(Report Producer/Author: Southwest Securities, Yan Yangchun)
BIPV - Traditional distributed photovoltaics upgrade, new application directions continue to emerge 1.1 Distributed photovoltaics have become the main force in new photovoltaic installations, and BIPV has great growth potential
There is an obvious trend of developing both centralized and distributed photovoltaic power generation, with distributed photovoltaics becoming the main force in newly installed photovoltaic capacity. Photovoltaic power stations are the terminal application market of the photovoltaic industry chain. They can be divided into centralized power stations and distributed power stations based on the installed capacity of the power station, distance from users, and voltage level connected to the power grid. Centralized power stations are large-scale photovoltaic power stations built in desert areas, making full use of the abundant and relatively stable solar energy resources in desert areas and connecting to high-voltage transmission systems to supply long-distance loads. Distributed power stations are mainly based on dispersed building surfaces, solving users' power problems nearby, and realizing power supply balance compensation and outbound delivery through grid connection. Compared with centralized power stations, distributed power plants have the advantages of small investment, fast construction, small footprint, strong profitability, close contact with users, and strong policy support. Since 2013, my country's photovoltaic power generation grid-connected installed capacity has grown rapidly. As of the end of 2021, the cumulative installed capacity of photovoltaic power generation grid-connected has exceeded the 300 million kilowatt mark, reaching 306 million kilowatts, ranking first in the world for seven consecutive years. From a structural perspective, the cumulative installed capacity of distributed photovoltaics accounts for 35.1% of the total installed photovoltaic capacity in 2021, up from 14% in 2015. Judging from the annual new photovoltaic power generation grid-connected installed capacity, distributed photovoltaics will add 29GW in 2021, a year-on-year growth rate of 87%. The growth rate has far exceeded that of centralized photovoltaics, accounting for approximately 55% of all new photovoltaic power generation installed capacity, and the market share Continue to increase, and the development trend of both centralized and distributed photovoltaic power generation is obvious.
In distributed power stations, BIPV is superior to BAPV in terms of appearance, lifespan, stress, waterproofing and construction, and has huge growth potential. Distributed power stations can be roughly divided into three categories: photovoltaic modules integrated with buildings (BAPV), photovoltaic modules integrated with buildings (BIPV), and non-building scenarios. Among them, distributed power stations integrated with buildings (BAPV & BIPV) account for approximately 10% of distributed photovoltaic power stations. 50% of the installed capacity. BAPV (ordinary photovoltaic components) mainly refers to photovoltaic components installed on buildings that do not serve as the building's outer envelope but only have the function of generating electricity. They are mostly used in existing buildings. BIPV (Building Integrated Photovoltaics) mainly refers to the photovoltaic components installed on the building that are not only components for power generation, but also serve as the building's outer envelope, and are designed, constructed, and accepted simultaneously with the building, such as photovoltaic tile roofs, photovoltaic curtain walls, and Photoelectric lighting roof, etc. As of 2021, BAPV is still the mainstream photovoltaic building type. Compared with BAPV, BIPV directly uses the equipment as a wall or roof, with a more integrated appearance and long service life. Moreover, BIPV does not require other fixed structures, making it safer. High, better waterproof performance, construction difficulty is significantly lower than BAPV. In addition, BAPV is often a project that requires a one-time investment and returns for many years. Owners attach great importance to profitability and safety. Once a major loss occurs, it will be difficult to effectively protect the rights and interests, and BIPV can avoid this problem. As an important direction for the future development of photovoltaic buildings, BIPV can well solve some of the pain points of BAPV systems.
1.2 BIPV has diverse application directions to meet the different needs of users
BIPV New application directions are constantly emerging to meet the needs of different users and different scenarios. (1) According to application scenarios, BIPV includes photovoltaic roofs, photovoltaic curtain walls, photovoltaic daylighting roofs, prefabricated photovoltaic walls and photovoltaic sunshades. Rooftop resources are the focus of the current BIPV field, especially in conjunction with the policies promoted by the county, rooftop BIPV products Development is getting faster and faster. (2) From the perspective of technical route, the crystalline silicon battery industry chain is complete, the production equipment has been localized, the product technology is independent and advanced, and the production cost is low. It currently occupies 95% of the market share in photovoltaic buildings. Although thin-film batteries are in conversion efficiency It is not as good as crystalline silicon cells in other aspects, but its simple structure, adjustable light transmittance, good low-light performance, and low temperature coefficient make it more suitable for application in BIPV than crystalline silicon, especially on building facades. .(3) From the perspective of product expression, "building material type" BIPV is a relatively ideal form with high degree of customization, strength requirements and high cost; "component type" BIPV tends to be standardized products, but its application scenarios are also limited. At present, it is mainly used in large-area roofs such as industrial and commercial factory roofs, rainproof carports, and external curtain walls of large buildings. Comprehensive consideration, the future development direction of BIPV products will be to make both standardized products and customized products to meet the needs of different users and different scenarios.
1.3 The midstream structure of the industry chain is undecided, attracting players from the photovoltaic and construction industries to join the industry
BIPV Participants in the industry chain include upstream photovoltaic module manufacturers, represented by Longi Co., Ltd. , Sungrow Power Co., Ltd. , and Tongwei Co., Ltd. . Including silicon wafers, backplanes and walls; midstream BIPV system integrator , represented by Jangho Group, Sente Co., Ltd. , and Southeast Grid , its main products include photovoltaic roofs, photovoltaic curtain walls, and solar cells and other energy storage equipment, etc.; downstream customers are mainly the construction industry, covering factories, real estate and some national-level buildings that reduce emissions.
Competition in the upstream is fierce, and the concentration of various links in the industry has increased. The leading company LONGi is expected to continue to lead the development of the industry. The upstream of the BIPV industry chain mainly includes photovoltaic modules such as photovoltaic cells and , which can be subdivided into two technical routes: crystalline silicon and thin film, as well as production links such as silicon materials, silicon wafers, cells, and modules. At present, the photovoltaic industry chain as a whole is driven by policies, and photovoltaic module output continues to grow. In 2021, China's photovoltaic module output was 182GW, a year-on-year increase of 46.1%. In 2020, China's photovoltaic module output was 124.6GW, a year-on-year increase of 26.4%. BIPV's battery component technology is relatively mature, and competition in the industry is fierce. A few leaders have a high market share and strong pricing power in the supply chain. Represented by Longi, Tesla Solar Roof also entered the Chinese market in 2020. From the perspective of product form and market positioning, each company is different. LONGi takes the photovoltaic building materials route, CITIC Bo and others are similar to photovoltaic brackets. LONGi mainly targets large-scale industrial and commercial projects with relatively low pricing. Tesla It can be targeted at home users. The installed capacity may be 10~20kW, and the positioning and price are relatively high-end. At present, the concentration of various links in the photovoltaic industry chain has increased. As the leader in silicon wafers and components, Longi has a high market share and is expected to continue to lead the development direction of the industry in the future.
midstream has high technical barriers and strong profitability. Midstream BIPV system integrators have relatively high technical barriers, entry barriers and profitability levels. They mainly include photovoltaic companies and construction companies. The former are deployed in the upstream + midstream. They can sell customized BIPV products and be responsible for the integrated installation of BIPV products. The latter It is a leading enterprise in building envelope, steel structure, curtain wall and other construction subdivision fields. In the context of carbon neutrality, it is difficult to rely solely on photovoltaic rooftop power generation to meet the building's own electricity needs. To achieve self-sufficiency in building power supply, BIPV application scenarios will be further expanded in the future, from roofs to building facades, such as building facades. Curtain walls, maintenance, etc.
Downstream industrial and commercial users are more motivated to invest in BIPV, with factories and buildings accounting for the highest proportion of installed capacity. Downstream photovoltaic investors include governments, residents, industrial and commercial users, etc. The investment motivation mainly comes from green and low-carbon demand. From the perspective of electricity prices, according to our calculations, under different proportions of surplus electricity, the investment payback period of industrial and commercial rooftop BIPV is 1 to 3 years shorter than that of residential rooftop BIPV, and the internal rate of return is higher, so the electricity price is high. of industrial and commercial users are more motivated to invest in BIPV projects (see below for specific calculations). From the demand side, the downstream BIPV demand side mainly includes residential houses, factories and buildings, commercial and service buildings, etc., while the change in the proportion of installed capacity represents the inconsistent degree of urgency of low energy consumption on the demand side. Factories and buildings have always accounted for the highest proportion of installed capacity, and their electricity consumption characteristics are highly consistent with BIPV. In the future, new residential buildings under a low-carbon background will become the second largest installation scenario.
Building energy consumption, policy support, and affordable Internet access are the "three wheels" driving industry development
2.1 BIPV will continue to grow while promoting the "dual carbon" goal
The proportion of carbon emissions in the entire construction process in my country accounts for more than half of the country's total. carbon reduction in the construction industry is the key to "double carbon" work. As a major carbon emitter, the construction industry is one of the main sources of global carbon emissions. It has always had problems such as high resource consumption, high pollution emissions, and extensive construction methods. The energy consumption of the entire construction process in my country is high, and carbon emissions account for more than half of the country's total. The low-carbon development of the construction industry is closely related to the realization of the "double carbon" goal. The total scale of construction in my country ranks first in the world. The existing total construction stock in cities and towns is about 65 billion square meters. It is expected that the new construction area will be about 2 billion square meters every year. Carbon emissions are showing an upward trend. As my country's urbanization level continues to improve, carbon emissions during the construction production process are also rising. According to statistics, the total energy consumption in the entire construction process nationwide in 2019 was 2.233 billion tons of standard coal equivalent (tce), accounting for 45.8% of the country's total energy consumption; the total carbon emissions in the entire construction process in the country in 2019 was 4.997 billion tce, It accounts for 50.6% of the country’s carbon emissions. Therefore, energy conservation and emission reduction in the construction industry is a very important part of helping to achieve carbon neutrality. It is necessary to promote the green and low-carbon development of the entire industry chain of the construction industry from the entire life cycle of building material production, construction, operation and maintenance.
From the perspective of building life cycle carbon emissions, the production and operation stages are the main stages that consume energy and generate carbon emissions. Among the carbon emissions in my country's construction sector, the building materials production stage accounts for the largest proportion, about 55%, followed by carbon emissions from building operations, which accounts for about 43%, and the construction process only accounts for about 2%; in terms of energy consumption, it also mainly comes from production and In the operation stage, they account for approximately 50% and 46% respectively. A large amount of carbon emissions generated during the construction production process mainly come from industrial carbon emitters - steel, cement and other building materials. The current new buildings in our country are reinforced concrete structures . The cement production process requires a large amount of energy and results in a large amount of carbon emissions. Emissions; during the building construction phase, the total carbon emissions account for only 2% of the entire process, which is relatively stable; during the building operation phase, carbon emissions mainly come from electricity consumption and coal combustion in the heating system.
my country's BIPV supply and demand conditions are becoming mature, and the penetration rate of and is expected to further increase. From the demand side, the current area of old residential buildings in my country is about 4 billion square meters. They are generally high-energy-consuming buildings with low energy-saving rates and high operating energy consumption. However, the penetration rate of BIPV in my country is low, accounting for 10% of the installed distributed photovoltaic capacity. It is expected that my country's BIPV installed capacity will increase from 1.1GW in 2021 to 30.2GW in 2025, and the penetration rate in distributed photovoltaics will increase from 4.9% in 2021 to 74.5% in 2025. The market has broad space. From the supply side, my country's photovoltaic material technology and production capacity are at the forefront of the world. Leading domestic building materials companies continue to carry out the research and development and industrial promotion of new photovoltaic materials around the development trend of green construction. Taking Hangzhou as an example, in November 2021, Hangzhou The first BIPV production line of Hete Optoelectronics, a subsidiary of Xiaogang Structure, was officially put into operation. The production line covers an area of 4,800 square meters and has an annual production capacity of 1 million square meters.
2.2 With policy support and the “national team” entering the game, BIPV may welcome spring
The national level encourages the development of the BIPV industry, and state-owned construction takes the lead in increasing the BIPV market share. Judging from the advancement of my country's BIPV industry policies, my country's energy and environmental protection-related policies began to mention the BIPV industry at the end of 2019. In November 2019, six departments including the Ministry of Industry and Information Technology issued the "Notice on Carrying out Smart Photovoltaic Pilot Demonstrations", proposing to form characteristic applications of smart photovoltaics in industrial parks, buildings and towns, transportation, agriculture and rural areas, photovoltaic power stations, photovoltaic poverty alleviation and other fields. It is also proposed that the installed capacity of a single project for smart photovoltaic and building-integrated applications in the building and urban areas should be no less than 0.1MW. Judging from the recent policies related to the BIPV industry, my country has begun to move from encouraging industry development to proposing specific short- and medium-term goals. At the same time, government-related buildings have taken the lead in setting an example and increasing the proportion of BIPV buildings.For example, in October 2021, the State Council issued the "Carbon Peaking Action Plan before 2030", which pointed out that by 2025, the renewable energy replacement rate in urban buildings will reach 8%, and the rooftop photovoltaic coverage rate of new public institutional buildings and new factories will strive to reach 8%. 50%; in March 2022, the Ministry of Housing and Urban-Rural Development issued the “14th Five-Year Plan for Building Energy Saving and Green Building Development Plan”, proposing that by 2025, more than 350 million square meters of energy-saving renovation area of existing buildings will be completed, and ultra-low energy consumption, nearly Zero energy consumption buildings exceeded 50 million square meters, prefabricated buildings accounted for 30% of the new urban buildings that year, the country's newly added solar photovoltaic installed capacity exceeded 50 million kilowatts, and geothermal energy building application area was 100 million square meters. Above, the renewable energy replacement rate of urban buildings reaches 8%, and the proportion of electricity consumption in building energy consumption exceeds 55%.
Green building subsidy policies have been introduced in various regions to support the BIPV industry. As the country promotes the development of BIPV, governments at all levels have also introduced relevant planning and subsidy policies. The BIPV-related measures introduced mainly involve green building photovoltaic installed capacity, proportion of new BIPV buildings and application area. Among the subsidy policies introduced, Beijing’s subsidy standard for all projects that implement photovoltaic building-integrated applications (photovoltaic modules are used as building components) is 0.4 yuan/kWh (tax included), with a subsidy period of 5 years, and the highest subsidy intensity; Zhejiang Province Hangzhou City will give investment entities a one-time construction reward at the standard of 0.1 yuan/watt for other areas except Shangcheng, Gongshu, West Lake, Binjiang, and Qiantang District, with the lowest subsidy. With the intensive introduction of green building-related subsidy policies in various regions, the economic benefits of BIPV have significantly improved and are expected to usher in rapid growth.
The "national team" is vigorously entering distributed photovoltaics, and the BIPV industry is ushering in spring. In March 2021, Power Construction China issued the "Guiding Opinions on New Energy Investment Business of China Power Construction Group (Co., Ltd.)", proposing to vigorously develop new energy investment and operation business. Based on the above-mentioned guiding opinions, it decomposed and issued orders to its 28 subsidiaries. The new energy development target is to add a total of 48.5GW during the "14th Five-Year Plan" period. Power China's photovoltaic orders in the past five years have reached 31.7 billion yuan and 25 BIPV projects. As of the end of 2020, the company's controlled grid-connected installed capacity was 16.1385 million kilowatts, of which solar photovoltaic power generation installed capacity was 1.2916 million kilowatts, a year-on-year increase of 7.77%. With the clarion call of " carbon peaking , carbon neutral " and "building a new power system dominated by new energy", Power China will fully enter the field of new energy project development during the "14th Five-Year Plan" period. , the field of photovoltaic power plant investment may add another "Big Mac" central enterprise battleship. In June 2022, ZPMC plans to jointly invest approximately RMB 200 million with its related party China Communications Construction Investment Co., Ltd. at a ratio of 3:7 to establish "China Communications Construction Photovoltaic Technology Co., Ltd." Among them, China Communications Industry Investment invested 140 million yuan in monetary funds, and Zhenhua Heavy Industries invested 60 million yuan in monetary funds or equivalent assets. This construction photovoltaic company is led by China Communications Industry Investment. China Communications Construction is currently developing nine major new industries, with new energy and photovoltaic industries ranking first among the nine new industries. It will focus on the strategic opportunities of "carbon peaking and carbon neutrality", focusing on the development of offshore wind power, City gas supply, photovoltaic power generation, distributed energy and other new energy power generation business. This breakthrough development of China Communications Construction Co., Ltd.’s establishment of a building photovoltaic company fully reflects the company’s emphasis on the building photovoltaic field.
2.3 Market-oriented electricity prices promote healthy competition in the industry
Photovoltaic power generation will enter the parity stage in 2021. As the cost of photovoltaic power generation further declines, it will be more beneficial to promote BIPV on a large scale. In June 2021, the National Development and Reform Commission issued the "Notice on Matters Concerning the New Energy On-grid Pricing Policy in 2021". The main contents are: 1) Clarify that the on-grid tariff for newly registered centralized and industrial and commercial distributed photovoltaic projects in 2021 will be subject to the local coal-fired power tariff. Base price for power generation. 2) Emphasize that new projects can voluntarily participate in market transactions to form on-grid electricity prices. 3) For offshore wind power and solar thermal power generation projects that currently have high costs but have room for development in the future, the pricing power will be delegated to provincial price authorities.Grid parity has caused the cost of photovoltaic power generation to drop significantly from RMB 1/kWh in the past to RMB 0.15-0.35/kWh, which is now equivalent to traditional thermal power. With technology upgrading, the cost of photovoltaic power generation will further decrease and is expected to become the cheapest energy source. Since then, photovoltaic development has advanced from "subsidy-driven" to "demand-driven" and entered the parity stage, gradually getting rid of dependence on financial subsidies, realizing market-oriented development and competitive development, and supporting industry policies have been continuously improved. The National Energy Administration has clarified that in the future, the weight of non-water renewable energy consumption responsibilities will be used as the basis for the annual installed capacity of each province. In addition to household photovoltaics, other projects can voluntarily participate in market transactions to form on-grid electricity prices. The market-oriented electricity price environment will facilitate the development of distributed photovoltaics represented by BIPV, facilitate the integration of resources to achieve intensive development, and promote healthy competition in the industry. (Report source: Future Think Tank)
Since the cost of wind, solar and other equipment is basically the same across the country, the initial investment in new energy sources such as wind and solar is also basically the same across the country, but the benchmark price of coal varies greatly in different provinces. Therefore, under the grid parity policy, the investment benefits of photovoltaic power generation projects are better in provinces with higher current coal benchmark prices. In addition to the on-grid electricity price, the amount of solar radiation will also have a great impact on the economics of photovoltaic power stations. Under certain assumptions, we calculated the photovoltaic intensity of different provinces based on the effective utilization hours of fixed optimal inclination in different provinces in the next year. Cost of electricity (LCOE: levelized cost of electricity). When the cost per kilowatt-hour of distributed photovoltaics is the same as or lower than the benchmark coal-fired on-grid electricity price, it is easier to obtain investment benefits. According to the calculation results, it is easier to obtain investment returns by investing in distributed photovoltaics in my country's Shandong Province, Guangdong Province, Hebei Province, the three northeastern provinces of China, Hainan Province, Tibet and Qinghai Province. However, combined with local characteristics, insufficient domestic consumption, weak transmission, and high non-technical costs in Qinghai and Tibet provinces have restricted the potential of photovoltaic development, making it difficult to implement projects. Although the Yangtze River Delta region has limited light resources and land resources, it has developed industry and abundant factory roof resources; it consumes large amounts of electricity, and industrial and commercial electricity prices are at relatively high levels nationwide; photovoltaic manufacturing industries are concentrated and the industrial chain is complete; local Subsidies are strong, so the development of distributed photovoltaics is at the forefront of the country and the market potential is huge.
The photovoltaic on-grid electricity price implements the benchmark price of coal-fired power generation, which does not match the cost attributes of new energy. In June 2021, the National Development and Reform Commission's "Notice on Matters Concerning the New Energy On-grid Pricing Policy for 2021" clarified that starting from 2021, the central finance will not be responsible for newly registered centralized photovoltaic power stations, industrial and commercial distributed photovoltaic projects and newly approved onshore wind power projects. Re-subsidize, implement grid parity, and implement it according to the local benchmark price of coal-fired power generation.The current benchmark price of coal-fired power generation is derived from the benchmark price of coal-fired power generation. In 2004, the National Development and Reform Commission implemented a benchmark on-grid power price for newly put into operation coal-fired units, and linked it with upstream coal prices to reflect changes in fuel costs (fuel costs accounted for about 50% - 70%), coal cost is the main factor affecting the benchmark coal-fired on-grid electricity price. From the perspective of cost attributes, there is a large investment gap between coal-fired power plants and wind and solar new energy. The initial investment cost of new energy power generation is high and subsequent change costs are low. With technological development and scale effects, the investment cost of new energy will still be relatively large in the future. The current coal benchmark price (base price) cannot accurately reflect the changes in wind and solar costs. Under the grid parity policy, the investment benefits of photovoltaic power generation projects are better in provinces with higher current coal benchmark prices. Since the cost of wind, solar and other equipment is basically the same across the country, the initial investment in new energy sources such as wind and solar is also basically the same across the country. However, the base price of coal varies greatly in different provinces. Taking the third neighboring province of Guangzhou, Guizhou and Hunan as an example, these three places all belong to the third category of photovoltaic resource areas in my country and have relatively few solar resources. The benchmark coal-fired on-grid electricity prices in Guangdong Province and Hunan Province are 0.44 yuan/kWh and 0.46 yuan/kWh. , Guizhou Province is 0.33 yuan/kWh, a difference of about 0.1 yuan. If according to the 2020 policy, the three provinces belong to the same resource area and implement unified photovoltaic guided electricity prices (centralized and fully distributed on-grid), the unified price is 0.49 yuan/kWh. Obviously, in " Under the "parity" policy, the investment returns of photovoltaic power generation projects in Guangdong and Hunan are better than those in Guizhou Province, and the income per kilowatt-hour is about 0.1 yuan higher.
LCOE (levelized cost of power generation) is the power generation cost calculated after leveling the cost and power generation during the life cycle of the project (present value of cost during life cycle/present value of power generation during life cycle), which is used for comparison and evaluate the comprehensive economic benefits of renewable energy power generation. The distributed photovoltaic kilowatt-hour cost of each province can be calculated based on the equivalent utilization hours of sunlight radiation in different provinces in my country, helping us compare the development prospects of distributed photovoltaics in different provinces. Refer to GE's summary of the LCOE formula in the "2025 China Wind Power Cost of Electricity White Paper". LCOE is the electricity price when the power generation income is equal to all investments (including early investment, operation and maintenance, etc.). Since the operation period of photovoltaic projects is generally 20 -25 years, so consider the impact of time value. The estimate of
LCOE is related to the initial investment of the project, the operation and maintenance costs (after tax) during the project operation period, the tax shield effect of depreciation, the residual value of the assets, the actual power generation of the project, the operation period of the project and the discount rate adopted. Due to different financing capabilities, the financing amount, financing cost, and financing period of the project are different. Here we only analyze the LCOE when the project is fully invested (in the case of leverage, if the financing cost is lower than the company's capital cost, the LCOE after leverage will be LCOE should be lower than unlevered LCOE). Assuming that the initial investment cost and installed capacity are the same, the LCOE is calculated based on the annual effective utilization hours of fixed optimal tilt angles in each province, and the economics of building distributed photovoltaic power stations in each province is compared.
The cost of distributed photovoltaic electricity is the same as or lower than the coal-fired benchmark on-grid electricity price, making it easier to benefit from investment. Judging from the calculation results, the levelized cost of power generation of distributed photovoltaic power stations in most provinces is higher than the benchmark coal-fired on-grid electricity price. Without considering government subsidies, complete parity on the power generation side is difficult to achieve, but for some provinces , industrial and commercial distributed photovoltaics can achieve a certain degree of economy. The cost of distributed photovoltaic electricity in the provinces of Hebei, Jilin, Heilongjiang, Shandong, Guangdong, Hainan, Tibet, and Qinghai is basically the same as or even lower than the coal-fired benchmark on-grid power price. Distributed photovoltaic projects are easier to obtain Investment income.
Hebei Province: one of the leading provinces and cities in the development of distributed photovoltaics. In recent years, Hebei's photovoltaic industry has continued to grow and developed on a large scale, especially in household use. An increase of 21.59GW, of which Hebei Province’s household photovoltaic installed capacity is 5.34GW, ranking second; as of the end of 2021, the number of household photovoltaic power generation projects under construction in Hebei Province has exceeded 500,000 households, with an additional 200,000 households added in 2021 alone household.From the perspective of natural resources, Hebei is rich in lighting resources, with Class II resource areas and Class III resource areas; from the perspective of power grid consumption capacity, Hebei Province has made great progress in supporting renewable energy, especially the construction of supporting facilities for photovoltaic transmission. Obvious advantages; from the perspective of benchmark coal on-grid electricity prices, Hebei Province is at a medium level in the country. The basic electricity price in southern Hebei is 0.3644 yuan/watt and that in northern Hebei is 0.372 yuan/watt.
The three northeastern provinces: The northeastern region has unique advantages in developing distributed products, and the market needs to be explored urgently. As an old industrial base, the Northeast is facing economic revitalization and energy transformation, as well as power supply shortages. Last year, due to a sharp decline in wind power, the frequency of the power grid fell below the safety red line, and coal power output was insufficient. Blackouts in the Northeast region attracted national attention. As of the first quarter of 2022, the cumulative installed capacity of distributed photovoltaics in the Northeast is 16.4GW, accounting for only 5% of the country, and there is still room for doubling in the future. Compared with other provinces, the Northeast region has unique advantages in developing and constructing distributed photovoltaic power stations. First, it has good lighting resources. Northeast China is at a high level in a Class II region, with an average annual effective sunshine time of about 1,300 hours. Especially in its The northwest can even reach 1,600 hours; secondly, there are more available construction sites such as land and roofs. The available roof area in Shenyang alone exceeds 10 million square meters. As there are fewer and fewer photovoltaic installations on roofs in the central and eastern regions, In the future, the development of distributed photovoltaics in Northeast China will become the mainstream trend; thirdly, there are many state-owned enterprises in the distribution network area, and they are basically heavy industrial industries. The power consumption load is relatively stable and concentrated. If rooftop photovoltaics are built, or after the power reform is gradually promoted, , can provide electricity through walls, and the power consumption capacity in the region is relatively strong. At the same time, the load capacity of the factory buildings in the Northeast is larger than that in the South, which is more conducive to the installation of photovoltaics. Fourth, as China's old industrial base, Northeast China has a complete regional power grid and relatively complete photovoltaic power access channels.
Shandong Province: the first province in photovoltaic applications, with a broad household distributed market under the background of “promotion throughout the county”. Shandong is a province with a large population and a large energy consumption. Coal power installed capacity ranks first in the country all year round. The high proportion of traditional energy consumption is a prominent contradiction in Shandong's energy structure. Coal power is required to reduce overcapacity and increase the installed capacity of clean energy such as photovoltaic and wind power. It has become the most important “low carbon action” in Shandong. From the perspective of photovoltaic installed capacity, in the past 10 years, Shandong Province's annual new installed photovoltaic capacity and cumulative installed capacity have been at the forefront of the country, especially distributed photovoltaic capacity, with new installed capacity accounting for almost half of the country's distributed photovoltaic capacity. From the perspective of natural resources, Shandong Province has a lighting advantage comparable to that of Category 3 resource areas, with an average of more than 1,300 hours of sunlight per year, making it the province with the best solar energy resources among Category 3 regions. From the perspective of on-grid electricity prices, the benchmark coal-fired electricity price in Shandong Province is 0.39 yuan/kWh, ranking among the highest in the country, providing a good revenue base for distributed photovoltaics. In the context of "county-wide promotion", rural areas are the main battlefield for household photovoltaics. Shandong Province's vast rural population base has laid a broad blue ocean for the household distributed market: there are nearly 10,000 villages in Shandong, among which there are conditions for installing photovoltaics. There are more than 7 million households with roofs, and rural areas in Shandong are basically bungalows with large roof areas.
Guangdong Province: Guangdong Province is a region with a relatively developed economy and the highest electricity prices in China. It is a battleground for many photovoltaic practitioners. The annual newly installed capacity ranks among the best in all provinces across the country: Guangdong's newly installed photovoltaic capacity in 2021 is 2.664 million kilowatts, ranking sixth in the country after Shandong, Hebei, Henan, Zhejiang, and Anhui, of which 1.27 million new distributed photovoltaic installed capacity kilowatts, exceeding centralized ones; in the first quarter of 2022, Guangdong's newly installed photovoltaic capacity was 793,000 kilowatts, of which 695,000 kilowatts were newly installed in distributed photovoltaics, contributing 87% of the newly installed capacity, with rapid growth. From the perspective of resource conditions, Guangdong Province is lacking in primary energy resources, and coal and oil mainly rely on transfers or imports from outside the province. However, solar energy resources are relatively abundant, with annual irradiation hours of about 2,200 hours and total annual radiation of 4,200-5,800 megajoules. / square meter, which is equivalent to the annual radiation capacity of about 30 billion tons of standard coal in the province.From the perspective of roof resources, Guangdong Province has developed industrial manufacturing and has a distributed industrial environment and roof resources. There are nearly 200 industrial parks of various types in the province, with a large amount of roof resources. The annual new building roof area exceeds 80 million square meters. meters and abundant rainfall, which can reduce the operation and maintenance costs of power stations. From a policy perspective, on April 14, 2022, Guangdong Province released the “14th Five-Year Plan for Energy Development in Guangdong Province”. The “Plan” clearly calls for the construction of 20GW of new photovoltaic installed capacity, strong support for distributed photovoltaics, and active promotion of building-integrated photovoltaic construction. Many cities and districts have introduced subsidy policies to encourage enterprises and residents to install distributed photovoltaics. From the demand side, the electricity consumption in Guangdong as a whole is 786.663 billion kilowatt-hours, a year-on-year increase of 13.58%, surpassing Shandong and ranking first in the country. However, the power generation capacity is insufficient and the electricity consumption gap is large. In 2021, the electricity consumption gap will reach 175.2 billion kilowatt hours. Therefore, developing the new energy industry and using local solar and rooftop resources to vigorously promote photovoltaic building integration will optimize the energy structure of Guangdong Province, reduce dependence on coal power, reduce the demand for "depending on the weather" during the dry season, and better respond to user-side need.
Hainan Province: Hainan is short of fossil energy and land resources and rich in solar energy resources. It is suitable for the development of building photovoltaics. The policy and institutional advantages of the free trade port are conducive to the implementation of the project. Hainan Province is short of fossil energy, and its energy supply is mainly met by energy imported from other provinces and abroad. The contribution of local renewable energy to Hainan's energy supply is relatively limited. Coal power has long been the main power source of Hainan's electricity. After the Changjiang Nuclear Power Plant was put into operation, coal power The proportion of electricity dropped from 93% in 2015 to 72% in 2016. Hainan Province is rich in solar energy resources and is one of the provinces with the best lighting conditions in my country. The annual sunshine hours in various parts of Hainan are only about 1,750 hours due to more clouds and fog in the central mountainous area. Most other areas have more than 2,000 hours. The southern region reaches 2400-2600 hours, which is suitable for the development and construction of photovoltaic power generation projects to meet the energy needs of the province. Since the development of centralized photovoltaic power stations requires a large area of land and is limited by limited land resources, Hainan Province is more suitable for the development of distributed photovoltaic power generation combined with construction. As of the first quarter of 2021, Hainan's cumulative installed photovoltaic power generation capacity is 1.43 million kilowatts. Among them, distributed photovoltaic power generation is only 160,000 kilowatts, and there is still a lot of room for growth. Capital costs are the main reason why the development of distributed photovoltaic power generation in Hainan is not ideal. The policy and institutional advantages of the Hainan Free Trade Port provide the possibility to fully utilize global technology and financial resources to develop photovoltaic projects, and also reduce the non-technical cost of such projects. The cost provides support, which is conducive to improving the economics of the project and accelerating the implementation of the project.
Tibet: Solar energy resources are extremely rich, but development is slow due to constraints of consumption capacity and transportation costs. The strong support of the State Grid during the "14th Five-Year Plan" period is expected to boost the development of the photovoltaic industry in Tibet. Tibet is poor in fossil energy, has poor coal quality, poor mining conditions, and limited development value. However, it is extremely rich in hydropower, solar energy, wind energy, and geothermal energy resources, and the degree of energy development is low. Clean energy accounts for 98.06% of the installed power generation capacity. %. As of the end of 2019, Tibet's hydropower developed capacity accounted for approximately 0.92% of the technically developable capacity, photovoltaic developed capacity accounted for approximately 0.16% of the technically developable capacity, wind power developed capacity accounted for approximately 0.004% of the technically developable capacity, and geothermal developed capacity accounted for approximately The technically developable capacity is 3.8%. Among them, Tibet's solar energy resources rank among the best in the world, with a maximum daily radiation of 7 kilowatt hours per square meter, more than 2,000 hours of sunshine per year, and a developable solar energy technology capacity of about 700 million kilowatts.Despite this, photovoltaic development in Tibet has been slow, mainly because: 1) Compared with other regions in China, Tibetan residents have less strong demand for electricity, residents’ living standards are generally low, and their ability to bear electricity prices is weak; 2) The scale of the power grid is small, the installed capacity is relatively large, and the phenomenon of solar power plant abandonment is serious; 3) The construction cost of solar power plants is high and difficult, and the local nomads are highly mobile, have inconvenient transportation, and have small independent production scale, resulting in relatively high power generation and transportation costs. High; 4) The effective use of solar power generation depends on the rational use and maintenance of products, and Tibet is an alpine, remote, backward, and lacking relevant technical personnel. For the above reasons, most enterprises are still unwilling to choose this place as the main power station construction site. The State Grid plans to invest 46.6 billion yuan in Tibet during the "14th Five-Year Plan" period. During the "14th Five-Year Plan" period, it is necessary to improve the backbone grid of the Tibetan power grid, strengthen interconnection with the Southwest Power Grid, and promote the development of clean energy and electrification in Tibet. According to the "14th Five-Year Plan" The photovoltaic installed capacity in the Fourth Five-Year Plan has exceeded the target of 10 million kilowatts. In the next five years, Tibet's photovoltaic installed capacity will increase by more than 8.63 million kilowatts, with an average annual increase of 1.726 million kilowatts.
Qinghai Province: Insufficient consumption, weak transportation, and rising non-technical costs restrict the potential of Qinghai’s photovoltaic development. Qinghai is rich in hydropower resources and uniquely endowed with solar energy resources. As of the end of 2020, the total installed capacity of Qinghai Power Grid reached 40.3 million kilowatts, of which new energy installed capacity was 24.45 million kilowatts, accounting for more than 60% of the total installed capacity of the entire network, reaching 60.7%; clean energy installed capacity has reached 36.38 million kilowatts, accounting for 60.7%. Over 90%, photovoltaic has surpassed hydropower to become the largest power source in the province. The vast desert areas of Qinghai are suitable for the development of centralized photovoltaics. Photovoltaic grid connection is mainly large-scale and centralized, and the power generation capacity of centralized photovoltaics ranks first in the country. However, the consumption capacity in Qinghai Province is insufficient, and the electricity is mainly delivered outside, and the on-grid electricity price is low. After the comprehensive price parity, the increase in non-technical costs such as supporting energy storage and transmission engineering has further intensified the implementation of Qinghai photovoltaic project investment. Difficulty. In 2021, the first year of national photovoltaic parity, Qinghai's newly installed photovoltaic capacity was only 753MW, falling below the GW-level growth rate for the first time in the past five years. The photovoltaic abandonment rate was 13.8%, only lower than Tibet's 19.8%, ranking second in the country.
The Yangtze River Delta region has limited lighting resources, but the distributed photovoltaic market has been developing rapidly. The Yangtze River Delta region is economically active but lacks traditional energy resources. The current energy consumption structure is still dominated by fossil energy. As the country proposes dual-carbon and increase the installed capacity of wind and solar power generation policies, the development of local distributed clean energy is an important step for the Yangtze River Delta region to improve its own energy security. The only way to ensure the level of protection. Judging from the grid-connected capacity of distributed photovoltaic power generation in various provinces in my country, the Yangtze River Delta region is a region with better development of distributed energy in my country. In 2021, the cumulative distributed photovoltaic installed capacity and new distributed photovoltaic installed capacity in Jiangsu, Zhejiang, and Shanghai will all rank among At the forefront of the country. The Yangtze River Delta region belongs to the third category of lighting resources in my country. As an eastern coastal province, it has more people, less land, and a high degree of urbanization. The area that can utilize distributed photovoltaic is relatively limited. Jiangsu Province has never even introduced a distributed photovoltaic subsidy policy at the provincial level. But the distributed photovoltaic market has been developing rapidly. Mainly because 1) Jiangsu, Zhejiang, and Shanghai are major economic and industrial provinces with large electricity consumption: In 2021, the electricity consumption in Jiangsu, Zhejiang, and Shanghai was 710.1 billion kWh, 551.4 billion kWh, and 175 billion kWh respectively. Electricity consumption accounts for nearly 20% of the total electricity consumption in the whole society; of which industrial electricity consumption is 498 billion kilowatt hours, 376.8 billion kilowatt hours, and 85.1 billion kilowatt hours. From the analysis of electricity load, the focus of the distributed photovoltaic market in the three places is industrial and commercial Distributed; 2) The Yangtze River Delta region has developed industry and abundant factory roof resources. In addition, industrial and commercial electricity prices are at a relatively high level nationwide, which makes companies highly motivated to develop self-contained photovoltaic projects, thereby saving energy costs. ;3) Before the dual carbon goals were proposed, distributed photovoltaic power stations were not strictly needed. The distributed photovoltaic market was never driven from the market demand side, but from the supply side. The photovoltaic manufacturing industry in the Yangtze River Delta region is concentrated and the industrial chain is complete. There are many photovoltaic companies and photovoltaic talents, which have laid the foundation for the local application of photovoltaic products; 4) Local subsidies are strong.For example, as a major consumption province in the eastern region, Shanghai has increased subsidies for distributed photovoltaics in the recently issued "Special Fund Support Measures for Renewable and New Development", with the maximum subsidy reaching 0.55 yuan/kWh. In the future, taking into account the market demand generated by the dual carbon targets and the huge electricity load in the Yangtze River Delta region, the distributed photovoltaic market has huge potential. (Report source: Future Think Tank)
5 The development of construction companies under the BIPV wave is expected
5.1 Sente Co., Ltd.: a leader in metal maintenance, joining hands with LONGi to enter BIPV
The company is a world-class integrated service provider of high-end building metal enclosure systems and a leading domestic coverage company Provider of comprehensive environmental management services for noise control (sound barrier system) and soil and groundwater treatment. The company mainly undertakes metal enclosure system projects (roofing systems, wall systems), sound barrier system projects and soil and groundwater remediation projects. The company is positioned in the field of mid-to-high-end metal building envelope systems, with a cumulative project performance of more than 2,500 and a cumulative construction area of 200 million square meters. It is currently the only domestic company listed on the main board with metal envelope as its main business, and is the first in the industry. One of the few companies that focuses on both the industrial building and public building markets, after 20 years of development, the company has become a leader in the domestic construction metal enclosure industry. Established in-depth cooperative relationships with many companies and quickly opened up the domestic BIPV application market. On March 5, 2021, LONGi acquired 27.25% of the company's equity at a premium and became the company's second largest shareholder. The interests of LONGi and the company were deeply bound. This acquisition will help promote the business integration of both parties and give full play to Sente's role in construction. LONGi's advantages in roof design and maintenance, combined with LONGi's advantages in BIPV product manufacturing, will jointly explore business development in the large-scale public building market. On March 31, 2022, Sente Co., Ltd. announced that it planned to acquire 100% of the equity of Longi Green Energy Photovoltaic Engineering Co., Ltd. held by related party Longi Green Construction for 68.48896 million yuan. After the completion of this equity acquisition, Longi Co., Ltd. and The new integrated building photovoltaic projects undertaken by Sente in the field of metal enclosures are all undertaken, implemented and delivered by Sente. Each other is the only partner in this field. After all LONGi's BIPV business is divested to Sente, it can fully Give full play to Sente's advantages in building roof design and maintenance. After joining hands with LONGi Co., Ltd., the company took the lead in launching the industry-leading building photovoltaic integrated metal roof system product. In addition, the company combines its main construction technology and engineering advantages to establish in-depth cooperative relationships with well-known enterprises such as Jianyi Group, Sankeshu Group, Xugong Group, Shanzhong Group, etc., and has launched a series of BIPV projects across the country. , which greatly broadened the applicable fields of BIPV and quickly opened up the domestic BIPV application market.
5.2 Southeast Grid: A leader in the field of domestic space steel structures, accelerating transformation BIPV EPC
The company was founded in 1984 and went public in May 2007. Its main business mainly includes steel structure and chemical fiber business. It was formerly known as Southeast Grid Factory, established in 1984, is a supplier of steel structure products and new enclosure products, an integrated service provider of steel structure building systems, and one of the leading companies in the field of space steel structures. The company has always focused on the development of its main business of steel structures and is a prefabricated integrated construction service provider. It is the only "prefabricated steel structure residential low-carbon technology innovation and industrialization demonstration base" approved by the National Development and Reform Commission and one of the first batch of "national prefabricated residential buildings" approved by the Ministry of Housing and Urban-Rural Development. Construction Industry Base", which is ahead of the same industry in terms of technical level, construction management, quality control and other aspects. The company has participated in the construction of the 500-meter aperture spherical radio telescope "China Sky Eye", the 700-meter underground Jiangmen Neutrino Detector Project, the National Swimming Center "Water Cube", Beijing Capital Airport T3A Terminal, and the Guangzhou New TV Tower "Xiaomanyao". ”, Hangzhou’s new East Railway Station, Hangzhou Olympic Sports Center Main Stadium “Big Lotus”, Hangzhou Olympic Sports Expo City Tennis Center “Little Lotus”, Yunqi Town International Convention and Exhibition Center and many other landmark projects, the company enjoys a high reputation in the country popularity and create a good brand image.
Future Southeast Grid is committed to building a leading enterprise in green building photovoltaic integration.In order to actively respond to the "dual carbon" development strategy, Southeast Grid actively promotes the integrated layout of photovoltaic buildings and promotes business transformation and upgrading. In April 2021, Southeast Grid announced that the company planned to sign a "Letter of Intent for Cooperation" with Foster, and planned to acquire 51% of the equity of Zhejiang Foster New Energy Development Co., Ltd. held by Foster in cash. In September 2021, the cooperation between Southeast Grid and Foster went further. The two parties jointly invested in the establishment of Zhejiang Southeast Grid Foster Carbon Neutral Technology Co., Ltd. with a registered capital of 200 million yuan. Southeast Grid invested 150 million yuan, accounting for 75% of the shares; Foster invested 50 million yuan, accounting for 25% of the shares. The joint venture will become a photovoltaic power generation new energy enterprise integrating investment, research and development, design, construction, operation and maintenance. In addition, Southeast Grid has also signed cooperation agreements or investment agreements with the Yaqian Town Government of Xiaoshan District, Xiaoshan Economic and Technological Development Zone Management Committee, Shanxi Yuncheng Economic and Technological Development Zone Management Committee, and Tianjin Port Free Trade Zone Management Committee. Investment Photovoltaic power generation business and building integrated photovoltaic (BIPV) general contracting project construction. Southeast Grid plans to reach a total installed capacity of approximately 950MW by 2026, becoming China's leading enterprise in photovoltaic building integration and forming a photovoltaic building industry chain with Xiao Jingkai as the core and radiating around the world. As a leader in steel structures, the company has experience in building roof power stations before, and has important channel, production and resource integration capabilities in the BIPV link. Through equity cooperation and independent establishment of subsidiaries this time, it is expected to form a full industry chain capability that integrates operation and operation. In addition, the company and Sente Co., Ltd. are the first construction companies in the industry to deploy BIPV business, which will help the company seize the opportunity in the subsequent expansion of the BIPV market.
5.3 Hongrun Construction: "Infrastructure + BIPV" two-wheel drive opens up incremental space for the company's development
Hongrun Construction was founded in 1994 and listed on the Shenzhen Stock Exchange in August 2006. It is mainly engaged in municipal engineering, rail transit, underground Space (integrated pipe gallery), highway bridges, housing construction, water environmental protection, offshore and other engineering construction, real estate development, infrastructure project investment and construction, solar energy industry investment. The company is a high-tech enterprise with "Double Special and Double A" qualifications. It has rich investment and construction experience and outstanding achievements in the construction of rail transit, highway bridges, municipal viaducts, underground spaces and comprehensive pipe corridors, housing construction, ecological and environmental protection and other engineering projects. The company's performance has established a good image of the company's brand; the company has participated in the construction of Shanghai rail transit projects since 1995, and is the first private enterprise in China to carry out underground shield construction of urban rail transit. It has participated in the construction of Shanghai, Hangzhou, Suzhou, Guangzhou Rail transit projects in 18 cities including Shenzhen and Shenzhen, a total of 270 kilometers of shield excavation have been completed; the company is one of the earliest domestic companies to enter the underground comprehensive pipe corridor construction business, and has undertaken the construction of multiple projects in the Yangtze River Delta regions including Shanghai, Hangzhou, Suzhou, and Ningbo. Municipal pipe corridor project in the city. While maintaining the healthy development of the main construction business, we will actively expand the layout of photovoltaic new energy fields. In January 2022, Hongrun Construction signed a "Strategic Cooperation Framework Agreement" with Ningbo Shanshan Co., Ltd. Shanshan Co., Ltd. transferred the shares of its holding subsidiary Ningbo Eureka Solar Co., Ltd. to Hongrun Construction and became Hongrun Construction Strategic partner shareholders. Shanshan Co., Ltd. focuses on lithium battery and photovoltaic business. This strategic cooperation can expand the company's layout in photovoltaic and other new energy fields, and in photovoltaic building integration, photovoltaic county-wide, green power asset investment and operation, energy management, energy storage and other businesses. Expand. Hongrun Construction plans to invest in distributed photovoltaic power stations of no less than 1GW in the next 3 to 5 years to provide guarantee for the company's medium- and long-term sustainable development and promote the company's transformation and upgrading. The development of BIPV business is expected to further enhance the company's performance and improve its valuation level.
5.4 Jinggong Steel Structure: Accelerate the layout of photovoltaic building integration and create differentiated competitive advantages
Jinggong Steel Structure is a leading company in the domestic steel structure industry. It was founded in 1999 and achieved A-share listing in 2003. Ranked in the national steel structure industry It has been ranked first in China for six consecutive years and has the highest qualifications among all steel structure companies and even the construction industry.The company's main business is to provide services such as design, procurement, manufacturing, construction, operation and maintenance of steel structure buildings. The manufacturing product system includes steel structure components and prefabricated building products. While deeply cultivating the original main business of steel structures, it is actively developing the information industry to find solutions. New profit growth points, and transforming into an EPC general contractor to obtain higher profit margins. Established a subsidiary to engage in distributed photovoltaic EPC business, and is currently the only steel structure company that generates net profits in BIPV. Distributed photovoltaics are an important part of the company's green building products. It began layout and exploration as early as 2009 and has a number of photovoltaic building-related patents. In 2014, the company established a joint venture, Zhejiang Jinggong Energy Technology Group Co., Ltd. (referred to as "Jingong Energy"), to participate in the entire industrial chain of distributed photovoltaic power station development, investment, operation and maintenance, and has successively completed the Shandong Zouping Green Energy Distributed Project. Photovoltaic power generation project, Fuzhou Jinggong Guangyin Aluminum distributed rooftop photovoltaic power station project, Qingdao Zhongdian New Materials Co., Ltd. distributed photovoltaic power generation project and other dozens of power station projects. According to the annual report of Jinggong Steel Structure, Jinggong Energy's revenue in 2020 reached 440 million yuan and net profit was 46 million yuan. It is currently the only steel structure company that has generated net profits in BIPV. Since 2019, Jinggong Energy has formed strategic cooperation with China Three Gorges Corporation and China Development Bank New Energy Technology Co., Ltd., introducing state-owned enterprises as investors to further expand financing channels.
The scale of distributed photovoltaic layout continues to expand. On March 17, 2022, the company announced that it plans to establish a professional subsidiary, Jinggong Green Carbon Photovoltaic Technology Co., Ltd. (tentative name), to engage in the EPC business of distributed photovoltaics, further improve the company's industrial layout in green buildings, and integrate customer resources and distributed photovoltaic technology advantages to expand and strengthen its main business. At the same time, the company has strengthened supply chain cooperation alliances and product development. At the end of March 2022, the company's subsidiary Jinggong Industrial Building Systems Group Co., Ltd. signed a strategic cooperation agreement with Dongfang Ri and launched products. The company will use customer channel resources, construction Comprehensive technical capabilities in the field and other advantages, we will further cooperate with each other in the research and development, procurement, business promotion and other aspects of BIPV products. In May 2022, the company signed a "Strategic Cooperation Agreement" with Jiangsu Trina Smart Distributed Energy Co., Ltd., a subsidiary of Trina Solar. The two parties plan to leverage their respective advantages to carry out BIPV business cooperation and jointly promote Tiannengwa BIPV photovoltaic distribution Type power station business, Party A is responsible for the implementation of the steel structure including Tianneng tile (color steel plate) system, and Party B is responsible for the implementation of the distributed photovoltaic power station system. During the strategic cooperation period, the two parties plan to achieve a sales scale of 500MW of photovoltaic systems, and plan to achieve a sales scale of 100MW in 2022. . The photovoltaic building integration business is conducive to enhancing the company's differentiated competitive advantage and further enhancing the company's main business performance.
5.5 Jangho Group: Relying on its leading role in the curtain wall field, accelerating the promotion of photovoltaic curtain wall business
The company was formerly Beijing Jangho Curtain Wall Co., Ltd. founded in 1999. It is a large multinational enterprise group mainly engaged in architectural decoration and medical service businesses. In August 2011, Jangho Group was listed on the main board of the Shanghai Stock Exchange and successively acquired Hong Kong Sunda Group, Beijing Gangyuan Decoration and Hong Kong Steve Leung Design, extending its business from the field of architectural curtain walls to interior decoration and interior design, forming a "both internal and external" Diversified development pattern. At present, the company's main business is divided into two major sectors: construction decoration business and medical health business. The construction decoration sector includes building curtain walls, interior decoration and interior design. The company has rich construction experience in the field of photovoltaic curtain walls. In recent years, the company has vigorously deployed the BIPV curtain wall business and has successively undertaken the construction of many photovoltaic applications such as the China Pavilion at the Beijing Expo, Sunan Shuofang Airport Terminal in Wuxi, Jiangsu, and Pearl River City (Tobacco Building). Curtain wall engineering, with experience in the manufacturing and construction of photovoltaic curtain walls. The company plans to invest in the construction of a BIPV special-shaped module production base to create new profit growth points.On May 10, 2022, Jangho Group announced that it plans to invest in the construction of a 300MW photovoltaic building-integrated special-shaped photovoltaic module flexible production base project in Xishui County, Hubei Province through its wholly-owned subsidiary Jangho Photovoltaic Construction. The total planned investment of the project is 500 million yuan. Investment is expected to be completed and put into production in 2023. This investment in the construction of a photovoltaic building-integrated special-shaped photovoltaic module flexible production base aims to extend the photovoltaic building business to the upstream industrial chain, produce special-shaped photovoltaic modules, take a differentiated product route, and solve the technical difficulties of personalized design of photovoltaic buildings. As the central fulcrum for the company's photovoltaic construction business across the country, it radiates to surrounding areas. In addition, the personalized design of building exteriors will drive market demand for special-shaped photovoltaic modules, and the company's special-shaped photovoltaic module production business can create synergy with the existing curtain wall business. In 2021, Jangho Group successively won bids for key projects such as the roof BIPV project for the renovation and reconstruction project of Beijing Workers Stadium and the photovoltaic project of TCC Hangzhou Environmental Protection Technology Headquarters, accelerating the development of BIPV. (Report source: Future Think Tank)
5.6 Hangxiao Steel Structure: Investing in Hete Optoelectronics, further adding to the BIPV industry chain
Hangxiao Steel Structure was established in 1985 and listed on the Shanghai Stock Exchange on November 10, 2003. The company is located in Hangzhou City, is a company in the construction industry that mainly designs, manufactures and installs steel structure projects. The company's main products are multi-high-rise steel structures, light steel structures, and space structures. It is a leader in steel structure residential technology and business models and is profitable. The strongest ability. Since its establishment, with its steel structure professional general contracting and EPC general contracting models, the steel components it processes and produces are widely used in office buildings, large factories, residences, hospitals, schools, sports venues, convention and exhibition centers, high-speed rail stations, airports, roads bridge field. The main business contracts are divided into four categories based on building types: "multi-high-rise steel structure buildings, steel structure industrial buildings, space steel structure buildings, and steel structure residential buildings". In recent years, Hangxiao Steel Structure has actively deployed in the field of green buildings, seized the opportunities of the "digital transformation" era, and opened up the industrial chain in the construction field with the "Internet + Green Building" model, which is the "carbon peak" and "carbon neutrality" in the modernization process of the construction industry. "The main force.
company further expands and adds to the BIPV industry chain, which will have a positive impact on the company's long-term development. On July 16, 2021, Hangxiao Steel Structure announced that in order to realize the industrialization of the BIPV project, Hangxiao Steel Structure plans to sign a "Capital Increase and Share Expansion Agreement" with Zhang Qunfang and Zhejiang Hete Optoelectronics Co., Ltd., and Hangxiao Steel Structure will pay Hete in cash. Optoelectronics will increase capital by 35 million yuan. After this capital increase and share expansion are completed, the registered capital of Hete Optoelectronics will increase to 68.62 million yuan. Hangxiao Steel Structure will hold 51% of the equity of Hete Optoelectronics, and Hete Optoelectronics will be included in the company's consolidated statements. of holding subsidiaries. Hangxiao Steel Structure has the right to establish a BIPV subsidiary after the capital increase and share expansion are completed, with a planned registered capital of 200 million yuan. Hangxiao Steel Structure holds 80% of the shares of the BIPV subsidiary, and Hete Optoelectronics holds 20% of the shares. Hete Optoelectronics focuses on the technological research and development of photovoltaic building-integrated products. The products mainly cover smart building series products such as photovoltaic power generation floor tiles, photovoltaic power generation glass curtain walls, photovoltaic power generation roof tiles, and smart transportation series products such as power generation sound insulation barriers, power generation stun boards, etc. From the perspective of orders, since the first intelligent production line with an annual output of 1 million square meters of BIPV was officially put into production in Xiaoshan Industrial Park of Hangxiao Steel Structure on November 5 last year, Hete Optoelectronics quickly realized order fulfillment and supply within one month. The total contract value exceeds 3 million yuan. As of mid-April, Hete Optoelectronics has signed contract orders worth more than 20 million yuan, and has won bids worth more than 20 million yuan to be signed. These achievements will lay a production capacity foundation for the rapid growth of subsequent BIPV business revenue.
Equity incentives may increase the future profits of Hangxiao Steel Structure. On April 28, 2022, the company announced that in order to further motivate the middle and senior managers and core employees of Hete Optoelectronics, Hangxiao Steel Structure plans to repurchase 5 million-10 million shares of the company's stock for the implementation of the employee stock ownership plan. Among them, 6 million copies are for the founders and 4 million copies are for the senior management team of Hete Optoelectronics.The performance assessment requirement is that the net profit of Hete Optoelectronics in 2023/2024 is not less than 50 million yuan/100 million yuan, which corresponds to an increase in the company's net profit attributable to the parent company of 0.26/051 million yuan, accounting for the proportion of Hangxiao Steel Structure's net profit attributable to the parent company in 2021 6%/12% respectively. The company's equity incentives for core members of Hete Optoelectronics may increase the future profits of Hangxiao Steel Structure.
(This article is for reference only and does not represent any investment advice on our part. If you need to use relevant information, please refer to the original report.)
Selected report source: [Future Think Tank]. Future Think Tank - Official website
