Evergrande’s three-year PV ambition: turn and make the slow money

Polaris solar PV net news: following the mineral water, grain and oil, football, culture, evergrande’s diversification strategy and the next town, and this time selected is the much-touted new the field of photovoltaic energy. Yesterday, evergrande real estate group announced, and Zhangjiakou City solar photovoltaic projects a strategic cooperation agreement signed by the Government, to be about 90 billion yuan investment to build largest solar PV power generation projects in China, reached 9.2 million-kilowatt. In the view of the industry, evergrande has diversified selection of photovoltaic industry is still facing problems such as power grid-connected, is able to project the future potential into profits, mainly depending on the mode of operation.

Three-year solar ambitions

Under the agreement, the evergrande real estate investment and construction of 9.2 million-kilowatt solar photovoltaic power generation project are as follows: invest 6 million-kilowatt solar PV power plant project within three years; three years to invest in 200,000-kilowatt industrial park of distributed solar power projects; three-year investment in 3 million-kilowatt solar photovoltaic farm project.

According to the information released by the National Energy Board, and by the end of 2013, 22 main provinces of the country (autonomous regions, municipalities) have cumulative grid-connected 741 large-scale photovoltaic power generation project, mainly in Northwest China. Cumulative installed capacity in the top three provinces, Gansu province, Qinghai province, and Xinjiang Uygur Autonomous Region, respectively, and 4.32 million-kilowatt and 2.57 million-kilowatt. Evergrande project exceeds the total amount of the top two. According to 2013 statistics, evergrande “three-year plan,” 200,000-kilowatt industrial park, distributed in photovoltaic solar power generation projects also exceeded the total ranks killers in grid-connected capacity of provinces.

This partnership, evergrande’s Board Chairman Xu jiayin, the reason given was that “has a very good environment in Zhangjiakou and soft environment. Solar photovoltaic industry is benefiting the good thing, countries are trying to encourage the development of related industries, evergrande has confidence in cooperation between the two sides will invest more to promote projects. “

Turn and make the slow money

In the view of the industry, photovoltaic industry large upfront investment, it takes a long time to generate revenue. Evergrande’s Council means “real estate enterprises who is good at making quick money in the industry down cases, made ready to earn slow money.”

“Because of the downward effect of the real estate industry, at present, the overall gross profit margin declined, businesses need to diversifying their businesses, share risks, expanding profitable channels. “An industry analyst said. According to RAND Advisory statistics, decline in housing prices in recent years gross annual 3%-5%, 1% drop in net profit on an annual basis. The industry is also introduced, and there are now real estate enterprises in the exploration of building integrated photovoltaics, evergrande into the photovoltaic industry that contribute to its future’s performance in building integration.

Ping an securities equity Department General Manager Haisheng Wang believes, photovoltaic industry attracted the attention of national level and market development prospects are very good, real estate enterprises to join the PV of this industry, or to bring good profits in the future performance of the company, but in the short term to the company’s stock performance. In his view, potential photovoltaic projects mainly depends on two factors, one is the yield, the other is security.

“Last year, because there is no plan, no design, lack of experience, power system is not perfect, slow development of photovoltaic power plant. This year, the situation has been relatively stable. “Haisheng Wang said, however, the profitability of power stations is not willing to throw money make money, the key is to look at the project and enterprise mode of operation.

Multiple puzzle solutions

Early although the photovoltaic industry by evergrande real estate seems to be confident, but also realize that our PV industry has many problems: first, materials, equipment, and other key remaining gap with foreign advanced level of technology, basic research needs to be strengthened. Second, funding and policy support, such as too much emphasis in the application link, insufficient research and development and technology support to the manufacturing sector. Third, the power grid and other relevant policy refinement had yet to be implemented. Four is the deterioration of the international trading environment remains possible.

According to Haisheng Wang introduced, power systems, terminal elimination problem exists, on the development of photovoltaic industry “security” is a challenge, in terms of power station, only about half are profitable, distributed PV profitability is even worse.

In recent years, the policy of supporting the development of photovoltaic, PV manufacturers are still plagued by “business model is not clear,” especially in terms of distributed PV. Photovoltaic business leaders explained that distributed end users eliminate the uncertainty will affect the return on investment. How many users spontaneously occupied, amount of electricity and the grid will need to identify. In the view of the industry, the resolution of these issues, in addition to Government policy support, you also need companies fumble in a different project.

Original title: evergrande contrarian 90 billion yuan into the photovoltaic industry plans to build the largest photovoltaic power generation project

Posted in News.