English
  • 中文简体
  • English
  • 日本語
  • 한국어
Home> News>Industry Information>Product Information>Particularity of Renewable Energy — Wholesale Gi Solar Structure From China

Particularity of Renewable Energy — Wholesale Gi Solar Structure From China

From:Serve (Xiamen) New Energy Co., Ltd.     Release time:2018-12-21

Overview:Over the past hundred years, fossil energy groups have managed both fuel-side costs, such as oil or coal procurement costs, and sales-side revenues, such as gasoline or thermal power, so that they can survive market fluctuations only if they develop into super-large companies with bilateral price management capabilities. However, the characteristics of renewable energy have completely changed the business model and created a new market structure.

The particularity of renewable energy industry determines the difference between business model and financing model and fossil energy.


Over the past hundred years, fossil energy groups have managed both fuel-side costs, such as oil or coal procurement costs, and sales-side revenues, such as gasoline or thermal power, so that they can survive market fluctuations only if they develop into super-large companies with bilateral price management capabilities. However, the characteristics of renewable energy have completely changed the business model and created a new market structure.


The first feature is also the core advantage, that is, there is no need to hedge fuel costs.


Wind and light are completely free, and the cost of later operation and maintenance of the whole equipment is constant, so the whole life cycle cost can be locked in almost at the time of commissioning. Small and medium-sized companies can also hold renewable energy assets based on project conditions and their own affordability, without worrying about fluctuations in fuel prices.

Hot-Dip Galvanized Steel Ground Pv Mounting System From China

The second feature is heavy assets, but the construction cycle is short.


Generally speaking, heavy assets have the characteristics of long construction cycle in terms of hydropower, oil and expressway. But the construction cycle of wind power is about six months, and photovoltaic can be controlled in three months, which greatly reduces the pressure of capital advance construction and improves the turnover rate of capital. Under the same capital conditions, more projects can be leveraged.


The third characteristic, corresponding to the fixed cost of the whole life cycle, is that the revenue of the whole life cycle is also fixed.


So far, apart from a small number of distributed photovoltaic self-use projects that sell electricity directly to customers, 95% of renewable energy generation is sold to grid companies at fixed electricity prices. Cash flow is divided into desulfurization and desulfurization of thermal power and subsidy part, keeping electricity prices unchanged for 20 years.


Therefore, in this case, the benefits of the whole life cycle are completely fixed and protected by the Renewable Energy Act. Therefore, the structure of renewable energy assets is single and clear. For investors, the project risk is mainly controlled by technical means such as project quality. In addition, the risk of fuel fluctuation and electricity price fluctuation is completely isolated.


About Serve Energy

Serve (Xiamen) New Energy Co., Ltd. is a Chinese manufacturer of Low Ballasted Aluminum PV Mounting System with independent intellectual property rights. Serve Energy specializes in the research and development, production, sales and services of solar products, such as Hot-Dip Galvanized Steel Ground PV Mounting System from china, building integrated photovoltaics bipv from china, wholesale HDG solar mounting from China, wholesale GI solar structure from China


Message BoardPlease write down your question and we will respond to you within 24 hours.