on april 29, china longyuan electric power group corporation held a work meeting on the company’s 2010 development in hangzhou. 2010 is the first full year after the company’s ipo and much is expected and demanded from all quarters. combining with the specific conditions introduced by each project company, the meeting centers on the spirit of the working meeting on china guodian corporation’s 2010 development, and defines the development objectives and tasks. meanwhile, it also proposes the future working idea and supportive measures.
it is noted that the global economy shows a welcome indication of stabilization and recovery. at the same time, the energy industry is experiencing great changes and adjustments. the leading direction of the state’s strategic objectives is to further transform the development pattern, to adjust the energy structure and to strive to the development of new energy resources. on april 22, premier wen jiabao reemphasized at the national energy commission’s first plenary session that the state should speed up the exploitation and utilization of new energy and renewable energy resources. he also said that great efforts should be made to carry out the aim of increasing the share of non-fossil fuels in primary energy consumption to around 15% by 2020. therefore, it creates critical and good conditions for the company’s development. furthermore, on dec.10, 2009, china longyuan electric power group corporation was listed hkex successfully, whose ipo raised ￥17.7 billion. also the asset liability ratio was greatly lowered and fund pressure of span development was released. as a result, this offers a strong fund guarantee for company’s future rapid development.
meanwhile, several noteworthy problems on the further development of the company were presented at the meeting. firstly, it is evident that the government strengthens the planning and supervision of the wind power development. the government-oriented development of large-scale wind power bases becomes the major pattern of the future development of the wind power. projects below 50 mw are hard to be approved. secondly, the competition among companies becomes fiercer and this challenges the company’s leading position in the wind power domain. thirdly, the grid congestion in local areas gets more and more intensive. thus, the company will face greater challenges in pipeline projects, grid connection and project approval. finally, the impact of the transform of value-added tax on the local government’s enthusiasm becomes more and more evident. thus, the pre-construction work gets more and more difficult. meanwhile its cost also increases.
to fully implement the demands on the development of the wind power proposed by china guodian corporation, the company decided that the sum of the plan for wind power projects to be approved should be 60 and which is equal to the installed capacity of 359 mw among which 200 mw should be guaranteed. to fulfill this target, the meeting further defines the working idea for the near future. firstly, the company should enhance the understanding of the work and pay close attention to it. development is above all in the company’s works and each project company should give priority to the development work. secondly, the company should improve the planning and make breakthroughs in key areas. this year the state will strengthen the planning and supervision of the wind power development as well as the making of the management measure of the wind power development. thus, each project company should pay attention to the macro conditions of the wind power development at state level. they should study the policy of wind power development in each area and work out feasible development plans. thirdly, the company should consummate the performance evaluation system and strengthen the incentive mechanism. we should continue to optimize and improve our evaluation methods which stress economic benefits and development. fourthly, the company should develop onshore projects as well as offshore projects. the development of offshore wind power projects is a natural tendency in the near future. thus, it should be stressed through a new strategic view so that the company can occupy an advantageous position in the future competition. finally, the company should make overall plans to realize an all-round development of the company. it should give equal consideration to other new energy resources, such as the development of the pv and geothermal generation.