Jump into Renewable energy industry in ChinaPresentation Transcript
Jump into renewable energy industry! Zhou YC, Tang SJ, Zhang XT present Nankai University 2007.5
Why renewable energy
Drainage of fossil fuel including oil and gas
Environment enforcement to curb the CO 2 emission
Central government’s long term plan and determination to develop the renewable energy
Reality and outlook
The start-up phase compared with other countries
The renewable energy account for 0.1% of total energy consuming in 2005
Target for year 2020:renewable energy account for 30% of the electrical power supply
The annual increasing rate of renewable energy over 25%
Via China Renewable energy medium-and-long-term development plan
Government focus on the big four biomass, wind, solar and water
Government-led technology trend
Renewable electricity price excess average is borne equally by all end-users.
Partially tax concession.
Small hydro power could receive long-term loans from National Development Bank.
Target: The demand mount of Biodiesel will reach 20 million ton in 2010.
Main player CNOOC, Beck fuel
The total products of the projects constructed will be about 3 million ton 600,000 Ton Guofengoil 750,000Ton Qingjiang Bioenergy Smaller project
Target The demand amount of fuel ethanol will reach 4,500,000 ton per year in China .
CNPC COFCO The total products is about 1.02 million ton at present Others
Wind industry policy
Wind power concession project
Start at 2003, totally four times till 2006, 3 mKW
Still improving, with balace on low price and industry growth
Equipment manufacturing localization
In newly build wind farm, more than 70% of local equipment manufacture is needed.
… industry insiders believed that at that time(2020), it could be 170 million kilowatts . Arthouros Zervos Chairman Global Wind Energy Council
Main player in wind farm business
Big five State-owned power companies: China Guo Dian, LongYuan Group, DaTang Group, etc
Private company: Farsighted Group
International companies: Airtricity
Main player in wind turbine manufacturing business
International manufacturers: Vestas, Gamesa, Enercon, GE Energy
Domestic manufacturers: XinJiang Goldwind
Solar industry If the horse can not catch upon the sun, I will put the sun on the back of horse Khazaks herdsman use solar photovoltaic cell to generate power Target : Five times that in 2005 Dominate in the western rural area Three players in Photovoltaic : GE, BP solar, SunPower One dominate player in Solar heating : HuangMing
Hydro power industry
Small hydro schemes are particularly popular in China, which has over 50% of world small hydro capacity.
Unsettled in the preferential policy for this industry
World’s first class equipment manufacturer
Large influx of private capital recently.
Which industry? Screening criteria
High market potential, rapid development in industry commercialization
Large room for technology advancement and reasonable knowledge transfer feasibility
Stable revenue and high-rewarding profit in the future
Permission of foreign capital and no monopoly from domestic
Portfolio Optimization of the investment
Biomass Replace the existing oil esources in the future automobile world.
Wind Clean, centralize power generation in this century .