Power Sector Transition in Inner Mongolia

Introduction

Inner Mongolia, on its own, contributes nearly 10% to the total operating capacity from coal power in China, making it the province with the highest coal-operating capacity. The total prospective capacity from coal power plants takes up almost 7% of the national total, ranking as the third largest province with coal projects in the pipeline.

Meanwhile, Inner Mongolia boasts tremendous potential for solar and wind energy. Its deserts and sandy lands make ideal locations for solar and onshore wind installations. In 2023, Inner Mongolia led all Chinese provinces in three records: the highest new installed capacity, accumulative capacity, and electricity generation from renewable energy sources in the country.

Solar panels near Dalat, Inner Mongolia create the largest solar graphic in the world. It's called "Junma," meaning "fine horse." Via Global Times courtesy of the State Power Investment Corporation Nei Mongol Energy Co

Near Dalat, people are working to construct what will be the largest desert solar plant in the world: the Dalate Banner "Lead from the Front" solar farm, which is expected to cover 58,000 hectares. In 2023, the structure already covered 3,300 hectares. When completed, the whole complex will include 8 GW of solar, 4 GW of wind, and 4 GW of coal-fired generation, plus storage. Collectively know as Kubuqi Base, the project is just one of 225 bases being built across northern and western China, which are planned to provide 455 GW of power (60% solar, 40% wind).

The electricity generation in Inner Mongolia significantly surpasses the province's own demand. Over the past 18 years, the exportation of electricity generation has consistently ranked as the highest in the country. As a result, electricity is transmitted across the country, reaching regions such as North China, Northwestern China, Eastern China, and Northeastern China.

In places like Wuhai City land that was once used for coal mining are being repurposed for solar. However, coal plants and mines are still being rapidly approved in the region overall.

Current System Description

Current Power Capacity Mix

Energy Source	Installed Capacity(MW)
Coal	113,722 MW
Gas	350 MW
Hydropower	3,040 MW
Solar	17,029.7 MW
Onshore Wind	50,652.2 MW

Prospective Power Capacity

Energy Source	Announced	Pre-construction	Construction
Coal	6,000 MW	5,190 MW pre-permit; 5,280 MW permitted	11,240 MW
Gas	-	-	55MW
Hydropower	2,100MW	3,800MW	2,400MW
Solar	27,244MW	14,701MW	10,989MW
Onshore Wind	7,820MW	42,748MW	38,521.5MW

Renewables in Inner Mongolia

In 2022, Inner Mongolia published its "14th Five Year Plan on Renewable Energy", expecting the renewable energy installed capacity will reach 135GW in 2025, exceeding the coal-fired installed capacity in the province, and will contribute to 35% of the total electricity generation in the province. Among the renewable energy installed capacity:

• Wind: 89GW by 2025 - 4GW will be from distributed wind projects located in border areas and Gobi deserts
• Solar: 45GW by 2025 - 6GW from distributed solar, 2GW from Desertification Prevention Project, incorporating photovoltaic technology, and 5GW from retired coal mine areas.
• Biomass: 600MW by 2025.

In November 2023, Inner Mongolia published the policy paper "Doubling New Energy Sources Action Plan"(自治区新能源倍增行动实施方案). In the policy paper, energy targets are listed in the following table:

	2022	2025	2030
1. Installed Capacity
1.1 Installed Capacity % from New Energy Sources	36.5%	50%	65%
1.2 Wind Installed Capacity(MW)	45,680	98,000	180,000
1.3 Solar PV Installed Capacity(MW)	15,580	52,000	120,000
2. Electricity Generation
2.1 Wind Electricity Generation(TWh)	107.7	220	395
2.2 Solar PV Electricity Generation(TWh)	24.5	70	195
2.3 Local Consumption from New Energy Sources(TWh)	102.9	200	400
3. Grid Flexibility Supports
3.1 Solar Thermal Installed Capacity(MW)	100	300	1,000
3.2 Pumped Storage Hydropower Capacity(MW)	1,200	1,200	8,000
3.3 Battery Storage Capacity(MW)	590	10,000	20,000

Renewable Targets

Baotou City

	Solar	Wind	Pumped Storage Hydro	Battery Storage	Notes
Potential	28GW	37GW
2025 Target	4GW	10GW	1.2GW	2GWh	9 billion RMB output value

The potential capacity of solar and wind in Baotou City is 28GW and 37GW, respectively. The city government mentioned in its 14th five-year plan that by 2025, it is expected to have 4GW installed capacity from solar and 10GW from wind, creating an output value of 9 billion RMB ($1,245,985,200 USD). Furthermore, there will be an integrated energy system using solar, wind, hydrogen, and storage capacity.

Other infrastructure and storage capacity are under preparation to support the penetration of renewable energy. This includes the 500kV new transmission line across Daqing Mountain to transmit from several fossil fuel power plants to help with peak-shaving, the planned 1.2GW Meidaizhao pumped storage hydropower station, and new energy storage capacity of 2GWh.

Wuhai City

	Solar	Wind	Pumped Storage Hydro	Battery Storage
2023	780.6MW	26MW
2025 target	1,700MW	500MW	1,200MW	200MW
2035 target	5,250MW	1,250MW	2,400MW	600MW

In 2023, the city has installed 750MW from centralized solar projects, 30.6MW from distributed solar projects, and 26MW from distributed wind projects.

According to the 14th Five-Year Plan published by Wuhai City, installed capacity from renewable energy sources will reach at least 5580MW by 2025, accounting for more than 50% of the city's installed capacity mix.

Wuhai City has unveiled its energy plan for the period 2020 to 2035. According to the plan, the installed capacity from renewable energy sources will surpass 2,200 MW by 2025. Among these capacities, 1,300MW will be derived from centralized solar projects, 200MW from distributed solar projects, 200MW from solar projects on agricultural facilities, and 500MW from wind energy. By 2035, the renewable energy sources in the city are expected to exceed 6,500MW, with 4,750MW coming from centralized solar, 500MW from distributed solar, and an energy storage capacity of 600MW.

The government also aims to repurpose lands to expand renewable energy. By 2025, 350,000㎡ coal mining subsidence to construct solar power stations totaling 1,300MW. Additionally, a total of 1.95k㎡ suitable rooftop spaces, including agricultural facilities, will be utilized to build 200MW of distributed solar systems.

In support of the newly installed renewable energy, there are plans to achieve a 1.2GW pumped storage hydropower capacity by 2025 and 2.4GW by 2035, along with an energy storage capacity of 200MW by 2025 and 600MW by 2035. The city government has designated Ba Yin Tao Hai Town in the Hainan district as the location for a wind, solar, and storage integration system project.

In terms of the coal reduction plan, the average coal consumption for electricity is projected to drop to below 300g/kWh by 2025 and below 290g/kWh by 2035.

Other infrastructure initiatives include the concurrent construction of 500kV and 220kV transmission lines and substations to enhance the penetration of renewable energy.

Chifeng City

In 2022, Chifeng City had a total installed capacity of 6,605.5MW from renewable energy, the amount of fossil fuel sources and accounting for more than 50% of the city's energy capacity mix.

According to Chifeng City's 14th Five-Year Plan, the installed capacity of new energy sources, including renewable energy, will reach 12.6GW, and the electricity generation will reach 30.1 TWh

Tongliao City

By the end of 2020, the installed capacity from renewable energy in Tongliao City had reached 5,893MW, accounting for an increase from 41.6% in 2015 to 47.9% in 2020 in the city's energy capacity mix. Compared to the 2015 level, the installed capacity's share in the energy mix had decreased by 6.3%.

From the 14th Five Year Plan published by Tongliao City, the new energy sources, including renewable energy, will account for 63.4% of the energy capacity mix of the city by 2025, totaling 20,090MW.

Ordos City

In 2020, the city's total installed capacity was 26.120GW, accounting for more than one-fifth of the provincial total. Among that, 22,990MW from fossil fuel and 3,130MW from renewable energy. The total electricity generation was 124.2TWh, of that, 399Twh was exported to other provinces.

Renewable energy installations account for only 12% of the total power installations in 2020. The scale of photovoltaic installations increased by 1.53 million kilowatts compared to 2015, an increase of 3.7%. Renewable energy generation increased from 2,730 GWh in 2015 to 7,238 GWh in 2020, with its proportion rising from 3.7% in 2015 to 5.8% in 2020. In 2025, the installed capacity from renewable energy is expected to surpass 50%, and the electricity generation will account for more than 35%.

The capacity of advanced coal power units in the entire city has been continuously increasing, with the proportion of coal power installations above 600 MW reaching 27.6%, an increase of 14.5% compared to the end of 2015.

Renewable Energy Target	2020	2025(Target)
Renewable Energy Consumption	82.6TWh	112.4TWh
% of Renewable Energy Consumption	8.8%	>35%
Renewable Energy Installed Capacity	26,120MW	97,660MW
% of Renewable Energy Installed Capacity	12%	>50%

In 2025, the city aims to increase the installed capacity from renewable energy to 50GW, which will be more than 50% of the energy capacity mix of the city. Wind's installed capacity will be 10GW and solar will be 40GW. From these newly added capacities, 5.8GW of wind and 23GW of solar are planned to export to other provinces.

The integrated wind-solar-hydrogen-storage project plans to construct over 2 GW of new energy. There are several goals to be achieved by 2025:

• By 2025, achieve an installed capacity of more than 16 million kilowatts of renewable energy for the integrated wind-solar-hydrogen-storage project, with a green hydrogen production scale of 400,000 tons per year and a chemical by-product hydrogen scale of no less than 20,000 tons per year.
• The demonstration base for the integrated development of “green mines + new energy industry + modern agriculture and animal husbandry” will include 5 GW of solar PV.
• By 2025, an additional 140 MW of biomass power generation and waste incineration power generation capacity will be installed.
• By 2025, the capacity of energy storage power stations is expected to reach more than 10% of the new energy installed capacity.
• By 2025, demand-side response capability is expected to reach more than 3% of the maximum electricity load.
• By 2025, the total length of new transmission lines will be no less than 8,000 kilometers, and the total capacity of substation projects will be no less than 25,000 megavolt-amperes, forming a local 500-kilovolt "日" shaped main grid network.

Bayannur City

In the Notice on the Issuance of the "14th Five-Year Plan for National Economic and Social Development and the Long-Term Goals for 2035 Outline of Bayannur City", it stated to "Installing 10GW of renewable energy for solar and wind power at Urad Middle Banner and Urad Rear Banner".

Ulanqab City

Ulanqab City is rich in wind and solar energy resources. Currently, the exploitable wind power resources are approximately 29.8 GW, and the solar resources are about 56 GW, showing significant advantages and great development potential.

As of November 2023, the grid-connected power installation capacity in Ulanqab City is 18.206 GW. There are 167 completed and grid-connected wind and solar power projects with an installation capacity of 8.229 GW, ranking second in the region. There are 10 projects under construction with an installation capacity of 6.734 million kilowatts, including 6.095 GW of wind power and 639 MW of photovoltaic power, all planned to be completed and connected to the grid this year.

Potential of Renewables

Inner Mongolia shows high potential for both wind an solar projects. Image source: Wang, Y., Chao, Q., Zhao, L. et al. Assessment of wind and photovoltaic power potential in China (2022). Via Bloomberg.com

Thirty years ago, sandstorms ravaged places like the Kubuqi desert, electricity was largely unavailable, and shepherds, unable to grow much in the desert soil, were living in extreme poverty. Today, under the shade of solar panels, all of these issues are beginning to be alleviated. PV panels not only shade plants from excessive sun, but cut ground wind speeds by 50%. Where there was once just desert sand, Mongolian milk vetch, jujube trees, forage for cattle and sheep, and local shrubs have grown and invited birds and other small animals.

Potential impacts from renewables expansion

Desertification poses a significant environmental challenge in Inner Mongolia, and the adoption of solar PV offers a solution to mitigate further evaporation and facilitate vegetation regeneration in the region. Consequently, numerous solar projects are being planned to integrate with ecological governance initiatives, such as establishing solar farms on sandy lands or farmlands to facilitate irrigation support.

Projects like the Inner Mongolia Kubuqi 2000 MW Desert Control solar power plant can power 1.1 million homes, but also take up a massive amount of land; just this one project takes up 20 times the space of Central Park in New York City, and the project is one of 225 similar bases being built across China.

The mining of "rare earth minerals" in the region, fueled by coal, has also created toxic air and water quality in Inner Mongolia. Baotou City is the global capital for rare earth elements, which are crucial for renewable energy technologies like solar panels. As global demand for these materials continues to expand, the heavily-polluting industry has expanded with it. Cancer rates are reportedly skyrocketing to 30 or 40% in nearby villages, and the government has been relocating villagers in the area, banning them from farming on the now tainted land. The government has also made promises to improve the water quality, but locals have not seen action. A massive tailings pond full of industrial waste continues to leach toward the Yellow River.

Fossil Fuel in Inner Mongolia

Fossil Resources and Retirement

In April of 2023, the Chinese government announced plans for 4.75 billion tons of coal production. Despite this, GEM's Coal Plant Tracker has idenfitied 2,400 MW of retired coal power in Inner Mongolia.

List of retired power plants/units in 2024:

Power Plant	Retired Capacity	Retired Year	Note
Baotou-1 power station	350	2006(unit 4), 2008(unit 6), 2009(unit 5), 2018(unit 7)	Other four units in operation
Baotou-2 power station	350	2007(unit 3,4 ,5, 7), 2010(unit 8)	Other four units in operation
Chifeng Yuanbaoshan power station	300	2011(Phase 1, unit 1)	Other three units in operation
Fengzhen power station	400	2012(unit 1 & 2)	Other four units in operation
Haibowan power station	200	2007(Phase 1, unit 1 & 2)	Other four units in operation
Hohhot power station	100	2011(Phase 1, unit 5 & 6)	Other four units in operation
Hongjun Aluminum power station	100	2015(Phase A, uni 1 & 2)	Other eight units in operation
Huaneng Wulashan power station	250	2007(Phase1 , unit 1 & 2), 2010(Phase 2, unit 3)	Other two units in operation
Xing'an Copper-Zinc Smelter power station	100	2022(unit 1 & 2)	Plant retired completely
Zhunger power station	250	2013(Phase 1, unit 1 & 2)	Other four units in operation

Current impacts from fossil fuel

Local Impacts

While wind and solar are making strides in Inner Mongolia where the sun and wind are a constant presence, coal isn't going anywhere. In 2022 China approved the construction of new coal-fired power plants that would total 106 GW; compared to 2021, this was a fourfold increase. New mines are also constantly being approved, and in Inner Mongolia the industry has left the region with open pit mining craters and desolation of surrounding environments. The effects of these activities have caused widespread degradation: since 2019, approximately 62.24 million km² of land has experienced desertification in Inner Mongolia, in addition to widespread water pollution and wealth inequities.

In addition, mining remains a dangerous industry in China, with accidents happening frequently. In 2022, 245 people died in 168 accidents. Safety measures or often neglected. In 2023, a mine collapse in Inner Mongolia killed 53 people.

For thousands of years, nomadic pastoralists have grazed their animals on the grasslands of the Mongolian Plateau. As industries like aluminum smelters built up (requiring the region's vast coal resources for power), sheep began falling ill, with jaws so painful they could not eat. Thousands died off. When local leaders complained, they were arrested while the rest had their homes demolished or so heavily polluted that they had to leave. The use of water for mining has caused hundreds of lakes to shrink or disappear altogether.

Employment

Current employment from the fossil fuel sector

In 2020, the total employment in coal extraction, the electricity sector, the steel industry, and the chemical industry amounted to 500,000 individuals. It's noteworthy that this figure represented less than 5% of the total employment in Inner Mongolia. Despite being a coal-exporting province, the relatively low employment number can be attributed to the fact that many coal workers are employed on a contractual basis and often hold multiple jobs.

In addition to the electricity and mining sectors, coal is being used to power cryptocurrency operations. In 2021, 35 crypto facilities were shut down which may have freed up to 5.2 billion kilowatt-hours of electricity per year, or over 1.6 million tons of standard coal.

Prospective employment from the renewable energy sector

From Inner Mongolia's "14th Five-Year Plan on Renewable Energy", the renewable energy industry, including the generation sector and upstream and downstream supply chains, can create up to 500 thousand employment opportunities for the locals.

Land availability

Photovoltaic Desertification Control Project

Desertification poses a significant challenge in western China. In 2015, the Chinese government launched the Photovoltaic Desertification Control Project. This project involves installing solar panels on desertified land, reducing evaporation by 20% to 30%, and creating a suitable environment for vegetation to thrive. Implementing this project can curb further desertification and improve the efficiency of solar energy. Overall, it's a mutual benefit for both solar energy expansion and ecosystem protection.

Until 2023, Inner Mongolia reutilized 120km2 of desert area to install photovoltaic panels, contributing 5,200MW of solar capacity. This included Photovoltaic Desertification Control Projects in the Kubuqi Desert, Ulanbuh Desert, Hunshandake Desert, and Horqin Sandy Land.

The Inner Mongolia 14th Five-Year Plan has listed the goal of the Photovoltaic Desertification Control Project in the province:

1. By 2025, reutilize 427 km2 of sandy land to generate 21,400 MW of solar PV capacity.
2. By 2030, reutilize 1,534 km2 of sandy land, providing 89,000 MW of solar PV capacity.

Land from shelved and monthballed coal mines may be repurposed for renewable energy development. Current land use for all phases of coal mines in Inner Mongolia is summarized below based on GEM's Coal Mine Tracker:

• Shelved: 46.05 km²
• Mothballed: 200.46 km²
• Operating: 5,380.22 km²
• Proposed: 4,332.66 km²

Photovoltaic in Agricultural Sector

In agricultural regions like Tongliao and Chifeng, the government aims to repurpose degraded agricultural land totaling 18 km2 and non-irrigated farmland spanning 13 km2 for the development of Photovoltaic and Irrigation projects. This initiative is projected to yield a solar panel installed capacity of 1,000 MW in the area.

Ecological Restoration for Retired Coal Mine areas Inner Mongolia's 14th Five-Year Plan includes deploying 5GW of solar installed capacity from restoration areas of coal mines. These retired coal mines are located in coal subsidence areas, open-pit coal mine spoil dumps, and other regions in Erdos, Tongliao, Wuhai, Alxa, Bayannur, Baotou, and other areas with stable geological conditions and good access conditions for developing solar projects. The aim of the plan is to promote the development of renewable energy and environmental protection in areas previously polluted by coal extraction.

Civil Society Engagement

In 2011 there was a rash of protests by ethnic Mongols over the pollution caused by coal mining operations in the region. A Mongolian herder in his 20's named Mergen tried to block a coal truck driving across pastrueland when he was run over by the Han Chinese truck driver and dragged nearly 150m (490ft) before he died. The truck driver was sentenced to death after protests were sparked by this tragedy. Later the same summer, a coal mine worker killed Yan Wenlong in Inner Mongolia with his forklift after Wenlong complained about pollution from a coal mine. Learn more at Global Energy Monitor's Inner Mongolia and Coal page.

Governmental information

Related governmental policies and papers

The Chinese government's plan is to relegate coal to a supporting role, moving from a baseload source to one that only runs when wind, solar, nuclear, and hydro have been exhausted. This scheme is called "coordinated operation" in the NRDC's 2023 development plan.

In addition, the Government of Inner Mongolia passed several pieces of legislation to support energy storage development, namely lithium batteries, redox flow batteries, compressed air energy storage, and flywheel storage systems. These policies established incentives for independent energy storage stations and adjusted electricity pricing to “create profit space for the development of energy storage.” Recently, the Government of Inner Mongolia issued a “Special Action Plan for the Development of New Energy Storage in Inner Mongolia Autonomous Region 2024-2025” which outlines plans to construct 10 GW of energy storage will begin construction in 2024, with an additional 11 GW in the pipeline to begin construction throughout 2025.

Energy Development Strategy Action Plan (2014-2020): Outlines low-carbon pathways that emphasize energy conservation and encourage energy security in China. Inner Mongolia is highlighted as a high-priority region for wind energy development, with plans for necessary associated infrastructure. Policy rollout and its successful implementation in Inner Mongolia is evidenced by the amount of wind currently in development (see “Renewables in Inner Mongolia”).

14th Five-Year Plan: The Plan is largely focused on hydrogen development, of which Inner Mongolia leads in investment in China (33 billion yuan in both 2020 and 2021). Announced in early 2022, it aims to support the development of hydrogen energy supply, construction of refueling stations, promotion of 5,000 fuel-cell vehicles, and support for a hydrogen supply chain along with the creation of an east-west hydrogen economic corridor. The Plan encourages renewable (wind and solar) buildout for direct electricity generation as well as hydrogen production. Ultimately, the Plan aims to increase hydrogen supply capacity to 1.6 million tons per year (with more than 30% produced using wind or solar, a.k.a “green hydrogen”), which will generated more than 100 billion yuan in total output value. Starting in January 2024, green hydrogen production is now able to be developed outside chemical industrial zones, though hydrogen produced through fossil fuels is still relegated to these specific areas.

The Plan also aims to support Inner Mongolia’s climate ambitions more broadly, outlining the 2025 targets (relative to 2020) that include:

• Reduce carbon intensity by 15%
• Create green financing options
• Have non-fossil fuel capacity reach more than 50% of installed capacity, and increase non-fossil to 30% of electricity generation
• Reach 271 GW of installed generation capacity with 135 GW coming from non-fossil sources
• Increase green hydrogen production to 500,000 metric tons

Moreover, coal, oil, and natural gas production will still increase by 1%, 0.7%, and 3.8%, respectively, by 2025 relative to 2020.

Relevant governmental ministries and political coalitions

Previous environment-focused projects funded by the Asian Development Bank involved several Province-specific groups and agencies, including the Inner Mongolia Autonomous Region (IMAR) Development and Reform Commission, the IMAR Finance Bureau, the IMAR Construction Bureau, and the IMAR Environmental Protection Bureau. In addition, the Energy Bureau of Inner Mongolia is generally the agency that issues approvals for new energy projects in the region.

Energy Foundation China has developed materials to support Inner Mongolia’s energy transition with government actors as the primary audience. These materials include a two-month training program focused on low-carbon pathways geared toward regulators and aspiring business leaders, studies that suggest specific policy and institutional mechanisms designed specifically for Inner Mongolia’s local context, communications training, and capacity building.

Transmission

Current transmission resources

In terms of transmission investment, China is a global leader and spent USD$80 billion on its power grid in 2023.

The largest UHVDC transmission project in the world, located in the Ordos grasslands of Inner Mongolia. Image Costfoto/NurPhoto via Getty Images. Accessed via IrishTimes.com

The electricity generation in Inner Mongolia significantly surpasses the province's own demand. Over the past 18 years, the exportation of electricity generation has consistently ranked as the highest in the country. As a result, electricity is transmitted across the country, reaching regions such as North China, Northwestern China, Eastern China, and Northeastern China. This transmission is made by the support of 11 extra high-voltage 500kV lines and 5 Ultra High Voltage transmission lines, with a total transmission capacity of 70GW. In 2022, the export generation reached 264TWh.

The grasslands in Ordos host the largest ultra-high voltage direct current (UHVDC) power transmission project in the world. The existing ultra-high voltage lines in the northern desert are underutilized, currently supporting mostly coal-generated electricity, so authorities plan to use the infrastructure to bring power to cities like Shanghai and Beijing. In addition to electricity being moved east, factories are beginning to move west to the hydropower-rich mountains.

New transmission needed for renewables

Inner Mongolia is constructing the 1000kV ultra-high voltage Zhangbei-Shengli transmission line and is aiming to operate by the end of 2024. The province has set the target for electricity exportation:

1. By 2025, one-third of the total electricity generation(equaling 100TWh out of 300TWH) from Inner Mongolia will be exported outside the province.
2. By 2030, one-third of the total electricity generation(equaling 200TWh out of 600TWH) from Inner Mongolia will be exported outside the province.

To accommodate the influx of newly generated renewable energy into the grid and meet the electricity demand of other regions, the following transmission lines are scheduled to commence construction or operation during the 14th five-year period:

1. Start the construction of 4 transmission lines, including Kubuqi to Shanghai, Jiangxi to Tengri, Ulanbuh to Beijing-Tianjin-Hebei, and Xilinguole line as soon as possible.
2. Start the operation of the West Inner Mongolia to the Beijing-Tianjin-Hebei transmission line.
3. Start planning two to four transmission lines through Kubuqi Desert, Ulanbuh Desert, Tengger Desert, and Badain Jaran Desert for the 15th Five-Year period.

Other than the ultra-high voltage transmission construction, several cities, including Baotou City and Ordos City, also announced the goal to build 500kV transmission lines to support renewable energy growth.

Supply Chain

Inner Mongolia boasts abundant silicon resources, which are utilized in the production of solar panels. This gives the province a significant advantage in developing the photovoltaic industry. Baotou City, also referred to as the "Green Silicon City" in China, stands out as the largest silicon-producing city in the country. Moreover, it aspires to become the world's leading hub for silicon industry production.

Currently, the production of Polycrystalline and Monocrystalline silicon from Baotou City ranks as the highest in China, accounting for approximately 25% and 30% of the national total, respectively. The city aims to increase its share further, targeting to produce over half of the national production total for Polycrystalline and Monocrystalline silicon by 2025. Due to its rich silicon resources, the city is forming a complete industrial chain, from polycrystalline silicon and monocrystalline silicon to solar wafers, solar cells, and modules.

From the province's "Doubling New Energy Sources Action Plan", Inner Mongolia has planned the production targets for its renewable energy supply chain:

1. Wind Industry: The wind power industry's comprehensive supporting capacity will reach 25GW by 2025.
2. Photovoltaic Industry: Monocrystalline silicon and polycrystalline silicon will reach 1.4 million tons, and the supply capacity of photovoltaic modules will reach 70 million kilowatts by 2025.
3. Hydrogen Energy Industry: By 2025, green chlorine production capacity will exceed 500,000 tons, and hydrogen production equipment capacity will reach 1,000 sets.
4. Energy Storage Industry: By 2025, the production capacity of energy storage equipment will meet the demand for installing 10GWh of energy storage capacity.

Ownership

Major owners of current fossil capacity

Top 10 owners of operating coal power plants

1. INNER MONGOLIA Datang International Tuoketuo POWER Generation owns 10 projects totaling 6,120MW.
2. HUA NENG Yimin Coal and POWER owns 6 projects totaling 3,400MW.
3. Guodian & Jiantou Inner Mongolia Energy Investment owns 4 projects totaling 2,640MW.
4. Jingneng (Xilinguole) Power Generation owns 4 projects totaling 2,640MW.
5. Daihai Electric Power owns 4 projects totaling 2,460MW.
6. Inner Mongolia Shangdu Power Generation owns 4 projects totaling 2,400MW.
7. InnerMongolia Jinlian Aluminum Material Limited [100%] 2380 5
8. Inner Mongolia Jingning Thermal Power [100%] 2020 4
9. Guodian Power Shuangwei Inner Mongolia Shanghaimiao Energy [100%] 2000 2
10. Inner Mongolia Changcheng Power Generation [100%] 2000 2
11. Shandong Energy Inner Mongolia Shenglu Electric Power [100%] 2000 2
12. State Energy Group Inner Mongolia Shanghaimiao Power Generation [100%] 2000 2
13. Inner Monglia Chuangyuan Metal [100%] 1980 6
14. Ordos Beijiao Thermal Power [100%] 1980 4
15. Inner Mongolia Erdos Electric Power [100%] 1960 10

Major owners of prospective renewables

The top three owners of operating solar projects:

1. The project owned by Alxa Fuquan Coal CO LTD[19%] and other[81%] are the highest operating projects 900.
2. Aohan Tongwei New Energy CO LTD[80%]; Aohan Banner State-owned Assets Management CO LTD[20%] 740.4
3. Asika[30%]; Tian Liqing[30%]; Zhou Jing[30%]; Niu Benxu[10%] 400

Together, they account for 12.14% of the total operating capacity.

The top three owners of solar projects in the pipeline are:

1. China Three Gorges Renewables (Group) CO LTD and Inner Mongolia Energy and Electric Power Investment Group Ltd own two projects totaling 8,000MW, representing 15.12% of the total.
2. Huaneng Group CO LTD Northern United Power CO LTD(53%), Ordos Municipality State Asset Group New Energy Development and Utilization CO LTD (44%), and Yuanjing (Envision) Energy CO LTD (3%) owns a 7,000MW project, representing 13.23% of the total.
3. China Tianying CO LTD owns a 4,000MW project, representing 7.56% of the total.

Onshore wind operating:

1. Huaneng New Energy CO LTD owns 15 projects totaling 1,676.5MW, accounting for 3.31% of the total.
2. Huadian New Energy Group CO LTD owns 13 projects totaling 1,453MW, accounting for 2.87% of the total.
3. China Guangdong Nuclear (Xing'an League) New Energy CO LTD owns 1 project with 1,000MW, accounting for 1.97% of the total.

Onshore wind in pipeline:

1. Inner Mongolia Huolinhe Open-Pit Coal CO LTD and Wulanchabu Energy Investment Development CO LTD own 7 projects constituting 6,000MW, 6.73%.
2. Shuimu Mingtuo (Baotou) Energy Management CO LTD owns 1 project 5,000MW, constituting 5.61%.
3. Inner Mongolia Energy Group CO LTD owns 5 projects totaling 4,594MW, constituting 5.16%

Finance

China spent USD$220 billion on solar PV in 2023 and is expected to spend approximately USD$680 billion on clean energy in 2024. About 60% of all energy assets are owned by the Government of China, and public finance is generally more prevalent in China than in other emerging and advanced economies.

In 2023, the total investment in renewable energy in Inner Mongolia exceeded 50 billion RMB. The province has announced its investment target for 2024, with a focus on pouring over 180 billion RMB into renewable energy development. Of this amount, 90 billion RMB will be allocated to equipment and infrastructure for renewable energy projects. However, a portion of the financing will also be directed towards the fossil fuel sector in the province to secure medium-term and long-term procurement contracts for fossil fuel sources.

Renewables funding in China. Via Dialogue.Earth

According to the "Doubling New Energy Sources Action Plan," the investment for renewable energy in 2022 was 500 billion RMB(around $75 billion). The provincial target is to reach a total investment of:

1. 950 billion RMB($ 142.5 billion) in 2025;
2. 1.5 trillion RMB($225 billion) in 2030.

Investments to decarbonize including renewables, nuclear power, electricity grids, energy storage, EVs, and railways) have surged. In the whole of China in 2023, investment rose 40% year-on-year; the country invested $890bn, which was nearly as much as total global investments in fossil fuels in the same year. In 2022 87 GW of solar was built, and that more than doubled to around 200 GW in 2023. However, since 2021 wind power projects no longer receive subsidies from the central government. At the same time, China's development banks did not provide any new green energy sector loans in 2021 or 2022. Most funding is coming from companies rather than banks.

Public and Private Investing:

The growing renewable energy production and installed capacity in China can be attributed largely to public and private investment. According to the World Bank, in 2022 $USD 327,400,000 was invested in electricity as well as natural gas transmission and distribution through public private partnerships. While significant, this is a huge drop from what was invested in years like 2013 where $3.6b was invested.

Other

Inner Mongolia is also working to regulate grey hydrogen, which has the potential to be an abundant byproduct of the region's vast coal resources. A decree introduced in 2023 aims to curb fossil fuel-derived hydrogen production, with the province already producing 1.3 million tonnes per annum from coal and natural gas. Green hydrogen is gaining some traction, too, with a solar and wind-to-hydrogen in Ordos City set to produce 10,000 tpa of green hydrogen.

Articles and resources

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