China Machinery Industry Federation: The proportion of clean energy power generation equipment is steadily increasing

The proportion of thermal power equipment production in power generation equipment has decreased from 73.2% in 2016 to 49.4% in the first half of 2020. The proportion of hydropower and wind power equipment production increased from 7.6% and 16.3% in 2016 to 21.2% and 28.1% in the first half of this year, respectively. The proportion of nuclear power equipment production has fluctuated between 1.3% and 5.3% in recent years.

The Development and Outlook of China's Power Generation Equipment Industry in the First Half of 2020 (hereinafter referred to as the Outlook) recently released by the Machinery Industry Power Generation Equipment Center of the China Machinery Industry Federation shows that the national production of power generation equipment in the first half of 2020 was 47.5462 million kilowatts (calculated by generators), a year-on-year increase of 18.9%. Among them, the hydroelectric units reached 10.0924 million kilowatts, a year-on-year increase of 153.7%; Thermal power units reached 23.4885 million kilowatts, a year-on-year decrease of 5.7%; Wind turbines reached 13.3653 million kilowatts, a year-on-year increase of 71.3%; Nuclear power units reached 600000 kilowatts, a year-on-year decrease of 81.8%.

Outlook points out that in recent years, the proportion of clean energy power generation equipment has steadily increased. The proportion of thermal power equipment production in power generation equipment has decreased from 73.2% in 2016 to 49.4% in the first half of 2020. The proportion of hydropower and wind power equipment production increased from 7.6% and 16.3% in 2016 to 21.2% and 28.1% in the first half of this year, respectively. The proportion of nuclear power equipment production has fluctuated between 1.3% and 5.3% in recent years.

It is understood that in the first half of the year, the total industrial output value of power generation equipment host enterprises reached 55.84 billion yuan, a year-on-year increase of 15.6%. The power generation equipment sector of Harbin Electric, Dongfang Electric, and Shanghai Electric, the three major groups, achieved a total industrial output value of 35.09 billion yuan, an increase of 14.7% compared to the same period last year. The operating income and profit have all increased to varying degrees compared to the same period last year. In the first half of the year, the export delivery value of power generation equipment host enterprises reached 4.79 billion yuan, a year-on-year decrease of 8.5%.

In the first half of the year, leading hydropower equipment enterprises had relatively good production and operation conditions due to the support of large-scale hydropower projects, but most small and medium-sized hydropower enterprises experienced varying degrees of decline in their operating indicators. After the adjustment of the "capacity reduction" policy in recent years, the overall operating situation of thermal power equipment enterprises has become stable, and they are seeking performance growth through the renovation of old units. The "rush to install wind power" has stimulated market demand, accelerated the release of industrial chain orders, and led to performance growth for most wind power equipment enterprises in the first half of the year. Due to a significant decrease in orders on hand and a 30% -40% capacity depletion, coupled with the impact of the epidemic, nuclear power equipment enterprises are facing a tight financial chain and enormous pressure on production and operation.

In terms of overseas markets, Outlook shows that in the first half of the year, China exported 4.3722 million kilowatts of power generation units, a year-on-year increase of 6.2%, accounting for 9.2% of the production of power generation equipment. Among them, hydroelectric units account for 687200 kilowatts, thermal power units account for 3.26 million kilowatts, and wind turbines account for 425000 kilowatts. The main export regions are Southeast Asia, Central Asia, and Africa.

The Outlook also pointed out the main challenges facing the power equipment industry at present: the low level of localization and autonomy of electrical equipment, and the requirement for imported power generation equipment specified by power owners