Research on Global Renewable

Energy Development and

Investment

( B r i e f V

e r s i o n )

Global Energy Interconnection

Development and Cooperation Organization

(GEIDCO)

关键技术研究

Research on Global Renewable Energy Development and Investment

PREFACE

Energy is an important foundation for economic and social

development. Mankind uses energy, historically we have converted

energy sources from firewood to fossil such as coal, oil, and natural

gas, to renewable energy such as hydro, wind and solar energy, every

change is accompanied by a huge leap in productivity and major

progress in human civilization. Energy, as the driving force for the

development of modern society, contributes to the nation’s economy

and its citizens’ interactive dynamic, as well as to their welfare. The

massive development and use of traditional fossil energy has led to

increasingly prominent problems such as resource shortages,

environmental pollution, and climate change, which seriously

threaten human survival and sustainable development. In essence, the

core of sustainable development is clean development. The key is to

promote renewable energy, and replace fossil energy with renewable

energy such as solar, wind, and hydropower.

Scientific and accurate quantitative assessment of resources is the

critical foundation for large-scale development and utilization of

renewable energy. At present, the globally installed capacity of

hydro, wind and solar power has exceeded 30% of the installed

capacity of power sources. Although some achievements have been

made in the development of renewable energy, there is still potential

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for it to expand. Therefore, it is of great importance to conduct a fine

assessment on resource reserves. On the basis of establishing and

improving the global renewable energy resources database, the

Global Energy Interconnection Development and Cooperation

Organization (GEIDCO) has established an assessment system and

digital fine assessment models for renewable energy resources. These

models carry out systematic calculation and quantitative assessment

of theoretical potential, technical potential installed capacity and

economic potential installed capacity of hydro, wind and solar

energies from a global perspective. An achievement of the Global

Renewable-energy Exploitation ANalysis (GREAN) platform has

been made, thereby the accuracy and timeliness of global renewable

energy resources assessment will be effectively improved,

subsequently providing an important support for large-scale

development and utilization of renewable energy in relevant

countries and regions.

Systematic and efficient macro site selection of power bases is an

important prerequisite for large-scale development and

utilization of renewable energy. The site selection of renewable

energy power bases is related to the cost-effectiveness of power

station development, which crucially contributes to economic

development and the efficient utilization of renewable energy. There

are many factors affecting the site selection of power bases, hence the

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site selection analyses and decision-making process are convoluted.

The desk top study of site selection is often limited by the integrity

and accuracy of data. Site selection must rely on site surveys, which

requires a huge amount of manpower, financial resources and time.

By taking into account factors such as global topography and terrain

elevation, land covers, water systems, natural reserves, geology and

historical seismic activity frequency, power supply and power grid,

population and economy, GEIDCO has developed a set of basic

database, models and tools for macro site selection for renewable

energy power bases which significantly increase the breadth and

depth of data collection and analysis processes, thereby, greatly

improving the accuracy, economy and effectiveness of the desk top

study of site selection, and achieving systematic achievements in

promoting the development of global renewable energy resources.

The data collected and analyzed by such models and tools are referred

as “Reference Book” and “Data Manual” and used during the world’s

energy strategy research and policy formulation.

Focusing on the world’s resource assessment and base

development of all continents, GEIDCO has prepared a series of

scientific reports on renewable energy development and

investment globally, specifically in continents such as Asia,

Europe, Africa, North America, Central and South America and

Oceania. As the general report of achievements, the report, on one

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hand, systematically expounds the technical route and model method

for global renewable energy resource assessment and digital macro

site selection, and on the other hand, outlines the research

achievements in a global perspective of renewable energy

development and investment. In addition, it showcases the research

data of renewable energy resource assessment and the detail analysis

of investment results.

In this report, Chapters 1 and 2 present the research methods and data,

which provide a comprehensive description of the methodology, key

data and mathematical model used in preparing the renewable energy

resource assessment and macro site selection of the power stations.

Chapters 3, 4 and 5 systematically present the research achievements

in global hydro, wind and photovoltaic resource assessment, and the

large-scale base development using the digital methods. Chapter 6

presents the research on the power consumption and outbound

transmission scheme of the bases, which comprehensively analyzes

the power supply, demand trend of each continent, and puts forward

the power transmission direction and mode. Chapter 7 summarizes

the investment and financial policy environment of the global

renewable energy development, and puts forward investment and

financial suggestions to promote cleaner energy development across

all continents.

The Global Renewable Energy Development and Investment series

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of reports made by the GEIDCO are committed to providing guidance

and reference for the large-scale development and utilization of

renewable energy around the world and accelerating the

implementation of clean alternatives on the energy supply side. This

report provides guidelines and acts as a reference guide for

government departments, international organizations, energy

enterprises, financial institutions, universities and relevant

individuals who take part in renewable energy resource assessment,

strategic research, project development, international cooperation,

etc. However, due to the time constraints for data collection and

report research writing timeframe, the contents may be incomplete.

Comments and suggestions are welcome for further improvements.

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CONTENTS

1. Digital Resource Assessment Method............................................................ 3

1.1 Assessment on Hydroenergy Resources............................................4

1.2 Assessment on Wind and Solar Energy Resources ...........................6

1.3 Basic Data..........................................................................................8

2. Macro Site Selection Method of Renewable Energy Bases ....................... 13

2.1 Digital Site Selection of Hydropower Stations ...............................14

2.2 Digital Site Selection of Wind Power Stations................................16

2.3 Digital Site Selection of Photovoltaic Power Stations....................17

2.4 Investment Estimation Method of Renewable Energy Base...........19

3. Hydroenergy Resources Assessment and Development............................. 22

3.1 Global Hydroenergy Resources Assessment Results......................22

3.2 Global Hydroenergy Base Development.........................................24

4. Wind Energy Resources Assessment and Development............................ 28

4.1 Global Wind Energy Resources Assessment Results......................29

4.2 Global Wind Power Bases Development ........................................33

5. Solar Energy Resources Assessment and Development ............................ 39

5.1 Global Solar Photovoltaic Resources Assessment Results .............40

5.2 Global Photovoltaic Bases Development........................................43

6. Outbound Transmission of Large Renewable Energy Bases....................49

6.1 Asia ..................................................................................................50

6.2 Europe..............................................................................................52

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6.3 Africa ...............................................................................................54

6.4 North America .................................................................................55

6.5 Central and South America..............................................................56

6.6 Oceania ............................................................................................59

7. Policy Environment and Investment and Financing Suggestions ............61

7.1 Global Investment and Financing Policies......................................62

7.2 Investment and Financing Suggestions ...........................................63

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1. Digital Resource Assessment Method

At present, the global energy industry is accelerating the low-

carbon green transition. The hydro, wind and photovoltaic power

generation, with the installed capacity accounting for more than

80% of the total installed capacity of renewable energy, is the

most important and most promising mode for renewable energy

generation. In the report, the assessment is conducted on

hydroenergy, wind energy and solar energy resources, laying a

scientific foundation for accelerating the development and

utilization of renewable energy.

Hydroenergy is the potential energy and kinetic energy

contained in river water and seawater. Generalized hydroenergy

resources include river hydroenergy, tidal energy, wave energy,

ocean current energy and other energy resources. Hydroenergy

resources in narrow sense refer to hydroenergy resources of river

flows. The report mainly focuses on the hydroenergy resources in

narrow sense.

Wind energy is kinetic energy generated by air flow and is a form

of solar energy conversion. The unbalanced atmospheric pressure

distribution in the atmosphere arises from the uneven heating of

various parts of the earth’s surface due to the solar radiation, air

moves along the horizontal direction to form wind under the

action of horizontal pressure gradient.

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Solar energy is the energy produced by sun’s nuclear fusion. It

is transmitted in the form of electromagnetic waves in space and

is the main source of energy on the earth’s surface. The analysis

of solar energy resources requires data such as annual global

horizontal irradiance (GHI), diffuse horizontal irradiance (DHI),

and annual direct normal irradiance (DNI) of solar energy. The

report mainly focuses on solar energy resources suitable for

developing photovoltaic power generation.

1.1 Assessment on Hydroenergy Resources

River network and river hydrological data are the key to the

assessment of hydroenergy resources. In the report, the Digital

Elevation Model (DEM) is adopted to generate digital river

network by digital methods. For the specific generation method,

refer to the relevant content in Section 2.3.2 of the report. In the

report, data from hydrographic stations around the world are

collected and collated, laying an important basis for the

assessment on global hydroenergy resources. For specific data

sources, refer to the relevant content in Section 1.2.1 of the report.

The assessment on hydroenergy resources includes six major

steps of preparing topographic and hydrological data, generating

a river network, calculating the theoretical potential, studying

cascade hydropower development schemes, calculating technical

indicators and estimating cost- effectiveness. The technical

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roadmap is shown in Figure 1-1.

Figure 1-1 Technical Roadmap for Assessment on Hydroenergy Resources

Specifically, the theoretical hydroenergy potential at each reach

may be obtained by calculating the precipitation, river runoff,

geographical elevation, digital river network and other data. The

dam site location and development mode of cascade hydropower

stations in the river basins may be determined based on the

resource conditions of the reaches in combination with other data

such as land cover distribution, urban and population distribution,

geological conditions, nature conservation areas, sensitive areas,

transportation facilities, and established cascade. Based on the

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river basin development task, the characteristic water level of

hydropower station is set up, and the technical parameters such

as regulated storage capacity, installed capacity, quotative

discharge and annual power generation are calculated to obtain

the technical potential installed capacity of hydroenergy

resources. On this basis, the economic factors affecting

hydropower investment are comprehensively considered and

compared with the cost of alternative power supply or the

affordable power cost (tariff) of target power market, to obtain the

assessment results of the economic potential installed capacity of

the river reaches.

1.2 Assessment on Wind and Solar Energy Resources

The research on wind energy and solar energy resources

assessment focuses on the calculation of three indicators:

theoretical potential, technical potential installed capacity and

economic potential installed capacity, and its overall technical

route is shown in Figure 1-2

First, wind and solar energy resources data, geographic

information such as global topography, digital elevation and rock

geology, high-resolution remote sensing identification

information such as land cover distribution, and human activity

information such as nature conservation area and transportation

infrastructure distribution are collected and collated to form a

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multivariate database supporting resource assessment. Then,

based on digital computation of geographic information, multi-

resolution fusion and multi-type hybrid computation are adopted

to assimilate all kinds of data into standard data sources that can

be used for quantitative assessment. Finally, a multi-level

quantitative analysis system is established to realize a

comprehensive assessment in terms of technical characteristics

(theoretical potential and technical potential installed capacity)

and economic level (economic potential installed capacity).

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Figure 1-2 Technical Roadmap for Assessment on Wind and Solar Energy Resources

1.3 Basic Data

Hydrology, wind speed, solar radiation and other resource data

are the necessary basis for the assessment on hydroenergy, wind

energy and solar energy resources. To realize digital and multi-

dimensional assessment on hydro, wind and solar energy

resources, geographic information data such as global land cover

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distribution, as well as data related to human activities such as

global transportation and grid infrastructure distribution are

introduced in the report, so that multi-dimensional assessment

and calculation of technical potential installed capacity and

economic potential installed capacity can be made based on the

assessment of theoretical potential. On the whole, a basic

database of global renewable energy resource assessment is

established in the report, including 18 items of data in three

categories covering the whole world, as shown in Table 1-1.

Resource data mainly includes hydrological data of major rivers

in the world, global mesoscale wind energy resources data and

solar energy resources data. Global hydrological data is daily

hydrological data in 9484 hydrological stations covering major

rivers in the world for more than 30 years, which is from the

Global Runoff Data Center (GRDC). Global wind energy

resource data is the global wind energy meteorological resource

data calculated and produced by Vortex. Solar energy resource

data is the global solar meteorological resource data calculated

and produced by SolarGIS.

Table 1-1 Basic Data on Global Renewable Energy Resource Assessment

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No.

1

Data Description

Spatial Resolution

Data Type

Daily hydrological data in 9484 hydrological

stations covering major rivers in the world for Observation data

more than 30 years.

Global hydrological data

Global wind energy meteorological resource

Numerical simulation

Global mesoscale wind resources

data

data calculated and produced by Vortex, with

data

2

3

resolution of 9km×9km.

Global solar meteorological resource data

calculated and produced by SolarGIS, 55°

south latitude and 60° north latitude, with

resolution of 9km×9km.

Satellite inversion

combined with

numerical simulation

data

Global solar energy resource data

Classification information of global land covers

Global distribution of major conservation areas

Global distribution of major reservoirs

30m×30m

Raster data

Vector data

Raster data

Vector data

4

5

6

7

8

/

Global distribution of lakes and wetlands

Global distribution of major geological faults

1km×1km

/

Global distribution of plate boundaries: Space range: 66°

south latitude to 87° north latitude

/

Vector data

9

Global distribution of historical seismic activity frequency 5km×5km

Raster data

Vector data

10

11

Global distribution of main rock types

/

Global terrain elevation data: Space range: land between

83° south latitude and 83° north latitude

30m×30m

Raster data

12

Global ocean boundaries data

/

Vector data

Raster data

Vector data

13

14

15

16

Global population distribution

900m×900m

Global distribution of transportation infrastructure

Geographic distribution of global power grid

/

Global power plant information and geographical

distribution

/

Vector data

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Geographic information data mainly includes global land covers,

conservation areas, reservoirs, lakes and wetlands, major faults,

plate boundaries, historical seismic activity frequency, stratum

and other distribution data, geographic elevation, ocean

boundaries and other data. The classification information of land

covers in the world is from the identification data of 10 major

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land cover types, such as forest, grassland and cultivated land,

covering the land range from 80 degrees north latitude to 80

degrees south latitude released by National Geomatics Center of

China. Data on the distribution of major conservation areas in the

world is from the global data set of conservation areas jointly

released by the International Union for Conservation of Nature

(IUCN) and the World Conservation Monitoring Center of the

United Nations Environment Programme (UNEP-WCMC). Such

data in the report has been translated, classified and sorted out

according to the classification standardsC of conservation areas

in China. Data on the distribution of major reservoirs in the world

is from the global water system projects in Bonn, Germany,

including more than 6,500 artificial reservoirs with a cumulative

storage capacity of about 6.2 trillion m³. Data on the distribution

of lakes and wetlands in the world is jointly developed by the

World Wide Fund for Nature, the Environmental Systems

Research Center and Kassel University in Germany, including

lakes and permanent open water bodies other than artificial

reservoirs. Data on distribution of major geological faults in the

word are from the American Environment Systems Research

Institute. Data on distribution of golbal plate boundary in the

word are from the American Environmental Systems Research

Institute. Data on the distribution of global historical earthquake

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frequency is from the World Resources Institute (WRI), including

the geographical distribution of earthquakes with magnitude 4.5

or higher since 1976. Data on the distribution of major stratum in

the world is from the joint research results of European

Commission, German Federal Ministry of Education and

Research, German Science Foundation and other institutions.

Data on global terrain satellite image is from Google products.

Data on global terrain elevation is from the digital products of

National Aeronautics and Space Administration (NASA) and

Ministry of Economy Trade and Industry (METI). Data on the

global ocean boundary is from the Flanders Marine Institute

(VLIZ) in Belgium, including the 200-nautical-mile exclusive

economic zone, 24-nautical-mile contiguous zone, 12-nautical-

mile territorial sea area and other information stipulated in the

United Nations Convention on the Law of the Sea.

Human activities and economic data mainly include global

population, transportation infrastructure, power supply and power

grid distribution and other data. Data on the global population

distribution is from Columbia University’s International

Geoscience Information Network Center, including the

population distribution data in 2000, 2005, 2010 and 2015. Data

on the distribution of global transportation infrastructure is from

the global railway, airport and port data set released by the North

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American Cartographic Information Society (NACIS) and the

global road network data set released by the Socioeconomic Data

and Applications Center of NASA. Data of the global grid

geographic wiring diagram is from the Global Energy

Interconnection Development and Cooperation Organization,

covering the backbone transmission network data of 147

countries in Europe, Asia, America, Africa and Oceania as of

2017, including 110kV-1000kV AC power grids and major DC

transmission projects. The global power plant information and

geographical distribution data are from the joint research results

of Google, Royal Institute of Technology in Stockholm and World

Resources Institute (WRI), including the location distribution and

installed capacity of global power plants such as thermal power,

hydropower, nuclear power, wind power, solar energy and

biomass power generation as of 2017.

2. Macro Site Selection Method of Renewable Energy

Bases

The site selection of renewable energy bases is related to the

technical indicators and cost-effectiveness of project

development, and is crucial to the development and utilization of

renewable energy resources. There are many factors that affect

the site selection of bases, including resource conditions,

topography, land cover, geological conditions, transportation and

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power grid infrastructure, etc. Various items are involved and a

large amount of basic data is required. The report establishes a

digital macro site selection method based on global data and

information for the site selection of hydropower, wind power and

photovoltaic power stations, and provides a set of digital solutions

based on unified standards and data sources, which can

significantly improve the efficiency of site selection study of

renewable energy bases and may be used for research on energy

development strategy and planning.

2.1 Digital Site Selection of Hydropower Stations

The digital site selection process of hydropower stations proposed

in this report mainly includes the main steps of extracting digital

river networks, selecting planned reaches, analyzing restrictive

factors, drawing up power station layout, calculating main

parameter indexes and drawing figures and tables of planning

results. The flow diagram is shown in Figure 2-1.

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Figure 2-1 Digital Macro Site Selection Process for Hydropower Stations

Specifically, in order to carry out the river research for

hydropower station site selection, it is necessary to fully

understand the river development conditions and the current

utilization situation of hydropower resources first, and to

complete the extraction of digital river networks based on basin

topographic data and hydrological data. Secondly, the runoff

characteristics and hydropower resources of the reach are

analyzed, and the reach suitable for dam construction is selected

considering the regional geological conditions, the distribution of

active faults and fault zones, river runoff and other hydrological

characteristics. Then, based on the analysis of restrictive factors

such as stratum distribution, land covers and conservation areas,

the reach with no or less restrictive factors and better geological

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conditions is selected for layout of cascade hydropower station,

and the cascade dam site is primarily selected in accordance with

the proposed reach development scheme. Finally, hydrological

and kinetic energy parameter analysis is carried out to calculate

technical indexes such as installed capacity and average annual

power generation of the power stations, estimate the investment

level of cascade hydropower development scheme, and draw and

output relevant planning maps and technical and economic index

tables.

2.2 Digital Site Selection of Wind Power Stations

The digital macro site selection process of wind farms based on

geographic information technology proposed in this report

mainly includes analysis of wind energy resource data, analysis

of restrictive factors, equipment selection and the automatic

layout scheme of wind turbines, and calculation of main

parameter indexes. The process is shown in the following figure.

Figure 2-2 Digital Macro Site Selection Process for Wind Farms

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Specifically, when digital site selection of wind farms is carried

out, it is necessary to fully understand the wind energy resource

conditions and time and space distribution of their resource

characteristics in the region first to initially determine the suitable

area for station construction. A variety of restrictive factors

should be then comprehensively considered to avoid unsuitable

areas such as conservation area and earthquake-prone areas, and

to avoid occupation of land that should not be occupied in large

quantities such as forest, cultivated land and urban areas.

Different terrain categories suitable for development such as

plains and mountains are screened again using terrain elevation

data, and the automatic layout scheme of wind turbines is carried

out in combination with equipment selection. Finally, the analysis

and calculation of the main parameter indexes such as the

installed capacity and annual power generation of the wind farm

are completed, and the cost- effectiveness analysis is carried out

in combination with the grid-connected conditions and external

traffic conditions of the site to obtain the estimation results of the

total investment and the average LCOE.

2.3 Digital Site Selection of Photovoltaic Power Stations

The digital macro site selection process of photovoltaic power

stations based on geographic information technology proposed in

the report mainly includes analysis of solar irradiance data,

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analysis of restrictive factors, equipment selection and digital

array layout, and calculation of main parameters. The process is

shown in Figure 2-3.

Figure 2-3 Digital Macro Site Selection Flow Chart of Photovoltaic Power Stations

Specifically, to carry out photovoltaic site selection research, first

of all, it is necessary to fully understand the situation of solar

energy resources in the region, analyze the temporal and spatial

characteristics of resources, and determine the suitable area for

station construction; then, based on geographic information data

and technology, as well as solar radiation data and geographic

data, use spatial analysis tools to screen development areas.

Secondly, according to the selection of power station equipment,

the optimum tilt angle and spacing of the array are calculated, the

technical potential installed capacity of photovoltaic power

generation is evaluated, and the automatic arrangement of

photovoltaic array is carried out. Finally, the technical parameters

such as installed capacity, power generation, annual full- load

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hours and output characteristics of the power station are

calculated, and the economic analysis is carried out combined

with the grid integration and external traffic conditions to

estimate the project investment and average LCOE.

2.4 Investment Estimation Method of Renewable Energy

Base

The investment level of renewable energy base is a direct

quantitative index reflecting the investment scale of the project,

and it is the basis for further analyzing the economic value of base

development. Generally, before the project is approved, the site

selection research is limited by the integrity of information

obtained in the stage of macro site selection research and the

uncertainty of the construction opportunity. There is a

considerable deviation between the estimated results of the

project investment level and the final investment amount in this

stage.

In the research stage of macro site selection, it is necessary to

accurately judge the most important factors affecting the

investment level of the project, such as the technical equipment

adopted by the project, the annual power generation level, and the

main external construction conditions such as grid integration and

traffic conditions, so as to reflect the regularity of the project and

enhance the operability of the estimation method. At the same

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time, it is necessary to identify some main uncertain factors that

affect investment as much as possible. For example, when

studying the impact of outside transportation, the report uses a

transportation cost factor method, which incorporates a shortest

road transportation distance based on grid to quantify the impact

of roads on development costs, as construction in areas away from

existing roads generally requires the construction of necessary

outside connecting roads, increasing construction costs. When

calculating the impact of grid integration conditions, due to the

construction of power plants far away from the power grid, it is

generally necessary to build a longer grid integration project,

which increases the development cost. Different transmission

modes and voltage levels are required for grid integration of

power supplies with different scales and distances, and the

corresponding cost levels are quite different. Based on China’s

engineering experience, the report puts forward different cost

factors of grid integration for different transmission modes and

voltage levels. Combined with the shortest grid integration

distance of corresponding power grid, the impact of grid

integration conditions on the development cost of renewable

energy resources in different regions is quantitatively calculated.

Depending on the nature of the investment, investments in

renewable energy generation projects can be divided into

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technical and non-technical categories. Technology investment

mainly includes equipment investment and construction and

installation costs needed for project development. Non-technical

investment mainly includes pre-project cost, land acquisition cost

and labor cost. Among them, the change rule of technology

investment is relatively obvious and it can be evaluated and

predicted according to the regression statistics. Non-technical

investments are subject to many uncertainties and relatively

complex rules. The investment level forecasting model

established by the report combines historical data with two

methods: one is to calculate technical investment based on

multiple linear regression+learning curve fitting statistics and

extrapolation method; the other is to calculate non-technical

investment based on correlation analysis and forecasting method

based on deep self-learning artificial neural network algorithm.

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Figure 2-4 Framework of Investment Estimation Model

3. Hydroenergy Resources Assessment and

Development

Hydropower, as a renewable energy with the longest development

time, the largest developed scale and the most mature

development technology, plays an important role in global energy

transition and coping with climate change. Looking at the

hydroenergy resources and hydropower development and

utilization status in the world, the hydropower development in

Europe and North America started early with a relatively high

level of development. The regions with great potential for

hydropower development in the future are mainly concentrated in

Africa, South Asia, Southeast Asia, and Western and Northern

South America. They are the “golden miles” for global

hydropower development in the future. China, Nepal, Indonesia,

the Democratic Republic of the Congo, Peru and Brazil have great

potential for hydropower development and broad market

prospects.

3.1 Global Hydroenergy Resources Assessment Results

In the report, the estimation of the total hydropower resources of

rivers in the world is completed, with a total theoretical potential

of 46,181 TWh/a, among which the theoretical potential of 205

river basins with good hydropower development value is 39,561

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TWh/a, accounting for about 85%. In the report, the digital

assessment of 64 large river basins on six continents around the

world is carried out by using the digital platform, and the

theoretical hydroenergy potential is 28,076 TWh/a.

Figure 3-1 Distribution of Theoretical Hydroenergy Potentials of Major River Basins

in the World

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Figure 3-2 Distribution of Major River Basins in the World

3.2 Global Hydroenergy Base Development

3.2.1 Development Status

From 2011 to 2018, the installed capacity of hydropower in the

world showed an upward trend. In 2018, the total installed

capacity reached 1192 GW, with an average annual growth rate

of 2.7%. Asia has the largest installed capacity of hydropower of

543.8 GW, followed by Europe with the installed capacity of

hydropower of 221.2 GW, NorthAmerica with 196.5 GW, Central

and South America with 180.6 GW, Africa with 35.7 GW and

Oceania with 14.19 GW. The total installed capacity of

hydropower in the world over the years is shown in Figure 3-3.

Figure 3-3 Total Installed Capacity of Hydropower in the World Over the Years

(2010-2018)

China has the largest installed capacity of hydropower of

about 322 GW, and the annual power generation is about 1233

TWh; followed by Brazil, with an installed capacity of

hydropower of about 103.5 GW and an annual power generation

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of about 389 TWh. The installed capacity of hydropower of the

United States is about 102.8 GW, and the annual power

generation is about 296.9 TWh. Countries with high proportion

of installed capacity of pumped storage power stations in total

installed capacity of hydropower include Japan (accounting for

about 55.4%), France (accounting for about 19.6%) and Italy

(accounting for about 17.3%).

3.2.2 Layout of Hydropower Bases

Considering resource characteristics and development conditions,

the hydroenergy development in North America and Europe

started early, with a relatively high development proportion. In

the future, 21 basins of such rivers as Congo River in Africa,

Brahmaputra River in Asia, tributaries of Amazon River in

Central and South America and Fly River in Oceania will be

mainly developed. Based on the digital platform, the development

scheme of main bases in each continent is studied, and the layout

scheme of cascade hydropower stations in the reaches to be

developed and the site selection results of major large-scale

hydropower projects are presented. The layout of hydropower

bases in the world is shown in Figure 3-4.

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Figure 3-4 Layout of Large-scale Hydropower Bases in the World

In terms of continents, 10 hydropower bases in 10 basins of such

rivers as Brahmaputra River, Ganges River, Mahakam River,

Rajang River, Malinau River, Ayeyarwady River, Salween River,

Mekong River, Syr River and Lena River will be mainly

developed in Asia in the future. In the future, eight hydropower

bases in four basins of such rivers as Congo River, Nile River,

Zambezi River and Niger River will be mainly developed in

Africa. In the future, 14 hydropower bases in four basins of such

rivers as Orinoco River, Tocantins River, Tapajos River, a

tributary of Amazon River, Maranon River, a tributary of Amazon

River, Madeira River, a tributary ofAmazon River, Ucayali River,

a tributary of Amazon River and Motagua River will be mainly

developed in Central and South America. In the future, three

hydropower bases in three basins of such rivers as Purari River,

Fly River and Clutha River will be mainly developed in Oceania.

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Measurement and calculation show that 35 hydropower bases in

the world involve a total of 229 cascade hydropower stations to

be developed, with a total installed capacity of 319.8 GW and an

annual power generation of 1698 TWh. Specifically, there are 88

cascade hydropower stations to be developed in Asia, with a total

installed capacity of 92.01 GW and an annual power generation

of 431.85 TWh. According to the long-term scheme, the total

development scale in the future is expected to exceed 130 GW.

There are 48 cascade hydropower stations to be developed in

Africa, with a total installed capacity of 138.81 GW and an annual

power generation of 826.67 TWh. According to the long-term

scheme, the total development scale in the future is expected to

exceed 190 GW. There are 74 cascade hydropower stations to be

developed in Central and South America, with a total installed

capacity of 65.43 GW and an annual power generation of 330.23

TWh. According to the long-term scheme, the total development

scale in the future is expected to exceed 140 GW. There are 19

cascade hydropower stations to be developed in Oceania, with a

total installed capacity of 23.58 GW and an annual power

generation of 109.61 TWh. According to the long-term scheme,

the total development scale in the future is expected to exceed 130

GW.

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Figure 3-4 Layout of Large-scale Hydropower Bases in the World 3D Effect Diagram

of Pioka Hydropower Station Project

4. Wind Energy Resources Assessment and

Development

There are abundant wind energy resources in the world with great

development potential. Due to the influence of atmospheric

circulation, topography and other factors, the wind energy

resources are unevenly distributed in the world. Most wind

energy resources are concentrated in coastal areas (such as eastern

and northern coastal areas of Africa, and southern coastal areas of

South America) and contraction zones of open continents (such

as northern Kenya and western Afghanistan) which are easy to

form the “effect of narrow”. Considering resource characteristics

and development conditions, the Red Sea coast of East Africa, the

southern regions of South America and the North Sea of Europe

have excellent conditions for centralized development of wind

power, which are the “wind poles” of the world. Kenya, Argentina

and other countries have excellent wind energy resources and

great potential for wind power development.

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4.1 Global Wind Energy Resources Assessment Results

4.1.1 Theoretical Potential

In the report, 200 countries and regions around the world are

assessed. The theoretical potential of wind energy resources is

2000 PWh/a.

Figure 4-1 Comparison of Theoretical Potential of Wind Energy Resources on

Continents

In terms of the distribution on continents, the theoretical potential

of wind energy resources in Asia is 595 PWh/a, accounting for

30% of the global total. Some regions of northeastern Asia,

central Asia and western Asia are rich in wind energy resources.

The theoretical potential of wind energy resources in Europe is

213 PWh/a, accounting for 11% of the global total. Some regions

of western, northern and eastern Europe are rich in wind energy

resources. The theoretical potential of wind energy resources in

Africa is 366 PWh/a, accounting for 18% of the global total.

Some regions of eastern, northern and southern Africa are rich in

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wind energy resources. The theoretical potential of wind energy

resources in North America is 488 PWh/a, accounting for 24% of

the global total. Some regions of eastern and central North

America are rich in wind energy resources. The theoretical

potential of wind energy resources in Central and South America

is 185 PWh/a, accounting for 9% of the global total. The southern

region of South America is rich in wind energy resources. The

theoretical potential of wind energy resources in Oceania is 155

PWh/a, accounting for 8% of the global total. Australia in the

southwest and New Zealand in the south of Oceania are rich in

wind energy resources.

4.1.2 Technical Potential Installed Capacity

After comprehensive consideration of resources and various

technical constraints, it is estimated that the technical potential

installed capacity of wind power suitable for centralized

development in the world is about 131.2 TW, and the annual

power generation is about 346.6 PWh. The proportion of

continents is shown in Figure 4-2. Africa has the best conditions

for centralized development, and the total installed capacity

accounts for about 40%, ranking first on continents. The installed

capacity of Asia accounts for 28%, ranking among the top in the

world.

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Figure 4-2 Comparison of Technical Potential Installed Capacity of Wind Power

Suitable for Centralized Development on Continents

Figure 4-3 Distribution of Global Technical Available Areas for Wind Power

Generation and Their Full-load Hour

The wind power installed capacity per unit land area and its

annual power generation are important indicators to characterize

the technically exploitable resource conditions of wind power in

a region. However, the installed capacity is greatly affected by the

terrain slope. In comparison, the ratio of annual power generation

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to installed capacity, that is, the number of installed capacity full-

load hours (capacity factor), can better reflect the advantages and

disadvantages of regional wind power resources, development

conditions and technology. Please refer to Figure 4-15 for the

distribution of global technical available areas for wind power

generation and their full-load hours. It is estimated that the

average full-load hours for the technical potential installed

capacity of onshore wind power in the world are about 2642 (with

an average capacity factor of about 0.27). The resource conditions

are excellent, with the maximum value occurring near North Horr

in northern Kenya, Africa, exceeding 5500 hours.

4.1.3 Development Cost

According to measurement and calculation of the cost level of

onshore wind power equipment by 2035, considering the

transportation and grid infrastructure conditions, the average

development cost of centralized wind power in 200 countries and

regions around the world is studied in the report. The world’s

average development costAis 4.08 cents. The distribution of wind

power development costs in the world is shown in Figure 4-4.

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Figure 4-4 Distribution of Wind Power Development Costs in the World

Figure 4-5 shows the comparison of average development costs

of continents in the world. The calculation shows that the

economic potential installed capacity of wind power is expected

to be 96.9TW, accounting for 73.9%.

4.2 Global Wind Power Bases Development

4.2.1 Development Status

From 2011 to 2018, the installed capacity of wind power in the

world increased rapidly. In 2018, the total installed capacity

reached 556.0 GW, with an average annual growth rate of 13.4%.

Asia has the largest installed capacity of wind power of 229.2 GW,

followed by Europe with the installed capacity of wind power of

181.9 GW, North America with 112.1 GW, Central and South

America with 20.8 GW, Oceania with 6.56 GW and Africa with

5.5 GW. The total installed capacity of wind power in the world

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over the years is shown in Figure 4-5.

Figure 4-5 Total Installed Capacity of Wind Power in the World over the Years (2010-

2018)

China has the largest installed capacity of wind power of about

185.4 GW, and the annual power generation is about 366 TWh;

followed by the United States, with an installed capacity of wind

power of about 94.4 GW and an annual power generation of about

273.6 TWh. The installed capacity of wind power of Germany is

about 56.9 GW, and the annual power generation is about 109.6

TWh.

4.2.2 Layout of Wind Power Bases

According to the assessment results of global wind energy

resources, considering the characteristics of resources and

development conditions, large-scale wind power bases around the

world should be laid out in regions with high technical indicators

and low development cost. According to the electricity demand

of regions on continents and the research results of major strategic

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transmission channels of global and continental energy

interconnection, the site selection results of 94 wind power bases

in the world are provided in the report.

Asia. In the future, nine wind power bases such as Wakkanai Base

in Japan, Kilchu Base in North Korea, Pohang Base in South

Korea and Choyr Base in Mongolia will be developed in eastern

Asia, with a development scale of 45.00 GW by 2035; five

offshore wind power bases such as Quang Ngai Base in Vietnam

and Bangui Base in the Philippines will be developed in

southeastern Asia, with a development scale of 19.00 GW by

2035; six onshore wind power bases such as Jaisalmer Base in

India and Gharo Base in Pakistan and six offshore wind power

bases such as Bhachau Base in India and Mannar Base in Sri

Lanka will be developed in southern Asia, with a development

scale of 150.30 GW by 2035; five onshore wind power bases such

as Atyrau Base and Mangghystau Base in Kazakhstan will be

developed in central Asia, with a development scale of 23.00 GW

by 2035; eight onshore wind power bases such as Ad Dammam

Base in Saudi Arabia, Lakabi Base in Oman, Ta’izz Base in

Yemen and Herat Base in Afghanistan will be developed in

western Asia, with a development scale of 51.10 GW by 2035.

Europe. In the future, Angus Onshore Wind Power Base will be

developed in the United Kingdom, and six offshore wind power

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bases will be developed in the North Sea, eastern United

Kingdom, northwestern Germany and southern Norway, with a

development scale of 81.46 GW by 2035; seven offshore wind

power bases will be developed in Lithuania, Latvia and Estonia

sea areas of the Baltic Sea, with a development scale of 45.30 GW

by 2035; Norway Offshore Wind Power Base will be developed

in the Norwegian Sea with a development scale of 5.10 GW by

2035, Greenland Offshore Wind Power Base will be developed in

Greenland and Iceland with a development scale of 14.00 GW by

2035, and Barents Offshore Wind Power Base will be developed

in the Barents Sea with a development scale of 12.30 GW by 2035.

Africa. In the future, five onshore wind power bases such as

Matruh Base in Egypt, Gabes Base in Tunisia and Zag Base in

Morocco will be developed in northern Africa, with a

development scale of 10.00 GW by 2035; four onshore wind

power bases such as Red Sea Base in Sudan, Jijiga Base in

Ethiopia and North Horr Base in Kenya will be developed in

eastern Africa, with a development scale of 4.40 GW by 2035;

three onshore wind power bases, namely Luderitz Base in

Namibia, Fraserburg Base in South Africa and Orapa Base in

Botswana, will be developed in southern Africa, with a

development scale of 7.00 GW by 2035.

North America. In the future, five onshore wind power bases

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such as Martin Base and Arthur Base will be developed in the

United States, with a development scale of 67.06 GW by 2035;

four offshore wind power bases, namely Oregan Offshore Base,

Massachusetts Offshore Base, New York Offshore Base and New

Jersey Offshore Base, will be developed in the United States, with

a development scale of 45.07 GW by 2035; three onshore wind

power bases such as Keyano Base and Nitchequon Base will be

developed in Canada, with a development scale of 26.06 GW by

2035.

Central and South America. In the future, two onshore wind

power bases including Bahia Base in Brazil will be developed in

the east of Central and South America, with a development scale

of 40 GW by 2035; Valledupar Wind Power Base in Colombia

will be developed in the west, with a development scale of 10 GW

by 2035; five onshore wind power bases such as Curuguaty Base

in Paraguay, Tacuarembo Base in Uruguay and Santa Cruz Base

in Argentina will be developed in the south, with a development

scale of 49 GW by 2035; Boaco Wind Power Base in Nicaragua

will be developed in Central America, with a development scale

of 700 MW by 2035.

Oceania. In the future, four onshore wind power bases such as

Western Australia Base in Australia and Wellington Base in New

Zealand, as well as Tasmania Offshore Wind Power Base in

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Australia will be developed in Oceania, with a development scale

of 14.20 GW by 2035.

Figure 4-6 Layout of Large-scale Wind Power Bases in the World

Based on the digital site selection model and software, the above

nine wind power bases are studied with regard to the development

conditions, installation scale, engineering assumption, power

generation characteristics and investment level, and a preliminary

development scheme is put forward. The total installed capacity

of 94 wind power bases is about 719.9 GW, and the annual power

generation is 2505.8 TWh/a, including the total installed capacity

of offshore wind power bases of 307.6 GW. According to the

forecast results of cost for onshore and offshore wind power on

continents by 2035 and investment estimation based on the basic

situation of the project, the total investment of wind power bases

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including transportation and grid integration costs is about 850

billion USD, and the LCOE of onshore wind power bases is 1.75-

4.84 cents/kWh and the LCOE of offshore wind power bases is

4.01-7.40 cents/kWh.

Figure 4-7 Wind Turbine Layouts in Some Areas of Santa Cruz Wind Power Base

5. Solar Energy Resources Assessment and

Development

The global solar energy resources are abundant with great

development potential, and can provide inexhaustible energy for

human development. Affected by solar radiation angle,

atmospheric scattering, sunshine duration and other factors, solar

energy resources are mainly concentrated in the arid zone near the

equator to the Tropic of Capricorn and Cancer, which is

controlled by subtropical high pressure all year round. The

Middle East, the Sahara Desert in North Africa, and the Atacama

Desert in South America are extremely rich in solar energy

resources, and have superior conditions for centralized

development, making them the “light poles” of the world. Saudi

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Arabia, Egypt and Chile have great potential for photovoltaic

development and broad market prospects.

5.1 Global Solar Photovoltaic Resources Assessment Res

ults

5.1.1 Theoretical Potential

According to the estimation of the global horizontal irradiance

data of solar energy, the theoretical potential of global solar

photovoltaic resources is 208,325 PWh/a in total. The proportion

of different continents is shown in Figure 5-1, which is basically

determined by geographic latitude and land area.

Figure 5-1 Comparison of Theoretical Potential of Solar Photovoltaic Resources in

Different Continents

5.1.2 Technical Potential Installed Capacity

Considering resources and various technical constraints, it is

assessed and estimated that the global scale of photovoltaic power

generation suitable for centralized development is about 2647 TW,

and the annual power generation is about 5002 PWh. Africa has

the best conditions for centralized development, with the total

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installed capacity accounting for about 52%, ranking first in all

continents; Europe has the relatively worst conditions for

centralized development.

Similar to the technical indicator of wind power, the ratio of

annual power generation per unit land area to installed capacity,

that is, the number of installed capacity full-load hours (capacity

factor) is also a key parameter reflecting the advantages and

disadvantages of regional photovoltaic resource technology

development conditions. Please refer to Figure 5-2 for the

distribution of global technical available areas for photovoltaic

generation and their full-load hours. It is estimated that the

average full-load hours of global technical potential installed

capacity of photovoltaic power generation are about 1890 (with

an average capacity factor of about 0.22), and the global

maximum exceeding 2500 hours occurs near Antofagasta in

northern Chile, where the resource conditions are extremely

superior.

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Figure 5-2 Distribution of Global Technical Available Areas for Photovoltaic

Generation and Their Full-load Hours

5.1.3 Development Cost

According to the estimation of the economic level of photovoltaic

equipment by 2035, considering the transportation and power

grid infrastructure conditions, investigations are made in the

report on the average development cost of centralized

photovoltaic power generation in 200 countries and regions

around the world, which is 2.79 cents/kWh. The spatial

distributions of photovoltaic power development costs and

technical development conditions, desirable or poor, are

consistent in most cases, but there are certain differences in some

areas. Despite the excellent photovoltaic resources, the hinterland

of Sahara Desert and the inland of Australia and other regions are

far away from the load center, with poor infrastructure conditions

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and high photovoltaic development costs. Figure 5-10 shows the

comparison of the average development cost of different

continents in the world. The calculation shows that the global

economic potential installed capacity of PV is 1995.4 TW,

accounting for 75% of the technical potential.

Figure 5-3 Distribution of Development Cost for Global Photovoltaic Generation

5.2 Global Photovoltaic Bases Development

5.2.1 Development Status

From 2011 to 2018, the global installed photovoltaic capacity

showed a sharp rise. In 2018, the total installed capacity reached

474.3 GW, with an average annual growth rate of 31.6%. Asia has

the largest installed photovoltaic capacity of 274.3 GW, followed

by Europe with the installed photovoltaic capacity of 119.2 GW,

North America with 57 GW, Oceania with11.6 GW, Central and

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South America with 7.0 GW and Africa with 5.2 GW. The total

installed photovoltaic capacity in the world over the years is

shown in Figure 5-4.

Figure 5-4 Total Installed Photovoltaic Capacity in the World over the Years (2010-

2018)

China has the largest installed photovoltaic capacity of about

178.0 GW, and the annual power generation is about 177.5 TWh;

followed by Japan, with an installed capacity of about 55.5 GW

and an annual power generation of about 70.7 TWh. The installed

capacity of the United States is about 51.4 GW, and the annual

power generation is about 92.5 TWh. Countries with large

installed capacity of distributed photovoltaic include Germany of

33.5 GW, Italy of 15.8 GW and the United Kingdom of 4.2 GW.

5.2.2 Layout of Photovoltaic Power Bases

According to the assessment results of global solar photovoltaic

resources, considering the characteristics of resources and

development conditions, large-scale photovoltaic power bases

should be laid out in regions with high technical indicators and

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low development cost. Considering the power demand of

different continents and regions and according to the research

results of major strategic transmission channels of global and

continental energy interconnection, the report puts forward the

site selection results of 90 photovoltaic bases in the world.

Asia. In the future, three photovoltaic bases will be developed in

East Asia, including Choyr (Mongolia), with a scale of 13.00 GW

by 2035; thirteen photovoltaic bases will be developed in South

Asia, including Jaisalmer (India), Quetta (Pakistan) and

Kilinochchi (Sri Lanka), with a scale of 354.40 GW by 2035;

seven photovoltaic bases will be developed in Central Asia,

including Turkestan (Kazakhstan), Muynak (Uzbekistan) and

Turkmenabat (Turkmenistan), with a scale of 43.40 GW by 2035;

fifteen photovoltaic bases will be developed in West Asia,

including Aflaji (Saudi Arabia), Shalim (Oman), Svihan (United

Arab Emirates), Ma’an (Jordan), Al Amarah (Iraq) and Kandahar

(Afghanistan), with a scale of 277.00 GW by 2035.

Europe. In view of the land covers of forest, cultivated lands,

cities and urban areas in Europe, as well as factors including high

land costs, it is not suitable for large- scale centralized

photovoltaic development. In the future, distributed photovoltaic

development will be carried out mainly in combination with

buildings and available open spaces. Considering the solar energy

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resource conditions in Europe, some large-scale photovoltaic

power projects can be developed in areas in southern Spain,

Greece, Portugal and Italy that meet the conditions for centralized

development. For example, in southern Spain, Andalucia

Photovoltaic Project with a scale of 720 MW can be developed.

Africa. In the future, eight photovoltaic bases will be developed

in North Africa, including Minya (Egypt), Aswan (Egypt), and

Ouargla (Algeria), with a scale of 53.00 GW by 2035; five

photovoltaic bases will be developed in West Africa, including

Agadez (Niger), Kayes (Mali) and Rosso (Mauritania), with a

scale of 14.80 GW by 2035; four photovoltaic bases will be

developed in East Africa, including Dongola (Sudan), Ad-Damir

(Sudan) and Dire Dawa (Ethiopia), with a scale of 8.00 GW by

2035; four photovoltaic bases will be developed in Southern

Africa, including Karasburg( Namibia), Tshabong (Botswana)

and Pretoria (South Africa), with a scale of 18.00 GW by 2035.

North America. In the future, seven photovoltaic bases including

Midland, Buffalo and Syracuse will be developed in the United

States, with a scale of 91.31 GW by 2035; three photovoltaic

bases including Apatzingan and Rio Grande will be developed in

Mexico, with a scale of 14.07 GW by 2035.

Central and South America. In the future, three photovoltaic

bases will be developed in western South America, including

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Elpunzon (Venezuela) and Atacama (Peru), with a scale of 14.00

GW by 2035; eight photovoltaic bases will be developed in the

southern South America, including Atacama (Bolivia), Huara

(Chile) and Elmoreno (Argentina), with a scale of 43.00 GW by

2035; three photovoltaic bases will be developed in the eastern

South America, including Angicos (Brazil), with a scale of 30.00

GW by 2035; El Salvador Photovoltaic Base will be developed in

Central America, with a scale of 700 MW by 2035.

Oceania. In the future, five photovoltaic bases will be developed

in Australia, including Northern Territory and North Queensland,

with a scale of 20.00 GW by 2035.

See Figure 5-5 for the overall layout of global large-scale

photovoltaic bases.

Based on the digital site selection model and software, the report

presents the development conditions, installation scale,

engineering assumption, power generation characteristics and

investment level of the above 90 photovoltaic bases, and puts

forward preliminary development schemes. The total installed

capacity of 90 photovoltaic bases will be about 995.32 GW, and

the annual power generation will be 1916.95 TWH/a.

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Figure 5-5 Overall Layout of Global Large-scale Photovoltaic Bases

According to the prediction results of photovoltaic cost in

different continents by 2035, the investment is estimated based

on the basic condition of the project. The total investment of

photovoltaic base, which takes into account the transportation and

grid integration costs, will be about 479.3 billion USD, and the

LCOE range will be 1.65-3.28 cents/kWh.

Figure 5-6 Layout of Modules of Tabuk Photovoltaic Power Base

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6. Outbound Transmission of Large Renewable

Energy Bases

Backbone grid of global energy interconnection is a strategic

channel supported by advanced technologies such as EHV/UHV

transmission, flexible transmission and submarine cable,

connecting large renewable energy bases and major power

consumption centers, and realizing multi-energy inter-regional

outbound transmission, mutual complementarity across time

zones, cross-seasonal mutual support and global allocation. It is

an important platform spanning five continents, connecting four

oceans, extending in all directions, and covering the whole world.

According to resource endowment, energy and power demand

and climate and environmental governance needs,

intercontinental interconnection will be further strengthened on

the basis of backbone grids in various countries and transnational

interconnection. In the future, a backbone grid of global energy

interconnection with “nine horizontal and nine longitudinal”

grids will be formed to widely interconnect large-scale renewable

energy bases and load centers, thus realizing global allocation of

renewable energy and large-scale mutual support across time

zones and seasons, as shown in Figure 6-1.

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Figure 6-1 Overall Layout of Backbone Grid of Global Energy Interconnection

6.1 Asia

In Asia, there is a pattern of “transmission of electricity from the

western to the eastern regions and from the northern to the

southern regions”. By 2035, the inter-continental and inter-

regional power flow of the Asian Energy Interconnection could

be 94.3 GW, including the inter-continental power flow of 23 GW

and inter-regional power flow of 71.3 GW. By 2035,

intercontinental interconnection has begun to take shape, and the

pattern of five- region networking has been basically formed

within the continent, as shown in Figure 6-2.

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Figure 6-2 Inter-continental and Inter-regional Power Flow of the Asian Energy

Interconnection by 2035

Inter-continental: Build Kazakhstan-Germany, Saudi Arabia-

Turkey-Bulgaria and Saudi Arabia- Egypt DC projects to send

solar energy and wind power from Central Asia and solar energy

from Arab States in West Asia to Europe and Africa respectively.

Build Ethiopia-Saudi Arabia DC projects to send hydropower

from East Africa to West Asia, realizing joint regulation of

hydropower and solar energy.

Intra-continental: Build Kazakhstan-China, Saudi Arabia-

Pakistan and UAE-India DC projects to send wind power and

photovoltaic energy in Central Asia and solar energy in West Asia

to load centers in East Asia and South Asia. Build Tajikistan-

Pakistan DC projects to send hydropower from Central Asia to

load centers in South Asia. Build China- Southeast Asia DC

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projects to send renewable energy from Southwest China to load

centers in Southeast Asia. Build China-Pakistan DC projects to

send the wind power and photovoltaic energy from Northwest

China to South Asia. Build the Russian Far East-

China/Japan/South Korea/North Korea DC projects to send wind

power and hydropower from Russia to load centers in East Asia.

6.2 Europe

The power flow in Europe is generally in the pattern of “intra-

continental transmission of electricity from the northern to the

southern regions and inter-continental reception of electricity

from Asia and Africa”. By 2035, the inter-continental and inter-

regional power flow of Europe could be 85 GW, including the

inter-continental power flow of 39 GW and inter-regional power

flow of 46 GW. By 2035, the European DC power grid has begun

to take shap, as shown in Figure 6-3.

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Figure 6-3 Inter-continental and Inter-regional Interconnection of European Power

Grids by 2035

Intra-continental: Build Norway-the UK-France, Norway-

Denmark-Germany and France- Germany DC projects to form

the North Sea loop grid. Build Greenland-Iceland-UK DC

projects. Build Finland-Latvia-Poland, Sweden-Denmark-

Germany and Poland-Germany DC projects to form the Baltic

Sea loop grid, while continuing to strengthen the interconnection

of regional power grids. A DC loop grid could be formed in the

central continent of Europe.

Inter-continental: build Morocco-Portugal, Algeria-France,

Tunisia-Italy, Kazakhstan- Germany, Egypt-Turkey and Saudi

Arabia-Turkey DC projects to realize Asia-Europe-Africa

interconnection.

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6.3 Africa

In the future, the overall power flow in Africa could be in the

pattern of “intra-continental transmission of electricity from the

central to the southern and northern regions and inter- continental

mutual support with Europe and Asia”. By 2035, the inter-

continental and inter-regional power flow could be 67 GW,

including the inter-continental power flow of 30 GW and inter-

regional power flow of 37 GW. By 2035, Africa’s energy

interconnection will take shape, as shown in Figure 6-4.

Figure 6-4 Inter-continental and Inter-regional Power Grid Interconnection in Africa

by 2035

Intral-continental: DC projects such as Democratic Republic of

the Congo-Guinea, Republic of the Congo-Ghana, Ethiopia-

South Africa, Cameroon-Nigeria will be built to transmit

hydropower of Congo River, Nile River and Sanaga River to load

centers in West Africa and Southern Africa respectively.

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Inter-continental: DC projects such as Morocco-Portugal,

Tunisia-Italy, Algeria-France, Egypt- Turkey DC projects will be

built to transmit solar energy and wind power from North Africa

to Europe; DC projects such as Saudi Arabia-Egypt, Ethiopia-

Saudi Arabia will be built to realize Asia-Africa interconnection.

6.4 North America

The power flow in North America will generally present the

pattern of “intra-continental power transmission from north to

south and from central to east and west, inter-continental mutual

support between Central and South America”. By 2035, the

power flow pattern of “Power Transmission from North to South

and from Central to East and West” will be formed, and the

transnational inter-regional power flow in North America will be

about 100 GW.

Figure 6-5 Power Grid Interconnection in North America by 2035

By 2035, the pattern of energy interconnection in North America

will basically take shape, as shown in Figure 6-5.

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Eastern Power Grid of North American: The 765 kV main grid in

the Great Lakes will be strengthened. A 1000 kV backbone grid

will be initially formed in the northeast and southeast; a 500 kV

AC main grid will be formed in Texas; and multi-circuit UHV DC

channels will be connected to the 1000/765 kV main grid in the

renewable energy bases in eastern and central Canada and central

America.

Western Power Grid of North American: A 1000 kV AC channel

running through the north and south will be built to bring together

wind power and hydropower from the north to the southern load

centers. Hydropower from western Canada and solar energy and

wind power from central America will be received through UHV

DC.

Mexico: A 1000 kV AC transmission channel will be built to

connect the solar power base and transmit electricity to the capital

and major cities. Quebec Power Grid: The 735/345 kV main grid

will be strengthened and ±800 kV DC channel to the eastern

power grid of the United States will be built, thus realizing the

joint transmission of hydropower and wind power.

6.5 Central and South America

The power flow in Central and South America will generally

present the pattern of “hydropower transmission from north to

south, wind power transmission from south to north, photovoltaic

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power transmission from west to east, and inter-continental

mutual support between South America and North America”. By

2035, Central and South America will form the power flow

pattern of “mutual support between north and south, and

photovoltaic power transmission from west to east”, with a total

inter-regional transnational power flow scale of 36 GW.

By 2035, the energy interconnection in Central and South

America will basically take shape, as shown in Figure 6-6.

Figure 6-6 Power Grid Interconnection in South America by 2035

The power grids in the east and west of South America will be

interconnected synchronously, with a 1000/500 kV AC main grid

formed connecting Brazil, Guyana, Suriname, French Guyana,

Venezuela, Colombia, Ecuador and Peru. Brazil will form a 1000

kV UHV AC main grid, while other countries will build 500 kV

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(400 kV in Venezuela) main grids, with cross- border inter-

regional interconnection realized through a 500 kV AC channel.

Brazil will build a“ 日 ”-shaped 1000 kV AC ring grid in the

southeast load center, a double-circuit 1000 kV AC transmission

channel in the north and south directions, respectively, and five

±800 kV UHV DC projects at the same time, realizing the

outbound transmission of hydropower from the Amazon Basin

and wind power and solar power from the northeast, and

supporting large- scale clean power feeding.

The southern power grid of South America will form a 1000/500

kV AC main grid connecting Chile, Argentina, Paraguay,

Uruguay and Bolivia. Argentina relies on the southern wind

power bases to gather and send out electricity to form an inverted

“F”-shaped 1000 kV AC grid; Chile will built a 800 kV DC

project to meet the needs of sending solar power from the

northern region to the capital Santiago. Other countries will build

500 kV main grids to realize cross-border interconnection

through 500 kV AC channels.

Countries of the Central American power grid will extend and

improve the main grid of 230 kV transmission, and strengthen the

interconnection of power grids among countries in the region.

Countries and regions of the Caribbean power grid will extend

and improve the main transmission grid, and some countries and

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regions in the south, north and central regions will realize

interconnection.

6.6 Oceania

Overall, the power flow in Oceania will be in a pattern with

hydropower and solar power from Australia and Papua New

Guinea complemented, and a pattern of mutual support in

electricity with Southeast Asia crossing the continent. By 2035,

the total scale of trans-continental and transnational power flow

of Oceania will be 1 GW.

Figure 6-7 Power Base Power Grid Interconnection in Oceania by 2035

By 2035, Oceania Energy Interconnection will be basically

completed, as shown in Figure 6-22.

Major cities along the east coast of Australia will build a 500 kV

chain AC main grid, delivering hydropower, wind power and

solar power in South Australia and electricity from solar power

bases in northern Queensland to such load centers as Sydney,

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Melbourne and Canberra along the southeast coast. A 500 kV AC

main grid shall be built around Perth and major mining centers

along the western coast of Australia to promote the development,

collection and utilization of local solar power and wind power. A

second DC transmission line from Tasmania to Victoria will be

built, which will send Tasmanian hydropower and wind power to

Melbourne and its surrounding load centers. Meanwhile, the

large-scale pumped storage power station in Tasmania will be

used to provide regulating capacity for the eastern Australian

power grid. A new Queensland-Papua New Guinea 400 kV DC

project will be built to realize mutual support between the

electricity from solar power bases in Northeast Australia and

hydropower from Papua New Guinea.

New Zealand’s North Island may extend the existing 400 kV

power grid to Auckland in the north and Wellington in the south,

so as to enhance the power supply capacity of the power grid to

the main load centers and realize a wider range of power

transmission configuration from the renewable energy base. New

Zealand’s South Island will build a 400 kV AC channel running

through the north and south, so that hydropower and wind power

in the south can be collected and sent to load centers such as

Christchurch in the north of the South Island.

Papua New Guinea will build a 400 kV AC transmission channel

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across the main island, sending hydropower from Fly River,

Purari River and Sepik River basins to the capital Port Moresby

and its surrounding load centers. The country will build a ±400

kV transmission line from Daru in the south to the northeast of

Australia, forming electricity complementarity and support

between hydropower bases in Papua New Guinea and solar power

bases in the northeast of Australia.

Fiji, Solomon Islands, Vanuatu, Samoa and other countries will

build a relatively complete 132 kV local transmission network,

while the Federated States of Micronesia, Kiribati, Tonga and

other countries will strengthen the construction of local

distribution networks and small microgrids, improve the access

to electricity and system power supply capacity, and promote the

consumption of distributed renewable energy.

7. Policy Environment and Investment and Financing

Suggestions

Based on the characteristics of renewable energy resource

endowment and regional economic development in continents,

this report comprehensively analyzes the investment and

financing policy environment of renewable energy in each

continent, and systematically analyzes the major countries of

each continent in such six aspects as business environment,

renewable energy development goals, power industry system and

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market, energy and power investment policy, supportive fiscal

policy and land, labor and environmental protection policy.

According to the specific development situation of each continent,

this report puts forward some suggestions, such as innovating

investment and financing mode, setting up green industry

investment funds, and actively promoting PPP(Public- Private-

Partnership) project investment, so as to accelerate the large-scale

development and utilization of renewable energy, and realize the

coordinated development of high-quality economy and

environment in each continent.

7.1 Global Investment and Financing Policies

In terms of business environment, Europe, North America and

Asia rank relatively ahead, and Africa improves significantly. In

terms of renewable energy development goals, Asia and Africa

have continuously upgraded the strategic position of renewable

energy, and more and more countries and regions have formulated

medium- and long-term development plans for renewable energy.

In terms of power industry system and market, all continents

actively promote market-oriented reform and strive to create a

diversified market competition environment. In terms of

investment policy in the energy and power industry, most

countries and regions in each continent tend to relax admission of

investments, while a few countries pursue protectionism. In terms

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of supportive fiscal policy, continents actively formulate policies

such as tax incentives and electricity subsidies for renewable

energy, but there are some differences in the support extent of

continents. In terms of land, labor and environmental protection

policy, there are some differences in the degree of land policy

easing in continents, the foreign labor policy is generally

tightening, and stricter environmental protection policies are

implemented.

7.2 Investment and Financing Suggestions

Overall：Construct the inter-reginal and transnational energy

cooperation mechanism with “Information shared, coordinated,

market accommodated and mutual benefit”. Build a wider interest

community of “resource-technology-market” and government-

enterprise-financial institutions”, and sharing investment income

together with project risk is essential. Investment and financing

policies with more openness, transparency and stability should be

formulated in each country. Combine the resource conditions and

development requires, innovate the investment and financing

mode, set up green industry investment fund and actively promote

PPP project investment.

Asia. Build a transnational and trans-regional renewable energy

power market including resources in Central Asia, West Asia and

Southeast Asia, and market resources in East Asia and South Asia.

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Give full play to the energy finance advantages of the “Belt and

Road”, initiative and expand project investment by relying on

regional financial institutions such as the Asian Investment Bank,

the Silk Road Fund, and the Asian Development Bank. Actively

develop flexible preferential policies such as clean energy

industrial parks, attracting international capital to participate in

renewable energy investment. Reduce fossil energy subsidies

gradually in West Asia and other regions, promoting the

competitiveness of renewable energy.

Europe. Participate in the development, investment and

operation of European renewable energy projects in various

forms such as cross-border mergers and acquisitions and equity

transactions. Use European green financial markets for reducing

financial costs and increasing project returns, through green

financial bonds, green credit, green insurance and green fund.

Africa.

Innovating

“electricity-mining-metallurgy-

manufacturing-trade” joint investment and financing mode,

Relying on the credit of core enterprises of the industrial chain,

and the expected income of energy and industrial projects, the

three parties of the issuing and transmitting parties sign long-term

contracts to form a benefit distribution mechanism of risk sharing

and benefit sharing. utilize funds from international development

financial institutions such as the World Bank, International

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Monetary Fund, to promote the implementation of large-scale

projects.

North America. Based on the mature financial markets of North

America, make full use of market-based financing methods to

attract the participation of diversified investors from around the

world. Financial products improve the liquidity of project assets

and enhance the attractiveness of renewable energy development

projects.

South America. Make full use of the international capital market

to form a diversified investment and financing system. Accelerate

the construction of regional power market, and give play to the

regulatory role of market mechanisms. Promote the business

environment, formulate investment and financing projects with

more openness, transparency and stability, and improve the

stability of project expected income. Strengthen the inflation risk

prevention.

Ocieania. Improve the clean investment and financing mode, and

establish a regional clean energy development fund to accelerate

the development of renewable energy in Australia, New Zealand

and other island countries. Strengthen investment in energy

infrastructure and improve the ability to adapt to climate change.

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