China National Nuclear Corp.'s Progress in Integrating Photovoltaic Resources

The largest nuclear industry construction company in China is entering the photovoltaic industry as a project general contractor.

On January 6th, China Nuclear 23rd New Energy, a wholly-owned subsidiary of China National Nuclear Corporation, and Fame Raise Limited, TripleDelight Limited, and Shanghai Guoneng Investment Co., Ltd. signed a shareholder's subscription agreement and shareholder cooperation agreement of Guoxin Energy Co., Ltd. in Nanjing, Jiangsu Province. According to the agreement, the parties to the cooperation will seize the development opportunities of the photovoltaic industry, give full play to their respective advantages, and jointly commit themselves to the market development and construction of EPC (engineering, procurement and construction) of new energy industries such as photovoltaics at home and abroad.

"In the current photovoltaic industry environment, nuclear engineering installation companies can enter at lower prices, and it is beneficial to accelerate the integration of China's photovoltaic industry and use their own experience in engineering installation to achieve resource integration." Zhuo Chuang Information Researcher Li Lingxuan Tell the China Economic Times reporter.

Implementation of new energy resources integration China Nuclear 23rd International is a Hong Kong-listed company controlled by CNI 23, pursuant to its announcement concerning the establishment of a discloseable transaction of a joint venture company, CNNC International and the Group’s affiliates, Yu Yang and Triple Delight, entered into a subscription Under the agreement, 51%, 29.9% and 19.1% of the issued shares of Guoxin Energy (hereinafter referred to as the joint venture company) will be subscribed. The joint venture company will set up a wholly-owned target company to apply for launching the EPC (Engineering, Procurement and Construction) business of China's photovoltaic power stations. Required qualifications.

Guoxin Energy Co., Ltd. will become the bridge for the introduction of China National Nuclear Corporation's 23rd New Energy into the photovoltaic industry. It will establish a subsidiary company in Nanjing, Jiangsu Province with PV EPC as its core business. The three companies will invest 50 million yuan each as a joint venture company. The registered capital.

The largest nuclear power construction company in China tried to enter the photovoltaic market as a general contractor and participated in the construction of photovoltaic power stations.

Dong Yuchuan, director of the China National Nuclear Corporation International Board of Directors, said: “The development of new energy represented by nuclear energy and photovoltaics is the consensus of all parties involved. China Nuclear 23rd International will further optimize the industrial structure and diversify its business.”

China National Nuclear 23 Holdings Group stated that the entering into of the subscription agreement and the shareholders agreement was mainly based on two considerations. One of them is that the Group’s corporate strategy is to continue to identify investment opportunities so as to diversify its business and reduce the impact of the global financial market. It can also have a stable source of income.

In an interview with the China Economic Times, Zhuo Chuangxin Li Lingxuan said: “China’s current nuclear power projects under construction rank first in the world, and nuclear power and nuclear power construction related companies have sufficient funds; while the domestic PV industry’s difficulties have caused the prices of most photovoltaic companies to be Underestimates, nuclear power and nuclear power construction related companies have greater advantages at this time. In addition, this cooperation will accelerate the reorganization and reshuffle of the photovoltaic industry, promote the survival of the fittest, and promote the integration of resources."

A security source who declined to be named told reporters: "The "double reverse" of photovoltaics coupled with low prices, the profitability of polysilicon and photovoltaic cell modules has been very limited, regardless of state-owned enterprises or private enterprises, photovoltaic power plant engineering It's still a big cake."

EPC: Opportunities and Crisis Coexistence EPC is similar to the engineering general contractor. CNNC Ersan Group entered the downstream power generation field of photovoltaic industry as the general contractor of the project, and it is still the oldest company in the industry.

Liu Wenliang, executive president of Beijing Guorun Tianneng Technology Co., Ltd., has publicly stated that EPC should be the bridge upstream and downstream of the industrial chain and should be the terminal core of the entire photovoltaic industry chain.

In general, a complete photovoltaic power plant industry chain includes upstream component manufacturers, system integrators that develop power stations (including developers and EPCs/installers), power station owners that operate power stations, and users who purchase electricity. Photovoltaic power station development has four competitive thresholds of technology, market, capital, and industrial chain, so its profitability is the highest link in the entire industry chain.

“But before the PV grid-connected price was announced in September 2012, it was constrained by the fact that domestic on-grid tariffs were not announced and the details of the subsidy have not been determined. The domestic photovoltaic power plants are basically an investment stage and have not yet formed revenue.” Vice President of the China Renewable Energy Society Meng Xianzhe told this reporter that “according to last year’s National Development and Reform Commission’s first clear-cut PV power plant on-grid tariffs of 1 yuan per kilowatt-hour and 1.15 yuan per kilowatt-hour, the cost of photovoltaic power generation is between 1.4 and 1.5 yuan, if there is no government subsidized electricity price. Photovoltaic power generation is simply not profitable."

After the PV grid-connected price was announced in September 2012, the development of China's PV power plants surged, and state-owned enterprises and manufacturers including Guodian, Datang, and China Power Investment joined in one after another. In addition, at the beginning of December, the Hebei Provincial Electric Power Survey and Design Institute under the China Power Construction Group entered the site of the 115.9MW photovoltaic power plant project in Greece. The China Development Bank Guangdong Branch and Jinko Energy Switzerland Subsidiary signed a total of US$1 billion. The strategic cooperation agreement intends to support Jinko Energy's financial cooperation in the construction of overseas photovoltaic power plants, mergers and acquisitions, EPC and project contracting.

Behind the boom in the development of photovoltaic power plants, Liu Yaohua, chief editor of “Sunshine Energy”, worries about the greater potential for fear of producing truly professional systems integrators. He said: "BOT (private capital is involved in infrastructure construction, a special investment method to provide public services to the society, including construction, operation and transfer.) Ye Hao, EPC, and did not open up new The idea is that after two years of the construction of photovoltaic power plants, the power plant operators may face a greater crisis."

Liu Wenliang agrees with Liu Xiehua's point of view: “If we only understand EPC as the integration of photovoltaic systems, the result is nothing more than that the current commercial space is repeatedly squeezed by various links in the industry chain, and ultimately it is unable to form its own core competitiveness and business model."

Liu Wenliang suggested that PV EPC should focus on the integration of technology and services with the grid. It is not only limited to the integration of a photovoltaic upstream product with the downstream power plant, but also the “lubrication” between the power plant and the grid. Agent" through technology and service solutions to synergize and coordinate the difference in demand between the two.