China's clean energy investment is cooling dramatically

The substantial cooling of the clean energy industry has caused many outside discussions. However, in the eyes of people in the industry, this is not surprising. Liu Xiaohua, director of international exchange of the China-Europe Solar Energy Promotion Association, said in an interview that the biggest characteristic of capital is profitability, and which industry has high gross profit flow to which industry. With the rise of international trade friction, the gross profit of clean energy has gradually declined, people’s confidence in investment has been frustrated, and capital will naturally flow out. "But the downturn in the market is not just a big hit for the development of renewable energy. On the other hand, it is also a good thing."

Liu Yuhua believes that the development of renewable energy has basically depended on policy support and cannot fully realize marketization. So the cost of it is so high that ordinary people feel uneconomical and cannot afford it. In the downturn of the market and the declining gross profit, industrialists in the renewable energy industry have to find ways to reduce costs. So from this perspective, it can be seen as a good thing.

Zhao Yonghong, secretary general of the Zhejiang Provincial Photovoltaic Industry Technology Innovation Strategic Alliance and director of the Center for Science and Technology Industry of the International Innovation Research Institute of Zhejiang University, said in an interview with a reporter from the “Pavilion of the Private Economy” that due to overcapacity, the European debt crisis, the US “double reverse” investigation, etc. As a result of factors, the winter of the photovoltaic industry continues to spread. Judging from the law of industrial development, whenever there is an industrial downturn or an industrial crisis, it is always when the industrial structure changes, technological innovations, and resources are reconfigured.

However, Zhao Yonghong believes that the cooling of the clean energy industry may be an individual phenomenon and it is difficult to represent the current status of the industry. Each emerging industry is particularly dependent on policy and relying on investment, and it looks very clear in the long term and it is not clear to see it in the near future. This is a common feature of the industry.

According to Zhao Yonghong, clean energy requires many years of market research and technology exploration. "We must respect and be tolerant of the clean energy industry. An industry must have experienced learning and maturity."

Exploiting International Emerging Markets Actively Nowadays, the clean energy market is faced with the dilemma of reducing investment. How can companies tide over the difficulties? Liu Xiaohua believes that if the market is not good, it will force companies to reduce costs. If the cost is reduced, the market will recover again. At that time, the extension of the renewable energy market will be further expanded and the capital resources will naturally be rushed.

Liu Yuhua said that with the depletion of fossil fuels, clean energy is an irreplaceable source of energy in the future. The government should spend huge sums of money to establish strategic research projects and organize scientific research forces to focus on the core technologies in the key links of the industrial chain. These projects must be implemented in powerful enterprises and not in scientific research institutes. Enterprises must preserve their strength, concentrate their efforts on scientific and technological research and development, strive to occupy the commanding heights of the industry, and at the same time they must actively explore new international markets.

Zhao Yonghong believes that clean energy companies often have problems of short establishment time and rapid development. Therefore, investors not only bring money, but also have practical industrial services such as new strategic ideas and new channels. This is for enterprises. It is more practical, such as helping companies to open up emerging markets, do a good job of financial and resource integration.

Zhao Yonghong also emphasized that if companies are to survive, they must reduce their own risks, such as reducing production costs, managing customers to do a good job in order screening and customer screening, and prevent customer risks and financial risks. "I would rather do less and do not fall into the trap. Now that the risk is very high, both the domestic EPC and domestic customers have the risk of closure, so we must be vigilant."

In addition, Zhao Yonghong also believes that companies should make good preparations for the winter when they are ready for the winter. The layout includes many aspects, such as researching new markets, finding partners, nurturing and promoting brands, detailed subdividing and in-depth research on products, and positioning themselves. If possible, pay attention to the balance of the industry in the layout of similar products. Now that high-investment R&D is definitely not desirable, the best way is to collaborate with companies and find the right partners to complement each other.

The Investment Group also analyzed that although the overall situation of the clean energy industry is not optimistic at present, with the global energy shortage and environmental pollution and other issues becoming increasingly prominent, clean energy continues to have long-term development prospects with its advantages of environmental protection, convenience, and future PE institutions. Will dig deeper into investment opportunities in early and technologically advantageous projects.