Wind energy projects have been cold investment

In the past few years, the wind power industry was inclined to adopt policies and it was easy to “tell stories” and funds rushed. Benefiting from this, China's wind power market has demonstrated a difficult to replicate prosperity. However, some people with keen sense of smell saw another trend, because of the large-scale development of the wind power market and the tightening of local approval power. In the past, wind power companies could get through bank credits or projects. Be stricter. “The investment community hopes to have a clearer picture of capital expenditures and returns, but for now, investors seem to have become fatigued by wind power companies,” said a Deutsche Bank analyst. Wind power projects currently encounter ** difficulties.

It is understood that compared with the European and American markets, it is more common for wind power developers to sign a Power Purchase Agreement (PPA) and then use PPA to do project ** to reimburse the project for operating income. "But for wind power, banks are no longer doing projects." Said Pan Weiping, general manager of Garrard Hassan (Beijing). A wind power developer personage revealed that now the country's approval of wind power projects has become increasingly stringent. In the past when the large group got all the approval documents, the wind farm construction has already met the conditions of the grid connection, and now only all the procedures are Get together to build. The private equity players, who have been closely linked with clean technology, have also played back.

Peter CONRNE, a partner at Dehui Law Firm's Shanghai office, said: “The investment in wind energy projects is very large and often requires 5-7 years of investment. Given the instability of incentive policies, the money invested is likely to be overdone.” On June 22, at the Fourth Annual Cleantech Investment Summit at the Asian Wind Energy Conference, all investors who mentioned wind energy expressed similar views. "The new energy industry is too dependent on policy subsidies. Investors generally believe that the industry itself does not have a clear profitability." According to the securities analysts of the aforementioned Deutsche Bank, "In addition, the ubiquitous grid connection problem has also restricted the performance of the new energy industry."