connect to the equipment and transmits the
telecontrol information.
Station control layer is connected with the equipments by Ethernet, , station control layer will be set
screen and installed in the secondary electric equipment cabinet.
2) Interval control layer
Telemetry, teleindiation and remote control function could be conducted by the special measurement
and control equipment
equipmentI/O measuring and controlling unit), which has the function of LED
measurement, Synchronous detection, emergent operation of on spot breaker and display of the
measurement figure etc. Each interval layer is independent, mainly used to collect , transfer, process
and
d transmits
i the
h iinformation
f i off theh equipment.
i
I/O measuring and controlling unit collect the real time data and upload to Ethernet which transmits
them to station control layer, at the same time, transmits the remote control , teleindication orders to
each I/O.
Station control layer is connected with interval control layer by LAN.
System Diagram of Monitoring
Intelligent interface RCS09794B

M
et WHX-823AOptical longitudinal differential protection
er Monitoring device of quality of electric energy
sc
re DC system
e
n video monitoring system
Fire alarm system
A4-3 - 46
2.3 Relay Protection and Automatic Device
2.3.1 Designing principle
On the basis of Technical Regulation of Relay Protection and Automatic Devices
GB14285--2006, with micro
GB14285 micro--computer
2.3.2 Deploy of relay protection and safety automatic device
a 35kV line protection
b Unit transformer protection
c SVG outline protection
d Stability control system
e wave recorder of breakdown of micro
micro--computer
f inverter protection
2.4 Environment monitoring system

The environment monitoring system will conduct a real-
real-time
supervision for illumination intensity, wind speed, wind direction,
t
temperature
t etc.
t The
Th data
d t will
ill be
b recorded
d d in
i the
th computer
t
monitoring system.
2.5 Deploy secondary electric equipment

The DC control supply panel, upper monitor host computer cabinet
of the computer monitoring system, network cabinet, ground control,
SVC control
t l protection
t ti screen, host
h t computers
t operator
t working
ki
station will be deployed in the central control room of the station.
35kVmeasuring and protection device will be deployed in the
equivalent switching cabinet.
A4-3 - 47
3 Station power
Load of the station includes the life power, lighting electricity of the
control room, operational power of all devices. According to the
statistics of the PV power loading, the transformer of the station is
250kVA, which is supplied with 0.4kV, which could meet the
requirement of the technical regulation. Duplicate supply will be
adopted for the power station, the main power supply is from T
connection of 35 KV line nearby, the backup power supply is from
35 KV generating line of the PV station
station.
4Cable and laying mode

4.1 line and cable
Flame retardant Armoured and PE sheathed power cable (ZR- (ZR-YJLV) is adopted.
4.2 Laying mode
Angle bracket is adopted for layout the duct entrance for unit inverter cabinet,
distribution and central control cabinet.
The cable from module to combiner box is deployed along the steel bracket. The
cable from combiner box to unit inverter cabinet is directlyy buried underground.
g
Fire resisting partition between cables from different distribution device and
different duct entrance of the cable is set up.
The bottom hole of switching cabinet, control protection screen, distribution
screen will be plugged after cable layout .
Fire resistive material will be painted within 1.5 m of both sides of the fire
resisting partition of the duct entrance.
The both ends of the cable pipe will be plugged after layout.
Flame spreading counter measurement will be set up in the cable channel
according
di to the
h concerned d regulation,
l i lik like setting
i up the
h fire
fi resisting
i i partition
ii ,
plugging all the holes of pothole, wall hole, holes of the switching control
protection cabinet etc.
A4-3 - 48
5. Lightening protection grounding
5.1 PV array
5.2 Booster overvoltage protection
5.3 Grounding system
Chapter 4 Civil Engineer

1. Architectural Designing1.1 Designing principle
1Letter of authorization of the designing from construction unit
2Original topographic map provided by construction unit
3Fire Code off Architectural Designing
g g GB50016
GB50016--2006
4Mandatory Provisions of Engineer Construction Standard
Standard2010
2010
5General Principle for Designing of Civil Building GB50352
GB50352--2005
6Technical Regulation of Roofing Engineering GB50345
GB50345--2004)
2004)
7Barrier Free Designing Code for Road and Building JGJ50-
JGJ50-2001)
2001)
8Designing Requirement from Construction Unit
9Implementation Rules of Energy Saving of Public Building DB63/617
DB63/617--2007
10
10
Thermotechnical Designing Regulation of Civil Building GB50176
GB50176 93
11
11
Regulation
R l ti on Keeping
K i WarmthW th Engineering
E i i off Exterior W ll JGJ144
E t i Wall JGJ144--
2004
12
12
Environmental Protection Regulation of China
13
13
Others
A4-3 - 49
2. General layout
In general, the building is integrated with the surrounding and coherent with other buildings, with the
main building facing a good direction.
3. Single building designing
1Office: 460m square
The office is located in the southwest of site, east of central control cabinet with one floor. F6
dormitories, 3 offices, lobby, anteroom, corridor, dining room, operation room, storage room and
bathroom.
2Central Control Room: 413 m squareq
The central control room is located in the southwest of the site, west side of the office with one floor.
SGV compensation room, 35 kv switching room, transformer room, central control room and passage.
4. Architectural section
1Office : Story height is 3.3 meters
First Floor
Floor 3.3 meters
Height dispersion between inside and outside room: 0.45 meters
Total height: 3.75meters
2Central control room: story height is 4.8 meters (eaves height)
First floor: 4.8 meters (eaves height)
Height dispersion is 0.30
0 30 meters
Total height is 5.10 meters (eaves height)
5. Energy saving
160 layer of extrusion
extrusion molding warmth keeping boards is put on the exterior wall above the floor.
2Good air tightness energy saving hollow glass is adopted in the exterior wall.
3Natural illumination is adopted for the main buildings.
4Door bucket is adopted for the main entrance
Plane Graph of First Floor of the Comprehensive Building
A4-3 - 50
Floor Plan of First Floor of Central Control Room and Distribution Room
3. Structure designing
3.1 Briefing of central control transformer

Steel structured, 413 m square with a distribution room and central control room, is located
in Golmud City.
1Security level of the building structure and service life

Table 3-1 security level of building and designed service life
Security level of Grade 2 Foundation designed Grade C

structure level
Designed service life 50 years Earthquake fortification Category C
category
2Natural condition
Table 3-2 Parametric loading of wind and snow
Basic wind pressure Toughness of ground surface Basic snow pressure
Wo0.40kN/m Category B So0.20kN/m

Table
T bl 3-3
3 3 Earthquake
E th k fortification
f tifi ti parameter
t
Intensity of Designed basic Designed SPER of site Site category
earthquake Earthquake Earthquake
fortification acceleration Category
Magnitude
Grade 7 0.10g Category 3 0.45(s) Category 2
Standard freezing depth: 1.05m.

Analysis and suggestion about foundation
The base should be on the composite foundation with the independence form.
Soil
Soil0.000 is measured on spot by the construction unit.
A4-3 - 51
3Designing evidence and requirement
Table 3-4 Standard, rules, regulations and procedures of the designing of the site
No. Item Code number
1 Unity standard of reliability design of building GB50068-2001
2 Category standard of earthquake fortification of building GB50223-2008
3 Rule of load of building structure GB50009-2001
4 Regulation of concrete structure GB50010-2010
5 Rule of foundation designing of building Gb50007-2002
6 Regulation of earthquake fortification of building GB50011-2010
7 Rule of anti-corrosion designing of building GB50046-2008
8 Technical rule of foundation of building JGJ79-2001J200-2002
9 Standard of drawing of building structure GB/T50105-2001
Table 3-5 Uniformly distributed live load standard value
Load category Value
Wall Roof 0.5
Note: using or constructing load could not surpass designed value
4Structure type
Vertical structure system: single story building with the steel structure. The exterior wall is coal gangue
porous brick masonry
Roofing system
systemsandwich steel panel
Structure analysis
A overall analysis
Calculation and Drawing on Steel Concrete frame, Bent and Continuous Beam of Architecture
Science Institute of China is adopted. 2010 2010
B Calculation of the foundation
JCCAD Software on Foundation,
Foundation Strip Foundation
Foundation, Steel and Concrete Foundation Beam
Beam, Pile
Foundation and Raft Foundation of Architecture Science Institute of China is adopted.
5Main structure material
Concrete earth Table 3-6 Density level of concrete component
No Name and range of component Density level of concrete Note

.
1 Independent foundation C30
2 Foundation beam C30
3 Steel ppillar,, main beam,, tie beam Q235B

Q
Environment category
categoryUnder earth belongs to category B; the rest belongs to Category A.
Steel:
ASteel for concrete structure
Concrete iron: is HPB300 concrete iron ,is HRB335 concrete iron
Steel: Q235B
Q235B
Wall material: MU10coal gangue porous brick , mortar is M5 fixed mortar
A4-3 - 52
2. Briefing about office
Marshalling structure with total area of 460m2
460m2
1Security level and service life
Table 3-7 ecurity level of building and designed service life
Security level of Grade 2 Foundation designed level Grade C

structure
Designed
g service life 50 yyears Earthquake
q fortification category
g y Category
g yC
2Nature condition
Table 3-8 Parametric loading of wind and snow
Basic wind pressure Toughness of ground surface Basic snow pressure
Wo0.40kN/m Category B So0.20kN/m
Table 3-9 Earthquake fortification parameter
Intensity of Designed basic Designed SPER of site Site category

earthquake Earthquake Earthquake
fortification acceleration Category
Magnitude
Grade 7 0.10g Category 3 0.45(s) Category 2
Standard freezing depth: 1.05m.

Analysis and suggestion of foundation: foundation should be laid on fine sand of original soil, with strip foundation.
The 0.000 is measure on the spot by construction unit.
3Designing evidence and requirement

Table 3-10 Standard, rules, regulations and procedures of the designing of the site
No. Item Code number

1 Unity standard of reliability design of building GB50068-2001
2 Category standard of earthquake fortification of building GB50223-2008
3 Rule of load of building structure GB50009-2001
4 Regulation of concrete structure GB50010-2010
5 Rule of foundation designing of building Gb50007-2002
6 Regulation of earthquake fortification of building GB50011-2010
7 Rule of anti-corrosion designing of building GB50046-2008
8 Technical rule of foundation of building JGJ79-2001J200-2002
9 Standard of drawing of building structure GB/T50105-2001
Table 3-11 Uniformly distributed live load standard value
Load category Value

Wall Roof 0.5
Note: using or constructing load could not surpass designed value
A4-3 - 53
4 Structure type
vertical structure system: single story building with marshalling structure
roofing system: The cast-
cast-in-
in-place reinforced concrete roofing system
structure analysis
A. overall analysis
Based on Software of Calculation and Drawing of Steel Reinforced Concrete Frame, Bent, and
Continuous Beam of PK. PMCAD Engineering Department of China Architecture Science Institute
(2010)
B Calculation of the foundation
JCCAD Software on Foundation, Strip Foundation, Steel and Concrete Foundation Beam, Pile
Foundation and Raft Foundation of Architecture Science Institute of China is adopted
5Main structure material
concrete
A. Intensity level of concrete member
No Name and range of component Density level of concrete Note
1 Stripping foundation C25
2 Component pillar, ring beam C25
B. Durability category of concrete

Environment category
categoryUnder earth belongs to category B; the rest belongs to Category A.
Steel:
ASteel for concrete structure
Concrete iron: is HPB300 contrete iron ,is HRB335 concrete iron
Wall material: below 0.000, Coal gangue brick, above
above0.000, The coal gangue porous with the
intensity of MU10. Mortar: below 0.00, M10 cement mortar, above
above0.000M5.0 mixed mortar
4.4 Water supply and drainage
4.4.1 Designed evidence

1Designing Regulation of Water Supply and Drainage of Building ( GB50015
GB50015--
2009)
2Designing Regulation of Fire Proof of Building (GB50016
(GB50016--2006)
( 3) Designing Regulation of Extinguisher of Building
BuildingGB50084-
GB50084-2005
2005
( 4) Technical Measurement of Civil Building (Water Supply and Drainage)
GB50084
GB50084--2009
2009
( 5) Information drawings and designing material concerned
4.4.2 Building
1 Office: 460 m squire
Located in the southwest of the site,
site east of central control room,
room one floor,
floor mortar system.
system
There are 6 dormitories, 3 office rooms, 1 lobby, 1 anteroom, passage, dining room,
operation room, storage room and bathroom
2Central control distribution room: 413m squire
Located in the southwest of the site, west of the office building, one floor, steel structure.
There are SVG room, 35 kv switching cabinet room, transformer room, central control
room and passage.
A4-3 - 54
4.4.3 Designing Scope
The designing includes: water supply and drainage system, indoor fire hydrant system,
outdoor hydrant system, extinguisher system of building
Drainage system is diversion of rain and sewage
1sewage: after processing in the digestion tank, it will be led to the absorbing well
which owns the diameter of DN300
DN300
Pipe material and interface: indoor pipe is UPVC spiral silent drainage pipe. The outdoor
drainage pipe is double wall corrupted pipe with rubber interface.
2Rain: The rain will be drained to outdoor manhole, together with the rain outside , flow
to rain pipe network of the site.
3) Pipe deployment: The geology is Grade 2 self weight collapsibility loess. The pipe
within 6 meters of prevention distance will be deployed in the leak detection pipe ditch
which is mortared with the type C brick.
4.4.4 Measurements of water and energy saving

1Measures of water saving
The water closet adopts 6L two gear water tank. The urinal adopts automatic flushing
system. The tap is sealed with the ceramic plate.
2Measures of energy saving
High quality and energy saving product will be adopted.
4.5 Heating and ventilation system

4.5.1 Designing evidence
1Designing Regulation of Heating Ventilation and Air Adjustment GB50019
GB50019--2003
2003
2Regulation of Fire Proof of Building GB50016
GB50016--2006
2006

3Rules of Qinghai Province of Energy Saving Standard of Public Building DB63/617-
DB63/617-2007
2007
4Designing Rules of Heating System of Civil Building GB50176-
GB50176-9393

4.5.2 Designing
g g scope
p
If is for 10 MWP project
4.5.3 Designing parameter
1outdoor designing parameter (Location: Golmud City)
Heating in winter, the outdoor temperature: -15
Ventilation in winter, the outdoor temperature: -11
Ventilation in summer, the outdoor temperature: 22
Extreme lowest temperature: -33.6
Extreme highest temperature: 35.4
Atmosphere in summer: 724.0 Pa
Atmosphere in winter: 723.5 Pa
2Indoor temperature in the heating room
Indoor temperature in winter: office, dormitory, central control room, dining room: 18
18kitchen
and facility : 10
10
Indoor temperature in summer for ventilation: facility room: 10
10
A4-3 - 55
4.5.4 Designing of heating and ventilation
1Heat radiator
We adopt antiseptic LXGL
LXGL--X/202-
X/202-600Steel aluminum composite radiator. (Under the
standard condition, the heating radiation is 130W/piece)
2Heating pipe
Welded steel ppipe
p with the diameter of DN32, connected with flange,
g when diameter is
DN32, connected with wire.
3Mechanical recycling heating radiation system
4Mechanical exhaust for deficiency of natural exhaust
5Mechanical ventilation system for deficiency of natural exhaust
6Mechanical ventilation for the bathroom
4.5.4 Energy saving

1Heat metering will be installed on outlet of heating pipe network and entrance of
building heat,
heat for good of separate charge
2indoor heating system adopts energy saving radiator which could adjust air condition
in the separate room.
3Less noise, low consumption of electricity ventilation system will be adopted for
reduction of the operation cost.
4.6 Electric equipment of building
4.6.1 Designing evidence :

1Outline of building
buildingnewly built office , central control distribution room
2Designing
i i material i l concernedd
3Designing requirement of construction unit
4Regulations and standards for this engineer
Designing Regulation of Electric Equipment of Civil Building JGJ16JGJ16--2008
2008
Designing Regulation of Distribution System GB50052
GB50052--95
95
Designing Regulation of Transformer Station of 10KV GB50053
GB50053--9494
Designing Standard of Illumination of Civil Building GB50034
GB50034--2004
2004
Fire Proof Rules of Civil Building GB50015
GB50015--2006
2006
Designing Regulation of Lightening Protection of Building GB50057
GB50057--94
942000
2000

other rules, regulations and standards concerned.
5Review comments of designing of the project.
A4-3 - 56
4.6.2 Designing scope: the following electric equipment is included:
10/0.4kv distribution system, low voltage distribution system, illumination system, telephone, TV,
network, lightening protection, grounding system and other safety measurements.
4.6.3 Distribution system:
1Load rating: the illumination load is rate 3. Emergency lighting and escape lighting use storage
battery, the emergency hours is no less than 30 mins.
2Energy measurement: total measurement will be deployed at the side of high voltage
distribution system, meters set will be deployed at the side of high voltage system to measure the
power.
3 Cable of 0.4kv line led the power source to building is YJV22 YJV22--1kv. Cable for low voltage is
directly buried underground.
4.6.4 Low voltage distribution system :
1Power source of the building are all connected by the AC screen of distribution cabinet of
central control office , in the way of radiation or trunk type , and lead to distribution closet of floor or
end distribution closet. Return circuit of lighting is protected by the circuit breaker. Outlet circuit is
protected by the leaking circuit breaker.
2Distribution system inside of the building adopts BV BV--0.5kv type cable
cable
3) Panel switch, outlet adopt 86 series product. The wall is concealed installed. Distribution closet,
control closet, outlet closet all adopt ZJPR type or PZ30 type product. The wall is concealed installed.
4.6.5 Illumination system

1Ordinary lighting indoor. The luminance and power density is accordant with national standard. The
lighting is high reflectivity dome lighting fitting or grid type.
2Indoor lighting line adopts BV- BV-0.5kv and ZR PVC. Outdoor lighting line adopts
YJV--1kv and polygene plastic pipe. Indoor lighting grounding adopts-
YJV adopts-C-S.
3Indoor lighting adopts on spot switch control.
44.6.6
6 6 Telephone,
Telephone TV and computer network system
Telephone circuit is connected with the public telephone, and distributed to single machine by telephone cable
box set .
Signal line of TV is connected with regional cable television network, and transfer, distribute to terminal users.
LAN system is set up in the office building, and is connected with the civil network. Network interface
according to the requirement of the clients is deployed in the office. Backbone network is optical one, the
branch uses 4 pairs of twisted copper cable of super category 5.
The weak line is all led to through the cement pipe outdoor, and KBG metal pipe indoor.
4.6.7 Lightening prevention, grounding and safety measurement
1Category 3 lightening prevention and protection of the building.
2Integrative grounding of lightening prevention and protection for all single building
3General equipotential connection is set up in all single building, including all metal protective cover,
metal cuticle, heating pipe, underground line etc.
4All kinds of strong or weak line led to the building will be set up a SPD at the end of the line.
A4-3 - 57
Chapter 5 Fire Protection
5.1 Designing evidence
Typical Fire Protection Rules of Electric Equipment DL5027
DL5027--93
Fire Protection of Thermal Power Plant and Substation Designing GB50229
GB50229--2010
Regulation on Fire Protection of Building GB50016
GB50016--2010
Designing Rules of Extinguisher of Building GBJ140
GBJ140--90
5.2 Measurement of fire protection

In each room of the central control building, we had deployed the certain amount of portable powered
fire extinguisher, totally 12. We adopt the self carried storage battery as the emergency lighting,
which could last no less than 30 minutes when emergency occurred.
There are certain amount of portable powder fire extinguisher in the office, totally 6. The lighting
system is also set up in the corridor for the emergency.
2 portable powder fire extinguishers are deployed in every inverter cabinet and transfer box cabinet,
totally 20.
Portable powder fire extinguisher: 4Kg, MF/ABC4, fire rating is 2A
The holes is sealed with the cable deployment finished. The fire proof paint will be used within the
di t
distance off 1.5
1 5 m bboth
th sides
id off the
th cable
bl duct.
d t
5.3 Automatic alarm system
The automatic alarm system has a concentrated alarm mode. The controller could indicate the alarm
area and detected area, and control the fire jointly.
No specific fire protection control room, instead, the it is deployed in the central control room.
Chapter 6 Environment Protection

6.1 Land
We had planted the trees in the spaces of the site for the beauty and green.
6.2 Water
We take water from the well, the amount of the life water is very less, so it will not
bring any negative impact to the underground water.
The sewage amount is 0.6m/d( 219m/a), the floor dust, together with the waste will
be disposed and filled in the landfill site regularly. The panel will be cleaned by the
wet cloth without and addictives once every month, except in winter. The cleaning
water is 60 m3/a, which could be used for the plants and floor.
6.3 Noise
The noise level of the site is 60

6065dB(A), mainly from inverter and substation etc.
The equipment could be installed outdoor, in this way, the noise level could be
declined.
A4-3 - 58
You
Thank You
Address: No. 22, Wusi West Street,

Xining City, Qinghai Province
Post Code 810008
TEL: 0086 97 6306884
FAX: 0086 971 6304741
Web Site: www.qhsolar.com
A4-3 - 59
Speech on the Final Workshop and
Outcome Extension of ADB TA
Qinghai Renewable Energy
Development Project
Energy Bureau, Qinghai Provincial

Development and Reform
Commission
Distinguished guests,
Ladies and gentlemen,
I am delighted to be here and address the Final

Workshop and Outcome Extension of ADB TA
Qinghai Renewable Energy Development
Project. First of all, I would like to extend my
gratitude to ADB for its support and concern for
the development of renewable energy in Qinghai.
A4-3 - 60
In recent years, in the face of international
financial crisis, euro crisis and high fossil fuel
energy price,
price all nations are adjusting their
energy development strategies. We should step
up the efforts on renewable energy development,
vigorously promote energy conservation and
pollution reduction, increase energy efficiency,
andd enhance
h iinternational
t ti l energy cooperation
ti
for a green and low-carbon development.
Since the Renewable Energy Law of the Peoples

Republic of China was promulgated in 2005, National
Development and Reform Commission, Ministry of
Finance and other authorities have introduced a series
of promoting and supporting policies. In 2010, the
State Council made the decision to expedite the
development of seven strategic new industries,
including solar photovoltaic power generation industry.
Supported by relevant policies, Chinas renewable
energy
gy industry
y has witnessed great
g progress
p g with a
continuously expanding market size, remarkable
technology advances and improvement of industrial
strength.
A4-3 - 61
Qinghai is the best place for solar power
generation in the world. Qaidam region has a
large amount of desertified land and plenty of
sunshine for solar power generation, good grid
connection and transmission conditions and
con enient transportation
convenient transportation.
We plan that by the end of the 12th Five Year Plan

period, the solar power generating capacity will reach
over 4,000 MW, among which PV power generating
capacity is above 33,500
500 MW
MW, photo-thermal
photo thermal power
generating capacity is 300 MW, and the distributed PV
power generating capacity is 200 MW. By the end of
2011, the installed capacity of on-grid PV power
projects in Qinghai was 1,010 MW, accounting for
47.2% of the total installed capacity of China and
making Qinghai the province with the largest installed
capacity in China. In 2012, we plan to generate
another 1,000 MW of PV power.
A4-3 - 62
Inlight of present development, we can
summarize the characteristics of solar PV
generation as follows: 1, diversified technology
and developing trends. Different technologies
are competing with each other and this will help
drop the cost. 2, growing economic advantages.
Atpresent, solar power generation is still in the

early phases of development with fast cost drop
and technology advances. As the market size
grows, the cost of power generation will drop
continuously and the competitiveness will
increase markedly
markedly.
A4-3 - 63
3, solar power generation will gradually change
its role from supplementary energy to alternative
energy. With its growing economic and
technological advantages, solar power
generation will enter the phase of large-scale
development and become another important
way off power generation
ti after
ft hhydropower,
d
thermal power and wind power generation.
ADB provides technical assistance to the

renewable energy development in Qinghai
Qinghai. This
is an important step Qinghai has made in its
international cooperation on solar power
generation. Qinghai has great potential in
renewable energy development and great
promises
i ffor iinternational
t ti l cooperation.
ti
A4-3 - 64
At present, solar power generation is faced with the
problems of large-scale grid connection and operation.
Technologygy and standards on g grid connection of new
energy power still need further study. We hope that
ADB will give us concern and support as always and
Chinese enterprises will actively participate in the R&D
and cooperation on international energy technology to
promote the sound and sustainable development of
renewable
bl energy. AAndd fifinally,
ll I wishi h th
thatt th
the workshop
k h
can attain the results expected.
Thank you!
A4-3 - 65
Prospect of ADB TA Haixi Renewable
Energy Development Project
Bureau of Energy, Haixi Prefecture

August, 2010
Contents
I. Overview of Haixi Prefecture
II. Overview of Renewable Energy in Haixi Prefecture
III. Current Status of Renewable Energy in Haixi

Prefecture
IV. Prospect of ADB TA Haixi Renewable Energy

Development Project
A4-3 - 66
I. Overview of Haixi Prefecture
H i i Mongol
Haixi M l andd Tibetan
Tib t Autonomous
A t P
Prefecture
f t li
lies att th
the north
th off th
the Qi
Qinghai-Tibet
h i Tib t Plateau
Pl t andd eastt off Qinghai
Qi h i
province. It is the largest ethnic autonomous prefecture in Qinghai with an area of 300,900 k, covering 41.7% of the
total area of the province. It is named Haixi because its location on the west of Qinghai Lake. The major part of its
land is the Qaidam Basin, one of the four largest basins in China, therefore, Qaidam is used to refer to Haixi Mongol
and Tibetan Autonomous Prefecture.
A4-3 - 67
Map off Key Function
i Zones in
i Qinghai
Qi i Province
i
Haixi Prefecture is important for the economic development of Qinghai province. Supported by
the circular economic pilot zone and its superior resources, Haixi strives for the leap-forward
development of economic and social transformation and greater contribution to the development
of Qinghai by achieving three-leads and three-breakthroughs in the province.
Haixi prefecture governs two country-

country-
level cities: Delhi and Golmud;
Golmud; three
counties: Dulan,
Dulan, Ulan and Tianjun;
Tianjun; three
administrative committees: Da Qaidam,
Qaidam,
Lenghu,, and Magnnai.
Lenghu Magnnai. It has a total of 35
townships, 8 street offices, 304
administrative villages
villages, 77 district
neighborhood committees and a
population of 639,000.
A4-3 - 68
Qaidam circular economy pilot zone is the
largest among the first 13 circular
economy pilot industrial parks in China. It
is the key area in Qinghais strategy of
promoting new type of industrialization,
the characteristic and competitive
industrial base for the Great Western
Development and one of the national
sustainable development experimental
zones.
In the first half of 2012, the prefecture has
achieved a total economic output of 25.79
billion yuan with a year-on-year growth of
16.3%. In the first 7 months, it has
achieved an industrial added value of
24.04 billion yuan with a growth of 17.6%,
and a total investment in fixed assets of
25.64 billion yuan with a growth of 100%.
II. Overview of Renewable Energy in Haixi Prefecture
Haixi prefecture has rich energy resources, including hydro power, wind power, and solar
power resources. Its average altitude is about 3,000 m and it has an unique climate with not
distinct four seasons, strong insolation , dramatic daily temperature swings and perennial
drousght, wind and small rainfall. It belongs to the typical plateau continental climate with its
annual average temperature of -5.65.2, annual average rainfall 16.7487.7 mm and
annual average evaporation 1353.93526.1 mm.
A4-3 - 69
Hydro power
Haixi has a total of over 160
rivers that cover about 500
k and about 40 rivers have
water throughout the year.
Th volume
The l off water
t
resources is 11.655 billion m,
among which 5.269 m comes
from the pilot zone.
Wind power
Haixi has relatively rich wind power. Influenced by land forms and altitudes,
the average wind speed inside the basin is 3m/s4m/s, and the average wind
speed in hilly area is above 4m/s. There are 12-168 days that have high wind
above level 6.
Haixi prefecture has strong

insolation and long sunshine
duration with an annual average
sunshine duration in Qaidam of
Solar Power over 3,000 hours, 3,200 hours in the
west of the basin, about 2,900 hours
sunshine duration total solar radiation in the hilly areas. The month with
Tibet 31003400 No.1 in China the longest sunshine duration is May,
Qinghai 25003650 No.2 in China and the shortest are from December
to next January. The percentage of
The total amount of annual solar radiation
Resource Abundance sunshine is over 70%, except in Ulan,
Unit: kWh/m2 Unit: MJ/m2
Xiangride and other areas that are
1750 6300 Most abundant blocked by hills and trees, and it
14001750 50406300 Quite abundant
reaches 74%in the highest Lenghu
area. The annual sunshine radiation
10501400 37805040 Abundant is 6618.3MJ/m27356.9MJ/m2.
<1050 <3780 Not so abundant
A4-3 - 70
Qaidam basin is the area with the richest solar resources in Qinghai province and Lenghu, Magnnai and Golmud
are the areas with the richest resources in Haixi prefecture.
Solar energy resources increase from east to west in Haixi prefecture.
III. Current Status of Renewable Energy in Haixi

Prefecture
A4-3 - 71
In 2011, 44 new energy projects with a total installed capacity of 1118.5
MW were under construction in Haixi prefecture, among which 40 were
PV projects, 3 wind power projects, and 1 photo-thermal project. 40 PV
power ggeneration p
p projects
j were completed
p with an installed capacity
p y of
913 MW and a fixed investment of 12.6 billion yuan. The estimated
annual average power generation is 1.5 billion KWHs, saving 525,000
tons of standard coals that are equivalent to reducing 15.3 million tons of
CO and 58.8 tons of SO.
Within only one year, Haixi claimed the title of five first in the world:
the area with the most concentrated solar PV installed capacity, the
largest PV power station under construction, the largest installed
capacity of PV power stations within a short period in the same area, the
largest on-grid PV system under construction and the first million KW
class on-grid PV power station in the world.
By the end of Jul, 2012, the constructed PV projects have

generated 667 million KWHs of electricity.
In 2012, 31 PV power generation projects are under construction
in the prefecture with a total installed capacity of 829 MW,
among which 2 are continued wind power projects, 2 newly
started projects, 1 continued photo-thermal project, 1 newly
started science and technology demonstration photo-thermal
project. The total installed capacity of PV power projects in the
prefecture is 720 MW, accounting for 72% of that of Qinghai
province. It is estimated that these PV projects can have an
annual power generationi off 1.08
1 08 billion
i i KWHs, saving i 378,000
3 8 000
tons of standard coals that are equivalent to reducing 11.01
million tons of CO and 42.33 million tons of SO.
A4-3 - 72
IV. Prospect of ADB TA Haixi Renewable Energy
Development Project
Favorable Factors for ADB TA Haixi

Renewable Energy Development Project
The largest circular economy pilot zone in China
The market potential for solar power utilization
Unique geographical advantages
A4-3 - 73
Program for Haixi Renewable Energy
Development
2010-
2010-2020
2020
Solar Power
According to the principles of overall planning and all-round consideration,
appropriate concentration, reasonable distribution, step implementation and
conduciveness to the long-term development and in accordance with the National
Renewable Energy Law, National Program for the Medium and Long Term
Development of Renewable Energy, Report of the Planning of the Ten Million
Kilowatts Class PV Power Base in Qaidam Basin of Qinghai Province, and the
Planning of the Solar Power Generation Base in Qaidam Basin of Qinghai
Province 31 on-grid PV power stations are planned to be built with a fixed
Province,
investment of 62 billion yuan and a total installed capacity of 20,000 MW,
accounting for 7 of the theoretically explorable installed capacity in Qaidam
basin and covering 1,817 k. It is planned the total installed capacity of solar
power generation base in Qaidam basin will reach 4,000 MW by 2015, 10,000
MW by 2020, and 20,000 MW by 2030.
Program for Haixi Renewable Energy

Development
2010-
2010-2020
2020
Wind Power
According to the Report of the Engineering Planning of the Wind Power

Plants in Qinghai Province, 21 wind power plants are planned to be built
in Haixi with a total installed capacity of 7,700 MW and a total
investment of 77 billion yuan. It is planned that the installed capacity
will reach 350 MW by 2015 and 650 MW by 2020. The Engineering
Planning of the Wind Power Plant in Qinghai Province is now under
revision to expand the wind power plants in Haixi to 24 and the installed
capacity to 650 MW by 2015 and 2,000 MW by 2020.
A4-3 - 74
Objectives of Development of Renewable Energy in
Haixi Prefecture
Duringg the 12th Five Year Plan pperiod,, Haixi pprefecture will
continue to depend on its rich solar energy and land resources, seize the
opportunity to develop new energy with national and provincial support,
and speed up the construction of solar power projects to build Qaidam into
the largest solar power generation base in China with a total installed
capacity of 4,000 MW by the end of the 12th Five Year Plan period.
During this period, Haixi will continue to speed up the utilization of wind
power, seize the opportunity to develop new energy with national and
provincial
i i l supportt andd steadily
t dil promote t the
th construction
t ti off wind i d power
projects to achieve a total installed capacity of 650 MW of wind power
projects by the end of the period.
Conclusion
New energy industry is one of the six pillar industries in

Haixi prefecture and the driving force for Haixis
sustainable development. By making the best of
international loan, subsidy and carbon reduction funds, we
can better promote the renewable energy industry and
increase the scientific and technological level of the region
region.
Finally, we believe that with our concerted efforts, the
renewable energy in Haixi will embrace a promising future!
A4-3 - 75
Thank you!
A4-3 - 76
Final Report Seminar and Workshops
APPENDIX 5
SEMINAR AND WORKSHOPS

SEMINAR AND WORKSHOPS
1. Seminar
(1) Schedule
April 27, 2011 and April 28, 2011, in Xining, Qinghai Province, PRC.
(2) Program
Table 1-1 Program of the Seminar

Time Details Speaker
09:00 - 09:30 The Opening Remarks Qinghai Prov.
ADB (Mr.Yamama)
NEWJEC
09:30 - 09:45 Tea Break -
09:45 - 10:45 Integrated Control Technology for a Large-scale Photovoltaic NEWJEC (Mr.Tanaka)
System in Xining
10:45 - 11:45 Introduction of the Mega Solar grid connected NEWJEC (Mr.Shiraishi)
11:45 - 13:30 Lunch -
13:30 - 14:30 The Latest Technology of Solar Radiation Evaluation NEWJEC (Mr.Nakazawa)
14:30 - 15:30 The Financial Assessment of PV Power Station NEWJEC (Mr.Nishida)
15:30 - 15:45 Tea Break -
15:45 - 16:45 Q & A and Todays Review NEWJEC (Mr.Shiraishi)
16:45 - 17:00 The Closing Remarks and Information of the Site Visit NEWJEC
28 April, 2011
Time Details Speaker
09:00 - 09:30 Transportation to the Site -
09:30 - 11:30 Site Visit (300kW PV System) NEWJEC (Mr.Tanaka/Mr.Yagi)
11:30 - 12:00 Transportation -
12:00 - 13:00 Closing and Lunch -
A5 - 1
Seminar and Workshops Final Report
(3) Presentation Material
Seminar presentation papers were attached in the Appendix.
1) Integrated Control Technology for a Large-scale Photovoltaic System in Xining,

Presented by
2) Introduction of the Mega Solar grid connected
3) The Latest Technology of Solar Radiation Evaluation
4) The Financial Assessment of PV Power Station
2. Interim Workshop
(1) Schedule
December 12, 2011, in Xining, Qinghai Province, PRC.
(2) Program
Table 2-1 Program of the Interim Workshop

Time Contents Speakers
09:30 - 10:00 Seminar Commencement Mr. Liu Feng
Representative Introduction Mr. Liu Feng
Aims of the Meeting Mr.YukaoTanaka, Project Director
Opening Speech Director of Financial Bureau in Qinghai
Province
Group Picture Mr.Zhang Zhimin-Managing Director of
Qinghai New Energy Group
10:00 - 10:20 Tea Break All Participants
10:20 - 11:20 Interim Progress made, Results and existing issues NEWJEC (Mr. Tanaka)
11:20 - 12:00 Making Comments referring to above situation Officials from Energy Bureau of Qinghai
Province
12:00 - 13:40 Lunch All Participants
13:40 - 14:20 PV Industrys Trend and Market Prospective in China Mr. Wu Dacheng
-Secretary General from China Renewable
Energy Committee
14:20 - 15:00 Designs of Large-Scale Integrated PV Plants in Qinghai NEWJEC (Mr.Nakazawa)
Province
Evaluations on PV Systems in Golmud
15:00 - 15:20 Tea Break
15:20 -16:00 Financial Study of PV Industry NEWJEC (Mr Nishida)
16:00 - 16:40 Grid Protection and Low Voltage Ride Through NEWJEC (Mr.Matsukawa
Technology in Japan
16:40 - 17:20 Inverter Technology in China NEWJEC (Guanya Power Equipment)
17:20 - 17:50 Exchange in China-Japanese Grid-connected All Participants
Technology and Devices Applications
17:50 - 18:00 Conclusions and Closing Remarks Mr. Liu Feng
18:00 - 19:30 Dinner All Participants
A5 - 2
Workshop presentation papers were attached in the Appendix.
1) Interim Progress made, Results and existing issues

2) PV Industrys Trend and Market Prospective in China
3) Designs of Large-Scale Integrated PV Plants in Qinghai Province
4) Evaluations on PV Systems in Golmud
5) Financial Study of PV Industry
6) Grid Protection and Low Voltage Ride Through Technology in Japan
7) Inverter Technology in China
3. Final Workshop
(1) Schedule
June 14, 2012, in Xining, Qinghai Province, PRC
A5 - 3
Seminar and Workshops Final Report
(2) Program
Concerning the Panel Discussion, the speakers and panelists will consist of two
moderators, two experts from ADB, one panelist from Energy Bureau, one
panelist from Electric Company, one panelist from EA, one panelist from IA and
two panelists from the Consultant.
Totally 10 persons will join the Panel Discussion and speaks.
Table 3-1 Program of Final Workshop

Time Contents Speakers
Director Liu Feng announces the opening Mr. Liu Feng
Director Liu Feng introduces the guests of China and delivers a Mr. Liu Feng
speech
9:30-10:00 Project Team Leader of the Consultant introduces the consultant Mr. Shiraishi
experts and delivers a speech
Energy Expert of ADB delivers a speech Mr. Yamamura
Department Head Wang or Director Liu Feng deliver a speech Mr. Mr. Liu
10:00-10:20 tea break and photo session
Project expert (the Consultant) state the research history and
10:20-11:00 The Consultant
achievements
11:00-11:40 Q & A regarding above session
11:40-12:20 Presentation from IA (QBE) about the QBE's 10 MW Pilot PV Project QBE
12:20-14:00 Lunch
Lecture about policies ,direction and outlook of RE from the Energy Energy Bureau of
14:00-14:30
Bureau of QHPDRC QHPDRC
Presentation on situation and problems of Haixi prefecture RE by
14:30-15:00 Haixi Energy Bureau
Haixi Energy Bureau
15:00-15:30 tea break
15:30-17:00 Panel Discussion on actual problems and solation of PV industries
Communication between Panelists and Audience, and release a
17:00-17:30
press
17:30-17:50 Evaluation and summary of the project
17:50-18:00 Conclusions and deliver a closing speech Mr. Liu Feng
18:00-19:30 Dinner
Workshop presentation papers were attached in the Appendix.
1) PPT Presentation of the Final Report

2) 10MW Integrated PV Station of Golmud City
3) Speech on the Final Workshop and Outcome Extension TA Qinghai Renewable
Energy Development Project
4) Prospect of ADB TA Haixi Renewable Energy Development Project
A5 - 4
Renewable Energy Development Appendix 6 Registered Companies and Applied Projects of
Final Report Qinghai 930 Projects in Haixi Prefecture
APPENDIX 6
REGISTERED COMPANIES AND APPLIED

PROJECTS OF QINGHAI 930 PROJECTS
IN HAIXI PREFECTURE
Registered Companies and Applied Projects of Qinghai 930 Projects
in Haixi Prefecture
Final Report
Planned total
No. Project owner New capacity Project f or 1.15 electricity price Location
capacity
2 Yellow River Upper Reaches Hydropower Development Co., Ltd. 200 1000 200 Golmud
3 Guodian Power Qinghai New Energy Project Preparatory Of f ice 10 200 10 Golmud

5 Beijing Beikong Green Science and Technology Industrial Co., Ltd. 20 50 20 Golmud
9 Qinghai Project Preparatory Of f ice of Datang Shandong Branch 20 20 20 Golmud
10 Huaneng Golmud Photovoltaic Power Generation Co., Ltd. 30 200 30 Golmud
12 China Huadian Photovoltaic Power Generation Co., Ltd. 10 10 10 Golmud
13 Zhejiang Zhengtai Solar Energy Science and Technology Co., Ltd. 20 20 20 Golmud
A6 - 1
15 Shengguang New Energy Co., Ltd. 2 20 1+2 = 3 Golmud
16 Qinghai Datang International Energy Project Preparatory Of f ice 20 20 20 Golmud
Appendix 6

19 Qinghai Provincial Development and Investment Co., Ltd. 2 2 2 Golmud
20 Yellow River Upper Reaches Hydropower Development Co., Ltd. 30 50 30 Ulan
21 CEC Solar Energy Co., Ltd. 10 10 10 Da Qaidam
760
(including 45MW at Golmud
Total 705 2582
and 10MW at Xitieshan
Qinghai 930 Projects in Haixi Prefecture
Registered Companies and Applied Projects of
already connected to grid)

Prepared by NewJec, Inc., Japan
For Qinghai Provincial Financial Bureau

Qinghai Brightness Engineering Co., Ltd

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Technical Assistance Consultants Report

Project Number: 44016

Peoples Republic of China: Renewable Energy

Asian Development Bank

CHAPTER 2 ADVANCED TECHNOLOGY FOR GRID-CONNECTED SOLAR PV SYSTEMS

CHAPTER 3 CAPACITY DEVELOPMENT IN THE PLANNING, DESIGN, CONSTRUCTION,

3.2 Capacity Assessment of the Implementation Agency ............................................. 3 - 12

CHAPTER 4 REVIEW OF GRID CONNECTIVITY OF MW CLASS SOLAR PV SYSTEM

CHAPTER 5 ECONOMICS OF SOLAR PV POWER PLANT

CHAPER 6 POLICY NOTE, KEY FINDINGS, AND RECOMMENDATION

6.2.3 Solar PV based Micro-grid System Development: Another Pathway for

Table 2.1-1 Impacts on the Grid and Measures ....................................................................... 2 - 5

Table 3.1-1 Verification Items ................................................................................................... 3 - 6

Table 5.1-1 Cost Estimate of 10 MW Pilot Project ................................................................... 5 - 3

Table 6.3-1 Program of the Seminar ........................................................................................ 6 - 8

Fig. 2.5-11 Sensitivity Analysis ................................................................................................ 2 - 59

Fig. 3.1-1 300kW Grid-connected Solar PV System ............................................................. 3 - 2

Fig. 3.4-13 Condition of a Melting Pot before Deformation (Image) ....................................... 3 - 40

Fig. 4.1-1 Schematic Diagram of Arrangement of 110kV Outgoing Line Bays

Fig. 6.1-1 Solar PV Diffusion Scenario till 2020 .................................................................... 6 - 2

Currency Unit Chinese Yuan (CNY)

ADB Asia Development Bank

PRC The Peoples Republic of China

USD United States Dollar

1. The main objective of the TA is to enhance the capacity of grid-connected solar

3. Qinghai Province, which is located in the northeastern part of the Qinghai-Xizang

4. The installed capacity of grid-connected solar PV systems in Qinghai Province

5. The TA report is composed of (i) advanced technology for grid-connected solar PV

II. ADVANCED TECHNOLOGY FOR GRID-CONNECTED SOLAR PV SYSTEMS

6. Grid Stability and Safety

7. High Voltage Direct Current (HVDC) Transmission

8. FRT, Power Conditioner, and MCM

9. Good Practice of Grid-Connected Solar PV System in Qinghai

300 kW Grid-connected solar PV system in Xining, Qinghai province consists of i)

v) Monitor and control system

Monitor and measuring device

CHP CHP INV

ii) Output power stabilizing Load

This pilot grid-connected solar PV power plant testified technology useful in

III. TECHNICAL GUIDANCE FOR PILOT 10 MW GRID-CONNECTED SOLAR PV SYSTEM

10. Solar Resource Assessment, Tilt Angle, and Electricity Yield

11. Inverter Capacity

12. Transformer Capacity

13. Lightning Protection

14. Reactive Power Absorption

15. Wiring between Modules

16. Direct Current Protection

17. Short Circuit Current Protection at Substation

18. Spare Parts Stocks for O&M

Exchange number / month

IV. GRID CONNECTIVITY OF MW CLASS SOLAR PV SYSTEM

19. Power Grid in Golmud, Qinghai

Current 330 kV transmission capacity is no longer sufficient enough to

Six (6) PV power plant companies

20. Improving Performance of FRT Function

Grid-interconnection code in many developed countries requires for a solar PV

Requirement on LVRT*1 level recovery time

[%] Required time and voltage

0.0 0.5 2.0 [Sec]

21. Block Diagram of Control System

Vdc / Idc Vout / Iout / Fout

*1 : Maximum Power Point Tracking

V. ECONOMICS OF 10 MW CLASS GRID-CONNECTED SOLAR PV POWER PLANT