China's new energy industry ten years of gorgeous transformation innovation reform is in the limelight

Since the 18th National Congress of the Communist Party of China, my country's renewable energy represented by hydropower, wind power, and photovoltaic power generation has achieved leapfrog development. In the past ten years, the new energy industry has made remarkable achievements from overcoming obstacles to braving the wind and waves. New energy enterprises have experienced several changes and innovations in technology, from relying on subsidies to competing technologies, and constantly innovating products.

Ten years ago, China's new energy generation accounted for only 2.7 percent, while by the end of 2021, the value had reached 18.5 percent. In addition, according to the data of the National Bureau of statistics, in the first five months of 2022, the total installed capacity of renewable energy power generation in China exceeded 1.1 billion kilowatts, and the installed capacity of hydropower, wind power, photovoltaic power generation and biomass power generation ranked first in the world.

China's new energy industry has achieved a magnificent transformation in ten years. From the vast desert Gobi to the vast and magnificent marine grasslands, China's new energy industry has made steady progress to promote energy transformation.

　　From quantitative change to qualitative change, the energy transition is advancing by leaps and bounds.

The decade of great changes in the new energy industry is a decade of rapid progress in the adjustment of the energy structure, from quantitative change to qualitative change.

In the past ten years, the installed scale and power generation of new energy have been expanding. By the end of 2021, the total installed capacity of wind power photovoltaic grid was 0.67 billion kilowatts, nearly 90 times that of 2012. The country's total power generation is about 8.4 trillion kWh, of which new energy power generation is 1.55 trillion kWh, and new energy power generation accounts for 18.5.

In the past ten years, renewable energy has become the main body of new installed power generation in China.

On August 2, Wang Dapeng, deputy director of the New Energy and Renewable Energy Department of the National Energy Administration, said that the development of renewable energy continued to improve, and the installed scale of renewable energy was steadily expanding. In the first half of 2022, China's renewable energy power generation capacity increased by 54.75 million kilowatts, accounting for 80% of the country's new power generation capacity. Among them, the national photovoltaic power generation installed 30.88 million kilowatts, including photovoltaic power plants 11.23 million kilowatts, distributed photovoltaic 19.65 million kilowatts. By the end of June, the cumulative installed capacity of photovoltaic power generation was 0.336 billion kilowatts.

Peng Suping, academician of the Chinese Academy of Engineering and professor of China University of Mining and Technology, told the Securities Daily that ten years ago, the photovoltaic industry experienced labor pains, when photovoltaic enterprises only made raw materials. Later, with the support of national policies, with the upgrading of technology, related enterprises continued to develop products and services, and developed rapidly in the past ten years.

In the past ten years, the hydropower industry has achieved the goal of running from following to leading.

"The Baihetan Hydropower Station, which will be put into operation in 2021, will have 16 million-kilowatt mixed-flow hydropower units all domestically produced." A relevant person from China Electric Power Construction introduced to a reporter from the Securities Daily that with the unremitting efforts of engineering builders and scientific research workers, it took more than 10 years to research and complete the overall design of the hydroelectric generator set, the development of the runner model, and the electromagnetic pole winding and high-efficiency cooling., Thrust bearings, high-voltage insulation, high-strength materials, key component manufacturing and other technological research and development, and achieved a series of innovative results, form a million-kilowatt mechanism design, manufacturing, installation, and measurement and control technical standards with completely independent intellectual property rights. The operation of Baihetan million units marks another historic leap in China's hydropower unit manufacturing capacity. Since the 18th National Congress of the Communist Party of China, my country's large-scale mixed-flow, cross-flow, axial-flow and reversible hydropower units have been independently designed and manufactured, reaching the international leading level.

"If you don't take too many steps, you won't reach a thousand miles". Three Gorges energy related people mentioned the development of wind power process is also quite emotional.

As one of the important directions of clean energy development, offshore wind power has shown a rapid development momentum with the advancement of my country's energy revolution and marine strategy. In the later period of the "13th Five-Year Plan", my country's offshore wind power industry has entered a stage of large-scale accelerated development.

According to the data, by the end of 2021, China's offshore wind power has accumulated 26.38 gigawatts, accounting for 48% of the global sea wind installed capacity, ranking first in the world.

In fact, the construction process of offshore wind power is not smooth sailing, but also quite tortuous. The above-mentioned Three Gorges energy personage told the Securities Daily, "the development of offshore wind power in China has experienced from scratch. When the Three Gorges Group decided to develop offshore wind power, the industry did not fully understand the necessity of the development prospect of offshore wind power, and most of them were not optimistic, and macro policies lacked sufficient support. In addition, domestic development started late, and its development, equipment, technology, management, etc. have no mature experience to learn from, and the development of offshore wind power has become more difficult and risky."

Since 2014, the Three Gorges Group has actively developed new energy businesses such as wind power and solar energy, and built the new energy business as the group's second main business. In 2015, the Three Gorges Group proposed that Three Gorges Energy should become a "leader in offshore wind power", forming a rolling development pattern of "putting into production, building, approving and reserving.

A person from the Three Gorges Energy told the "Securities Daily" reporter that the company started from Xiangshui, Jiangsu, and advanced step by step from the beach to the intertidal zone, offshore and offshore, and continued to increase the concentration of offshore wind power and large-scale development. By the end of 2021, the installed capacity of offshore wind power reached 4.57 million kilowatts, ranking first in the country, and the "Three Gorges on the Sea" wind power corridor was gradually formed.

In the past ten years, the new energy industry represented by hydropower, photovoltaic power generation and wind power has achieved fruitful results. In the past ten years, China has formed a relatively complete industrial system of renewable energy technology. The rapid iteration of photovoltaic power generation technology has repeatedly set the world record for battery conversion efficiency; the hydropower field has the world's largest million-kilowatt water turbine unit independent design and manufacturing capacity; low wind speed, anti-typhoon, ultra-high tower, ultra-high altitude wind power technology ranks in the forefront of the world, 10 MW offshore wind turbines began mass production.

"Since the 18th National Congress, China has continued to increase its support for the new energy industry, which has achieved its present highlight moment. This decade, China's new energy industry has developed rapidly with a compound growth rate of over 30%." Qi Haishen, president of Beijing Teyi Sunshine New Energy, told the Securities Daily that the trend of new energy power generation and coal-fired thermal power generation is diverging, with coal-fired thermal power generation showing a trend of "stability and stability". New energy power generation is a gradual process of "steady progress.

From auxiliary industry to "darling" capital blessing to ride the wind and waves

In the past ten years, the new energy industry has also entered the fast lane of development in the capital market. The relevant enterprises are not only performance, but also the market value of the company has reached new highs. For a time, the upstream and downstream enterprises of the new energy industry chain attracted all kinds of capital to chase, cross-border, mergers and acquisitions, production expansion and other capital actions frequently.

"More than a decade ago, the company believed that thermal power generation was the main business of the power industry. No matter the technical content or the scale of power generation, the new energy power generation at that time was not comparable to thermal power generation." Zhao Li, investment director of Beijing Energy International Holdings Co., Ltd. (hereinafter referred to as "Jingneng International"), told the Securities Daily that the biggest feeling in the past decade is that the new energy industry has changed from a subsidiary industry to a main business.

According to the statistics of Oriental Fortune Choice, as of August 3, 2022, there are 835 new energy-related listed companies in the-share market, with a total market value of 21.66 trillion billion yuan, of which 45 companies have a total market value of 100 billion yuan and above. There are 346 companies with 10 billion yuan and above.

In this regard, Qi Haishen said that since the 18th National Congress of the Communist Party of China, the installed capacity of new energy power generation in my country has repeatedly reached new highs. This is due to the continuous and in-depth promotion of relevant national policies, coupled with the efforts and innovation of new energy companies themselves, making the new energy The industry can flourish. The market value of new energy companies has also achieved rapid development in the past ten years. Companies with a market value of 10 billion yuan and 100 billion yuan continue to emerge. my country has also become the world's largest new energy installed market and the largest new energy industry manufacturing center.

With the help of capital, the photovoltaic industry is developing more rapidly.

Qi Haishen said that before 2012, China's photovoltaic industry had "two ends outside", that is, the market was outside and the raw materials were outside. The photovoltaic industry was labeled as high energy consumption like cement, steel and other industries. Related companies had difficulties in financing, and the road to listing and financing was even more difficult.

Data show that from 2012 to 2022, a total of 19 photovoltaic equipment companies landed in the capital market. Up to now, there are 35 listed photovoltaic equipment companies, of which 7 companies including Daquan Energy, Trina Solar, and Longji Green Energy have market capitalization of more than 100 billion yuan. In addition, nearly 70% of the companies have a market value of over 10 billion yuan. From the perspective of the operating profits of related companies, from 2012 to 2021, the profits of many companies increased significantly, and the net profits of companies such as Tongwei and Daquan Energy increased dozens of times.

With the landing of the "double carbon" target, photovoltaic listed companies are ushering in a golden period of development.

Since 2021, a number of photovoltaic enterprises have issued a fixed increase announcement. According to data from Oriental Fortune Choice, in the past two years, 12 photovoltaic companies have raised more than 40 billion yuan for production and expansion.

It is worth noting that other types of new energy listed companies have also raised funds to increase production in the past two years. According to data from Oriental Fortune Choice, since 2021 (as of August 3), a total of 139 new energy-related listed companies have issued fund-raising announcements, raising funds of 284.536 billion billion yuan.

"Whether it is the demand for additional issuance, bond issuance or allotment of shares, new energy enterprises can be favored by many capitals. At the same time, the policy department is also strongly supported. For this reason, many new energy enterprises choose to return to the-share market for financing." Qi Haishen further mentioned.

According to public information, so far in 2019, there have been including Jingao Technology, Tianhe Solar, Daqo Energy, Jingke Energy and other photovoltaic enterprises high-profile return to A- shares.

At the same time, benefiting from the development opportunities of the "double carbon" goal, the new energy industry is accelerating. Many listed companies have crossed borders and bet heavily on new energy subdivision tracks, such as polysilicon, photovoltaic modules, hydrogen storage, lithium batteries and other key links in the industrial chain.

Since 2022, hundreds of companies in the-share energy conservation and environmental protection sector have carried out industry integration and extended the industrial chain through mergers and acquisitions, while the "cross-border" layout of the new energy industry chain by leading enterprises has become a new trend in this round of mergers and acquisitions. Business involves new energy materials, wind power generation, energy storage and other sub-sectors.

Yang Delong, chief economist of Qianhai open source fund, told Securities Daily that the goal of "double carbon" brings opportunities for the development of new energy enterprises, while Qianhai new energy fund has been firmly optimistic about the development prospect of new energy. The clean energy fund under management focuses on the layout of new energy vehicles and their industrial chain, and the leading stocks of photovoltaic wind power new energy industry.

"In the past ten years, with the support of national policies and the blessing of various capitals, the establishment of various new energy and green development funds has been fast and large, and some have even directly participated in the establishment of new energy companies or joint ventures. This is a feast for actively sharing the new energy era." Qi Haishen further stressed that the strong capital promotion will make the transformation of "fossil energy consumption" into "new energy power consumption" era come more quickly and efficiently.

　"Double carbon" opportunities are in the limelight and energy reform is promising.

The future has come, the distance is not far. Energy reform continues to advance, the new energy industry is still promising.

In September 2020, China formally put forward the "double carbon" target. China's carbon emissions strive to reach the peak by 2030 and achieve carbon neutrality by 2060. In March 2021, my country proposed to deepen the reform of the power system and build a new power system with new energy as the main body. New energy sources such as wind power and photovoltaics occupy a dominant position in the power structure. In this regard, the scenery-based new energy industry ushered in a turning point in its development, energy storage, hydrogen energy and other tracks are also competing on the stage, and the new energy industry really occupies an important position.

On June 1, 2022, the "14th Five-Year Plan for Renewable Energy Development" clearly stated that by 2025, the annual power generation of renewable energy will reach about 3.3 trillion kWh. During the "14th Five-Year Plan" period, my country's renewable energy power generation will account for more than 50% of the increase in electricity consumption in the whole society, and wind power and solar power generation will double.

Zhao Li said that the landing of the "double carbon" goal and the determination of building a new power system with new energy as the main body indicate that the new energy industry will usher in a real outbreak period.

As a state-owned enterprise in the capital, Jingneng International should play the card of "green electricity entering Beijing" well. Talking about how to seize market opportunities, Zhao Li said that the company based on the advantages of the capital, in the surrounding layout of the development of large-scale clean energy base projects, while the layout of clean energy upstream and downstream core technology equity investment business.

"The development opportunities and potential of new energy low-carbon economy have just been released, and the future development trend is far greater than that of other traditional industries." Qi Haishen said that the construction of a new power system with new energy as the main body is to greatly increase the proportion of new energy power generation such as photovoltaic and wind power and improve the energy efficiency of green power under the background of carbon neutrality. It can be seen that the development of low-carbon economy will become the goal direction of China's social and economic upgrading and transformation and high-quality development in the future.

Since the 18th National Congress of the Communist Party of China, a series of major plans and policies in my country's energy field have been intensively introduced, forming a strategic planning system to promote the energy revolution, and continuously promoting the optimization of my country's energy structure and the high-quality development of renewable energy.

"Coal is still the 'ballast stone' of energy security, but at the same time, it is necessary to speed up the development of green and low-carbon, and the implementation of renewable energy substitution action will be the mainstream of change." Zhu Gongshan told reporters that China is running into a low-carbon era and moving towards a zero-carbon future.

According to Zhao Li, technological innovation or business model innovation is still a disruptive factor in the future development of the industry. Although the current new energy industry is no longer a blue ocean, especially in the middle and upper reaches of many industrial oligarchs have been shown, in the strong and strong state. However, the technical iteration of photovoltaic cells, the localization of core technologies upstream and downstream of the hydrogen energy industry chain, and the user-side power trading services based on blockchain technology are important areas of future market competition.