China Renewables Report

China - Renewable Energy 0099 - 0668 - 2013

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MarketLine Industry Profile

Renewable Energy in China December 2014

Reference Code: 0099-0668

Publication Date: December 2014

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EXECUTIVE SUMMARY

Market value The Chinese renewable energy market grew by 11.7% in 2013 to reach a value of $113,419 million.

Market value forecast In 2018, the Chinese renewable energy market is forecast to have a value of $197,816.6 million, an increase of 74.4%

since 2013.

Market volume The Chinese renewable energy market grew by 6.4% in 2013 to reach a volume of 1,054,887.5 GWh.

Market volume forecast In 2018, the Chinese renewable energy market is forecast to have a volume o f 1,456,056.4 GWh, an increase of 38%

since 2013.

Category segmentation Hydroelectric is the largest segment of the renewable energy market in China, accounting for 84.4% of the market's total

volume.

Geography segmentation China accounts for 66% of the Asia-Pacific renewable energy market value.

Market rivalry As electricity from renewable sources is a commoditized product (with the only differentiation being its source and any

additional services offered by utility companies), players are forced to compete almost entirely on price, perhaps offering

additional services in order to attract new competitors. This creates a particularly competitive environment which is

further fuelled by the high fixed costs associated with the construction of renewable energy plants.



TABLE OF CONTENTS

Executive Summary..........................................................................................................................................................................2

Market value ..................................................................................................................................................................................2

Market value forecast...................................................................................................................................................................2

Market volume...............................................................................................................................................................................2

Market volume forecast ...............................................................................................................................................................2

Category segmentation................................................................................................................................................................2

Geography segmentation ............................................................................................................................................................2

Market rivalry .................................................................................................................................................................................2

Market Overview ...............................................................................................................................................................................7

Market definition............................................................................................................................................................................7

Market analysis .............................................................................................................................................................................7

Market Data........................................................................................................................................................................................8

Market value ..................................................................................................................................................................................8

Market volume...............................................................................................................................................................................9

Market Segmentation .....................................................................................................................................................................10

Category segmentation..............................................................................................................................................................10

Geography segmentation ..........................................................................................................................................................11

Market Outlook ................................................................................................................................................................................12

Market value forecast.................................................................................................................................................................12

Market volume forecast .............................................................................................................................................................13

Five Forces Analysis ......................................................................................................................................................................14

Summary ......................................................................................................................................................................................14

Buyer power.................................................................................................................................................................................15

Supplier power ............................................................................................................................................................................17

New entrants ...............................................................................................................................................................................18

Threat of substitutes...................................................................................................................................................................20

Degree of rivalry..........................................................................................................................................................................22

Leading Companies........................................................................................................................................................................24



China Datang Corporation Renewable Power Co., Limited ................................................................................................24

China Power Investment Corporation .....................................................................................................................................27

Huadian Fuxin Energy Corporation Limited ...........................................................................................................................30

Huaneng Renewables Corporation Limited............................................................................................................................32

Macroeconomic Indicators.............................................................................................................................................................35

Country Data ...............................................................................................................................................................................35

Appendix...........................................................................................................................................................................................37

Methodology ................................................................................................................................................................................37

Industry associations..................................................................................................................................................................38

Related MarketLine research....................................................................................................................................................38



LIST OF TABLES

Table 1: China renewable energy market value: $ million, 2009–13........................................................................................8

Table 2: China renewable energy market volume: GWh, 2009–13 ..........................................................................................9

Table 3: China renewable energy market category segmentation: GWh, 2013 ...................................................................10

Table 4: China renewable energy market geography segmentation: $ million, 2013 ..........................................................11

Table 5: China renewable energy market value forecast: $ million, 2013–18 ......................................................................12

Table 6: China renewable energy market volume forecast: GWh, 2013–18.........................................................................13

Table 7: China Datang Corporation Renewable Power Co., Limited: key facts ...................................................................24

Table 8: China Datang Corporation Renewable Power Co., Limited: key financials ($) .....................................................25

Table 9: China Datang Corporation Renewable Power Co., Limited: key financials (CNY)...............................................25

Table 10: China Datang Corporation Renewable Power Co., Limited: key financial ratios ................................................25

Table 11: China Power Investment Corporation: key facts ......................................................................................................27

Table 12: China Power Investment Corporation: key financials ($)........................................................................................27

Table 13: China Power Investment Corporation: key financials (CNY) .................................................................................28

Table 14: China Power Investment Corporation: key financial ratios.....................................................................................28

Table 15: Huadian Fuxin Energy Corporation Limited: key facts ............................................................................................30

Table 16: Huadian Fuxin Energy Corporation Limited: key financials ($)..............................................................................30

Table 17: Huadian Fuxin Energy Corporation Limited: key financials (CNY) .......................................................................31

Table 18: Huadian Fuxin Energy Corporation Limited: key financial ratios...........................................................................31

Table 19: Huaneng Renewables Corporation Limited: key facts ............................................................................................32

Table 20: Huaneng Renewables Corporation Limited: key financials ($) ..............................................................................32

Table 21: Huaneng Renewables Corporation Limited: key financials (CNY)........................................................................32

Table 22: Huaneng Renewables Corporation Limited: key financial ratios ...........................................................................33

Table 23: China size of population (million), 2009–13 ..............................................................................................................35

Table 24: China gdp (constant 2005 prices, $ billion), 2009–13 .............................................................................................35

Table 25: China gdp (current prices, $ billion), 2009–13..........................................................................................................35

Table 26: China inflation, 2009–13 ..............................................................................................................................................36

Table 27: China consumer price index (absolute), 2009–13 ...................................................................................................36

Table 28: China exchange rate, 2009–13...................................................................................................................................36



LIST OF FIGURES

Figure 1: China renewable energy market value: $ million, 2009–13 ......................................................................................8

Figure 2: China renewable energy market volume: GWh, 2009–13.........................................................................................9

Figure 3: China renewable energy market category segmentation: % share, by volume, 2013........................................10

Figure 4: China renewable energy market geography segmentation: % share, by value, 2013 .......................................11

Figure 5: China renewable energy market value forecast: $ million, 2013–18 .....................................................................12

Figure 6: China renewable energy market volume forecast: GWh, 2013–18 .......................................................................13

Figure 7: Forces driving competition in the renewable energy market in China, 2013........................................................14

Figure 8: Drivers of buyer power in the renewable energy market in China, 2013 ..............................................................15

Figure 9: Drivers of supplier power in the renewable energy market in China, 2013 ..........................................................17

Figure 10: Factors influencing the likelihood of new entrants in the renewable energy market in China, 2013..............18

Figure 11: Factors influencing the threat of substitutes in the renewable energy market in China, 2013........................20

Figure 12: Drivers of degree of rivalry in the renewable energy market in China, 2013 .....................................................22

Figure 13: China Datang Corporation Renewable Power Co., Limited: revenues & profitability .......................................26

Figure 14: China Power Investment Corporation: revenues & profitability ............................................................................28

Figure 15: China Power Investment Corporation: assets & liabilities.....................................................................................29

Figure 16: Huadian Fuxin Energy Corporation Limited: revenues & profitability ..................................................................31

Figure 17: Huaneng Renewables Corporation Limited: revenues & profitability ..................................................................33

Figure 18: Huaneng Renewables Corporation Limited: assets & liabilities ...........................................................................34



MARKET OVERVIEW

Market definition The renewable energy market consists of the net generation of electricity through renewable sources. It is divided into

five segments, these being hydroelectricity; wind energy; solar, tide and wave energy; electricity generated through

biomass and waste; and geothermal energy. The volume of the market is calculated as the net volum e of electricity

produced through renewable means in gigawatt hours (GWh), and the market value has been calculated according to an

average of annual domestic and industrial retail prices per kWH, inclusive of applicable taxes. Any currency conversions

used in the creation of this report have been calculated using constant 2013 annual average exchange rates. Please

note that 1 gigawatt hour (GWh) is identical to 1 million kilowatt hours (kWh), or 1,000 megawatt hours (MWh).

For the purposes of this report, Asia-Pacific comprises Australia, China, India, Indonesia, Japan, New Zealand,

Singapore, South Korea, Taiwan, and Thailand.

Market analysis The value of China's renewable energy market saw double digit growth due to a combination of rising average retail

electricity prices, and strong growth in renewable energy production during the 2009 -2013 period. Forecasts suggest

strong growth in renewable energy produced will continue, albeit at a decelerated rate, across 2013 -2018 as installed

renewable energy capacity continues to grow.

The Chinese renewable energy market had total revenues of $113,419.0m in 2013, representing a compound annual

growth rate (CAGR) of 20.7% between 2009 and 2013. In comparison, the Japanese and Indian markets grew with

CAGRs of 3.5% and 15.5% respectively, over the same period, to reach respective values of $23,212.9m and

$15,887.8m in 2013.

Market production volume increased with a CAGR of 13.3% between 2009 and 2013, to reach a total of 1,054,887.5

GWh in 2013. The market's volume is expected to rise to 1,456,056.4 GWh by the end of 2018, representing a CAGR of

6.7% for the 2013-2018 period.

Hydroelectric energy production had the highest volume in the Chinese renewable energy market in 2013, with total

generation of 890,000.0 GWh, equivalent to 84.4% of the market's overall volume. In comparison, wind energy

generated had a volume of 107,295.2 GWh in 2013, equating to 10.2% of the market total.

The performance of the market is forecast to decelerate, with an anticipated CAGR of 11.8% for the five-year period

2013 - 2018, which is expected to drive the market to a value of $197,816.6m by the end of 2018. Comparatively, the

Japanese and Indian markets will grow with CAGRs of 10.3% and 9.4% respectively, over the same period, to reach

respective values of $37,856.8m and $24,916.7m in 2018.



MARKET DATA

Market value The Chinese renewable energy market grew by 11.7% in 2013 to reach a value of $113,419 million.

The compound annual growth rate of the market in the period 2009–13 was 20.7%.

Table 1: China renewable energy market value: $ million, 2009–13

Year $ million CNY million € million % Growth

2009 53,360.7 330,558.9 40,185.1

2010 71,467.6 442,727.8 53,821.2 33.9%

2011 78,409.2 485,729.3 59,048.8 9.7%

2012 101,565.6 629,178.3 76,487.5 29.5%

2013 113,419.0 702,607.8 85,414.1 11.7%

CAGR: 2009–13 20.7%

SOURCE: MARKETLINE M A R K E T L I N E

Figure 1: China renewable energy market value: $ million, 2009–13




Market volume The Chinese renewable energy market grew by 6.4% in 2013 to reach a volume of 1,054,887.5 GWh.

The compound annual growth rate of the market in the period 2009–13 was 13.3%.

Table 2: China renewable energy market volume: GWh, 2009–13

Year GWh % Growth

2009 639,280.0

2010 770,919.0 20.6%

2011 800,967.0 3.9%

2012 991,873.4 23.8%

2013 1,054,887.5 6.4%

CAGR: 2009–13 13.3%


Figure 2: China renewable energy market volume: GWh, 2009–13




MARKET SEGMENTATION

Category segmentation Hydroelectric is the largest segment of the renewable energy market in China, accounting for 84.4% of the market's total

volume.

The Wind segment accounts for a further 10.2% of the market.

Table 3: China renewable energy market category segmentation: GWh, 2013

Category 2013 %

hydroelectric 890,000.0 84.4%

wind 107,295.2 10.2%

biomass & waste 53,112.0 5.0%

solar, tide & wave 4,302.6 0.4%

geothermal 177.6 0.0%

Total 1,054,887.4 100%


Figure 3: China renewable energy market category segmentation: % share, by volume , 2013




Geography segmentation China accounts for 66% of the Asia-Pacific renewable energy market value.

Japan accounts for a further 13.5% of the Asia-Pacific market.

Table 4: China renewable energy market geography segmentation: $ million, 2013

Geography 2013 %

China 113,419.0 66.0

Japan 23,212.9 13.5

India 15,887.8 9.3

South Korea 1,103.4 0.6

Rest of Asia-Pacific 18,118.5 10.5

Total 171,741.6 100%


Figure 4: China renewable energy market geography segmentation: % share, by value, 2013




MARKET OUTLOOK

Market value forecast In 2018, the Chinese renewable energy market is forecast to have a value of $197,816.6 million, an increase of 74.4%

since 2013.

The compound annual growth rate of the market in the period 2013–18 is predicted to be 11.8%.

Table 5: China renewable energy market value forecast: $ million, 2013–18

Year $ million CNY million € million % Growth

2013 113,419.0 702,607.8 85,414.1 11.7%

2014 129,016.6 799,232.0 97,160.4 13.8%

2015 145,662.0 902,346.9 109,695.8 12.9%

2016 163,439.7 1,012,476.3 123,084.0 12.2%

2017 180,739.4 1,119,644.6 136,112.1 10.6%

2018 197,816.6 1,225,434.2 148,972.7 9.4%

CAGR: 2013–18 11.8%


Figure 5: China renewable energy market value forecast: $ million, 2013–18




Market volume forecast In 2018, the Chinese renewable energy market is forecast to have a volume of 1,456,056.4 GWh, an increase of 38%

since 2013.

The compound annual growth rate of the market in the period 2013–18 is predicted to be 6.7%.

Table 6: China renewable energy market volume forecast: GWh, 2013–18

Year GWh % Growth

2013 1,054,887.5 6.4%

2014 1,145,890.6 8.6%

2015 1,238,296.8 8.1%

2016 1,320,447.9 6.6%

2017 1,393,309.5 5.5%

2018 1,456,056.4 4.5%

CAGR: 2013–18 6.7%


Figure 6: China renewable energy market volume forecast: GWh, 2013–18




FIVE FORCES ANALYSIS

The renewable energy market will be analyzed taking utility companies generating and/or supplying electricity generated

from renewable energy sources as players. The key buyers will be taken as household, commercial, industrial and other

end-users, and biomass fuel producers and manufacturers of power-generating and other heavy electrical equipment,

including power turbines, wind turbines and towers, solar panels, heavy electrical machinery intended for fixed -use and

large electrical systems as the key suppliers.

Summary

Figure 7: Forces driving competition in the renewable energy market in China, 2013


As electricity from renewable sources is a commoditized product (with the only differentiation being its source and any



further fuelled by the high fixed costs associated with the construction of renewable energy plants.

Backward integration does occur in the renewable energy market, albeit usually on a small scale. It is slowly becoming

more popular for individual households and som e businesses to generate their own electricity using small wind turbines,

although the home use of photovoltaic solar panels is more common. Suppliers of renewable energy power generation

equipment, for example wind turbines and photovoltaic solar panels, tend to be heavily dependent on revenues

generated in the renewable energy industry, as the product they offer is rather industry specific. This reduces supplier

power somewhat. Barriers to entry are high for companies intending to establish an integrated operation with generation

capacity and retail operations due to the capital outlay required to build or acquire generation assets.



Buyer power

Figure 8: Drivers of buyer power in the renewable energy market in China, 2013


Buyers in this industry are primarily individual consumers, although there is also a demand for renewable energy from

the industrial and commercial sectors. Most industrial buyers draw their energy from non-renewable sources as they are

generally able to provide the necessary volumes at a lower price.

Despite there usually being no input costs for renewable energy (wind, sunlight, geothermal heat), and renewable

generators being cheap to run, the cost of building renewable energy infrastructure can be high. Connecting to the grid

can be costly, as the best sites for renewable energy plants are often far from big cities (on hillsides or in deserts, for

example). Furthermore, many renewable generators only produce power intermittently, when the sun shines or the wind

blows, resulting in countries/companies having to maintain traditional power plants ready to fire up when demand peaks

or renewable output drops. Uncertainty of supply can discourage industrial customers from in vesting in renewable

energy, and the cost of maintaining non-renewable back-up capacity contributes further to the cost of renewable energy

solutions.

This analysis neglects the often less conspicuous costs of non-renewable power generation, however. The cost of

building traditional thermal power plants is exceptionally high, especially for nuclear plants. Input costs are also incurred

for the duration of the plant's operational life (unlike wind or sunlight, fuels such as oil, coal, and uranium must be min ed

and transported); there are also costs unaccounted for in customers' bills, in the form of water and air pollution, climate

change and an assortment of human health impacts, for example.

In the case of individual consumers, the sheer number of buyers in this market, coupled with their small size, means

losing one consumer will not have a significant impact on a player’s revenue, weakening buyer power considerably.

Loyalty towards energy providers is not a significant factor within this industry and most clients will opt for the cheaper

provider if given a choice, as switching costs are low in this industry. In such cases, buyer power is boosted although

switching costs tend to be higher for business customers than for residential consumers as businesses, particularly

industrial customers, often have fixed term contracts. By the same token, buyer power is limited in geographies where

moves to liberalize electricity markets have been halted or reversed. Over the past decade, the Chinese government has

made some efforts to open up its electricity market with significant investment, but it remains far less developed than

electricity markets in the West. State-owned enterprises continue to dominate and consumers tend to have little choice of

electricity retailer which serves to decrease buyer power.



For environmental reasons, some consumers may prefer to use electricity from renewable energy sources but this is by

no means an indispensable commodity. The widespread availability of other kinds of energy decreases consumer

reliance on renewable energy and thus further strengthens buyer power.

Backward integration does occur in the renewable energy market, albeit usually on a small scale. It is slowly becoming

more popular for individual households and some businesses to generate their own electricity using small wind turbines,

although the home use of photovoltaic solar panels is more common.

Overall, buyer power is assessed as weak.



Supplier power

Figure 9: Drivers of supplier power in the renewable energy market in China, 2013


As the main players are largely vertically integrated companies involved in energy generation and trade, the main

suppliers to this industry are manufacturers of power generating equipment including wind turbine manufacturers, solar

panels, energy infrastructure construction companies. Such suppliers design, test, manufacture, and assist with the

operation and maintenance of power generating equipment. They are usually large in size and not very numerous due to

their specialty, which usually increases supplier power. However, market players are also large companies with strong

financial muscle and significant bargaining power, alleviating this effect somewhat.

Switching costs can be significant as fixed contracts for a supplier's services/products are usually in place, and it can be

extremely costly for a market player to break the contract, ceding power to suppliers.

Suppliers of renewable energy power generation equipment, for example wind turbines and photovoltaic solar panels,

tend to be heavily dependent on revenues generated in the renewable energy industry, as the product they offer is rather

industry specific, which reduces supplier power somewhat. The general trend shows that the renewable energy sector is

expanding its market share globally, thus as more and more countries increase their level of installed capacity they

create more revenue opportunities for power generating equipment providers, increasing the opportunity for suppliers to

diversify and increase their power over market players.

High quality equipment is extremely important to players in the renewable energy market. Players require the most

efficient and reliable equipment available in order to control costs and ensure maximum returns on their investments. As

a result, suppliers find themselves in a position of power as players are more willing to pay a premium for high quality

equipment and materials.

Many players selling electricity to end-users are vertically integrated; however, it is unlikely, although not unheard of, that

players will integrate backwards into suppliers’ areas of operation.

Overall, supplier power is assessed as moderate.



New entrants

Figure 10: Factors influencing the likelihood of new entrants in the renewable energy market in China, 2013


The healthy growth of the renewable energy market entices new entrants. However, entry barriers can be significant.

Economies of scale are a significant entry barrier. Producing enough renewable energy on a scale that will be profitable

can be difficult for new entrants due to inefficiencies in current technology, although this will become less of an issue in

the future as technology evolves and improves. As such, significant capital outlay is required in order to secure a

profitable portfolio of renewable energy generation assets.

The presence of large, vertically integrated companies involved in various stages of power generation, distribution and

sales, makes it harder for newcomers to compete. Furthermore, the market structure in individual countries may be such

that new entrants are simply not permitted, particularly with countries with non-liberalized energy markets as is the case

with China and the country's government control of the energy industry as a whole. This near eliminates the ability for

new entrants to enter the marketplace, although it may allow for existing incumbents operating in the non -renewable

sector to expand to renewable energy.

Barriers to entry are high for companies intending to establish an integrated operation with generation capacity and retail

operations. This is because of the capital outlay required to build or acquire generation assets, with hydro electric dams

often being prohibitively expensive for new entrants. There is a relatively high level of technology and IP involved in

establishing wind farms, hydroelectric and geothermal power plants etc., and it may be difficult to get planning

permission to build all the necessary installations, particularly in non-liberalized markets.

On the other hand, in liberalized markets where end-users can choose their suppliers, it is possible to enter the industry

purely as a retailer of ‘green’ energy. In the case of utility companies intending to purchase electricity from third party

suppliers and operate purely as retailers, entry barriers include the necessity of finding suitable, reliable suppliers. Also ,

transport capacity may be limited by the size and geographical reach of the domestic electricity grid. Additionally, it may

be difficult to obtain access to distribution infrastructure, and it is sometimes observed that customers rarely switch

retailers, even where it is possible. This works to discourage new entrants.

Where liberalization has not proceeded to the same extent, it may be difficult for some end -users to switch service

provider, or costly to access the transmission and distribution infrastructure. These raise the barriers to entry for

newcomers.



Overall, the threat of new entrants is assessed as weak primarily due to the degree of control the Chinese government

exerts over the country's energy market as a whole.



Threat of substitutes

Figure 11: Factors influencing the threat of substi tutes in the renewable energy market in China, 2013


The most direct substitute for renewable energy is energy generated from alternative sources, including fossil fuels (oil,

gas and coal), and nuclear power.

Although electricity itself is always the same no matter how it is generated, buyers deciding between the merits of

renewable and non-renewable energy will consider issues such as environmental impact, long-term energy security and

price.

Renewable energy technologies have not yet matured to the point that they can completely replace existing generation

but they play a significant role in many countries' energy mixes, contributing to energy security and independence. This

said, economies of scale mean that alternative sources such as fossil fuels and nuclear energy are deemed acceptable

alternatives, even with the associated environmental and health risks. Despite this, increasing public awareness of

climate change, public outrage after the 2010 Gulf of Mexico oil spill, the 2011 Fukushima nuclear disaster, as well as

concerns over energy security and rising electricity prices (often inaccurately blamed on renewable energy) has put

additional pressure on governments to move away from fossil fuels and nuclear power.

Non-renewable energy sources remain the primary source of energy for the vast majority of countries worldwide,

however. Whether or not they are a cheaper alternative is debatable as hidden costs such as environmental damage and

health risks are not reflected in electricity prices. Furthermore, the price of fossil fuels is subject to external pressures

and events (of which the conflict in Ukraine provides a recent example) resulting in unpredictable fluctuations in price.

Despite this, fossil fuels, and nuclear energy in countries that utilize it, are still deemed cheaper and more efficient

methods of generating electricity than renewable energy.

Another substitute to renewable energy is self-generation. More and more homes and businesses are installing

equipment to generate their own electricity, whether they are solar panels or small wind turbines, reducing their reliance

on utility companies. Although it can take years before self-generation pays for itself, once that threshold has been

reached it becomes a far more cost effective substitute than purchasing energy from utility companies. At present, due to

the relatively low number of businesses and homes (in global terms) taking this up, it isn't currently a major threat,

although is likely to become one in the future.

Overall, the threat of substitutes is assessed as moderate.





Degree of rivalry

Figure 12: Drivers of degree of rivalry in the renewable energy market in China, 2013


The large size of competitors in the renewable energy market tends to increase rivalry, as bigger players are able to

compete more formidably. Larger companies can exploit economies of scale, invest more in brand building and

advertising, and are able to respond more robustly to any perceived threat against their market share.

However, the large size of competitors is balanced out somewhat by the relatively small number of companies operating

in the renewable energy market, which serves to reduce the degree of rivalry.

As electricity from renewable sources is a commoditized product (with the only differentiation being its source and any



further fuelled by the high fixed costs associated with the construction of renewable energy plants, whether they are

hydroelectric dams or wind farms. It should be noted that once renewable energy plants are complete, due to the fact

they usually require no fuel (unless it's a biomass and waste plant), maintenance and repair costs to maintain peak

generation are minimal.

It is fairly difficult to expand capacity in the renewable energy market. New plants are expensive and construction is time

consuming; supply-chain bottlenecks have frustrated governments trying to bolster their renewable capacity, increasing

the degree of rivalry.

Furthermore, many renewable plants such as wind and solar farms do not operate at their optimum capacity due to their

dependence on specific weather conditions. Wind turbines, for example, spend an average of two thirds of their

operational life stood idle. Hydroelectric dams are also susceptible to drought conditions and are subject to large

fluctuations in generation levels during dry/drought periods. Factors such as these can contribute to rivalry if players find

their operations underperforming.

Another factor contributing to rivalry is the potentially tricky nature of any exit from the renewables market. Due to the

specialized nature of the machinery and equipment involved in the renewable energy industry, the divesting of assets

may be difficult due to the limited number of companies able to make the best use of them (primarily rivals).



Most companies operating in the renewable energy market maintain an energy mix with a diverse portfolio. They will

generate energy through a variety of non-renewable and renewable sources which helps keep rivalry in check as they

are not relying on one energy source, although the fact remains that they are still operating in the same overall energy

industry. The similarity of players also helps maintain rivalry at a moderate level as companies are better able to predict

the actions and behavior of rivals.

Finally, strong growth in the value of the renewable energy market helps alleviate rivalry. All of these factors amount to a

moderate rivalry score, but this figure is likely a little misleading, given the monopoly the Chinese government exerts

over the country's renewable energy market. The rating serves instead to describe the market landscape that would be,

should the government move to liberalize the energy sector.



LEADING COMPANIES

China Datang Corporation Renewable Power Co., Limited

Table 7: China Datang Corporation Renewable Power Co., Limited: key facts

Head office: 8th Floor, Number 1 Caishikou Street, Xicheng District, Beijing 100053, CHN

Telephone: 86 10 8395 6262

Fax: 86 10 8395 6555

Website: www.dtxny.com.cn

Financial year-end: December

Ticker: 1798

Stock exchange: Hong Kong

SOURCE: COMPANY WEBSITE M A R K E T L I N E

China Datang Corporation Renewable Power (China Datang), a subsidiary of China Datang Group Corporation, is

engaged in the development, investment, construction and management of wind power and other renewable energy

sources in Hong Kong and China.

The company is also involved in the research and development, application and promotion of low carbon technology;

research, sale, testing and maintenance of renewable energy-related equipment; power generation; engineering,

construction and installation, repair and maintenance of power projects at home and abroad; import and export services

of renewable energy equipment and technologies; external investment; renewable energy-related training and consulting

services; and the lease of property.

China Datang's installed wind power capacity is approximately 5,719 megawatts (MW). The company is also engaged in

the development of other renewable energy projects including solar power, biomass, and coal bed methane (CBM) and

energy performance contracting (EPC) activities.

China Datang's subsidiaries include DTM (Beijing) Energy Technology Development Co., Datang Hunyuan

Mimazongliang Renewable Power Co., Datang Renewables (H.K.) Co., Datang Renewables (Sigapore) Pte., Datang

Sanmenxia Wind Power Generation Co., Datang Xiangyang Wind Power Generation Co., Datang Renewable Powe r

Qingtongxia Co., Datang Xilin Gol Wind Power Generation Co., Datang Jixian Wind Power Generation Co., Datang

Weihai Renewable Power Co., and Datang Huachuan Wind Power Generation Co. among others.

Key Metrics

The company recorded revenues of $909m in the fiscal year ending December 2013, an increase of 28.9% compared to

fiscal 2012. Its net income was $38m in fiscal 2013, compared to a net income of $18m in the preceding year.



Table 8: China Datang Corporation Renewable Power Co., Limited: key financials ($)

$ million 2009 2010 2011 2012 2013

Revenues 230.5 384.2 618.1 705.1 908.8

Net income (loss) 59.2 73.6 117.8 18.1 38.3

Total assets 3,961.4 6,676.6 8,762.7 9,101.7 9,102.5

SOURCE: COMPANY FILINGS M A R K E T L I N E

Table 9: China Datang Corporation Renewable Power Co., Limited: key financials (CNY)

CNY million 2009 2010 2011 2012 2013

Revenues 1,428.0 2,380.0 3,829.0 4,368.0 5,630.0

Net income (loss) 367.0 456.0 730.0 112.0 237.0

Total assets 24,540.0 41,360.0 54,283.0 56,383.0 56,388.0


Table 10: China Datang Corporation Renewable Power Co., Limited: key financial ratios

Ratio 2009 2010 2011 2012 2013

Profit margin 25.7% 19.2% 19.1% 2.6% 4.2%




Figure 13: China Datang Corporation Renewable Power Co., Limited: revenues & profi tability




China Power Investment Corporation

Table 11: China Power Investment Corporation: key facts

Head office: Building 3, No 28, Financial Street, Xicheng District, Beijing 100033, CHN

Telephone: 86 10 6629 8000

Fax: 86 10 6629 8095

Website: www.cpicorp.com.cn



Established in 2002 and one of China's five Gencos, China Power Investment Corporation (CPI) is engaged in the

development, investment, construction, operation, and management of power plants in China.

The company generates electricity through hydro, renewable, thermal, and nuclear power plants.

CPI operates the Hongyanhe nuclear power plant in Liaoning alongside China General Nuclear Power Corporation.

Other key renewable power projects include Chipi Hydropower Station, Myitsone Hydropower Station, Wind Farms of

Jiangxi Branch, Beidaqiao Fifth Wind Farm, Jishixia Hydropower Station and Tibet Sangri Photovoltaic Power Plant.

It is also involved in the production of coal, aluminum and bauxite; and railway transportation and port activities.

The company has an installed capacity of around 80,074-megawatts (MW), a coal production capacity of 74.1 million

tons and aluminum production capacity of 2.77 million tons.

The company's subsidiaries include CPI Northeast Electric Power Co., Ltd., CPI Henan Electric Power Co., Ltd., CPI

Jiangxi Electric Power Co., Ltd., CPI South Electric Power Co., Ltd., CPI Hebei Electric Power Co., Ltd., China Power

International Holding Ltd., CPI Nuclear Power Co., Ltd., CPI Power Engineering Co., Ltd., China Power Complete

Equipment Co., Ltd., CPI Finance Co., Ltd., and CPI Ronghe Controlling Investment Group Company among others.

Key Metrics

The company recorded revenues of $30,834m in the fiscal year ending December 2013, an increase of 5.7% compared

to fiscal 2012. Its net income was $1,209m in fiscal 2013, compared to a net income of $373m in the preceding year.

Table 12: China Power Investment Corporation: key financials ($)

$ million 2009 2010 2011 2012 2013

Revenues 16,249.1 20,509.1 25,464.9 29,163.8 30,833.9

Net income (loss) 361.6 516.6 80.7 373.2 1,209.2

Total assets 60,752.6 71,566.5 81,202.0 92,800.7 99,768.7

Total liabilities 51,373.7 60,755.8 69,697.2 78,868.1 84,284.9




Table 13: China Power Investment Corporation: key financials (CNY)

CNY million 2009 2010 2011 2012 2013

Revenues 100,660.0 127,050.0 157,750.0 180,664.0 191,010.0

Net income (loss) 2,240.0 3,200.0 500.0 2,312.0 7,491.0

Total assets 376,350.0 443,340.0 503,030.0 574,882.0 618,047.0



Table 14: China Power Investment Corporation: key financial ratios

Ratio 2009 2010 2011 2012 2013

Profit margin 2.2% 2.5% 0.3% 1.3% 3.9%

Revenue growth 44.2% 26.2% 24.2% 14.5% 5.7%

Asset growth 36.6% 17.8% 13.5% 14.3% 7.5%

Liabilities growth 40.8% 18.3% 14.7% 13.2% 6.9%

Debt/asset ratio 84.6% 84.9% 85.8% 85.0% 84.5%

Return on assets 0.7% 0.8% 0.1% 0.4% 1.3%


Figure 14: China Power Investment Corporation: revenues & profitability




Figure 15: China Power Investment Corporation: asse ts & liabilities




Huadian Fuxin Energy Corporation Limited

Table 15: Huadian Fuxin Energy Corporation Limited: key facts

Head office: 1701 Building A, Huadian Plaza, No 2 Xuanwumenni Road, Xicheng District, Beijing, CHN

Website: www.hdfx.com.cn


Ticker: 816



Established in 2004, Huadian Fuxin Energy Corporation Limited, a wholly owned subsidiary of China Huadian

Corporation, is a diversified energy company, specializing in renewable energy, engaged in power generation across 24

provinces and autonomous regions throughout China and Hong Kong.

The company develops, manages, and operates hydropower and coal -fired power plants in the Fujian province, and is

the largest hydroelectric company in East China.

Huadian also operates wind farms with over 3,500 MW of installed capacity, as well as other renewable energy projects

including biomass and solar.

The company also holds an equity interest in four nuclear power plants under construction.

Key Metrics

The company recorded revenues of $2,145m in the fiscal year ending December 2013, an increase of 16.9% compared

to fiscal 2012. Its net income was $237m in fiscal 2013, compared to a net income of $176m in the preceding year.

Table 16: Huadian Fuxin Energy Corporation Limited: key financials ($)

$ million 2009 2010 2011 2012 2013

Revenues 1,195.0 1,367.6 1,175.0 1,834.4 2,145.2

Net income (loss) 62.1 84.1 91.4 176.4 237.0

Total assets 5,312.2 7,378.9 8,111.3 9,902.0 10,924.6




Table 17: Huadian Fuxin Energy Corporation Limited: key financials (CNY)

CNY million 2009 2010 2011 2012 2013

Revenues 7,403.0 8,472.0 7,279.0 11,364.0 13,289.0

Net income (loss) 385.0 521.0 566.0 1,093.0 1,468.0

Total assets 32,908.0 45,711.0 50,248.0 61,341.0 67,676.0


Table 18: Huadian Fuxin Energy Corporation Limited: key financial ratios

Ratio 2009 2010 2011 2012 2013

Profit margin 5.2% 6.1% 7.8% 9.6% 11.0%


Figure 16: Huadian Fuxin Energy Corporation Limited: revenues & profitability




Huaneng Renewables Corporation Limited

Table 19: Huaneng Renewables Corporation Limited: key facts

Head office: 10-11th Floor, No 23A Fuxing Road Haidian District, Beijing, CHN

Telephone: 86 10 6822 1618

Fax: 86 10 6822 3990

Website: www.hnr.com.cn


Ticker: 958



Established in 2002, Huaneng Renewables Corporation Limited, a subsidiary of China Huaneng Group, together with its

subsidiaries is engaged in the generation and sale of wind power in China and Hong Kong.

As of December 31, 2013, the company owned wind farms with an installed capacity of 6,551 megawatts. In addition to

its wind farms, it is also involved in the generation of solar power through photovoltaic solar panels.

Key Metrics

The company recorded revenues of $936m in the fiscal year ending December 2013, an increase of 44.0% compared to

fiscal 2012. Its net income was $143m in fiscal 2013, compared to a net income of $90m in the preceding year.

Table 20: Huaneng Renewables Corporation Limited: key financials ($)

$ million 2009 2010 2011 2012 2013

Revenues 162.1 285.6 515.9 650.1 935.9

Net income (loss) 49.1 85.2 165.1 90.1 143.3

Total assets 2,870.3 5,398.9 8,318.4 8,668.4 9,652.9



Table 21: Huaneng Renewables Corporation Limited: key financials (CNY)

CNY million 2009 2010 2011 2012 2013

Revenues 1,004.0 1,769.0 3,196.0 4,027.0 5,798.0

Net income (loss) 304.0 528.0 1,023.0 558.0 888.0

Total assets 17,781.0 33,445.0 51,531.0 53,699.0 59,798.0





Table 22: Huaneng Renewables Corporation Limited: key financial ratios

Ratio 2009 2010 2011 2012 2013

Profit margin 30.3% 29.8% 32.0% 13.9% 15.3%

Revenue growth 47.9% 76.2% 80.7% 26.0% 44.0%

Asset growth 62.8% 88.1% 54.1% 4.2% 11.4%

Liabilities growth 64.3% 79.8% 44.1% 4.2% 10.0%

Debt/asset ratio 85.5% 81.7% 76.4% 76.4% 75.4%

Return on assets 2.1% 2.1% 2.4% 1.1% 1.6%


Figure 17: Huaneng Renewables Corporation Limited: revenues & profitability




Figure 18: Huaneng Renewables Corporation Limited: assets & liabilities




MACROECONOMIC INDICATORS

Country Data

Table 23: China size of population (million), 2009–13

Year Population (million) % Growth

2009 1,334.5 0.5%

2010 1,340.9 0.5%

2011 1,347.4 0.5%

2012 1,353.9 0.5%

2013 1,360.3 0.5%


Table 24: China gdp (constant 2005 prices, $ billion), 2009–13

Year Constant 2005 Prices, $ billion % Growth

2009 3,476.0 9.2%

2010 3,839.2 10.4%

2011 4,196.2 9.3%

2012 4,517.3 7.7%

2013 4,863.9 7.7%


Table 25: China gdp (current prices, $ billion), 2009–13

Year Current Prices, $ billion % Growth

2009 4,990.5 10.4%

2010 5,930.4 18.8%

2011 7,322.0 23.5%

2012 8,221.0 12.3%

2013 9,178.8 11.6%




Table 26: China inflation, 2009–13

Year Inflation Rate (%)

2009 (0.7%)

2010 3.3%

2011 5.4%

2012 2.6%

2013 2.6%


Table 27: China consumer price index (absolute), 2009–13

Year Consumer Price Index (2005 = 100)

2009 111.8

2010 115.5

2011 121.8

2012 125.0

2013 128.3


Table 28: China exchange rate, 2009–13

Year Exchange rate ($/CNY) Exchange rate (€/CNY)

2009 6.8409 9.5123

2010 6.7788 9.0005

2011 6.4544 8.9794

2012 6.3116 8.1035

2013 6.1948 8.2259




APPENDIX

Methodology MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross -

checked and presented in a consistent and accessible style.

Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by

analysis from industry experts using highly complex modeling & forecasting tools, MarketLine’s in -house databases

provide the foundation for all related industry profiles

Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company

profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market

overview

Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each

definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the

market and our clients

Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and

trends

MarketLine aggregates and analyzes a number of secondary information sources, including:

- National/Governmental statistics

- International data (official international sources)

- National and International trade associations

- Broker and analyst reports

- Company Annual Reports

- Business information libraries and databases

Modeling & forecasting tools – MarketLine has developed powerful tools that allow quantitative and qualitative data to

be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can

then be refined according to specific competitive, regulatory and demand-related factors

Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date



Industry associations

International Renewable Energy Agency (IRENA)

Chamber of Commerce & Industry Tower, Old Airport Road (Sheikh Rashid bin Saeed Maktoum Street/2nd Street), Abu

Dhabi Corniche/1st Street, Abu Dhabi, ARE

www.irena.org

International Sustainable Energy Organisation (ISEO) POB 200, CH-1211 Geneva 20, CHE

Tel.: 41 22 910 3006

Fax: 41 22 910 3014

www.uniseo.org

Chinese Renewable Energy Industries Association

Address: A2106, Wuhua Plaza, A4 Chegongzhuang Dajie, Xicheng District, Beijing, 100044, CHN

Tel.: 86 10 68002617

Fax: 86 10 68002674

en.creia.net

Related MarketLine research

Industry Profile

Global Renewable Energy

Renewable Energy in Europe

Renewable Energy in Asia-Pacific

Renewable Energy in the United States

Renewable Energy in India

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