As one of the leading advocators for technological innovation and institutional innovation of the power industry, the Group will seize the strategic opportunity of carbon emission peak and carbon neutrality under “China 30 • 60” to consolidate its transformation and development. Meanwhile, through the development of clean energy and integrated intelligent energy on a continuous basis, the Company will vigorously develop renewable energy grid parity projects, striving to establish China Power as a green and low-carbon intelligent energy company.
Meanwhile, the Group will reinforce its technology empowerment. By leveraging and integrating the use of high-and-new technology, it will promote its business operation to be more informationized, digitalized and intellectual. The Group will continue to seek ways of overseas expansion, striving to become the world’s leading clean and intelligent energy enterprise.
In March 2020, pursuant to the entrusted management agreement signed with CPI Holding and SPIC Overseas, the Company undertook to provide planning, operation and management services to certain entrusted companies located in and outside of the PRC, whilst the Company obtained the right of first refusal to acquire the entrusted companies.
In the future, the Company will continue to capitalize on the supports from its parent companies and create more values for its shareholders. Currently, apart from the information already disclosed by the Company, there is no other disclosable information in relation to the acquisitions of the assets from the parent companies.
The Company announced its revised dividend policy in January 2019, which increased the amount of dividends from not less than 25% of the profit attributable to ordinary shareholders of the Company to not less than 50% of the profit attributable to ordinary shareholders of the Company. In addition, the Board of the Company reached a consensus to maintain a relatively consistent amount of dividend per share for the three consecutive years starting from 2018. Looking forward, underpinned by its robust business performance, the Company will continue to maintain stable dividend payout.
In 2021, the China Electricity Council anticipated that the growth of the national total electricity consumption will rebound with a year-on-year growth of 6% to 7%. The growth rate of installed capacity of renewable energy power and the power generation are expected to record further increase, while coal-fired electricity will be facing a major transition from traditional baseload power source to regulated power source.
From the end of 2020 to early 2021, the total national power consumption increased sharply, resulting in a tight market supply and demand of coal. However, with the support of national control policies and the joint statement on guaranteed supply made by major coal enterprises, the supply-demand imbalance will possibly be relieved.
The coal de-capacity targets under the “13th Five-Year Plan” had been fully achieved. With a view to consolidating our achievements and accelerating the release of high-quality production capacity and railway capacity, coupled with effective control of the pandemic in the PRC and the gradual recovery of the global economy, it is expected that the coal supply and demand will increase in 2021. Taking into account factors such as the increase in concentration of coal resources, control over imported coal, safety supervision and environmental protection, the coal supply and demand is expected to maintain a tight balance as a whole.
For the “14th Five-Year” period, the Group will continue to promote the strategy for the development of clean energy, integration, smart technology and multinational expansion, with an aim to develop the energy segment with technology elements and further enhance the Group’s comprehensive strengths.
In the next five years, the Group’s clean energy projects under construction being put into operation successively, the percentage of installed capacity and revenue from clean energy power generation will increase significantly. In addition, the Group has signed strategic cooperation agreements with various local governments, pursuant to which it is anticipated that the integrated intelligent energy and high technology energy industries will also experience rapid development. On the other hand, through the management of the entrusted companies of CPI Holding and SPIC Overseas, the Company is acquiring more overseas management experience, which will facilitate breakthroughs in international business expansion of the Company.
On 22 September 2020, Chinese President Xi Jinping mentioned in his speech at the 75th Session of The United Nations General Assembly that, “China aims to hit its carbon dioxide (CO2) emissions peak by 2030 and achieve carbon neutrality by 2060”. In the future, the Chinese government is expected to provide strong policy support for the realization of the dual targets of “Carbon Emissions Peak” and “Carbon Neutrality”. The Group will also take measures to vigorously develop clean energy and strengthen the monitoring and assessment of emission data so as to reach “Carbon Emissions Peak” with its best endeavors as soon as possible.
The development of the national carbon emissions trading market is underway at an accelerated speed. The Ministry of Ecology and Environment has already officially published the “Carbon Emissions Trading Management Measures (Trial)” (《碳排放權交易管理辦法(試行)》) and the “Implementation Plan for Setting and Allocating the Total Quotas for National Carbon Emission Rights Trading for the Period 2019–2020 (Power Generation Industry)” (《2019–2020年全國碳排放權交易配額總量設定與分配實施方案(發電行業)》), and announced the official commencement of the first compliance cycle of the national carbon market, marking a new stage of development of the national carbon market.
The Group has accumulated many years of experience from the pilot regions for carbon emission rights trading, among which Dabieshan Power Plant efficiently completed the procurement for quota shortfall of the carbon trading in Hubei Province last year, and curbed the performance cost at the same time, which set a good example for other members of the Group. Looking forward, the Group will extend the experience gathered from the pilot regions to estimate and calculate the carbon emission data and quota in advance, as well as strengthen management of its carbon assets to effectively participate in carbon market trading. As the majority of the coal-fired power generating units of the Group are highly efficient and large capacity units of 600MW or above, the Group possesses a leading edge in terms of control over net coal consumption rate and carbon emission. Meanwhile, the Group will continue to take measures to control and reduce its carbon dioxide emission.