Longyuan Power has previously involved in offshore wind power projects in Jiangsu, Zhejiang, Shandong and other places. This time, it turns its attention to Guangdong, which is obviously optimistic about the upcoming relevant policies

Wind power giant Longyuan Power (00916. HK) is stepping up its deployment in the offshore wind power market.
Longyuan Huizhou New Energy Co., Ltd., the first wholly-owned project company of Longyuan Power in Guangdong Province, was recently registered in Huizhou City, which means that its pace of entering the new energy market in Guangdong is accelerating.
In recent years, the overall situation of the wind power industry is not optimistic, but the development of wind power of Longyuan Power is wind-driven.
The reporter noticed that Longyuan Power's holding of installed capacity in 2011 and 2012 involved 18 provinces and regions, including Heilongjiang, Jilin, Jiangsu, Zhejiang, Fujian, Hainan, Gansu, Hebei, Shandong, and so on. In this move, the focus of entering Guangdong is on offshore wind power.
In this regard, Longyuan Power said that Guangdong Province has rich offshore wind power resources. During the middle and later period of the "12th Five Year Plan" and the "13th Five Year Plan", Longyuan Power will vigorously develop offshore wind power, natural gas and solar distributed energy stations, solar photovoltaic power generation and other projects in Guangdong Province, so as to accelerate the transformation of the company, expand future market space, seize the commanding heights of competition Continue to maintain the leading position in the industry and lay the foundation.
"Longyuan Power, with wind power as its main business, has entered Guangdong in line with its long-term development plan. At the same time, the site selection in Guangdong is also very meaningful." Ren Haoning, a researcher in the energy industry of CIC Consulting, said in an interview with the newspaper guide reporter.
  Targeting offshore wind power
Longyuan Power has a long history of generating wind power.
"Although there are many new energy industries involved in Longyuan Power, such as solar photovoltaic, geothermal power generation and bio power generation, wind power is the main industry," Ren Haoning said.
On November 23 last year, Longyuan Jiangsu Rudong 150MW offshore (intertidal zone) demonstration wind farm was put into operation for power generation. With the Jiangsu Rudong offshore (intertidal zone) wind farm put into operation at the end of September 2010, the company has built the largest offshore wind farm in Rudong County in China. In December 2012, with the commissioning of Unit 37 of Longyuan Yunnan Longtan Wind Farm, the company's installed wind power capacity exceeded 10 million kilowatts, ranking first in Asia and China, and second in the world, further consolidating its leading position in the domestic wind power industry.
In Ren Haoning's opinion, although the performance of Longyuan Power is inseparable from its state-owned background, its reasonable distribution of offshore wind power is also a great contribution.
It is understood that offshore wind power is an important direction of future wind power development.
"Data shows that the input cost of offshore wind power is 1/3 of that of photovoltaic power generation," Ren Haoning said.
Last year, the wind power industry had prominent grid connection contradictions, serious power rationing problems, increased approval processes, and improved review standards. For this reason, Longyuan Power has adjusted the "12th Five Year Plan" development plan to reduce the scale of wind power development in areas with severe power restrictions. Last year, the company's 50 projects were included in the second batch of wind power project approval plan of the National Energy Administration during the "12th Five Year Plan", of which the non power limited areas accounted for 89.4%. At the same time, the 2231.8 MW wind power project of the company was approved, of which 73.3% was in non power limited areas.
In terms of investment strategy optimization and reasonable layout, Longyuan Electric Power not only avoids the impact of power restriction areas on wind power utilization, but also takes the promising offshore wind power in the industry as the future development focus. The plan of Longyuan Power is that during the "12th Five Year Plan" period, Jiangsu and Fujian with excellent resource conditions and construction conditions will be the key development areas to gradually promote the development of offshore wind power in Liaoning, Tianjin, Hebei, Shandong, Zhejiang, Guangdong and other places.
  Deep meaning of site selection in Guangdong
The contradiction of wind power grid connection, power restriction and project approval are all important factors that hinder the development of wind power enterprises. Many wind power enterprises are planning to avoid these adverse factors and achieve breakthroughs.
It is reported that many wind farms across the country still have the problem of "wind abandonment". The media reported that the phenomenon of "wind abandonment" is becoming more and more serious, and the wind abandonment rate has reached 40% - 50%.
From the perspective of Longyuan Power, although the State Grid has increased investment, it is difficult to change the problem of wind power limitation in the short term, and wind power transmission has not been substantially improved. In 2012, the average utilization hours of wind power in China was 1893 hours, basically the same as that in 2011.
It is worth noting that Guangdong Province proposed to actively plan for offshore wind farms and vigorously develop offshore wind power last year.
"Longyuan Power has been involved in offshore wind power projects in Jiangsu, Zhejiang, Shandong and other places before. This time, it turns its attention to Guangdong, which is obviously optimistic about these measures of the local government." Ren Haoning said.
Ren Haoning said that the current development of offshore wind power is mainly offshore. At a time when the efficiency of wind power grid connection is low, the development of coastal wind power projects can be digested locally, which can largely solve the problem of grid connection. Guangdong is a province with a large power consumption, lacking conventional energy such as coal and oil, and has a strong local power digestion capacity. At the same time, the local government is optimistic about its policy planning ability and degree of marketization. Relevant policies on offshore wind power should be introduced soon, and the effect is expected.
This is exactly the consideration of Longyuan Power's entry into Guangdong.