[in late 2009, the 4,842mw installed capacity made it the world’s fifth largest wind power operator; at the end of 2010, with the total installed capacity of 6,969mw, it became the third largest in the world; and at the end of 2011, the total installed capacity rocketed to 8,945mw (including those obtained through acquisition), making it the second largest in the global pecking order. in the past three years, longyuan power worked hard, persisted in the principle of “developing in a healthy and sustainable manner” and finally became the world’s second largest wind power operator in the first year of china’s “12th five-year plan for economic and social development”. ]
“we’re very happy to have such a good performance. for us, the installed capacity is simply a figure. our fundamental goal is to promote the healthy and sustainable development in a long run.” in the face of the encouraging result, xie changjun, president of china longyuan power was still as cool as a cucumber. in the spirit of being pragmatic and working hard, longyuan power reached a new higher level in business development and achieved remarkable progress in 2011.
speed up the corporate transformation and continuously optimize the layout of development
“during the “11th five-year plan” period, the wind power sector in our country witnessed a rapid growth. statistics showed that, in late 2009, the grid-connected wind generation capacity was 17,580mw, 31,070 mw in 2010 and rose to 45,051mw at the end of 2011. such a high-speed expansion not only revealed the huge potential for growth within our domestic wind power industry, but also led to fierce and even chaotic competition.
an overwhelming majority of the wind power in the northeastern, northern and northwestern areas of china are not utilized effectively. moreover, getting the project approval is becoming more and more difficult. given this, china longyuan power resolutely decided to readjust its development strategy: accelerate the restructuring work and guarantee its leading position in the northeastern, northern and northwestern regions. meanwhile, positive efforts will also be made to expand its business to those high-altitude areas, inland areas with low wind speed and southeastern coastal areas featuring favored conditions for grid connection and strong capacity for consuming the wind power so as to constantly optimize the wind power distribution.
in 2011, longyuan power successfully established two wind power stations in the areas with high altitude and low wind speed, both of which were the first of its kind in this country and were put into operation in succession; in may last year, the first domestic large-scale low wind speed power station was put in place in lai’an of anhui province by the company, with the installed capacity reaching 250mw at the end of the year. this played an active and exemplary role in facilitating the development and exploitation of the wind energy in china’s other inland areas where the wind speed is not so high. when the construction of lai’an wind power station was finished, jiang shan, mayor of chuzhou city said: “longyuan power’s investment in chuzhou has created ‘a vogue for developing wind power’ locally, filled the blank of wind power utilization in this province and will also positively affect the development of low wind speed power market in this country.”
to further expand its development space and capture the high ground, longyuan power made positive efforts in promoting the “going out” strategy. to this end, it set up the longyuan (canada) renewable energy co., ltd. and three project preparation offices respectively in south africa, u.s.a and hungary and actively carried out the preparatory work. on july 30 last year, the company linked an agreement to purchase a 100mw wind farm from the canadian merlin eriksson power company. this move made it become china’s first state-owned electric power enterprise with overseas investment in new energy resources, thus constituting a landmark for its efforts in implementing the “going out” strategy. recently, the company actively participated in the second round of bidding for south african project in the first half of this year and strived for winning the bidding.
in addition, in late 2011, the adventurous and enterprising longyuan people finished constructing the largest domestic offshore (intertidal) wind farm with the installed capacity of 131mw. this means that the company has mastered the core construction technologies including the single pile driving and got a number of patents related to the construction of offshore (intertidal) wind power station, such as “construction equipments for offshore (intertidal) wind farm”, “construction equipments for steel pipe pile driving” and “construction technology for steel pipe pile driving”. meanwhile, it took this opportunity to tailor-make a batch of special construction equipments and vessels for special operations, greatly lowering the project cost. its 200-250mw annual construction ability made it capable of developing the offshore wind power in a large scale in future.
longyuan power also paid due attention to developing other new energy resources when making much headway in the wind power sector. the year 2011 saw its obvious progress in the photovoltaic industry. three photovoltaic projects including the phase i and ii in golmud of qinghai and that in zhangye of gansu went into operation, making its photovoltaic installed capacity total 70mw and forming a certain scale of development．meanwhile, its projects for other new energy resources like the geothermal power, tidal energy and biomass energy also enjoy a good momentum of development.
by the end of 2011, the company had a total reserve capacity of 63gw for wind power projects and 2,000mw for solar power projects. through great efforts in giving priority to development, speeding up the corporate transformation and constantly optimizing the development pattern of new energy resources, longyuan power has now embarked on the road to healthy and sustainable development.
work hard to improve the management level and achieve the simultaneous increase in scale and economic result
in 2011, the annual operating income of the company hit 15.366 billion yuan (excluding the revenue created by the construction of concession projects), an increase of 20.4 percent year on year; the pretax profit reached 3.609 billion yuan. of it, the net profit attributable to shareholder was 2.638 billion yuan, increasing by 31 percent over the previous year. the earnings per share stayed at 0.3534 yuan. of all these, the wind power business still contributed more than other business segments under the company, with the annual income up to 6.212 billion yuan (excluding the revenue created by the construction of concession projects) or an increase of 34.4 percent year on year; moreover, the profit on operation in this regard was 4.309 billion yuan, growing by 36.2 percent year on year. this made the company continue its leading role in the domestic new energy industry.
over several years’ exploration and development, longyuan power has gradually worked out a set of management mode featuring intensification, specialization and high-efficiency, which lays a solid foundation for the company to steadily improve its profitability.
one of the key reasons why the wind power can bring huge profits to longyuan lies in its efforts in implementing the collectivized and refined management mode which is supported by the ten major technique service system. the extensive technical service system covers the whole business process of the wind power development, including the research of renewable energy development, public service platform for the wind power industry, technical service for the early development of wind power, wind power projects and equipment purchasing management, consulting and design of wind power projects, operation and monitoring of the wind farms, overhaul and technical service for the wind farms, management service for the reserve parts of the wind farms, development service of clean energy mechanism and wind power vocational training. this gives longyuan two obvious advantages: first, the integration of production, learning and research is conducive to upgrade the industrial technology and improve the work efficiency; second, the intensive management can effectively reduce the operating cost and enhance economic performance.
besides, the company also lays great emphasis on the target control of engineering construction. through centralized purchasing and uniform bidding, it effectively brings the procurement cost under control, thus reducing the construction costs by a large margin. the year 2011 saw this company gain a year-on-year decrease of 5 percent in average per kilowatt cost of wind power projects.
in the daily production and management, the company lays stress on carrying out the measures for safety in production and makes positive efforts in reforming the power grids such as the low voltage ride through and power prediction, optimizing the operation and analyzing the indicators. efforts are also made to guarantee the electricity production conducted in a safe, steady and high-efficiency fashion. of course, the company also tries its best to generate electricity as much as possible. in 2011, its power generating capacity added up to 25.273 billion kw/h. this included 13.355 billion kw/h belonging to the wind power with an increase of 32.30 percent over the previous year. the available factor of the wind turbines of this company is up to 98.44 percent and the number of hours available of the wind power averages 2,026, both of which are higher than the industry average.
while setting great store on the performance of its own wind power projects, longyuan also paid attention to changes in the international policy and made positive efforts in registering cdm projects. currently, the global economic situation is unstable and the kyoto protocol is about to expire, the cdm cause is definitely full of uncertainties. since last july, the market price of coal has been declining. against such a disadvantageous background, longyuan made a timely adjustment in its marketing strategy, worked hard to ensure the smooth performance of the contracts and expand sales channels, and endeavored to register the cdm projects. in 2011，the number of newly-registered cdm projects reached 52, making the total number increase to 107. the corresponding installed capacity was thus raised to 6,052mw. the income resulting from cdm hit 727 million yuan, posting an increase of 85.5 percent over the previous year. no matter in terms of the number of registered cdm projects or the profits thus created, no other domestic companies could be comparable with longyuan.
constantly strengthen the sense of innovation and build the brand of longyuan wind power
as the largest wind power operator in this country, longyuan power has been no longer just immersed in self-development, but turned to make bold attempts and keep improving in a bid to serve as the bellwether of the domestic new energy industry.
in 2011, the company had three projects granted the china power quality engineering award, including the phase i expansion of jiangsu rudong phase ii wind power concession project, zhuzixia of weichang in hebei, and the phase ii mangniuhai in hinggan league of inner mongolia. of them, the former two were also given the silver medal of national excellent project award. this showed that the company led other domestic counterparts in the wind power engineering construction.
in 2011, the company was awarded the 2011 aaa credit enterprise in the electricity industry by the china electricity council.
in 2011, in a poll of the “innovations in china power enterprise management”, the exploration and practice of intensive management in wind power development submitted by the company won the first prize. it is not only meant to recognition of longyuan’s effective efforts in enterprise management, but also a mirror of its constant hard work in management innovation and sustainable development.
in 2011, to accelerate the development process of the offshore wind power, longyuan power made a bold attempt and took the lead in exploring and successfully adopting the single pile driving technology. its project of “key technology research and practice for the offshore (intertidal) wind farm construction” filled the domestic blank of offshore (intertidal) wind power development technology and was given the “first prize of science and technology progress award” and “science and technology progress organization award” by the china guodian corporation.
in 2011, the wind power production and operation monitoring system created by longyuan for guodian was successfully put into service. its vibration testing center received the testing and analyzing qualifications issued by relevant authority.
faced with the honors coming one after another, xie changjun said: “innovation is the inexhaustible motive force for enterprise development. longyuan power will continue its efforts in technological innovation and management innovation, maintain a long-term, healthy and sustainable development and strive to be a world-class new energy company.”