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CCID Consulting Reviews China's New Energy Industry

2007-03-29 19:08 1506


BEIJING, March 29 /Xinhua-PRNewswire/ -- CCID Consulting, China's leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong, points out that China's new energy industry has the following characteristics:

Entering the 21st century, China's solar water heaters market has been growing fast. In 2005, sales volume reached 14.50 million m2. The figure is expected to reach 30 million m2 in 2010. Based on CCID Consulting's research, Analyst Qiu Shiming indicates that China's solar water heater industry has grown fast as a result of three key aspects.

Firstly, China has patent solar water heater technologies of its own intellectual property. Solar water heater industry is one of ten thousand industries in which China has patent technologies of its own. In particular, single target aluminum-nitrogen-aluminum film technology, the China owned international advanced core technology of vacuum tube solar heaters had a market share of 86.55% in 2005. These kinds of China owned technologies have pushed forward the development of China's solar water heater industry.

Secondly, China has rather comprehensive supplementary industries for solar water heaters. The country has basically formed a complete solar water heater industry, ranging from product R&D, design, material processing, product manufacturing, inspection and certification, engineering installation to marketing services. Meanwhile, it has pushed forward the development of related industries such as glasses, metals, heat insulation materials, electric heating, metal processing equipment, welding equipment, vacuum equipment, test equipment and instruments.

Thirdly, market mechanisms push forward the development of China's solar water heater industry. Market mechanisms were used right in the early days of solar water heater R&D and production. This makes solar water heaters an industry in China's new energy field that has the least input from the State but the biggest contribution to society, and the highest level of market-oriented operations.

CCID Consulting says China's photovoltaic industry is not yet a complete industry. The photovoltaic industry chain mainly has five links: polycrystal silicon raw materials manufacturing, silicon ingot/silicon sheet production, solar cell manufacturing, component assembly and photovoltaic system applications.

For the materials manufacturing, China currently relies on imported polycrystal silicon to make solar cells. Polycrystal silicon raw materials technology is sensitive, and is monopolized by 8 major foreign companies. The production of polycrystal silicon raw materials lags far behind the demand in the photovoltaic industry, resulting in a continuous shortage of polycrystal silicon raw materials worldwide since 2004. For the silicon ingot/silicon sheet production, China mainly relies on imported raw materials to make the crystal silicon ingot. For solar cell manufacturing, although stimulated by the strong demand in the international market, solar cells have been developing rapidly and approached the internationally advanced level of solar cell production technologies. But due to too fast a growth, enterprises lack technical talents and the ability of science and technology innovations. For the component assembly, because component assembly is a labor-intensive link with low funds and technology thresholds, solar cell packaging has been developing fastest. In the solar energy photovoltaic power generation industry chain, China has been developing fast only in the simplest links. It is constrained by developed countries in other aspects. In a word, the whole industry is still to be improved.

CCID Consulting believes China's wind power industry is now in an important stage of transition from an early period of steady growth to one of accelerating growth. Starting from 2002, the installed wind power generating capacity has been on a rising trend.

China's wind electricity market has been developing fast. In 2006, some 80 wind power stations were built in China, with a total installed generating capacity of some 2.30 million KW, over 1 million more than in 2005, up by more than 80%. According to the China Renewable Energy Mid-and Long-term Development Plan, China's planned wind power target is 20 million KW for 2020. Between 2006 and 2020, the installed generating capacity will increase by 1900MW each year, while the investment will reach some 15.2 billion Yuan.

Currently, wind power in China is mainly concentrated in Xinjiang, Inner Mongolia and Guangdong. Despite significant improvements in its wind power technology and equipment R&D, China still has a certain gap to bridge as compared with the internationally advanced level. The wind power generator component and parts making industry is rather dispersed and has yet to attain a certain size.

CCID Consulting argues that small hydropower resources have been greeted with an investment peak.

Due to rich resources, strong market demand and policy incentives, small hydropower is now receiving attention as a new investment hotspot for private enterprises. Developing small hydropower resources and realizing rural electronization is an important way to push forward rural economic development and agricultural modernization. China has abundant small hydropower resources, with a developable volume of 87 million kW, the highest in the world. These resources are distributed in over 1,600 mountainous counties in the country. Currently, the average on-grid electricity price in China is between 0.35 and 0.50 Yuan/kwh, while the generation cost of small hydropower is between 0.2 and 0.250 Yuan/kwh. Profits are very big. Investment trends in recent years show that small hydropower is also becoming a new economic hotspot after real estate, automobiles and IT.

CCID Consulting says the industries of new energies such as methane have yet to be marketed and industrialized. As one of the earliest new projects promoted by the Chinese government, the mature methane technologies and industry have been formed. For instance, an accumulated total of 12.89 million households had used methane by the end of 2003, with some 4.58 billion m3 used. However, methane projects in China mainly aim at solving the problem of fuel shortages among rural residents and the State is the main driving force. It has yet to achieve full marketability and industrialization.

About CCID Consulting

CCID Consulting Co., Ltd (also known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is a direct affiliate of China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen and Harbin, with over 300 professional consultants and industry experts. The Company's business scope has covered over 200 large- and medium-sized cities in China. Apart from home market development, CCID Consulting is establishing international cooperation links across the United States, the Asia-Pacific region and Europe, by setting up agents in the U.S., Japan, South Korea, Australia, Singapore, Italy and Russia, with the aim of going global.

Based on four major competitive areas of the powerful data channels, industrial resources, intense knowledge and deep understanding of information technology, CCID Consulting provides customers with consulting, research and IT outsourcing services covering strategy planning, IT application, marketing strategy, human resources and information technology outsourcing. Our customers range from industrial users in IT, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks.

CCID Consulting is committed to becoming the No. 1 brand for strategy consulting, the No. 1 consultant for enterprise management and the No. 1 expert in market research. For more information, please visit our website at http://www.ccidconsulting.com/default_e.asp .

Source: CCID Consulting Co., Ltd.
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