On January 12, 2016, the news conference about industry reformation and challenge was held in Beijing. This news conference attracted around 60 market experts and 20 media. A warm atmosphere pervaded the conference. Experts together discussed the trend in the power industry and looked forward to the development of this industry in 2016. Main views are as follows:
In 2015, the macro-economy sped up stably and slowly, and the growth in total electricity consumption slowed down. Meanwhile, electric installation has been accelerating rapidly. It is expected that there will be a moderate fall in total electricity consumption in 2016. The newly-increased installation will reach 100 million KW or so all year round and the proportion of clean energy will increase. In addition, the supply of electric power is going to obviously exceed the demand. Utilization hours of industrial equipment will continue to fall to about 3700 hours.
In the aspect of industrial competition, thermal power will still dominate the market in 2016 but it tends to weaken gradually.
In terms of policy, as stable progress is made in electric power system reformation, electricity cost is expected to decline in future. Meanwhile, industrial policies also continue to support the development of clean energy and advance the implementation of thermal power ultra-low emissions.
Regarding to the finance, the coal price is low, which is good for relieving the cost pressure but it is predicted that industrial revenue and profit will fall in 2016 with cutting the on-grid price of thermal power, wind power and photovoltaic power generation.
Based on the details of each power, the thermal power industry bears great pressure and its financial performance will weaken; affected by the water, the financial condition of hydro-power changes a little; however, benefited from the support of clean energy policies, we still hold positive attitude to hydro-power and focus on some companies in the investment peak period. Utilization hours of wind power and photovoltaic power generation may increase in future but its stablility is relatively bad; nuclear power operation and financial performance remain steady.
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