China's thermal power companies have the ability to go to the world

China's thermal power companies have the ability to go to the world “Coal power companies are fully capable of going out.” Lin Boqiang, director of the China Energy Research Center at Xiamen University, said, “At present, China’s thermal power equipment manufacturing capacity ranks first in the world, and the thermal power plant management and operation level is world-class. At the same time, the power industry’s funds are also sufficient. We are competitive in the international electricity market."

Zhou Xiujie, a researcher in the energy industry of China Investment Advisors, also believes that China's thermal power industry has two advantages in going global. On the one hand, China's power companies have greater cost advantages. Labor costs and raw material costs are lower than those of international companies. This has laid a good foundation for domestic power companies to participate in the international market; on the other hand, China's power companies have gradually begun to operate in the entire industry chain. It has better control and control capabilities in all sectors of the power industry and can better meet the individual needs of foreign customers.

Intention to go out "At present, the power industry has encountered difficulties in domestic operations, and power companies hope to shift some of their energy to foreign countries and seek development in another new market. Power companies have the intention of "going out." Lin Boqiang said. He believes that it is inevitable for domestic power companies to go abroad. “The current situation in the domestic power industry is only accelerating this process.” The “going out” strategy is an important way for companies to broaden their international markets and enhance their operating strength. It is not necessarily the best and most effective measure to get out of trouble, but it is a wise move taken by the company at this time. “Zhou Xiujie said that opportunities and risks coexist, and there is an urgent need for experience to accumulate domestic power companies in overseas markets, which reflects the continuous improvement of China’s power industry’s own strength and marks a new stage in the internationalization of China’s power companies.” It is gradually escaping from the practice of simply exporting certain equipment, and gradually shifting to high-value-added links such as engineering construction and power station operations. This is a major opportunity for domestic power companies. "Zhou Xiujie said. However, like other types of enterprises, "going out" will inevitably face the risks of policy, environment, and management. "Whether it is tied with government aid policies or the power companies themselves are developing markets, they need to deal with these risks in order to achieve The purpose of profit. “Lin Boqiang believes that for the “going out”, the power company’s grasp of the market is the most important, and “going out” does not have any problems in itself, and the key lies in the company’s control of risks. Although it can be sure that the scale of going out will The larger the company is, the harder it is for profitability to be asserted, and the current profitability can be said to be very poor, which requires electric power companies to accumulate more experience in the development of external projects.

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