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2022

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10

Information frontier | What impact will carbon trading, carbon peaking and carbon neutralization have on the power industry?


 

According to the China Economic Times, the Ministry of Ecology and Environment held a press conference to reveal that the national carbon market will be online for trading by the end of June, in which the trading center will be located in Shanghai and the carbon quota registration system will be located in Wuhan, Hubei Province. At that time, China's carbon market will cover more than 4 billion tons of emissions, which will become the largest carbon market covering greenhouse gas emissions in the world.

So the question comes, what are carbon emissions, carbon peaking, carbon neutralization and carbon trading? What is the impact on electric power practitioners? Now let's look at them one by one.

1 Carbon emissions Carbon emissions

It is a process in which greenhouse gases (carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride, etc.) are emitted to the outside world during human production and operation activities.

Carbon emissions are currently considered to be one of the main causes of global warming. The largest proportion of carbon emissions in China (54%) comes from the burning of fossil fuels in the production process of power and heating sectors.

2 Carbon peak

Broadly speaking, carbon peak refers to that at a certain time point, carbon dioxide emissions no longer increase to the peak, and then gradually fall back. According to the introduction of the World Resources Research Institute, carbon peaking is a process, that is, carbon emissions first enter a plateau period and can fluctuate within a certain range, and then enter a stable decline stage. Carbon peaking is a prerequisite for achieving carbon neutralization, and achieving carbon peaking as early as possible can promote the early realization of carbon neutralization.

Therefore, in combination with the time nodes of China's commitment: 1) From now to 2030, China's carbon emissions will still be in a climbing period; 2) During the 20 years from 2030 to 2006, carbon emissions will pass through the platform period and finally complete the emission reduction task.

 

3 Carbon neutralization

Carbon neutralization means that enterprises, groups or individuals calculate the total amount of greenhouse gas emissions directly or indirectly generated within a certain period of time, and then offset their own carbon dioxide emissions through afforestation, energy conservation and emission reduction, so as to achieve zero carbon dioxide emissions.

 

4 Carbon sink

Carbon sink: generally refers to the process, activity and mechanism of removing carbon dioxide from the air. It mainly refers to the amount of carbon dioxide absorbed and stored by forests, or the capacity of forests to absorb and store carbon dioxide.

The research data shows that China's carbon sequestration capacity has gradually improved. By vigorously cultivating and protecting artificial forests, China's terrestrial ecosystems absorbed about 1.11 billion tons of carbon annually from 2010 to 2016, absorbing 45% of the anthropogenic carbon emissions in the same period. It can be seen that forestry carbon sequestration plays an important role in the carbon neutral vision, and carbon sequestration projects will help China achieve the carbon neutral goal.

 

5 Carbon capture, utilization and storage

Carbon capture, utilization and storage (CCUS for short) is a technology that captures and purifies carbon dioxide emitted in the production process, and then puts it into a new production process for recycling or storage. Among them, carbon capture refers to the collection and storage of carbon dioxide from emission sources such as large power plants, steel plants, cement plants, etc., in order to avoid its emission into the atmosphere.

This technology has the synergistic effect of achieving large-scale greenhouse gas emission reduction and low carbon utilization of fossil energy, and is one of the important technology options for the future global response to climate change.

6 Carbon emission right

Carbon emission right is the origin of Certification Emission Reduction (CER). In 2005, with the entry into force of the Kyoto Protocol, carbon emission rights became an international commodity. The subject of carbon emission trading is called "CER".

Where does the emission right come from? The primary market and secondary market of quotas coexist.

1) Primary market

Generally, the market where the provincial development and reform commissions issue initial quotas is divided into free distribution and paid distribution. Among them, paid distribution is accompanied by a bidding mechanism, which follows the principle of paid quotas, equal rights and equal prices, and is conducted in a closed bidding manner.

2) The secondary market is the market where enterprises or investment institutions are controlled and arranged to conduct transactions.

7 Carbon trading

Carbon trading refers to the trading of carbon dioxide emission rights, in which the buyer pays a certain amount of money to the seller to obtain a certain amount of carbon dioxide emission rights.  
Carbon trading market is a market artificially created by the government through controlling the emission of energy consumption enterprises. Generally, the government determines a total carbon emission and allocates carbon emission quotas to enterprises according to certain rules. If the enterprise's emissions exceed the quota in the future, it needs to purchase the quota in the market. At the same time, some enterprises can sell the excess quota through the carbon trading market if their final carbon emissions are lower than the quota they obtained by adopting energy-saving and emission reduction technologies. Both parties generally trade through the carbon emission exchange.

In the first case, if the enterprise's emission reduction cost is lower than the carbon trading market price, the enterprise will choose to reduce emissions, and the share of emission reduction can be sold to gain profits;  
In the second case, when the emission reduction cost of enterprises is higher than the carbon market price, they will choose to purchase from the government, enterprises, or other market entities with quotas in the carbon market to achieve the emission reduction target issued by the government. If the quota is not purchased enough to cover its actual emissions, it will face a high price penalty. Through this set of design, the carbon trading market internalizes carbon emissions as a part of the enterprise's operating costs, and the carbon emission price formed by the trading guides enterprises to choose the most cost-effective carbon reduction means, including energy-saving and emission reduction transformation, carbon quota purchase, or carbon capture. The market-oriented approach enables the entire society to maintain the optimization of emission reduction costs while transforming the industrial structure from high energy consumption to low energy consumption.  
8 Ways to reduce carbon emissions
1) Change the energy structure, control the use of fossil fuels, and increase the proportion of nuclear energy and renewable energy; 2) Improve the efficiency of power generation and other energy conversion sectors; 3) Improve the energy use efficiency of industrial production departments and reduce energy consumption per unit product; 4) Improve civil energy efficiency such as building heating; 5) Improve energy efficiency in the transport sector; 6) Reduce the destruction of forest vegetation and plant trees; 7) Control of greenhouse gas emissions from paddy fields and landfills, carbon sequestration technology.

9 New Mission of China Power Grid

1) Build a strong transmission and distribution grid for new energy, which can receive large-scale centralized and distributed renewable energy power, and transmit and distribute new energy power to each substation and power facilities, which puts forward higher requirements for the reliability of the grid.
2) Build a flexible and efficient energy network. The distributed power supply, energy storage device, energy comprehensive and efficient utilization system and the power grid are organically integrated and interacted in a two-way way to improve the efficiency of terminal energy utilization and become a flexible and efficient intelligent energy network.
3) High reliability of power supply, high reliability of power supply. It is required to basically eliminate the risk of large-scale blackout and become a safe and reliable energy allocation and supply system
4) Establish an integrated service system for energy, power and information, which is widely integrated with the information and communication system.

 

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About us

two thousand and eleven

Konstanz Electric Co., Ltd. was established in 2011 (hereinafter referred to as Konstanz Electric) with a registered capital of 50 million yuan. The company's headquarters is located in the West Lake Science and Technology Industrial Park, which is 10 kilometers away from the West Lake Scenic Area and Qiantang River. The company is mainly engaged in the R&D, manufacturing, sales, maintenance and other related businesses of high and low voltage complete sets of equipment such as "KONSTANZ" brand high and low voltage components, reactive compensation controllers, high and low voltage compensation filtering devices. The market covers more than 20 provinces and cities in China, including Shandong, Hebei, Inner Mongolia, Xinjiang, Hubei, Ningxia, Chongqing, Chengdu, Zhejiang, etc. It is a leading enterprise in the power quality industry integrating technology research and development, technology consulting, production, sales, and operation management, focusing on power quality products for more than 10 years. Relying on imported technologies and raw materials, the company wholeheartedly serves the domestic and foreign power, metallurgy and petrochemical, new materials, new energy, medicine, construction, textile, biotechnology, business center, Internet and other industries. The company has successively obtained 9001 quality management system certification, national product inspection report, 3C certification, CQC certification, national high-tech enterprise certificate, software copyright, practical invention patent and other qualification certificates in China.

 

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Provide power quality solutions to save energy and improve energy quality for users!

 

 

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Carbon trading

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