China Renewables Report

MarketLine Industry Profile
Renewable Energy in
China
December 2014
Reference Code: 0099-0668
Publication Date: December 2014
WWW.MARKETLINE.COM
MARKET LINE. T HIS PROFILE IS A LICENSED PRODUCT AND IS NOT T O BE PHOT OCOPIED
China - Renewable Energy

MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED
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EXECUTIVE SUMMARY
Market value
The Chinese renewable energy market grew by 11.7% in 2013 to reach a value of $113,419 million.
Market value forecast

In 2018, the Chinese renewable energy market is forecast to have a value of $197,816.6 million, an increase of 74.4%
since 2013.
Market volume
The Chinese renewable energy market grew by 6.4% in 2013 to reach a volume of 1,054,887.5 GWh.
Market volume forecast

In 2018, the Chinese renewable energy market is forecast to have a volume o f 1,456,056.4 GWh, an increase of 38%
since 2013.
Category segmentation
Hydroelectric is the largest segment of the renewable energy market in China, accounting for 84.4% of the market's total
volume.
Geography segmentation
China accounts for 66% of the Asia-Pacific renewable energy market value.
Market rivalry
As electricity from renewable sources is a commoditized product (with the only differentiation being its source and any
additional services offered by utility companies), players are forced to compe te almost entirely on price, perhaps offering
additional services in order to attract new competitors. This creates a particularly competitive environment which is
further fuelled by the high fixed costs associated with the construction of renewable energy plants.

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TABLE OF CONTENTS
Executive Summary..........................................................................................................................................................................2
Market value ..................................................................................................................................................................................2
Market value forecast...................................................................................................................................................................2
Market volume...............................................................................................................................................................................2
Market volume forecast ...............................................................................................................................................................2
Category segmentation................................................................................................................................................................2
Geography segmentation ............................................................................................................................................................2
Market ri valry .................................................................................................................................................................................2
Market Overview ...............................................................................................................................................................................7
Market definition............................................................................................................................................................................7
Market analysis .............................................................................................................................................................................7
Market Data........................................................................................................................................................................................8
Market value ..................................................................................................................................................................................8
Market volume...............................................................................................................................................................................9
Market Segmentation .....................................................................................................................................................................10
Category segmentation..............................................................................................................................................................10
Geography segmentation ..........................................................................................................................................................11
Market Outlook ................................................................................................................................................................................12
Market value forecast.................................................................................................................................................................12
Market volume forecast .............................................................................................................................................................13
Five Forces Analysis ......................................................................................................................................................................14
Summary......................................................................................................................................................................................14
Buyer power.................................................................................................................................................................................15
Supplier power ............................................................................................................................................................................17
New entrants ...............................................................................................................................................................................18
Threat of substitutes...................................................................................................................................................................20
Degree of rivalry..........................................................................................................................................................................22
Leading Companies........................................................................................................................................................................24

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China Datang Corporation Renewable Power Co., Limited ................................................................................................24

China Power Investment Corporation .....................................................................................................................................27
Huadian Fuxin Energy Corporation Limited ...........................................................................................................................30
Huaneng Renewables Corporation Limited............................................................................................................................32
Macroeconomic Indicators.............................................................................................................................................................35
Country Data ...............................................................................................................................................................................35
Appendix...........................................................................................................................................................................................37
Methodology................................................................................................................................................................................37
Industry associations..................................................................................................................................................................38
Related MarketLine research....................................................................................................................................................38

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LIST OF TABLES
Table 1: China renewable energy market value: $ million, 200913........................................................................................8
Table 2: China renewable energy market volume: GWh, 200913..........................................................................................9
Table 3: China renewable energy market category segmentation: GWh, 2013 ...................................................................10
Table 4: China renewable energy market geography segmentation: $ million, 2013 ..........................................................11
Table 5: China renewable energy market value forecast: $ million, 2013 18 ......................................................................12
Table 6: China renewable energy market volume forecast: GWh, 2013 18.........................................................................13
Table 7: China Datang Corporation Renewable Power Co., Limited: key facts ...................................................................24
Table 8: China Datang Corporation Renewable Power Co., Limited: key financials ($) .....................................................25
Table 9: China Datang Corporation Renewable Power Co., Limited: key financials (CNY)...............................................25
Table 10: China Datang Corporation Renewable Power Co., Limited: key financial ratios ................................................25
Table 11: China Power Investment Corporation: key facts ......................................................................................................27
Table 12: China Power Investment Corporation: key financials ($)........................................................................................27
Table 13: China Power Investment Corporation: key financials (CNY) .................................................................................28
Table 14: China Power Investment Corporation: key financial ratios.....................................................................................28
Table 15: Huadian Fuxin Energy Corporation Limited: key facts ............................................................................................30
Table 16: Huadian Fuxin Energy Corporation Limited: key financials ($)..............................................................................30
Table 17: Huadian Fuxin Energy Corporation Limited: key financials (CNY) .......................................................................31
Table 18: Huadian Fuxin Energy Corporation Limited: key financial ratios...........................................................................31
Table 19: Huaneng Renewables Corporation Limited: key facts ............................................................................................32
Table 20: Huaneng Renewables Corporation Limited: key financials ($) ..............................................................................32
Table 21: Huaneng Renewables Corporation Limited: key financials (CNY)........................................................................32
Table 22: Huaneng Renewables Corporation Limited: key financial ratios ...........................................................................33
Table 23: China size of population (million), 200913..............................................................................................................35
Table 24: China gdp (constant 2005 prices, $ billion), 200913.............................................................................................35
Table 25: China gdp (current prices, $ billion), 200913..........................................................................................................35
Table 26: China inflation, 200913 ..............................................................................................................................................36
Table 27: China consumer price index (absolute), 200913 ...................................................................................................36
Table 28: China exchange rate, 200913...................................................................................................................................36

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LIST OF FIGURES
Figure 1: China renewable energy market value: $ million, 200913 ......................................................................................8
Figure 2: China renewable energy market volume: GWh, 200913.........................................................................................9
Figure 3: China renewable energy market category segmentation: % share, by volume, 2013........................................10
Figure 4: China renewable energy market geography segmentation: % share, by value, 2013 .......................................11
Figure 5: China renewable energy market value forecast: $ million, 2013 18 .....................................................................12
Figure 6: China renewable energy market volume forecast: GWh, 2013 18 .......................................................................13
Figure 7: Forces driving competition in the renewable energy market in China, 2013........................................................14
Figure 8: Drivers of buyer power in the renewable energy market in China, 2013 ..............................................................15
Figure 9: Drivers of supplier power in the renewable energy market in China, 2013 ..........................................................17
Figure 10: Factors influencing the likelihood of new entrants in the renewable energy market in China, 2013..............18
Figure 11: Factors influencing the threat of substitutes in the renewab le energy market in China, 2013........................20
Figure 12: Drivers of degree of rivalry in the renewable energy market in China, 2013 .....................................................22
Figure 13: China Datang Corporation Renewable Power Co., Limited: revenues & profitability .......................................26
Figure 14: China Power Investment Corporation: revenues & profitability ............................................................................28
Figure 15: China Power Investment Corporation: assets & liabilities.....................................................................................29
Figure 16: Huadian Fuxin Energy Corporation Limited: revenues & profitability ..................................................................31
Figure 17: Huaneng Renewables Corporation Limited: revenues & profitability ..................................................................33
Figure 18: Huaneng Renewables Corporation Limited: assets & liabilities ...........................................................................34

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MARKET OVERVIEW
Market definition
The renewable energy market consists of the net generation of electricity thro ugh renewable sources. It is divided into
five segments, these being hydroelectricity; wind energy; solar, tide and wave energy; electricity generated through
biomass and waste; and geothermal energy. The volume of the market is calculated as the net volum e of electricity
produced through renewable means in gigawatt hours (GWh), and the market value has been calculated according to an
average of annual domestic and industrial retail prices per kWH, inclusive of applicable taxes. Any currency conversions
used in the creation of this report have been calculated using constant 2013 annual average exchange rates. Please
note that 1 gigawatt hour (GWh) is identical to 1 million kilowatt hours (kWh), or 1,000 megawatt hours (MWh).
For the purposes of this report, Asia-Pacific comprises Australia, China, India, Indonesia, Japan, New Zealand,
Singapore, South Korea, Taiwan, and Thailand.
Market analysis
The value of China's renewable energy market saw double digit growth due to a combination of rising average retail
electricity prices, and strong growth in renewable energy production during the 2009 -2013 period. Forecasts suggest
strong growth in renewable energy produced will continue, albeit at a decelerated rate, across 2013 -2018 as installed
renewable energy capacity continues to grow.
The Chinese renewable energy market had total revenues of $113,419.0m in 2013, representing a compound annual
growth rate (CAGR) of 20.7% between 2009 and 2013. In comparison, the Japanese and Indian markets grew with
CAGRs of 3.5% and 15.5% respectively, over the same period, to reach respective values of $23,212.9m and
$15,887.8m in 2013.
Market production volume increased with a CAGR of 13.3% between 2009 and 2013, to reach a total of 1,054,887.5
GWh in 2013. The market's volume is expected to rise to 1,456,056.4 GWh by the end of 2018, representing a CAGR of
6.7% for the 2013-2018 period.
Hydroelectric energy production had the highest volume in the Chinese renewable energy market in 2013, with total
generation of 890,000.0 GWh, equivalent to 84.4% of the market's overall volume. In comparison, wind energy
generated had a volume of 107,295.2 GWh in 2013, equating to 10.2% of the market total.
The performance of the market is forecast to decelerate, with an anticipated CAGR of 11.8% for the five-year period
2013 - 2018, which is expected to drive the market to a value of $197,816.6m by the end of 2018. Comparatively, the
Japanese and Indian markets will grow with CAGRs of 10.3% and 9.4% respectively, over the same period, to reach
respective values of $37,856.8m and $24,916.7m in 2018.

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MARKET DATA
Market value
The Chinese renewable energy market grew by 11.7% in 2013 to reach a value of $113,419 million.
The compound annual growth rate of the market in the period 200913 was 20.7%.
Table 1: China renewable energy market value: $ million, 200913

Year
$ million
CNY million
million
2009
53,360.7
330,558.9
40,185.1
2010
71,467.6
442,727.8
53,821.2
2011
78,409.2
485,729.3
59,048.8
9.7%
2012
101,565.6
629,178.3
76,487.5
29.5%
2013
113,419.0
702,607.8
85,414.1
11.7%
CAGR: 200913
SOURCE: MARKETLINE
% Growth
33.9%
20.7%
M AR KE TL IN E
Figure 1: China renewable energy market value: $ million, 2009 13
SOURCE: MARKETLINE

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Market volume
The Chinese renewable energy market grew by 6.4% in 2013 to reach a volume of 1,054,887.5 GWh.
The compound annual growth rate of the market in the period 200913 was 13.3%.
Table 2: China renewable energy market volume: GWh, 200913

Year
GWh
2009
639,280.0
2010
770,919.0
20.6%
2011
800,967.0
3.9%
2012
991,873.4
23.8%
2013
1,054,887.5
6.4%
CAGR: 200913
SOURCE: MARKETLINE
% Growth
13.3%
M AR KE TL IN E
Figure 2: China renewable energy market volume: GWh, 200913
SOURCE: MARKETLINE

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MARKET SEGMENTATION
Category segmentation
Hydroelectric is the largest segment of the renewable energy market in China, accounting for 84.4% of the market's total
volume.
The Wind segment accounts for a further 10.2% of the market.
Table 3: China renewable energy market category segmentation: GWh, 2013

Category
2013
hydroelectric
890,000.0
84.4%
wind
107,295.2
10.2%
biomass & waste
53,112.0
5.0%
solar, tide & wave
4,302.6
0.4%
177.6
0.0%
1,054,887.4
100%
geothermal
Total
SOURCE: MARKETLINE
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Figure 3: China renewable energy market category segmentation: % share, by volume , 2013
SOURCE: MARKETLINE

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Geography segmentation
China accounts for 66% of the Asia-Pacific renewable energy market value.
Japan accounts for a further 13.5% of the Asia-Pacific market.
Table 4: China renewable energy market geography segmentation: $ million, 2013

Geography
2013
China
113,419.0
66.0
Japan
23,212.9
13.5
India
15,887.8
9.3
South Korea
Rest of Asia-Pacific
Total
SOURCE: MARKETLINE
1,103.4
0.6
18,118.5
10.5
171,741.6
100%
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Figure 4: China renewable energy market geography segmentation: % share, by value, 2013
SOURCE: MARKETLINE

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MARKET OUTLOOK
Market value forecast
In 2018, the Chinese renewable energy market is forecast to have a value of $197,816.6 million, an increase of 74.4%
since 2013.
The compound annual growth rate of the market in the period 201318 is predicted to be 11.8%.
Table 5: China renewable energy market value forecast: $ million, 201318

Year
$ million
CNY million
million
% Growth
2013
113,419.0
702,607.8
85,414.1
11.7%
2014
129,016.6
799,232.0
97,160.4
13.8%
2015
145,662.0
902,346.9
109,695.8
12.9%
2016
163,439.7
1,012,476.3
123,084.0
12.2%
2017
180,739.4
1,119,644.6
136,112.1
10.6%
2018
197,816.6
1,225,434.2
148,972.7
9.4%
CAGR: 201318
SOURCE: MARKETLINE
11.8%
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Figure 5: China renewable energy market value forecast: $ million, 201318
SOURCE: MARKETLINE

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Market volume forecast

In 2018, the Chinese renewable energy market is forecast to have a volume of 1,456,056.4 GWh, an increase of 38%
since 2013.
The compound annual growth rate of the market in the period 201318 is predicted to be 6.7%.
Table 6: China renewable energy market volume forecast: GWh, 2013 18

Year
GWh
% Growth
2013
1,054,887.5
6.4%
2014
1,145,890.6
8.6%
2015
1,238,296.8
8.1%
2016
1,320,447.9
6.6%
2017
1,393,309.5
5.5%
2018
1,456,056.4
4.5%
CAGR: 201318
SOURCE: MARKETLINE
6.7%
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Figure 6: China renewable energy market volume forecast: GWh, 2013 18
SOURCE: MARKETLINE

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FIVE FORCES ANALYSIS

The renewable energy market will be analyzed taking utility companies generating and/or supplying electricity generated
from renewable energy sources as players. The key buyers will be taken as household, commercial, industrial and other
end-users, and biomass fuel producers and manufacturers of power-generating and other heavy electrical equipment,
including power turbines, wind turbines and towers, solar panels, heavy electrical machinery intended for fixed -use and
large electrical systems as the key suppliers.
Summary
Figure 7: Force s driving competition in the renewable energy market in China, 2013
SOURCE: MARKETLINE
M AR KE TL IN E
additional services offered by utility companies), players are forced to compete almost entirely on price, perhaps offering
further fuelled by the high fixed costs associated with the construction of renewable energy plants.
Backward integration does occur in the renewable energy market, albeit usually on a small scale. It is slowly becoming
more popular for individual households and som e businesses to generate their own electricity using small wind turbines,
although the home use of photovoltaic solar panels is more common. Suppliers of renewable energy power generation
equipment, for example wind turbines and photovoltaic solar panels, tend to be heavily dependent on revenues
generated in the renewable energy industry, as the product they offer is rather industry specific. This reduces supplier
power somewhat. Barriers to entry are high for companies intending to establish an integrated operation with generation
capacity and retail operations due to the capital outlay required to build or acquire generation assets.

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Buyer power
Figure 8: Drivers of buyer power in the renewable energy market in China, 2013
SOURCE: MARKETLINE
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Buyers in this industry are primarily individual consumers, although there is also a demand for renewable energy from
the industrial and commercial sectors. Most industrial buyers draw their energy from non -renewable sources as they are
generally able to provide the necessary volumes at a lower price.
Despite there usually being no input costs for renewable energy (wind, sunlight, geothermal heat), and renewable
generators being cheap to run, the cost of building renewab le energy infrastructure can be high. Connecting to the grid
can be costly, as the best sites for renewable energy plants are often far from big cities (on hillsides or in deserts, for
example). Furthermore, many renewable generators only produce power intermittently, when the sun shines or the wind
blows, resulting in countries/companies having to maintain traditional power plants ready to fire up when demand peaks
or renewable output drops. Uncertainty of supply can discourage industrial customers from in vesting in renewable
energy, and the cost of maintaining non-renewable back-up capacity contributes further to the cost of renewable energy
solutions.
This analysis neglects the often less conspicuous costs of non -renewable power generation, however. The cost of
building traditional thermal power plants is exceptionally high, especially for nuclear plants. Input costs are also incurred
for the duration of the plant's operational life (unlike wind or sunlight, fuels such as oil, coal, and uranium must be min ed
and transported); there are also costs unaccounted for in customers' bills, in the form of water and air pollution, climate
change and an assortment of human health impacts, for example.
In the case of individual consumers, the sheer number of buyers in this market, coupled with their small size, means
losing one consumer will not have a significant impact on a players revenue, weakening buyer power considerably.
Loyalty towards energy providers is not a significant factor within this industry and most clients will opt for the cheaper
provider if given a choice, as switching costs are low in this industry. In such cases, buyer power is boosted although
switching costs tend to be higher for business customers than for residential consumers as businesses, particularly
industrial customers, often have fixed term contracts. By the same token, buyer power is limited in geographies where
moves to liberalize electricity markets have been halted or reversed. Over the past decade, the Chinese government has
made some efforts to open up its electricity market with significant investment, but it remains far less developed than
electricity markets in the West. State-owned enterprises continue to dominate and consumers tend to have little choice of
electricity retailer which serves to decrease buyer power.
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For environmental reasons, some consumers may prefer to use electricity from renewable energy sources but this is by
no means an indispensable commodity. The widespread availability of other kinds of energy decreas es consumer
reliance on renewable energy and thus further strengthens buyer power.
Backward integration does occur in the renewable energy market, albeit usually on a small scale. It is slowly becoming
more popular for individual households and some businesses to generate their own electricity using small wind turbines,
although the home use of photovoltaic solar panels is more common.
Overall, buyer power is assessed as weak.

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Supplier power
Figure 9: Drivers of supplier power in the renewable energy market in China, 2013
SOURCE: MARKETLINE
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As the main players are largely vertically integrated companies involved in energy generation and trade, the main
suppliers to this industry are manufacturers of power generating equipment including wind turbine manufacturers, solar
panels, energy infrastructure construction companies. Such suppliers design, test, manufacture, and assist with the
operation and maintenance of power generating equipment. They are usually lar ge in size and not very numerous due to
their specialty, which usually increases supplier power. However, market players are also large companies with strong
financial muscle and significant bargaining power, alleviating this effect somewhat.
Switching costs can be significant as fixed contracts for a supplier's services/products are usually in place, and it can be
extremely costly for a market player to break the contract, ceding power to suppliers.
Suppliers of renewable energy power generation equipment, for example wind turbines and photovoltaic solar panels,
tend to be heavily dependent on revenues generated in the renewable energy industry, as the product they offer is rather
industry specific, which reduces supplier power somewhat. The general trend shows that the renewable energy sector is
expanding its market share globally, thus as more and more countries increase their level of installed capacity they
create more revenue opportunities for power generating equipment providers, increasing the opportunity for suppliers to
diversify and increase their power over market players.
High quality equipment is extremely important to players in the renewable energy market. Players require the most
efficient and reliable equipment available in order to control costs and ensure maximum returns on their investments. As
a result, suppliers find themselves in a position of power as players are more willing to pay a premium for high quality
equipment and materials.
Many players selling electricity to end-users are vertically integrated; however, it is unlikely, although not unheard of, that
players will integrate backwards into suppliers areas of operation.
Overall, supplier power is assessed as moderate.

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New entrants
Figure 10: Factors influencing the likelihood of new entrants in the renewable energy market in
China, 2013
SOURCE: MARKETLINE
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The healthy growth of the renewable energy market entices new entrants. However, entry barriers can be significant.
Economies of scale are a significant entry barrier. Producing enough renewable energy on a scale that will be profitable
can be difficult for new entrants due to inefficiencies in current technology, although this will become less of an issue in
the future as technology evolves and improves. As such, significant capital outlay is required in order to secure a
profitable portfolio of renewable energy generation assets.
The presence of large, vertically integrated companies involved in various stages of power generation, distribution and
sales, makes it harder for newcomers to compete. Furthermore, the market structure in individual countries may be such
that new entrants are simply not permitted, particularly with countries with non -liberalized energy markets as is the case
with China and the country's government control of the energy industry as a whole. This near eliminates the ability for
new entrants to enter the marketplace, although it may allow for existing incumbents operating in the non -renewable
sector to expand to renewable energy.
Barriers to entry are high for companies intending to establish an integrated operation with generation capacity and retail
operations. This is because of the capital outlay required to build or acquire generation assets, with hydro electric dams
often being prohibitively expensive for new entrants. There is a relatively high level of technology and IP involved in
establishing wind farms, hydroelectric and geothermal power plants etc., and it may be difficult to get planning
permission to build all the necessary installations, particularly in non-liberalized markets.
On the other hand, in liberalized markets where end-users can choose their suppliers, it is possible to enter the industry
purely as a retailer of green energy. In the case of utility companies intending to purchase electricity from third party
suppliers and operate purely as retailers, entry barriers include the necessity of finding suitable, reliable suppliers. Also ,
transport capacity may be limited by the size and geographical reach of the domestic electricity grid. Additionally, it may
be difficult to obtain access to distribution infrastructure, and it is sometimes observed that customers rarely switch
retailers, even where it is possible. This works to discourage ne w entrants.
Where liberalization has not proceeded to the same extent, it may be difficult for some end -users to switch service
provider, or costly to access the transmission and distribution infrastructure. These raise the barriers to entry for
newcomers.
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Overall, the threat of new entrants is assessed as weak primarily due to the degree of control the Chinese government
exerts over the country's energy market as a whole.

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Threat of substitutes
Figure 11: Factors influencing the threat of substi tute s in the renewable energy market in China,
2013
SOURCE: MARKETLINE
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The most direct substitute for renewable energy is energy generated from alternative sources, including fossil fuels (oil,
gas and coal), and nuclear power.
Although electricity itself is always the same no matter how it is generated, buyers deciding between the merits of
renewable and non-renewable energy will consider issues such as environmental impact, long -term energy security and
price.
Renewable energy technologies have not yet matured to the point that they can completely replace existing generation
but they play a significant role in many countries' energy mixes, contributing to energy security and independence. This
said, economies of scale mean that alternative sources such as fossil fuels and nuclear energy are deemed acceptable
alternatives, even with the associated environmental and health risks. Despite this, increasing public awareness of
climate change, public outrage after the 2010 Gulf of Mexico oil spill, the 2011 Fukushima nuclear disaster, as well as
concerns over energy security and rising electricity prices (often inaccurately blamed on renewable energy) has put
additional pressure on governments to move away from fossil fuels and nuclear power.
Non-renewable energy sources remain the primary source of energy for the vast majority of countries worldwide,
however. Whether or not they are a cheaper alternative is debatable as hidden costs such as environmental damage and
health risks are not reflected in electricity prices. Furthermore, the price of fossil fuels is subject to external pressures
and events (of which the conflict in Ukraine provides a recent example) resulting in unpredictable fluctuations in price.
Despite this, fossil fuels, and nuclear energy in countries that utilize it, are still deemed cheaper and more efficient
methods of generating electricity than renewable energy.
Another substitute to renewable energy is self-generation. More and more homes and businesses are installing
equipment to generate their own electricity, whether they are solar panels or small wind turbines, reducing their reliance
on utility companies. Although it can take years before self-generation pays for itself, once that threshold has been
reached it becomes a far more cost effective substitute than purchasing energy from utility companies. At present, due to
the relatively low number of businesses and homes (in global terms) taking this up, it isn't currently a major threat,
although is likely to become one in the future.
Overall, the threat of substitutes is assessed as moderate.
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Degree of rivalry
Figure 12: Drivers of degree of rivalry in the renewable energy market in China, 2013
SOURCE: MARKETLINE
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The large size of competitors in the renewable energy market tends to increase rivalry, as bigger players are able to
compete more formidably. Larger companies can exploit economies of scale, invest more in brand building and
advertising, and are able to respond more robustly to any perceived threat against their market share.
However, the large size of competitors is balanced out somewhat by the relatively small number of companies operating
in the renewable energy market, which serves to reduce the degree of rivalry.
additional services offered by utility companies), players are forced to compete almost entirely on price, perhaps offering
further fuelled by the high fixed costs associated with the construction of renewable energy plants, whether they are
hydroelectric dams or wind farms. It should be noted that once renewable energy plants are complete, due to the fact
they usually require no fuel (unless it's a biomass and waste plant), maintenance and repair costs to maintain peak
generation are minimal.
It is fairly difficult to expand capacity in the renewable energy market. New plants are expensive and construction is time
consuming; supply-chain bottlenecks have frustrated governments trying to bolster their renewable capacity, increasing
the degree of rivalry.
Furthermore, many renewable plants such as wind and solar farms do not operate at their optimum capacity due to their
dependence on specific weather conditions. Wind turbines, for example, spend an average of two thirds of their
operational life stood idle. Hydroelectric dams are also susceptible to drought conditions and are subject to large
fluctuations in generation levels during dry/drought periods. Factors such as these can contribute to rivalry if players find
their operations underperforming.
Another factor contributing to rivalry is the potentially tricky nature of any exit from the renewables market. Due to the
specialized nature of the machinery and equipment involved in the renewable energy industry, the divesting of assets
may be difficult due to the limited number of companies able to make the best use of them (primarily rivals).

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Most companies operating in the renewable energy market maintain an energy mix with a diverse portfolio. They will
generate energy through a variety of non-renewable and renewable sources which helps keep rivalry in check as they
are not relying on one energy source, although the fact remains that they are still operating in the same overall energy
industry. The similarity of players also helps maintain rivalry at a mo derate level as companies are better able to predict
the actions and behavior of rivals.
Finally, strong growth in the value of the renewable energy market helps alleviate rivalry. All of these factors amount to a
moderate rivalry score, but this figure is likely a little misleading, given the monopoly the Chinese government exerts
over the country's renewable energy market. The rating serves instead to describe the market landscape that would be,
should the government move to liberalize the energy sector.

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LEADING COMPANIES
China Datang Corporation Renewable Power Co., Limited
Table 7: China Datang Corporation Renewable Power Co., Limited: key facts
Telephone:
8th Floor, Number 1 Caishikou Street, Xicheng District, Beijing 100053,

CHN
86 10 8395 6262
Fax:
86 10 8395 6555
Website:
www.dtxny.com.cn
Financial year-end:
December
Ticker:
1798
Stock exchange:
Hong Kong
Head office:
SOURCE: COMPANY WEBSITE
M AR KE TL IN E
China Datang Corporation Renewable Power (China Datang ), a subsidiary of China Datang Group Corporation, is
engaged in the development, investment, construction and management of wind power and other renewable energy
sources in Hong Kong and China.
The company is also involved in the research and development, application and promotion of low carbon technology;
research, sale, testing and maintenance of renewable energy-related equipment; power generation; engineering,
construction and installation, repair and maintenance of power projects at home and abroad; import and export services
of renewable energy equipment and technologies; external investment; renewable energy-related training and consulting
services; and the lease of property.
China Datang's installed wind power capacity is approximately 5,719 megawatts (MW). The company is also engaged in
the development of other renewable energy projects including solar power, biomass, and coal bed methane (CBM) and
energy performance contracting (EPC) activities.
China Datang's subsidiaries include DTM (Beijing) Ene rgy Technology Development Co., Datang Hunyuan
Mimazongliang Renewable Power Co., Datang Renewables (H.K.) Co., Datang Renewables (Sigapore) Pte., Datang
Sanmenxia Wind Power Generation Co., Datang Xiangyang Wind Power Generation Co., Datang Renewable Powe r
Qingtongxia Co., Datang Xilin Gol Wind Power Generation Co., Datang Jixian Wind Power Generation Co., Datang
Weihai Renewable Power Co., and Datang Huachuan Wind Power Generation Co. among others.
Key Metrics
The company recorded revenues of $909m in the fiscal year ending December 2013, an increase of 28.9% compared to
fiscal 2012. Its net income was $38m in fiscal 2013, compared to a net income of $18m in the preceding year.

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Table 8: China Datang Corporation Renewable Power Co., Limited: key financials ($)
$ million
2009
2010
2011
2012
2013
Revenues
230.5
384.2
618.1
705.1
908.8
59.2
73.6
117.8
18.1
38.3
3,961.4
6,676.6
8,762.7
9,101.7
9,102.5
Net income (loss)

Total assets
SOURCE: COMPANY FILINGS
M AR KE TL IN E
Table 9: China Datang Corporation Renewable Power Co., Limited: key financials (CNY)
CNY million
Revenues
Net income (loss)
Total assets
2009
2010
2011
2012
2013
1,428.0
2,380.0
3,829.0
4,368.0
5,630.0
367.0
456.0
730.0
112.0
237.0
24,540.0
41,360.0
54,283.0
56,383.0
56,388.0
M AR KE TL IN E
Table 10: China Datang Corporation Renewable Power Co., Limited: key financial ratios
Ratio
Profit margin
2009
2010
2011
2012
2013
25.7%
19.2%
19.1%
2.6%
4.2%

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Figure 13: China Datang Corporation Renewable Power Co., Limited: revenues & profi tability

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China Power Investment Corporation

Table 11: China Power Investment Corporation: key facts
Telephone:
Building 3, No 28, Financial Street, Xicheng District, Beijing 100033,

CHN
86 10 6629 8000
Fax:
86 10 6629 8095
Website:
www.cpicorp.com.cn
Financial year-end:
December
Head office:
M AR KE TL IN E
Established in 2002 and one of China's five Gencos, China Power Investment Corporation (CPI) is engaged in the
development, investment, construction, operation, and management of power plants in China.
The company generates electricity through hydro, renewable, thermal, and nuclear power plants.
CPI operates the Hongyanhe nuclear power plant in Liaoning alongside China General Nuclear Power Corporation.
Other key renewable power projects include Chipi Hydropower Station, Myitsone Hydropower Station, Wind Farms of
Jiangxi Branch, Beidaqiao Fifth Wind Farm, Jishixia Hydropower Station and Tibet Sangri Photovoltaic Power Plant.
It is also involved in the production of coal, aluminum and bauxite; and railway transportation and port activities.
The company has an installed capacity of around 80,074-megawatts (MW), a coal production capacity of 74.1 million
tons and aluminum production capacity of 2.77 million tons.
The company's subs idiaries include CPI Northeast Electric Power Co., Ltd., CPI Henan Electric Power Co., Ltd., CPI
Jiangxi Electric Power Co., Ltd., CPI South Electric Power Co., Ltd., CPI Hebei Electric Power Co., Ltd., China Power
International Holding Ltd., CPI Nuclear Power Co., Ltd., CPI Power Engineering Co., Ltd., China Power Complete
Equipment Co., Ltd., CPI Finance Co., Ltd., and CPI Ronghe Controlling Investment Group Company among others.
Key Metrics
The company recorded revenues of $30,834m in the fiscal year ending December 2013, an increase of 5.7% compared
to fiscal 2012. Its net income was $1,209m in fiscal 2013, compared to a net income of $373m in the preceding year.
Table 12: China Power Investment Corporation: key financials ($)

$ million
Revenues
Net income (loss)
2009
2010
2011
2012
2013
16,249.1
20,509.1
25,464.9
29,163.8
30,833.9
361.6
516.6
80.7
373.2
1,209.2
Total assets
60,752.6
71,566.5
81,202.0
92,800.7
99,768.7
Total liabilities
51,373.7
60,755.8
69,697.2
78,868.1
84,284.9

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Table 13: China Power Investment Corporation: key financials (CNY)

CNY million
2009
2010
2011
2012
2013
100,660.0
127,050.0
157,750.0
180,664.0
191,010.0
2,240.0
3,200.0
500.0
2,312.0
7,491.0
Total assets
376,350.0
443,340.0
503,030.0
574,882.0
618,047.0
Total liabilities
318,250.0
376,370.0
431,760.0
488,572.0
522,128.0
Revenues
Net income (loss)
M AR KE TL IN E
Table 14: China Power Investment Corporation: key financial ratios

Ratio
Profit margin
2009
2010
2011
2012
2013
2.2%
2.5%
0.3%
1.3%
3.9%
Revenue growth
44.2%
26.2%
24.2%
14.5%
5.7%
Asset growth
36.6%
17.8%
13.5%
14.3%
7.5%
Liabilities growth
40.8%
18.3%
14.7%
13.2%
6.9%
Debt/asset ratio
84.6%
84.9%
85.8%
85.0%
84.5%
Return on assets
0.7%
0.8%
0.1%
0.4%
1.3%
M AR KE TL IN E
Figure 14: China Power Investment Corporation: revenues & profitability

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Figure 15: China Power Investment Corporation: asse ts & liabilities

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Huadian Fuxin Energy Corporation Limited

Table 15: Huadian Fuxin Energy Corporation Limited: key facts
Website:
1701 Building A, Huadian Plaza, No 2 Xuanwumenni Road, Xicheng

District, Beijing, CHN
www.hdfx.com.cn
Financial year-end:
December
Ticker:
816
Stock exchange:
Hong Kong
Head office:
M AR KE TL IN E
Established in 2004, Huadian Fuxin Energy Corporation Limited, a wholly owned subsidiary of China Huadian
Corporation, is a diversified energy company, specializing in renewable energy, engaged in power generation across 24
provinces and autonomous regions throughout China and Hong Kong.
The company develops, manages, and operates hydropower and coal -fired power plants in the Fujian province, and is
the largest hydroelectric company in East China.
Huadian also operates wind farms with over 3,500 MW of installed capacity, as well as other renewable energy projects
including biomass and solar.
The company also holds an equity interest in four nuclear power plants under construction.
Key Metrics
The company recorded revenues of $2,145m in the fiscal year ending December 2013, an increase of 16.9% compared
to fiscal 2012. Its net income was $237m in fiscal 2013, compared to a net income of $176m in the preceding year.
Table 16: Huadian Fuxin Energy Corporation Limited: key financials ($)
$ million
Revenues
Net income (loss)
Total assets
2009
2010
2011
2012
2013
1,195.0
1,367.6
1,175.0
1,834.4
2,145.2
62.1
84.1
91.4
176.4
237.0
5,312.2
7,378.9
8,111.3
9,902.0
10,924.6

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Table 17: Huadian Fuxin Energy Corporation Limited: key financials (CNY)
CNY million
Revenues
Net income (loss)
Total assets
2009
2010
2011
2012
2013
7,403.0
8,472.0
7,279.0
11,364.0
13,289.0
385.0
521.0
566.0
1,093.0
1,468.0
32,908.0
45,711.0
50,248.0
61,341.0
67,676.0
M AR KE TL IN E
Table 18: Huadian Fuxin Energy Corporation Limited: key financial ratios
Ratio
2009
2010
2011
2012
2013
Profit margin
5.2%
6.1%
7.8%
9.6%
11.0%
M AR KE TL IN E
Figure 16: Huadian Fuxin Energy Corporation Limited: revenues & profitability

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Huaneng Renewables Corporation Limited

Table 19: Huaneng Renewables Corporation Limited: key facts
Head office:
10-11th Floor, No 23A Fuxing Road Haidian District, Beijing, CHN
Telephone:
86 10 6822 1618
Fax:
86 10 6822 3990
Website:
www.hnr.com.cn
Financial year-end:
December
Ticker:
958
Stock exchange:
Hong Kong
M AR KE TL IN E
Established in 2002, Huaneng Renewables Corporation Limited, a subsidiary of China Huaneng Group, together with its
subsidiaries is engaged in the generation and sale of wind power in China and Hong Kong.
As of December 31, 2013, the company owned wind farms with an installed capacity of 6,551 megawatts. In addition to
its wind farms, it is also involved in the generation of solar power through photovoltaic sol ar panels.
Key Metrics
The company recorded revenues of $936m in the fiscal year ending December 2013, an increase of 44.0% compared to
fiscal 2012. Its net income was $143m in fiscal 2013, compared to a net income of $90m in the preceding year.
Table 20: Huaneng Renewables Corporation Limited: key financials ($)

$ million
2009
2010
2011
2012
2013
Revenues
162.1
285.6
515.9
650.1
935.9
49.1
85.2
165.1
90.1
143.3
Total assets
2,870.3
5,398.9
8,318.4
8,668.4
9,652.9
Total liabilities
2,453.2
4,411.1
6,355.5
6,619.7
7,280.5
Net income (loss)
M AR KE TL IN E
Table 21: Huaneng Renewables Corporation Limited: key financials (CNY)

CNY million
Revenues
Net income (loss)
2009
2010
2011
2012
2013
1,004.0
1,769.0
3,196.0
4,027.0
5,798.0
304.0
528.0
1,023.0
558.0
888.0
Total assets
17,781.0
33,445.0
51,531.0
53,699.0
59,798.0
Total liabilities
15,197.0
27,326.0
39,371.0
41,008.0
45,101.0

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Table 22: Huaneng Renewables Corporation Limited: key financial ratios

Ratio
2009
2010
2011
2012
2013
Profit margin
30.3%
29.8%
32.0%
13.9%
15.3%
Revenue growth
47.9%
76.2%
80.7%
26.0%
44.0%
Asset growth
62.8%
88.1%
54.1%
4.2%
11.4%
Liabilities growth
64.3%
79.8%
44.1%
4.2%
10.0%
Debt/asset ratio
85.5%
81.7%
76.4%
76.4%
75.4%
Return on assets
2.1%
2.1%
2.4%
1.1%
1.6%
M AR KE TL IN E
Figure 17: Huaneng Renewables Corporation Limited: revenues & profitability

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Figure 18: Huaneng Renewables Corporation Limited: assets & liabilities

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MACROECONOMIC INDICATORS
Country Data
Table 23: China size of population (million), 200913
Year
Population (million)
% Growth
2009
1,334.5
0.5%
2010
1,340.9
0.5%
2011
1,347.4
0.5%
2012
1,353.9
0.5%
2013
1,360.3
0.5%
SOURCE: MARKETLINE
M AR KE T L IN E
Table 24: China gdp (constant 2005 price s, $ billion), 2009 13

Year
Constant 2005 Prices, $ billion
% Growth
2009
3,476.0
9.2%
2010
3,839.2
10.4%
2011
4,196.2
9.3%
2012
4,517.3
7.7%
2013
4,863.9
7.7%
SOURCE: MARKETLINE
M AR KE TL IN E
Table 25: China gdp (current price s, $ billion), 2009 13

Year
Current Prices, $ billion
% Growth
2009
4,990.5
10.4%
2010
5,930.4
18.8%
2011
7,322.0
23.5%
2012
8,221.0
12.3%
2013
9,178.8
11.6%
SOURCE: MARKETLINE

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Table 26: China inflation, 200913

Year
Inflation Rate (%)
2009
(0.7%)
2010
3.3%
2011
5.4%
2012
2.6%
2013
2.6%
SOURCE: MARKETLINE
M AR KE TL IN E
Table 27: China consumer price index (absolute), 200913

Year
Consumer Price Index (2005 = 100)
2009
111.8
2010
115.5
2011
121.8
2012
125.0
2013
128.3
SOURCE: MARKETLINE
M AR KE TL IN E
Table 28: China exchange rate, 200913

Year
Exchange rate ($/CNY)
Exchange rate (/CNY)
2009
6.8409
9.5123
2010
6.7788
9.0005
2011
6.4544
8.9794
2012
6.3116
8.1035
2013
6.1948
8.2259
SOURCE: MARKETLINE

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APPENDIX
Methodology
MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross checked and presented in a consistent and accessible style.
Review of in-house databases Created using 250,000+ industry interviews and consumer surveys and supported by
analysis from industry experts using highly complex modeling & forecasting tools, MarketLines in -house databases
provide the foundation for all related industry profiles
Preparatory research We also maintain extensive in-house databases of news, analyst commentary, company
profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market
overview
Definitions Market definitions are standardized to allow comparison from country to country. The parameters of each
definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the
market and our clients
Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and
trends
MarketLine aggregates and analyzes a number of secondary information sources, including:
-
National/Governmental statistics
International data (official international sources)
National and International trade associations
Broker and analyst reports
Company Annual Reports
Business information libraries and databases
Modeling & forecasting tools MarketLine has developed powerful tools that allow quantitative and qualitative data to
be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can
then be refined according to specific competitive, regulatory and demand -related factors
Continuous quality control ensures that our processes and profiles remain focused, accurate and up -to-date

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Industry associations
International Renewable Energy Agency (IRENA)
Chamber of Commerce & Industry Tower, Old Airport Road (Sheikh Rashid bin Saeed Maktoum Street/2nd Street), Abu
Dhabi Corniche/1st Street, Abu Dhabi, ARE
www.irena.org
International Sustainable Energy Organisation (ISEO)

POB 200, CH-1211 Geneva 20, CHE
Tel.: 41 22 910 3006
Fax: 41 22 910 3014
www.uniseo.org
Chinese Renewable Energy Industries Association

Address: A2106, Wuhua Plaza, A4 Chegongzhuang Dajie, Xicheng District, Beijing, 100044, CHN
Tel.: 86 10 68002617
Fax: 86 10 68002674
en.creia.net
Related MarketLine research

Industry Profile
Global Renewable Energy
Renewable Energy in Europe
Renewable Energy in Asia-Pacific
Renewable Energy in the United States
Renewable Energy in India

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STREET, LONDON, UNITED KINGDOM, EC1A 7 AZ
T: +44 20 3377 3045 | F: +44 870 134 4371
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MarketLine Industry Profile

Publication Date: December 2014

China - Renewable Energy

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Market value forecast

Market volume forecast

China - Renewable Energy

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China - Renewable Energy

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China Datang Corporation Renewable Power Co., Limited ................................................................................................24

China - Renewable Energy

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China - Renewable Energy

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China - Renewable Energy

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China - Renewable Energy

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Table 1: China renewable energy market value: $ million, 200913

Figure 1: China renewable energy market value: $ million, 2009 13

China - Renewable Energy

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Table 2: China renewable energy market volume: GWh, 200913

Figure 2: China renewable energy market volume: GWh, 200913

China - Renewable Energy

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Table 3: China renewable energy market category segmentation: GWh, 2013

biomass & waste

solar, tide & wave

China - Renewable Energy

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Table 4: China renewable energy market geography segmentation: $ million, 2013

China - Renewable Energy

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Table 5: China renewable energy market value forecast: $ million, 201318

Figure 5: China renewable energy market value forecast: $ million, 201318

China - Renewable Energy

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Market volume forecast

Table 6: China renewable energy market volume forecast: GWh, 2013 18

Figure 6: China renewable energy market volume forecast: GWh, 2013 18

China - Renewable Energy

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FIVE FORCES ANALYSIS

China - Renewable Energy

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China - Renewable Energy

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China - Renewable Energy

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China - Renewable Energy

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China - Renewable Energy

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China - Renewable Energy

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China - Renewable Energy

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8th Floor, Number 1 Caishikou Street, Xicheng District, Beijing 100053,

SOURCE: COMPANY WEBSITE