Driven by positive news, the photovoltaic and wind energy sectors made a strong upward move on the 14th.
In terms of news, at the Climate Ambition Summit held on December 12, it was announced that by 2030, China's carbon dioxide emissions per unit of GDP will drop by more than 65% compared to 2005 levels. The share of non-fossil energy in primary energy consumption will reach around 25%, forest stock volume will increase by 6 billion cubic meters compared to 2005, and the total installed capacity of wind and solar power generation will reach over 1.2 billion kilowatts.
Northeast Securities pointed out that this is a follow-up to the carbon neutrality target, providing specific guidance measures for achieving that goal in the future. In terms of the energy mix, coal-fired power is the main driver of global carbon emissions, accounting for over 40%. Energy structure reform is imperative, which will bring new investment opportunities for new energy industries such as photovoltaic and wind power. In April, the 'Notice on Matters Related to the Preparation of the 14th Five-Year Plan for Renewable Energy Development' mentioned a strategic goal of striving for a 20% share of non-fossil energy consumption by 2030. This target has been raised to 25%, an increase of 5 percentage points, with a clear indication that the total installed capacity of wind and solar power will exceed 1.2 billion kilowatts. According to estimates, from 2021 to 2030, the average annual additional installed capacity of domestic photovoltaic and wind power is expected to reach 127 GW and 48 GW respectively, with compound annual growth rates reaching 17.95% and 10.16%, putting the industry on a fast development track.
During the past decade of development, the cost of renewable energy has dropped rapidly. From 2010 to 2019...