Trend of Development of

Renewable Energy in China

July 13, 2021

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01 Renewable Energy Market Update
02 Outlook of Development in Renewable Energy Industry in China
03 Powerchina Heading Towards the PV Industry
04 Planning for Wind Power Resources

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Renewable Energy Market Update

• Renewables were the only energy source for which demand increased in 2020 despite the
pandemic, while consumption of all other fuels declined.

• Will renewable energy source uptake therefore expand more quickly as the global
economy recovers from the crisis?

• In exploring recent market and policy developments, we forecast new global renewable
power capacity additions for 2021 and 2022, and also provide updated biofuel production
forecasts for these years.

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Renewable Energy Market Update

• In 2020, annual renewable capacity additions increased 45% to almost 280 GW – the
highest year-on-year increase since 1999.

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Renewable Energy Market Update

• Exceptionally high capacity additions become the “new normal” in 2021 and 2022, with
renewables accounting for 90% of new power capacity expansion globally.

• Solar PV development will continue to break records, with annual additions reaching 162
GW by 2022 – almost 50% higher than the pre-pandemic level of 2019.

• Global wind capacity additions increased more than 90% in 2020 to reach 114 GW.

• Annual growth in China renewables market will decelerate following the exceptional
expansion that resulted from developers rushing to complete projects before subsidy
phase-outs.

• Transport biofuel production is expected to rebound to 2019 volumes in 2021, after having
fallen 8% in 2020. Production is also forecast to expand another 7% in 2022.
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Renewable Energy Market Update

• Policy deadlines in key markets propelled global renewable capacity additions to almost
280 GW in 2020, the highest year-on-year increase in the last two decades

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Renewable Energy Market Update

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Renewable Energy Market Update

• Renewables deployment geared up in 2020, establishing a “new normal” for capacity

additions in 2021 and 2022

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Renewable Energy Market Update

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Renewable Energy Market Update

• China’s policy transition slows expansion, but other countries compensate with faster
growth

• Europe accelerates deployment, becoming the second- largest renewable power market
after China
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Renewable Energy Market Update

• Forecast additions for 2021 and 2022 have been revised upwards by over 25% from last
year

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Renewable Energy Market Update

• Record-breaking competitive auctions volumes boost renewables deployment in 2021 and

2022

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Renewable Energy Market Update

• Corporate procurement expands as wind and PV costs continue to decline

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Renewable Energy Market Update

• Solar PV capacity additions are expected to increase 8% to over 145 GW in 2021.

• PV has become the lowest-cost option for electricity generation in many countries,
especially those with good resource availability and affordable financing. As a result,
corporations are increasingly opting for bilateral contracts with large-scale solar PV plants
to meet their energy demand.

• Thanks to further cost reductions and continuous policy support from 120 governments
globally, PV capacity additions are forecast to expand further to 162 GW in 2022.

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Renewable Energy Market Update

• Larger projects dominate the solar PV market

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Renewable Energy Market Update

• Supply chain constraints and rising commodity prices provoke short-term PV price
uncertainties

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Renewable Energy Market Update

• Forecasts for key PV markets

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Renewable Energy Market Update

• Forecasts for key PV markets

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Renewable Energy Market Update

• Wind capacity additions reached almost 114 GW in 2020, almost doubling 2019 expansion.

• China alone accounted for 2/3 of global wind growth, with Chinese manufacturers
supplying turbines for most of the country’s installations.

• At 80 GW, the 2021 wind market is expected to be 30% weaker than last year’s, although
still significantly exceeding 2019 additions. We expect slightly lower onshore and offshore
growth in 2022.

• Having reached a record 10% in 2019, the offshore share of total wind additions declined
in 2020 but is forecast to rebound to a record-breaking 12% in 2021-2022.

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Renewable Energy Market Update

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Renewable Energy Market Update

• Following the 2020 boom, annual onshore wind additions will slacken this year

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Renewable Energy Market Update

• China dominates offshore wind markets in 2021 while geographical diversity increases in
2022

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Outlook of Development in Renewable Energy Industry in China

• In 2020, the installed capacity of power generation with renewable energy in China already
reached 930GW, and the installed capacity of power generation with nuclear power
reached 51GW, totaling 981GW and accounting for 44.6% of total installed capacity of
power generation across China.

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Outlook of Development in Renewable Energy Industry in China

• Enterprises leading in renewable energy industry of China are becoming more and more
prominent in their global competitiveness with the continuous development of renewable
energy industry. In 2020, 207 Chinese enterprises were listed as "Top-500 Renewable
Energy Enterprises of the World for the Year 2020", ranking first in respect of number of
such listed enterprises.

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Outlook of Development in Renewable Energy Industry in China

• As indicated in the List of Top-500 Renewable Energy Enterprises of the World for the Year
2020, Power Construction Corporation of China (Powerchina) ranked second among
Chinese enterprises, and seventh among all such listed enterprises.

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Outlook of Development in Renewable Energy Industry in China

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Outlook of Development in Renewable Energy Industry in China

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Outlook of Development in Renewable Energy Industry in China

• Objectives of development determined by National Energy Administration of China: 25%

of non-fossil energy consumption and more than 1200GW of installed capacity for PV and
wind power by 2030.

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Powerchina Heading Towards the PV Industry

• On March 18, 2021, Powerchina printed and issued the Guidance of Power Construction
Corporation of China on Investment in Renewable Energy Sectors, indicating a rapid
development towards the investment in operation of renewable energy sectors.

• It was generally indicated in the Guidance that during the "14 th Five-year Plan",
Powerchina would realize an installed capacity addition of 30GW (put into operation) from
wind power and PV, including the producers held by Powerchina both in China and abroad.

• Based on the Guidance, objectives to develop renewable energy were decomposed and
assigned to 28 subsidiaries subordinated to Powerchina, with a capacity addition totaling
48.5GW, including 3GW to be realized by Powerchina Zhongnan.

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Powerchina Heading Towards the PV Industry

• Powerchina will establish a platform for high-end marketing communication with local
governments, to facilitate the communication with local governments and conduct high-
end marketing business, with large-sized base project as the focus of such communication,
thereby going all out to seize resources available for renewable energy development.

• During the "14th Five-year Plan", PowerChina will proactively take part in the emerging
frontiers involving strategy, planning, implementation, policy, technology, equipment and
model for wind power-PV and "wind, solar, thermal and hydro power storage" integrated
development in the world, to support investment in various eco-friendly, low-carbon and
influential integrated energy service demonstration projects that feature advanced
technology to serve as landmarks.

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Powerchina Heading Towards the PV Industry

• In fact, although as one of leading enterprises engaged in design of PV plant and EPC
business and having developed and held PV plant projects before in China, PowerChina
has not yet engaged in a large-sized project in this regard. By the end of 2019, the installed
capacity of PV projects held by Powerchina was about 1.2GW only.

• Powerchina will, with the clarion call in respect of "Carbon Emissions Peak and Carbon
Neutrality" as well as "To Build Novel Power System Dominated by Renewable Energy",
fully enter the field of developing renewable energy projects during the "14th Five-year
Plan", indicating that one more "monolith" central state-owned enterprise will enter the
field of investment in PV plant.

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Planning for Wind Power Resources

Assessment of wind power resources - measuring plan and data assessment

Planning for wind power project - provincial, municipal and regional

Feasibility (pre-feasibility) study report

Report of application for project

Micro-sitting selection for wind farm

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Planning for Wind Power Resources

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Planning for Wind Power Resources

1. Preliminarily select sites of wind farms proposed

according to investigation results of wind power
resources and planning for land utilization.
2. Analyze the construction conditions involving wind
power resources, engineering geology, traffic
transportation, construction, installation etc. of wind
farms proposed.
3. Preliminarily estimate the installed capacities of
wind farms proposed.
4. Put forward the plan to connect wind farms
proposed to power grid.
5. Conduct preliminary EIA on wind farms proposed.
6. Roughly estimate investment in wind farms
proposed.
7. Determine the sequence of developing wind farms
proposed by means of a comprehensive comparison.

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Planning for Wind Power Resources
S/N Drawing Title Drawing No.
1 Schematic Diagram of Locations of Wind Farms …………-KY-ZH-01
Schematic Diagram of Connecting Wind Farms to Power
1. General 2 …………- KY -D1-01
Grid
2. Wind Power Resources 3 Schematic Diagram of Collector Line Route of Wind Farm …………- KY -D1-02
4 Electrical Wiring Diagram of Wind Farm …………- KY -D1-03
3. Engineering Geology
Main Electrical Wiring Diagram of 110kV Step-up
5 …………- KY -D1-04
Substation
4. Task and Scale
6 General Electrical Plan of Step-up Substation …………- KY -D1-05
5. Model Selection and Estimation of Energy Output 7 Central Control Building - Electrical Plan (1F) …………- KY -D1-06

6. Electrical 8 Central Control Building - Electrical Plan (2F) …………- KY -D1-07

7. Firefighting Design 9 Section Plan of 110kV Power Distribution Unit …………- KY -D1-08

10 Diagram of Relay Protection, Metering and Measuring …………- KY -D2-01

8. Civil Works
11 Diagram of Monitoring System for Step-up Substation …………- KY -D2-02
9. Construction Planning 12 Diagram of AC/DC integrated System …………- KY -D2-03
10. Environmental Protection and Water and Soil Conservation Design 13 Diagram of Monitoring System for WTGS …………- KY -D2-04

11. Labor Safety and Industrial Hygiene 14 Diagram of Foundation for WTG and Box-type Substation …………- KY -TJ-01
15 General Plan of Step-up Substation …………- KY -TJ-02
12. Engineering Estimate 16 Plan of Control Building (1F) …………- KY -TJ-03
13. Financial Assessment and Social Impact Analysis 17 Plan of Control Building (2F) …………- KY -TJ-04
18 Plan of Central Building (1F) …………- KY -TJ-05
14. Energy Saving and Consumption Reduction 19 Plan of Central Building (2F) …………- KY -TJ-06
15. Tendering 20 General Plan for Construction …………- KY -SG-01
21 Overall Schedule for Construction …………- KY -SG-02

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Planning for Wind Power Resources

1 Applicant and Project Overview

Addendum 1 Business License
2 Main Technical Proposal
Addendum 2 Pre-qualification and Approval for Land Acquisition

3 Development Planning, Industrial Policy and Analysis of Industry Addendum 3 Reply to Opinions of Selecting Proposed Sites
Admittance
4 Resource Development and Analysis of Comprehensive Utilization Addendum 4 Other Approval Documents Acquired

5 Analysis of Energy Saving Proposal for Project

Attached Figure 1 Schematic Diagram of Locations of Wind Farms
6 Analysis of Land Acquisition for Construction Attached Figure 2 Schematic Diagram of Connecting Wind Farms to Power Grid

7 Analysis of Environmental and Ecological Impacts Attached Figure 3 General Layout Plan for Construction of the Wind Farm

Attached Figure 4 Overall Schedule for Construction of Wind Farm

8 Analysis of Economic Impact

9 Analysis of Social Impact

10 Tendering for Construction Project of Wind Farm

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Planning for Wind Power Resources

1. With feasibility study report as basis, collect the latest measuring data and topographic
maps, review and adjust the sites for installation of WTGs as proposed in feasibility study
stage, and, based on the project scale, determine multiple alternative sites for installation
of WTGs.

2. Conduct site survey together with disciplines of access road and geology, check the
proposed sites for installation of WTGs (including the alternative ones) one by one and
focus on the road construction conditions, routes for HV lines and other limiting factors.
Record any problems and make a preliminary adjustment on site.

3. Based on the results of micro-sitting selection on site, rectify any problems and then
determine the final sites (including the quantity of the sites) for installation of WTGs, and
provide the alternative ones.

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Planning for Wind Power Resources

Consultation for investment decision-making

Market development

Strategic transformation of enterprise

General contracting for early work of project

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Thank You!
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