Renewable energy market expansion continues unabated

The government work report sets a new tone for the development of new energy by "strengthening overall plans to stop the blind expansion and expansion of solar and wind power industries," while for renewable energy such as hydropower and nuclear power, it emphasizes active development and safe and efficient development.

This statement sparked heated discussions in the panel discussions. Relevant parties said that the blind expansion of new energy sources should be limited to the manufacturing sector, and the entire industry will continue to develop steadily.

In fact, a series of recent policy developments have also shown this. The “Twelfth Five-Year Plan” for renewable energy, including wind power, solar photovoltaic power generation, and hydropower, has proposed a number of installed capacity targets that are several times higher than the current one. In 2012, the National Energy Administration will also start a new batch of project construction as planned, and a new nuclear power project Approving and restarting is in sight. Analysts generally expect that the further expansion of the renewable energy market will not shrink in the foreseeable future.

Wind power will add more than 100 billion investment

At the National Energy Work Conference earlier this year, Liu Tienan, director of the National Energy Administration, stated that the second batch of 15 million to 18 million kilowatts of wind power projects will be launched this year as planned. The first batch of solar photovoltaic power generation start-up projects will have a scale of 3 million kilowatts.

Qian Zhimin, deputy director of the National Energy Administration, said recently that it is the manufacturing sector that must stop expansion, and that wind energy and photovoltaic power generation applications will not slow down.

Zhang Guobao, member of the Standing Committee of the National Committee of the Chinese People's Political Consultative Conference and the former director of the National Energy Administration, told the China Securities Journal that since the country's first unified planning for new energy development and the first unified planning of wind power projects, the domestic wind power grid-connected power generation has increased 41% over the previous year. It reached 73.3 billion kwh, and the growth rate has increased substantially. Photovoltaic grid-connected power generation reached 2.14 million kilowatts, with an interconnection rate of 71.3%. Moreover, excess capacity in the field of wind power and photovoltaic equipment manufacturing has also been effectively channeled. All of these indicate that the government has strengthened the overall planning and regulations to guide the development of the new energy industry and has achieved initial results. It should be further promoted in the future.

With the start of the new batch of project construction, new markets for wind power and photovoltaic power generation will surely expand further. According to market analysts, if the current total cost of 7,000 yuan/kWh for wind turbines and wind farm construction is used, nearly 18 million kilowatts of the project will add 260 billion yuan in wind power market investment, with equipment manufacturing accounting for half of the total. If the current equipment utilization hours reach 1900 hours and the average electricity price level of 0.57 yuan/kWh is calculated, the wind farm operators will add 19.49 billion yuan in generating revenue this year.

In terms of solar photovoltaic power generation, under the new 3 million-kilowatt project plan, based on the average procurement price of 7-9 yuan per watt of power plants operating in China, it will drive 21 billion to 27 billion yuan in PV module investment.

Nuclear power restart

Will activate 40 billion equipment orders

Wang Binghua, member of the National Committee of the Chinese People's Political Consultative Conference and chairman of the National Nuclear Power Technology Corporation, said on the 10th that in response to a reporter’s question, the new domestic nuclear power project will be restarted earlier this year, and the inland nuclear power project will continue to develop actively.

Li Ye, director of the Bureau of Scientific and Technical Equipment of the National Energy Administration, previously stated that the occurrence of the nuclear accident in Fukushima, Japan, has cancelled or suspended the supply of more than 40 billion yuan of nuclear power equipment in China. With the restart of nuclear power projects, industry insiders expect that this 40 billion yuan order is expected to be activated first.

The head of the China Nuclear Power Division told a reporter from the China Securities Journal that only China’s order to stop delivery after the nuclear accident in Japan would amount to 2 billion yuan. At present, the company has begun contact with the nuclear power plant owners to discuss the re-execution of the contract.

Although the mid-to-long-term target for nuclear power development by 2020 is set at 60 million kilowatts or 80 million kilowatts, it is still unknown. However, several agencies have predicted that non-fossil energy will occupy primary energy sources by 2020 as promised by China to the world. The proportion of consumption reached 15%, and by 2020, the installed capacity of nuclear power should be at least 70 million kilowatts. With this installed capacity, it will bring at least 400 billion yuan in market cake.

Analysts pointed out that hydropower will play a major role in the development of renewable energy. According to the planning of the National Energy Administration, 20 million kilowatts of hydropower projects will be started this year, which will bring in more than 140 billion yuan of new investment.