China Wind Power Materials and Equipment Network Information Channel

The sustained large-scale air pollution in our country has made the adjustment of energy structure very urgent, and the development of new energy such as wind power has once again entered the fast lane.

Recently, a reporter from China United Business Daily learned from the website of the National Energy Administration that the Administration has launched a new batch of wind power approved construction plans with a total installed capacity of 27.6 million kilowatts. According to official data, nearly 60% of the over 100 million kilowatt wind power projects that have been reviewed are still in a state of non construction or under construction.

Industry insiders point out that this means that according to the target of "100 million kilowatts of wind power grid connected installation in China by 2015" proposed in the "Twelfth Five Year Plan", the pace of domestic wind power installation will accelerate in the next two years, which will give rise to more than 280 billion yuan of equipment demand space. Wind power equipment manufacturers who have encountered a large shortage of orders in the past are expected to usher in a wave of orders.

Wang Sicheng, a researcher at the Energy Research Institute of the National Development and Reform Commission, told reporters that in 30 years, China will face a situation where there is no coal to mine, no oil to mine, and no gas to develop. The only way to change this situation is through energy transformation, and clean energy such as wind power will be vigorously developed in the next 20 to 30 years.

In view of this, starting from 2011, the National Energy Administration began to develop a wind power project approval plan. The first three batches of wind power were approved with a scale of 26.83 million kilowatts, 16.76 million kilowatts (later supplemented with 8.52 million kilowatts), and 27.97 million kilowatts, respectively. At this point, the cumulative scale of wind power projects to be approved since the 12th Five Year Plan has exceeded 100 million kilowatts.

However, due to the serious situation of wind power curtailment and power restrictions in the "Three North" areas, the wind power industry is still experiencing "chills", with nearly 60% still in a state of not yet started or under construction. There are doubts about whether the country should develop wind power, and confidence in industrial development is greatly affected.

In February of this year, Wu Xinxiong, Deputy Director of the National Development and Reform Commission and Director of the National Energy Administration, presided over consecutive special meetings on the implementation of air pollution prevention and control, which clearly stated the need to accelerate the development of clean energy such as wind power and improve the energy structure.

"The fourth batch of wind power with a planned approved capacity of 27.6 million kilowatts has greatly exceeded industry expectations, sending a clear signal to the industry that the country will continue to promote and strongly support the development of wind power." Yi Yuechun, Deputy Chief Engineer of the Hydropower and Water Resources Planning and Design Institute and Executive Deputy Director of the National Renewable Energy Information Management Center, told reporters.

Of particular note, Yi Yuechun told reporters, "In the fourth batch of plans, the proportion of construction scale in central, eastern, and southern regions has further increased, reaching about 60% of the total national construction scale of this batch. Especially, Hunan Province's annual construction scale has reached 2 million kilowatts, becoming a key province for wind power development in central China. It can be said that wind power in central, eastern, and southern regions of China has officially entered the stage of large-scale development, and the optimization effect of industrial layout is obvious."

Various signs indicate that the wind power industry is bottoming out and showing a clear trend of recovery. According to data from the National Energy Administration, in 2013, the country added 14.49 million kilowatts of wind power grid connected capacity, with a cumulative grid connected capacity of 77.16 million kilowatts, a year-on-year increase of 23%; The annual power generation is 134.9 billion kilowatt hours, a year-on-year increase of 34%; The utilization hours of wind power reached 2074 hours, an increase of 184 hours year-on-year; The average wind abandonment rate is 11%, a decrease of 6 percentage points from 2012.

"In the future, with the strengthening of wind power development in the Middle East and inland regions, as well as the acceleration of wind power transmission channel construction, the acceleration of atmospheric pollution control and the adjustment of energy industry structure, the utilization of renewable energy, especially wind power, will be further strengthened." Yi Yuechun said.

Generating 280 billion yuan equipment market

With the support of various government policies, the wind power industry is gradually showing an overall positive trend, which is also transmitted to upstream industries. According to the reporter's understanding, the pace of bidding for wind power projects in the five major domestic power groups last year was significantly faster than in previous years. In September last year, Huadian Group conducted bundled bidding for wind power projects with a total capacity of 950000 kilowatts. In the third quarter, Huadian Group's project bidding volume was about 1 million kilowatts, and in the fourth quarter, China Power Investment Corporation also conducted public bidding for wind power projects with a total capacity of over 400000 kilowatts. In the third quarter of 2012, the newly added bidding volume nationwide was only about 1.4 million kilowatts, which is less than the bidding volume of Huadian and Huaneng companies in the third quarter of last year.

Unlike the previous situation where bidding volume has increased and equipment bidding prices have deteriorated, a market tracking data report shows that the bidding prices for wind power bidding projects have increased from a historical low of 3600 yuan/kilowatt in 2011 to around 3900 yuan/kilowatt throughout last year.

According to data from the National Energy Administration, the approval scale of wind power projects during the 12th Five Year Plan period has exceeded 100 million kilowatts since 2011. However, according to the figures released by the National Energy Administration, the cumulative installed capacity of wind power projects under construction nationwide has reached 60.23 million kilowatts, most of which are projects that have not been tendered.

According to a researcher at China Merchants Securities (600999, Stock Bar), according to data provided by relevant enterprises, as of the end of June last year, about 60% of the first three batches of approved 90.4 million kilowatt projects in the country had not yet been tendered or started construction, which is 54 million kilowatts. Assuming that 10 million kilowatts of wind power were started in the second half of last year, and with this addition of 27.6 million kilowatts, it means that by the end of 2013, the approved but not yet under construction wind power projects will reach approximately 72 million kilowatts. This number will be concentrated and heavily developed in 2014 and 2015, when the 12th Five Year Plan ends.

According to a rough calculation by the reporter, if calculated based on the current average bidding price level of 3900 yuan/kilowatt for domestic wind power projects, the 72 million kilowatt new installed capacity will mean that more than 280 billion yuan of equipment demand space will be generated in the next two years. This is undoubtedly a "blessing" for wind power equipment manufacturers who have faced a large-scale shortage of orders in the past after a long drought.

And all these positive factors have been reflected in the performance of the leading wind power equipment manufacturing enterprises last year. On February 26th, Goldwind Technology (002202, Stock Bar) released its 2013 annual performance report, which showed that the company achieved a net profit attributable to shareholders of the listed company of RMB 428 million during the reporting period, an increase of 179.41% year-on-year, nearly 1.8 times. For the better performance of the above financial data, Goldwind Technology stated that it was mainly due to the increase in wind turbine sales and gross profit margin in 2013.

According to preliminary statistics from the China Wind Energy Association, in 2013, Goldwind Technology added 3.6 gigawatts of wind power installed capacity, accounting for 22.5% of the newly added wind power installed capacity in China. Industry insiders believe that Goldwind Technology's shipment volume has performed well. In addition to the construction of projects in low wind speed areas in the south, the construction of large-scale wind power bases such as Hami in the second half of last year has also played a positive role.

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