Polaris solar PV net news: because of their relative dispersion characteristics, PV is considered to be the best entry point for foreign investment into the energy sector. Which broke into the photovoltaic sector cross-border capital will ultimately become the PV industry’s “backbone”?
With the open PV market, more and more non-PV companies and capital began to pour into the industry. This group of new players play different, can become the future of PV industry “the backbone”?
March 2016, one known as the strategic layout of the internal flow of energy Ali cloud caused a great tremor in energy circles. Combined with the “Ali energy plan, to capture energy entrance” so exaggerated title, while, members of Ali the Internet giant to enter the energy industry, both excited and nervous.
Although Ali rumor, we find it is aliyun’s boss at the second China Energy Summit PPT show on the Internet. However, this did not reduce all of Ali, or Ali, on behalf of China’s Internet and information technology industry giant companies involved in the energy industry’s concern about the heat.
In fact, Ali in the energy industry has begun. In the new energy sector, Ali has been met with solar PV company Sun power, combined with photovoltaic, Dong Runhuan, a strategic cooperation agreement. Concerning the wisdom of PV power station, energy, Internet, Internet financial, cloud computing, big data, cooperation in the areas of information security. In addition, in the power, oil fields, Ali is also looking for partners to promote its digitization, networking and other services.
As you can see, Ali in the progress of the energy more concentrated in the field of photovoltaics. Photovoltaic characteristics due to its decentralized nature, also known as Internet, information technology company into energy the best starting point.
This is not the first of the photovoltaic industry has to face the industry giants. In 2013, introduction of inverter products. Now, less than three years later, Huawei has become a inverter shipments in China, second in the world.
Huawei and Ali as head of the cross-border investors, because of its own star, gained more attention. They selected point of PV industry chain in the invisible will also gradually expanded.
Suntech and LDK LDK, two stars of the company represented by the photovoltaic industry, today covering Silicon material, component, EPC construction, power plant, system services, and a series of industry links of the photovoltaic industry, industry-shaking changes have taken place.
On one hand, traditional manufacturing enterprises have started to stabilize their market share, manufacturers shipments, ranking beginning to stabilize. Moreover, with the rise of Terminal-power and raw materials markets, start germination, incubation and rapid growth in new markets.
Along with the emergence of new markets, market also come. Coupled with lower trade barriers and stable returns, profitable, many non-photovoltaic industry cross-border corporate and capital are also ambitious. Raging tide of the Internet features more decentralised and PV, naturally attracted the attention of the Internet industry.
Diversification of industries are now an irreversible trend of the photovoltaic industry. “The photovoltaic industry has come to a wide range of periods, players began to enter. “Journal of energy finance expert Guo Jianhan to reporters that” in the future there will be more type and preferences of the enterprise into the photovoltaic industry. ”
These “non-Pro” is how to get into the photovoltaic industry? Diversification of industry brought changes to the PV industry? And, what with their end? These cross-border capital will ultimately become the PV industry’s “backbone”?
First, cross-border capital aimed at the power station.
Huawei launched inverter products in 2013, but the mass entering the industry vision is in 2014 and 2015. Only Zheng JianMing, is the first to break into the industry view of cross-border investors.
“2013 is the solar assets in China when the lowest price. Zheng JianMing into PV at this time was real smart people. “Red Wei Zheng JianMing, Deputy Director of the Institute of energy economics, China has a very high rating.
Even though Suntech big mergers and acquisitions, but Zheng JianMing more layout in PV power plant. Clean energy the wind (hereinafter referred to as wind) has also become a major China PV power station one of the holding companies. Based on publicly available information, downwind 2015 PV power plant holdings of 1.78GW.
Zheng JianMing is not only in the PV market cross-border investors. Has been a “dark horse” attitude shows combined PV Group Limited (hereinafter referred to as the joint solar), as well as similarities many land holdings Limited (land), are from the PV power plant to start cross-border investors.
Why cross-border capital have the same choice of power station became a starting point? Other than the upstream manufacturing has saturated, plants also attract capital for the particular root cause.
“The first large scale photovoltaic power plant construction, upstream firms for manufacturing capacity of their own needs. “Guo Jianhan said to the reporter,” but cross-border capital come in, especially in listed companies, the eyes must have PV a good return on investment. ”
Photovoltaic power plant and upstream of a fundamental difference in the manufacturing sector. PV power station belonging to the power market, in the case of grid and power determine the number of hours, annual revenue is relatively fixed. “PV is deterministic-income market. “Red Wei said to the reporter,” photovoltaic plant life of 25 years, that in the past 25 years, no big fluctuations in power hours, earnings remained stable. ”
In response, Guo Jianhan also from the financial point of view and gives a positive view. “A lot of financial products and real yields are declining, this time to hold long-term stability of higher-yielding assets such as the photovoltaic power plant, has a great significance of asset allocation. ”
Look, PV power station seems to have all the advantages to attract capital. But the fact is that current PV markets lacking is money.
“We always have to explain to others, and upstream manufacturers of photovoltaic power station are not the same. “Land holding Lian Rui, General Manager of market development for magazine journalists said.
Now already covering upstream and downstream of the photovoltaic industry links, but whether it is media coverage and is usually discussed, always with the PV industry in a nutshell. This invisible power station owners a certain negative impact on financing.
“Domestic financial institutions were worse affected by PV manufacturing industry a few years ago, one PV was afraid, not investment. “PV power plant operators, who asked not to be named top reporter complained about it.
However, who views the financial sector may not agree. “Financial capital is the most profit, if PV power plant assets really as quality as stated, there will be no such a big problem. “A bank engaged in financing of PV magazine journalists said,” financing reflect the photovoltaic plant itself there are no small profit risks. ”
In the case of component costs, construction costs, significant financial cost determines the cost of PV power station. PV power station belongs to the capital-intensive industry, financing costs are tiny percentage differences, may zoom into a huge construction costs. PV of a single model, also invisible to expand the power station’s earnings risks. “The theory of light time has more than 2000 hours a year, could end up only 1800 degrees. With power cuts a year generation time is running out. ”
In addition to finance and power rationing, subsidies also has been plagued by power station Developer: State subsidies are not in place, local subsidies and height difference is huge. Cash flow distress as companies are forced to face the problem.
The photovoltaic power station was restored in “mystified” and realistic after both sides, we are also these PV “intruders” were originally the motivations and strategic judgment is more curious. Behind the success or failure of their very different, what necessity and contingency are hidden?
Intruder’s “make or break”
For emerging PV markets who have less than 3 years, may be far from any firm’s current state to judge the success or failure of the timing. However, after the company announced its ambitious plans, but stopped; some businesses, step by step, toward their goal; there are some enterprises in the wake of the March, hit a bottleneck.
Perhaps the biggest loser was Xu jiayin, evergrande to him. September 2014, evergrande has just announced a 90 billion into the PV industry in a high profile, targeted in the Zhangjiakou. This is the vote announced in March after the PV industry, the most respected cross-border investors. Evergrande football, agriculture and other areas of cross-border “dollar strategy” enabling us to make the boss’s massive investment focus.
However, evergrande photovoltaic strategy after the silence. At that time, the magazine had repeatedly tried to contact the Permanent Head of the photovoltaic sector, but were unsuccessful. Finally, in March 2015, evergrande has officially abandoned the solar strategy.
Evergrande’s giving up the most direct reason is probably the lack of adequate funding. By the end of 2014, evergrande’s total lending amounted to 156.1 billion yuan. By the end of 2015, that figure soared to 296.91 billion yuan. 2014 evergrande’s 12.6 billion net profit, turnover of 111.3 billion.
Lack of adequate funding is not the only PV Waterloo evergrande failure. Found in the magazine track of evergrande, evergrande has not set up a dedicated PV team. Their solar strategies and even the head of the former head of evergrande real estate project in Hebei province.
If the constant short “spoiler” at best, added a lot to the PV industry to talk about. That people voted even more down to Earth. Investment of 200 billion within 5 years, installed capacity target of 20GW Grand not only clear, but soon entered a substantive stage of construction in Ningxia.
However, according to information in the public domain in the past, zhongmin cast in 2015 to achieve the objective should be installed 2GW of PV power station. As of the time of publication, there is no specific disclosure of investment and PV installed capacity. There were even rumors, new energy company (the subsidiary is responsible for the development of new energy investment) senior might change, but the message has not yet been confirmed.
However, zhongmin cast in the PV field, another action that has been declared over. In November 2015, Liaoning Cheng da notices and zhongmin investment transactions difficult to implement in the short term, the two sides decided to terminate the framework agreement and the termination of the restructuring process. You know, just shortly after on October 19, Liaoning also signed a framework agreement with zhongmin cast, plans to issue shares to the zhongmin investment and purchase new parts or all of the assets (or stock), the underlying asset for a company established within China, mainly engaged in photovoltaic power plant construction and operation of a limited liability company.
If the constant failure can be summed up as “short” (no team), and “lack of money” (the company’s high debt ratio, it is difficult to come up with sufficient cash flow). So why people voted, with high profile into the PV market, a bottleneck?
The reason may be related to PV market has a close relationship.
“Cross-border capital into photovoltaic power stations need to think two issues. Essence is a photovoltaic power station is about. Another PV market does not actually very good. “Red, Wei said.
Only the case of evergrande, before cross-sector industry, or is already very mature, healthy industry (such as agriculture), or is not perfect, but it has a set of internal rules (such as football). PV market 3 years time, although give the impression of violence, long-term returns, but that just depends on subsidy lock and high electricity prices. Once these two prerequisites, photovoltaic power stations will no longer be profiteering, or even profit.
On December 17, 2015, the wind clean energy announcement that its shunfeng photovoltaic investment in Jiangxi province and Shanghai can trade framework agreements with future investment in Chongqing, to be sold at a cash price of RMB 1.2 billion 100% stake in target companies Shun new energy in Jiangsu Province. The sale by the company of Jiangsu Chang Shun new major sources of energy in the Mainland development and operation of PV projects and power stations, its nine subsidiaries including static tianhong sunshine solar energy science and technology, Hebei SULONG PV, Turpan sea solar power generation amounted to 180MW photovoltaic power plant projects.
Soon someone work out the power trading at 6.67 Yuan/w Digital. Although downwind to the rumor, but sell power stations and wind power station’s strategy seemed to still be massive mergers and acquisitions ran counter to some.
“The first photovoltaic power plant is a State-owned enterprise, and later a number of cross-border listed companies, now zhongmin cast. “Red Wei said,” as a result of State-owned enterprises out of listed companies also are steady and even reduce the momentum. ”
PV power station “intruder” experience makes us realize, professional team and a lot of money is not a guarantee of business success. In the PV industry under the background of premature, corporate mindset, goals, means is the key to enterprise.
“Cross-border it is very difficult to cross-border in a new industry after what kind of things do, what kind of goals, what kind of mind to face, combined with accidental factors ultimately determine the success of the enterprise cross-boundary. “Guo Jianhan summed it up for the journal energy reporter.
The surge in cross-border players, not everyone just stare “look beautiful” power plant market. More important, how its main industry and photovoltaic power stations closer together, so as to maximize their business advantage. Among these, the most obviously by the Internet and information technology services company.
Energy Internet or Internet + energy concept under the frequently heated debate over the past year, has become the industry outlet. But despite the concept, it also gives a lot of Internet enterprises to enter the solar market provides the opportunity for the type.
Using the Internet or the fine management of information technology to enhance photovoltaic power plant has become a consensus.
“Big data analysis is valuable to the user. “Envision energy PV product of reporter Sun Jie, General Manager of operations, said,” we will find that in practice, the same company, efficiency of power generation in the same area may be a lot of gaps. This is the problem of equipment selection and design optimization. Results of such owners continue to invest in this area in the future, there will be references. ”
Vision in recent years over the wind turbine business growth 100% quickly occupied the market as industry titans and familiar to the energy sector, its wind field WindOS has become the wind power industry management software platform operating system, managing over 50GW wind power assets around the world. In the photovoltaic field, the vision was not involved in any equipment, third-party data analysis platform is launched in 2014 – Apollo solar cloud 2015 launched China’s first photovoltaic plant’s risk rating product rating–Apollo.
Vision why not continue to participate in the PV industry manufacturing and power plants? “Third-party evaluations so that we do not have too many conflicts of interest. “Sun Jie said,” will be considered in the future, Apollo-based classification standards and the Apollo solar cloud products, creating a number of high quality distributed power plant, as a model as an example, showing life cycle data management and risk management. “In an interview with industry on the PV industry’s Internet monitoring and data maintained a positive attitude. However, “the trend of the future” is more for monitoring and definition of data present in the industry.
“Third party utility access platform, we are more concerned about data security problems. “A power plant developer senior Journal reporter said that” operation we have our own team, monitoring can also be in the future. No demand right now. ”
In terms of data security, the prospect has begun to layout, the vision in Silicon Valley venture fund has invested in a number of industry-leading Internet security company in Silicon Valley, follow-up will be integrated into the vision of Apollo solar cloud platforms and energy EnergyOS of the Internet platform.
Analysis of large data values reflect? “To dust for example: platform based on algorithms, combined with photovoltaic panels on how much dust and weather forecast for the next period of time, given cleaning reminder. “Sun Jie said,” but the final decision rests with the owners of cleaning, cleaning costs can be offset by power generation efficiency improvement? We will according to cost and capacity to enhance returns, reports and suggest improvements. ”
Today monitoring a possible embarrassment, subsidies are not in place, power seriously. Many power plants still wrestling with survival, much less meticulous management time to consider. If fine management increases cannot offset the loss of power, even better. Monitoring positive is hard to reflect.
Monitoring data is the ultimate goal, only after the data and analysis is the most valuable. Even the State grid is also worthwhile. “The State grid had a data platform. With the strength of the networks and the Internet, if you force the utility access, may we choose to access. “The above power plant developer to a magazine reporter says,” if not obligated, nor do we want to access. ”
This is a relatively exclusive market, a PV power plant in access after a PV monitoring cloud platform and may not access another. Although the PV market in China will be doubled in the future, more and more enterprises engaged in photovoltaic plant monitoring. Fighting continued between enterprises.
In addition to industry oligarch like State grid, BAT will enter the industry has always been a hot topic. “Our judgment is that the BAT into the energy industry, and depth to go, is still difficult. “Sun Jie said,” there is a lot of technology in the energy sector barriers, financial barriers, etc. And the long period of return on investment in the energy sector, and the Internet industry is very different. ”
Not everyone has full confidence. “Aliyun in frequent contact with all kinds of energy companies, including monitoring of the company. “A big data analytics in the industry magazine said,” a lot of people touch the pulse of no Ali, did not know their position on the energy data in the company’s business elsewhere. ”
PV and the future of finance
Who is a photovoltaic plant monitoring and data analysis needs are most urgent? Certainly not owners, owners of large power station, belonging to the company. Power station and its data on its importance, if fully taken over by the third party is tantamount to being strangled throat.
“The real owners are unwilling to reveal their own power station performance may be monitored by third parties present the biggest obstacle to development. “These people in the industry say,” power plant owners that if the access platform, you cannot modify the data. So they are more likely to promise to modify the data platform. ”
Probably no power plant owners to change the power data just to look on the face, deeper reason behind it could be obtained from a financial institution more low-cost financing, receiving a higher price in the sale.
In all kinds of financial capital, large amounts of funds, low return on capital requirements, funding period is relatively long. Therefore, the risk capital tend to long-term, stable return products. Precisely coincide with the characteristics and photovoltaic power plants. “Financial institutions, may have a number of insurance companies hold photovoltaic power plant. “Guo Jianhan said.
Therefore, whether it is from the perspective of financing information, buyers point of view, financial capital is now the most pressing demand for third-party monitoring of a force. In turn, with the maturing of third party monitoring market, PV market transparency is greatly increased, financial institutions will have more acquisitions even PV power plant Foundation.
Photovoltaic plant are closely linked to natural and financial. Return on capital intensive, high yield, long was easily financed by photovoltaic power stations should have a product. But financing markets of asymmetric information, fear of financial capital liquidity, risk, and dread in the investment in photovoltaic power stations.
“In my opinion, PV end markets is financial markets. Spelling was raised, cost, will have to rely more on financial instruments. “Red Wei says,” whether you are in the industry who must have financial thinking and financial mobilization and financial control. ”
All kinds of new forces into let PV market brilliant. State-owned enterprises, private enterprises, listed companies and non-listed companies, large companies, small companies, have put up last summer to financing. In addition to emphasizing the stability of insurance capital, incoming buyers by financial institutions will undoubtedly strengthen the liquidity of the PV power plant.
Just Thirteen-Five the first year of this year, to complete the goal of 2020 150GW, 20GW of each of the next five years at least incremental markets. Picture of a multifaceted one pair of warring seems to have slowly expanded.
Much of the industry reshuffle is yet to come, companies will have enough time staking. However, the proportion of photovoltaic power generation, commercialization, more mature, when the power station when they need massive funding, there will be a large demand for low-cost funds into, this is the inevitable logic of financial markets.
The money or the ability to mobilize such funds of individuals, enterprises, institutions, will become the mainstream of photovoltaic power plant in the future.
Original title: photovoltaic “intruder”