Sinolink: Positive signals for photovoltaics and offshore wind energy demand frequently appear. The hot new energy sector cools down, re-entering the layout window.

Sinolink released a research report stating that the power equipment and new energy industries have recently seen multiple favorable policies. Positive signals have emerged on the demand side in the photovoltaic and energy storage sectors, which are currently at a low level for investment. Investors are advised to focus on alpha opportunities and closely track potential sector beta improvement signals. The wind power sector has also seen positive developments, especially in the areas of sea cables and tower foundations. Investment in the power grid continues to grow, with the National Energy Work Conference and ultra-high voltage projects driving market demand. In the hydrogen energy and fuel cell field, companies with capabilities in SOFC raw material production, single cell production, or SOFC overall system design and development technology are recommended for attention. Sinolink's main points are as follows: Photovoltaic & Energy Storage: Positive demand signals have emerged from Shandong's market entry policy, Anhui's competitive matching results, and domestic installations in November. Despite cooling supply side policies and continued pessimistic demand expectations leading to consecutive pullbacks in the sector, it is currently at a low level for investment. It is recommended to embrace alpha opportunities (glass, battery cells, new technologies, large-scale overseas storage) and closely monitor potential sector beta improvement signals (product prices, demand exceeding expectations, Q4 performance). Wind Power: Jiangsu has initiated the bidding for 7.65GW of offshore wind power, and Fujian announced the results of the competitive bid for 2.4GW of offshore wind power, providing strong support for offshore wind demand in the early stages of the "14th Five-Year Plan." Projects in Shandong and Guangdong (with a total of 1.3GW) have officially started, with a continuous increase in offshore wind demand confirmed until 2025. The signals of substantial offshore wind installations in the final year of the "14th Five-Year Plan" are apparent, with a focus on the sea cable and tower foundation segments benefiting from the release of the demand from the "Two Seas." Power Grid: The National Energy Work Conference for 2025 proposed actively promoting the start of construction for four ultra-high voltage direct current projects: Mengxi-Jingjin-Ji, Zangdongnan-Greater Bay Area of Guangdong, Hong Kong, and Macau, Badanjilin-Sichuan, and Nanjiang-Chuanyu. The feasibility report for the 1000kV ultra-high voltage AC project in Panxi, Sichuan has been initiated, with approval expected in the first half of 2025. China State Grid has announced the results of six rounds of bids for transmission and distribution equipment with a total value of 7.035 billion yuan, accumulating to 72.86 billion yuan in bids for 2024, an increase of 8% year-on-year. Hydrogen Energy and Fuel Cells: From January to November, 6,368 FCVs were insured, and a 1.77GW electrolysis tank bid was announced. Fixed applications have broken through, with overseas solid oxide fuel cells entering commercialization, and China's SOFC industry is in the transition from industrial demonstration to commercial application. Companies with the capability to produce SOFC raw materials, single cells, or design and develop SOFC overall systems have the most development potential. Key industry events this week: Photovoltaic & Storage & Wind: Shandong issued a notice on "Several Measures to Improve the New Energy Integration System Mechanism and Promote High-Quality Energy Development"; Anhui announced the results of the bidding and matching of photovoltaic and wind power projects for 2024; Jiangsu initiated the bidding for 7.65GW of offshore wind projects; The Energy Bureau released the new installed capacity data for photovoltaic and wind power in November; JA Solar Technology plans to invest in battery module production capacity in Oman; U.S. photovoltaic company NuVision plans to build a 2.5GW annual capacity HJT battery module factory in Florida, expected to be operational in Q4 2025; Goldwind Science and Technology's mixed tower product receives certification from TV Norddeutschland. Power Grid: The National Energy Work Conference for 2025 was held; The feasibility report for the 1000kV ultra-high voltage AC project in Panxi, Sichuan has been initiated; China State Grid announced the results of six rounds of bids for transmission and distribution equipment; From January to November, total investment in power grid projects reached 529 billion yuan, an 18.7% year-on-year increase; From January to November, total electricity consumption in society reached 9 trillion kWh, a 7.1% year-on-year increase; State Grid Corporation released the first national multi-modal power industry model. Hydrogen Energy and Fuel Cells: China Petroleum & Chemical Corporation completed the country's first industrial seawater hydrogen production project; A 1.5MW hydrogen power station in Changqing Oilfield officially started operations; The first inland river 64-slot hydrogen fuel cell-powered container ship was successfully launched; The first set of SOFC power system with single machine... Risk factors: Risks of policy adjustments and lower-than-expected implementation; Risks of more intense price competition within the industry chain.