Hydropower investment feast how to divide food

Although domestic hydropower development has been controversial in recent years, the views of the industry are very consistent: Under the pressure of emission reduction, hydropower will once again usher in a great opportunity for development. Citing Liu Qi, deputy director of the National Energy Administration, China's hydropower development will move to a higher level in the future.

According to relevant officials of the Energy Bureau, with the full commissioning of the Yunnan Xiaowan Power Station this year, China’s hydropower installed capacity has exceeded 200 million kilowatts. It is indeed a challenge to complete 180 million new installed capacity by 2020, but before 2015, It is the 12th Five-Year Plan that China should be able to increase the installed capacity of about 70-80 million kilowatts. Analysts pointed out that this scale is comparable to the installed capacity of about four Three Gorges power stations.

Such a strong policy signal will undoubtedly overwhelm the major power companies with a new round of “staking water”. For the power group, the country's future assessment of its renewable energy indicators will be the amount of power generation, not the installed capacity. Compared with other renewable energy sources, the utilization hours of hydropower are relatively high and become the first choice for the structure adjustment of various power groups.

According to Zhang Boting, deputy secretary-general of the China Association of Hydroelectric Engineering, at present, most of China's hydropower resources are already occupied. Even if there are untapped remaining resources, they are closely watched by several large state-owned enterprises. Even local small and medium-sized hydropower resources have become popular commodities. For example, in 2009, a small hydropower station of 50,000 kilowatts in Aba, Sichuan Province attracted a number of central government bids. Prior to this, the power generation capacity of new hydropower stations in major power groups was at least 100,000 kilowatts.

In addition, opportunities for hydropower development will also bring investment benefits for scale.

According to industry estimates, according to 10,000 kilowatts of hydropower installed capacity can pull 100 million yuan to calculate, 70 million kilowatts - 80 million kilowatts can pull 800 billion investment scale. Of these, 40%-50% will be used for dam construction, building materials, cement, steel and other industries will benefit; 20% will be invested in power generation equipment manufacturing, in addition, there is also considerable promotion of local government employment and taxation.

Hydropower construction will also lead to the construction of power grids. Zhou Jianping, chief engineer of China Hydropower Engineering Consulting Group Corporation, said that “there will also be 1 trillion investment in power grid construction.”

At present, all parties are accelerating preparations. It is understood that not long ago, Zhefun, China’s largest privately-owned professional hydropower equipment manufacturer, has spent huge sums of money on the introduction of nearly 100 sets of CNC machining equipment, aiming to substantially increase production capacity to prepare for the upcoming hydroelectric construction boom. GF Securities researcher Xie Jun analyzed that Zhefu's orders for the first half of 2010 had exceeded the full year of 2009.