1. The necessity of investment projects
(1) Respond to national policies and promote energy transformation and upgrading
On September 22, 2020, at the 75th session of the United Nations General Assembly, it was proposed that "China's carbon dioxide will strive to peak before 2030 and strive to achieve carbon neutrality before 2060".
On April 13, 2021, the people of Henan Province issued the Notice on Printing and Distributing the Outline of the 14th Five-Year Plan for National Economic and Social Development of Henan Province and the Long-Range Objectives for the 235th Five-Year Plan, which pointed out that new and renewable energy sources such as wind energy, solar energy, biomass energy, and geothermal energy should be vigorously developedPromote the integration of wind, solar, water, fire, and storage, as well as the integration of source, grid, load and storage, support the construction of energy storage facilities for large power consumers such as big data centers, promote the flexible consumption of renewable energy, and build multi-energy complementary clean energy bases and energy storage industrial bases.
On March 22, 2022, the National Energy Administration issued the Notice on Printing and Distributing the < of the 14th Five-Year Plan for the Modern Energy System, as the overall blueprint and action plan for accelerating the construction of a modern energy system and promoting high-quality energy development during the 14th Five-Year Plan period. Green development, expand the clean energy industry, implement renewable energy substitution actions, promote the construction of a new power system, promote the gradual increase in the proportion of new energy, and promote the optimal combination of coal and new energy.
On October 16, 2022, in the report of the 20th National Congress of the Communist Party of China, it was pointed out that it is necessary to implement a comprehensive conservation strategy, develop green and low-carbon industries, advocate green consumption, coordinate industrial structure adjustment, pollution control, ecological protection, and respond to climate change, and accelerate the green transformation of development mode.
The funds will be used for multi-energy complementary and wind power generation projects, aiming to implement the new strategy of energy security, implement the goals and tasks of carbon peak before 2030 and carbon neutrality before 2060, provide effective financial support for the company's development of new energy industry, and provide strong support for the company's future strategic implementation.
(2) Conform to the trend of energy development and help adjust the structure of energy consumption
With the rapid development of the global economy, energy consumption has increased dramatically, fossil resources have been consumed rapidly, and the serious consequences of the deterioration of the ecological environment have threatened the sustainable development of human society. In this context, it has become an inevitable development trend to improve energy efficiency and vigorously develop renewable new energy to replace traditional fossil energy.
The Puyang Yuneng Multi-energy Complementary (Wind, Solar, Thermal and Storage) Integration Project (Phase I) is a concrete practice measure for the company to comply with the trend of energy development. The implementation of the project will help increase the proportion of renewable energy consumption in China, further optimize China's energy consumption structure, and contribute to China's energy conservation and consumption reduction, environmental protection and ecological civilization construction.
(3) The electricity consumption of the whole society has increased, and the demand for electricity in various industries has increased
In recent years, with the steady development of the overall national economy, the demand for electricity in the whole society in China has shown a steady growth trend. According to the relevant statistics of the National Energy Administration, the electricity consumption of the whole society in China will reach 8 in 202264 trillion kWh, up 36%, and the cumulative electricity consumption of Henan Province is 3,9081.8 billion kWh, an increase of 716%。
With the gradual improvement of the level of electrification of terminal energy consumption, related industries such as industry and transportation have gradually carried out energy structure transformation, with electricity as the main energy source, increasing the proportion of electrification, and electricity consumption has continued to rise. In the future, with the continuous transformation of production models in industry, manufacturing and other industries, as well as the continuous expansion of demand in related fields such as communications and computers, the overall electricity demand for China's economic production will be further increased.
(4) The need for sustainable development of the regional economy
Henan Power Grid is part of the Central China Power Grid, which is currently dominated by coal-fired power plants. While consuming coal resources, coal-fired power plants also produce a large amount of harmful gases such as sulfur dioxide, carbon dioxide, and nitrogen oxides that pollute the environment and cause the greenhouse effect, which has an adverse impact on the environment and ecology. Therefore, the coal-based energy structure puts regional social and economic development under certain environmental pressures, and the regional economy has a strong demand for sustainable development represented by new energy power generation.
Puyang Yuneng Multi-energy Complementary (Wind, Solar and Thermal Storage) Integration Project (Phase I) is located in Puyang City, Henan Province. The two places insist on strengthening resource conservation and environmental protection while developing the economy, promote the simultaneous improvement of ecological, economic and social benefits, and form a new economic development mode of intensive resource conservation, energy conservation, consumption reduction and emission reduction. The development of wind energy and energy storage is in line with regional environmental protection, energy conservation and sustainable development policies, which can reduce conventional energy consumption and save fuel and water resources.
(5) The company's business development has a large demand for funds
With the steady progress of the company's strategic transformation, the demand for investment in the new energy industry has increased accordingly, and the company has a large demand for fundsIn addition, as of September 30, 2023, the company's consolidated debt-to-asset ratio was 8818%, the asset-liability ratio remained at a high level. Through this issuance, it can reduce the asset-liability ratio, optimize the financial structure, meet the capital needs of the company's business development, and improve the company's overall profitability.
3. Feasibility of investment projects
(1) The national and local industrial policies are actively guided and have a good policy environment
The company plans to use part of the funds raised this time for the construction of the first phase of the Puyang Yuneng multi-energy complementary (wind, solar, fire and storage) integration project.
On June 16, 2022, Henan Province issued the "Notice on Printing and Distributing the Implementation Plan for the Integration of Power Source, Grid, Load and Storage and Multi-energy Complementarity in Henan Province" (Yu Fa Gai Electric Power [2022] No. 512), and the Puyang Yuneng Multi-energy Complementary (Wind, Solar and Thermal Storage) Integration Project in Puyang City became the first batch of Henan Provincial Electric Power Multi-energy Complementary Demonstration Projects.
The project responds to the power industry policies of the National Energy Administration and Henan Province, and follows the Guiding Opinions on Promoting the Integration of Power Source, Grid, Load and Storage and the Development of Multi-energy Complementarity (Fagai Energy Gui [2021] No. 280) issued by the National Energy Administration, and the Notice on Submitting the Work Plan for the Integration of Power Source, Grid, Load and Storage and Multi-energy Complementarity in the 14th Five-Year Plan and other documents, give priority to relying on existing coal-fired power projects to implement wind, solar, thermal and storage integration projects, and encourage the flexible transformation of thermal power to increase the peak regulation capacity of the system by rationally allocating energy storage, heat storage and other equipment.
(2) The area where the project is located is rich in resources and has good operational prospects
The funds will be used for the construction of Puyang Yuneng Multi-energy Complementary (Wind, Solar and Thermal Storage) Integration Project (Phase I), which is located in the key area of multi-energy complementarity and wind power development, with rich natural resources, convenient access conditions, and good operational prospects.
(3) The company has relevant technical reserves and team foundation
The company has rich experience in wind power projects and has a certain installed capacity of new energy power generation. As of the end of September 2023, the company has installed 366MW of wind power in operation, including 8 wind power projects, including Changyuan 100MW wind power project and Zhenping 100MW wind power project.
The company has a highly professional and experienced management and technical team, with rich experience and mature technology in the energy field, which can meet the requirements of management ability, market development ability, business operation ability and risk management and control ability for the implementation of investment projects.
Therefore, the company has mature technical reserves and team foundation in the construction of the project and the later operation of the project.
Fourth, the specific situation of the investment project
(1) Project overview
The Puyang Yuneng Multi-energy Complementary (Wind, Solar, Thermal Storage) Integration Project is located in Fan County, Puyang City, Henan Province. A total of 400MW of wind power, 50MW of photovoltaic power, 132MW of peak shaving capacity and 160MW of energy storage 320MWh of energy storage are planned for the flexible transformation of thermal power to form a multi-energy complementary system.
Among them, the first phase of the project plans to have 200MW of wind power and 80MW of energy storage of 160MWh, with a total investment of 131,701380,000 yuan, and it is planned to invest 100,000 yuan to raise funds from this issuance to specific objects000,000 yuan. The main body of the project is Puyang Yuneng Integrated Energy, a holding company of the company
(2) Project investment budget estimate and construction period
The estimated investment budget of the project is as follows:
Construction investment 127,278940,000 yuan;Interest during the construction period is 3,822440,000 yuan;Bottom liquidity 600000,000 yuan. The total investment is 131,701380,000 yuan;The overall construction period of the project is expected to be 18 months.
(3) Project approval, filing and EIA approval
As of the signing date of this report, the project has obtained the "About the Puyang Yuneng Multi-energy Complementary (Wind, Solar and Thermal Storage) Integration Project" issued by the Fan County Development and Reform Commission with the number Fan Fa Gai [2023] No. 200. The project has completed the filing and environmental impact assessment procedures.