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China's power companies "going out" highlights frequently How to seize new opportunities in 2023?
Signed projects outside the country highlights
At the present stage, Chinese power enterprises abroad contracted projects show a number of characteristics. On the one hand, the clustering of Asian markets has become more significant. Data show that in 2022, Chinese enterprises are carrying out power project construction in 87 countries and regions. Chinese enterprises in Asia signed 278 projects, the project amount of $ 20.13 billion, accounting for 59.2% of the total amount of signed projects. Chinese companies signed 24 projects in Vietnam, with a contracted amount of USD 3.04 billion, making it the largest market for Chinese companies to sign overseas power projects.
On the other hand, the trend of signed projects in emerging markets is growing. In the overseas signed projects, the number and amount of "Belt and Road" power projects both occupy the majority of the total overseas power projects signed. At the same time, Chinese power enterprises have also strengthened overseas cooperation with RCEP region countries. According to the statistical data of China Chamber of Commerce for Import and Export of Machinery and Electronic Products, in 2022, Chinese electric power enterprises signed 288 electric power projects in the markets of countries along the "Belt and Road", accounting for 55.7% of the total number of electric power projects signed; the project amount of $21.74 billion, accounting for 63.9% of the total amount of electric power projects signed. Chinese power enterprises in the RCEP region countries signed 147 projects, the project amount of $ 9.34 billion, accounting for 27.5% of the total amount of power projects signed.
"New energy power generation projects have changed from scale expansion to specialization and intensification, and enterprises pay more attention to projects with high level of professional operation and good economic benefits. Chinese power companies have realized professional operation in multiple fields and the whole industry chain." Li Yawei, deputy director of strategy and engineering department of the Chamber of Commerce of Electrical and Mechanical Engineers, said. Data show that in 2022, China's new energy power generation industry (solar, wind, biomass, energy storage, etc.) maintained its growth trend, signing 195 projects for a total of $19.22 billion, up 9.9 percent year-on-year, accounting for 56.5 percent of the total amount of power projects signed. Among them, solar (photovoltaic) power generation projects signed 136 projects, the project amount of $ 9.97 billion, a significant increase of 74.6%; biomass power generation signed 16 projects, the project amount of $ 1.15 billion, an increase of 21.4%; wind power projects experienced a high growth in 2021, a slight decline, signed 41 projects, the project amount of $ 7.93 billion.
Compared with the new energy generation projects, the number of traditional power generation projects have all fallen back to varying degrees, which fully illustrates the remarkable effectiveness of the green and low-carbon transformation of China's power industry. Data show that in 2022, China's thermal power generation signed 52 projects with a project value of USD 5.06 billion, down 73.1% year-on-year. In addition to gas-fired power plants, the thermal power projects signed are mainly operation and maintenance and technical guidance; 232 projects signed for transmission and transformation, with a project value of USD 5.49 billion; and 38 projects signed for hydroelectric power generation, with a project value of USD 4.21 billion.
Multi-party cooperation to promote enterprises to seize new opportunities for development
"At present, Chinese power enterprises pay more attention to the operational management efficiency of overseas contracted projects, and 'small and beautiful' projects have received the attention of enterprises." Li Yawei said that among the newly signed overseas power projects in 2022, 460 realized the effective date of the year, involving a project amount of $23.45 billion, accounting for 69.0% of the total amount of newly signed power projects; 57 projects have been signed to be effective, involving a project amount of $10.55 billion, and the projects are gradually signed from mere scale expansion to the realization of economic efficiency enhancement.
Under the background of further optimization of the epidemic prevention and control policy and recovery of international market demand, in 2023, Chinese power enterprises "going abroad" are facing new opportunities for development, so how should they seize the new opportunities? What kind of support will be given by relevant state departments? How will the industry associations play a role?
In this regard, Li Yawei suggested that Chinese electric power enterprises should continuously improve their investment and operation and international operation capabilities, strengthen the construction of the industrial chain supply chain, and optimize the allocation of resources on a larger scale. In recent years, Chinese electric power enterprises abroad power projects contracted gradually show the trend of grouping and specialization. In the future, enterprises should pay more attention to efficiency and core competitiveness, and achieve mutual benefit and win-win through resource sharing and business synergy.
Meanwhile, relevant state departments should give more support, improve incentive and innovation mechanisms, encourage enterprises to improve their core key technology capabilities, accelerate the construction of an effective competitive energy market system, and create a favorable overseas development environment for Chinese power enterprises to "go out".
With the accelerated pace of Chinese power enterprises "going out", the overseas power market competition is becoming increasingly fierce. In this regard, Li Yawei suggested that industry associations should play a better role under the guidance of government departments, strengthen the regulation of competition and industry-based industry self-regulation, set up professional self-regulation committees, effectively avoid vicious competition, form a synergy of foreign competition, and achieve sustainable and healthy development of the power industry.