Accelerating overseas investment in clean energy and promoting high quality development

SDIC Power makes constant achievements in clean and low carbon energy development in the first half of 2022

In the hot summer of 2022, SDIC Power has made another exciting achievement in its clean and low carbon development drive: The first phase project of the Yalong River Lianghekou Kela Hybrid Hydro-Solar Power Station started construction. With an installed capacity of one million kilowatts, the power station is the first large-type hydro-solar complementary power station in the Yalong River hydro-wind-solar complementary green, clean and renewable energy demonstration base and also the world’s largest hydro-solar energy complementary project.

Since the beginning of this year, SDIC Power has been making constant efforts in adjusting its business structure, going all out to boost development, making best use of its existing high quality resources, increasing quality while enlarging installed capacity in an innovative way and further accelerating its overseas development of clean energy. On one hand, SDIC Power has obtained a new development quota of 4.725 million kilowatts in new energy projects and the rights to develop six pump-storage power stations, and completed new energy installed capacity of 6.295 kilowatts; and on the other hand, it has made encouraging achievement in its overseas clean energy business: the 1.08 million-kilowatt offshore wind farm in the North Sea of Britain has secured a 15-year-term CfD (contract for differences) award from the British government, which is a breakthrough in its overseas clean energy development. With unremitting efforts, SDIC Power has, in the first half of this year, made solid moves toward completing its annual task of incremental development and realizing the goal of clean energy development in the 14th Five-Year Plan.

In the first half of this year, SDIC Power has taken effective measures to meet the challenges from fierce competition in the market and complex domestic and international economic conditions, has achieved substantial results in incremental growth of clean energy business with more matured deployment of regional development, and made milestone achievement in international business. Major projects include:

New energy projects in the Gobi desert: SDIC Power has completed four new energy projects in the Xinjiang Uygur autonomous region. The projects involve a total investment of about 10 billion yuan RMB and has a combined installation capacity of 1.875 million kilowatts. The projects include the 900,000-kilowatt photovoltaic plus 100,000-kilowatt photo-thermal energy storage large base which is the largest new energy power station independently developed by the company. The project is expected to start generating and exporting electricity to power grid by the end of the year. In Jiuquan, Gansu province, SDIC Power has obtained the right to develop the Akesai 750,000-kilowatt photo-thermal and photovoltaic large base project and has got government approval. The project is the among the first batch of the central government-approved large photo-thermal and photovoltaic base projects in the desert and Gobi areas of Gansu province.

Large hybrid hydro-solar energy project in the high plateau areas of west Sichuan province. The Yalong River Lianghekou Kela one million-kilowatt hydro-solar complementary power station, the first large-scale hybrid hydro-solar project of the Yalong River hybrid hydro-wind-solar green, clean and renewable energy demonstration base and also the world’s largest of its kind, has started construction. With a total investment of 5.3 billion yuan RMB in the first phase development, the project marks that the scale of hydro-solar complementary power station has upgraded for the first time to the one million-kilowatt level all over the world. It will become a new model of large-scale and concentrated development of clean and renewable energy in the world.

Offshore wind farm in the remote North Sea of Britain. The Inch Cape 1.08 million-kilowatt offshore wind farm, developed by SDIC Power’s Red Rock Power and its partner ESB, has recently secured a 15-year-term CfD award from the British government. The wind farm will start construction in the second half of this year and is planned to put into operation in 2025. Up to date, the wind farm is the largest overseas clean energy electricity generation project developed by a Chinese company. With investment hitting ₤2.5 billion, the wind farm will install 72 turbines each with a capacity of 15 megawatts, the largest  turbine in the world. The CfD guarantees the project to have steady long-term revenue. The winning of the CfD auction marks a breakthrough in the European offshore wind energy market which was previously dominated by European wind energy giants for many years and also a milestone event for Chinese enterprises in overseas high quality development.

More clean energy projects in other places of the country. SDIC Power has also made encouraging achievements in clean energy development in the places of Yunnan, Guangxi, Guizhou, Tianjin, Zhejiang and Hubei, etc. They include the newly obtained 1.1 million-kilowatt new energy development quota and the right to develop six pump-storage clean energy projects, and the government approval of 2.67 million-kilowatt installed capacity of new energy projects. The above-mentioned projects have further increased the ratio of clean energy installed capacity in its energy capacity structure and made contributions to promoting the transformation development of the company.

In recent years, SDIC Power has been taking practical actions to answer the call of the country on achieving carbon peak and carbon neutrality goals, actively participating in the construction of the development pattern of dual circulation and mutual promotion in the domestic and international markets, concentrating on new energy and energy storage (including pump-storage) businesses, enhancing development quality and benefits, adhering to the innovation-driven development philosophy, making full use of the market and stimulating the endogenous vitality of the company in development. Up to date, SDIC Power has upgraded its clean energy installed capacity from the 19.95 million kilowatts at the beginning of the 14th Five-Year Plan to the present 25.05 million kilowatts, accounting for 68% of the company’s total installed capacity and making one step closer toward completing its development goal at the end of the 14th Five-Year Plan. The clean energy business of SDIC Power covers more than 20 provinces, municipalities and autonomous regions in the country and five countries in the Belt and Road Initiative and OECD nations, unveiling a beautiful blueprint of the company’s devotion to the development of green and clean energy.

Clear direction and accurate positioning lead to the capability of making outstanding achievements. In the journey of high quality development, SDIC Power has made today’s outstanding achievements due to its clear strategy, firm will to achieve its target, consistent bottom-line thinking and highly-efficient, practical operation mechanism. In the process of business development and investment, SDIC Power does not pursue quantity blindly, firmly sticks to its focused sectors in development, makes sure both quality and quantity growing hand in hand, remains sensitive to the market and policy, and uses innovative ways in adopting the diverse development pattern of green land development + investment and acquisition + capital investment, etc. SDIC Power, through its headquarter, has joined hands with 14 domestic new energy regional companies, the Yalong River Hydropower Development Co., Ltd. and two overseas specialized investment platforms in promoting and coordinating the development of new energy projects, which has created obvious advantages in its business expansion and professional development and has formed the unique internationalized and high quality development model of SDIC Power’s clean energy business.

2022 is an important year for China to march on its new journey of comprehensively building a modern socialist country and realizing its second centenary goal. It is also a vital year for the country to implement its 14th Five-Year Plan and carbon peak-carbon neutrality target. In the second half of this year, SDIC Power will continue to devote itself to the realization of the 14th Five-Year Plan strategic goal, continue to implement the company’s strategic deployment of clean energy development and international business development, grasp business opportunities to make steady progress in development, enhance its efforts in clean energy investment and development, and strive to build itself into global trustworthy comprehensive energy investment and operation company so as to make more breakthroughs in its business development.