Electrical Equipment / Components & Telecoms

"The pace of layout in emerging markets has accelerated; new energy power generation projects have shifted towards specialization and intensification; and more attention has been paid to the operational and management benefits of overseas contracted projects..." Currently, the highlights of China's power enterprises' "going global" are frequent, and the green and low-carbon transformation of the power industry has achieved significant results. Huacheng's import and export data observation reports.

Frequent highlights of overseas signed projects

At this stage, overseas contracted projects of Chinese electric power enterprises exhibit many characteristics. On the one hand, the agglomeration of Asian markets is more significant. According to Huacheng Import and Export Data Observation, in 2022, Chinese enterprises will carry out power project construction in 87 countries and regions. Chinese enterprises have signed 278 projects in Asia, with a project amount of 20.13 billion US dollars, accounting for 59.2% of the total project amount signed. Chinese enterprises have signed 24 projects in Vietnam with a contract amount of 3.04 billion US dollars, making it the largest market for Chinese enterprises to sign overseas power projects.

On the other hand, emerging market contracted projects are showing a growth trend. Among overseas contracted projects, the number and amount of "the Belt and Road" power projects account for more than half of the total overseas contracted power projects. At the same time, Chinese power companies have also strengthened overseas cooperation with countries in the RCEP region. According to the statistics of China Chamber of Commerce for Import and Export of Mechanical and Electrical Products, in 2022, Chinese power enterprises will sign 288 power projects in the markets of countries along the "the Belt and Road", accounting for 55.7% of the total number of power signed projects; The project amount is 21.74 billion US dollars, accounting for 63.9% of the total amount of power contracted projects. Chinese power enterprises have signed 147 projects in countries in the RCEP region, with a project amount of 9.34 billion US dollars, accounting for 27.5% of the total amount of power signed projects.

"New energy power generation projects have shifted from scale expansion to specialization and intensification, and enterprises are paying more attention to projects with high professional operation levels and good economic benefits. Chinese electric power enterprises have achieved professional operation in multiple fields and the entire industrial chain." said Li Yawei, Deputy Director of the Strategy and Engineering Department of the Chamber of Commerce for Machinery and Electronics. According to Huacheng Import and Export Data Observation, in 2022, China's new energy power generation industry (solar energy, wind energy, biomass, energy storage, etc.) maintained a growth trend, with 195 signed projects, with a total contract amount of 19.22 billion US dollars, a year-on-year increase of 9.9%, accounting for 56.5% of the total contract amount of power projects. Among them, 136 solar (photovoltaic) power generation projects were signed, with a project amount of 9.97 billion US dollars, a significant year-on-year increase of 74.6%; There were 16 signed projects for biomass power generation, with a project amount of 1.15 billion US dollars, a year-on-year increase of 21.4%; Wind power projects experienced a rapid growth in 2021, with a slight decline. 41 projects were signed with a project value of 7.93 billion US dollars.

Compared with new energy power generation projects, the number of traditional power generation projects has decreased to varying degrees, which fully demonstrates that the green and low-carbon transformation of China's power industry has achieved significant results. According to Huacheng Import and Export Data Observation, in 2022, China signed 52 thermal power generation projects with a project value of 5.06 billion US dollars, a year-on-year decrease of 73.1%. In addition to gas fired power stations, the contracted thermal power projects mainly focus on operation maintenance and technical guidance; 232 signed projects for power transmission and transformation, with a project value of 5.49 billion US dollars; There are 38 signed hydropower projects with a project value of 4.21 billion US dollars.

Promote enterprises to seize new development opportunities through joint efforts

"At present, Chinese electric power enterprises are paying more attention to the operational and management benefits of overseas signed projects, and 'small and beautiful' projects have attracted the attention of enterprises." Li Yawei said that among the newly signed overseas electric power projects in 2022, 460 were effective that year, involving a project amount of 23.45 billion US dollars, accounting for 69.0% of the total amount of newly signed electric power projects; 57 projects have been signed and pending implementation, involving a project amount of US $10.55 billion. Project signing has gradually shifted from simple scale expansion to achieving economic benefits.

Against the background of further optimization of epidemic prevention and control policies and recovery of international market demand, in 2023, Chinese electric power enterprises are facing new opportunities for development by "going global". How should they seize the new opportunities? What support will the relevant national departments provide? How will industry associations play a role?

In response, 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 resource allocation on a larger scale. In recent years, the signing of overseas power projects by Chinese power enterprises has gradually shown a trend of collectivization and specialization. In the future, enterprises should pay more attention to efficiency and core competitiveness, and achieve mutual benefit and win-win results through multiple channels such as resource sharing and business collaboration.

At the same time, relevant national departments should provide more support, improve incentive and innovation mechanisms, encourage enterprises to improve their core and key technological capabilities, accelerate the construction of an effective competitive energy market system, and create a good overseas development environment for Chinese power enterprises to "go global".

With the accelerated pace of "going global" by Chinese power enterprises, competition in the overseas power market is becoming increasingly fierce. In response, Li Yawei suggested that industry business associations should play a better role under the guidance of government departments, strengthen the standardization of competition order and the construction of industry based industry self-discipline, establish professional self-discipline committees, effectively avoid vicious competition, form a joint force in external competition, and achieve the sustainable and healthy development of the power industry. Huacheng Import and Export Data Observation Report.