Premier Li Keqiang pointed out in the government work
report: To increase the proportion of non-fossil energy generation, develop
smart grid and distributed energy, encourage the development of wind energy and
solar energy, and start a number of hydropower and nuclear power projects. To
strengthen the exploration and application of natural gas, coalbed methane and
1) This year, the Government will
put priorities on energy consumption control, haze control and energy structure
transformation. For new energy, the government work report for the first time
encourages the development of wind energy and solar energy.
2) For PV development, we are
firmly optimistic about the integration of distributed grid and smart grid.
Although this year may not see the realization of gaols for distributed grid,
the new model represented by the distributed grid will continue to be
policy-driven. New business models and innovation are unlikely to appear and we
are optimistic about the integration and development of distributed, smart grid
and new energy vehicles.
3) We believe that this year,
installed capacity of PV and wind farms is expected to exceed expectations with
PV installed capacity of 16GW and wind power at 20GW. We continue to recommend
enterprises engaged in photovoltaic power plants and wind power operations,
such as: Eicon Technology, SUNGROW, Zhongli Sci-Tech, Aerospace Electrical,
Hareon Solar, Goldwind and Titan Wind.
Transmission and Distribution
Market Review: "Ren Min Zheng Xie Bao" exclusive interview on Liu
Zhenya: Positive response on the divergence in UHV AC and DC
Liu Zhenya: To build a safe UHV
power grid with strong carrying capacity and resource allocation ability, we
must promote coordinated development of UHV AC-DC grid.
We believe that:
1) UHV grid has attracted wide
attention from State Grid toNational Energy Administration. This time, Liu
Zhenya positively responded the divergence between AC and DC and actively
release signals on exchange of ideas and approval. Since 2014, China's UHV grid
approval have paced up.
2) UHV sector is recommended, and
specific stocks include Pinggao Electric which has the highest level of
flexibility XUJI Group and State Power NARI which are leading enterprises in
electrical equipment industry.