Recently, the 29.3GW deep sea wind power plan in Shanghai has been approved by the state. On July 19th, the 6,500MW deep sea wind power project in Guangxi is about to start. With frequent actions across the country, is a new round of offshore wind construction imminent? Industry insiders say that in the new wave of prosperity, the domestic and overseas markets are expected to resonate and boost market demand.
On July 22, according to the Yicai News, the deep sea wind power plan of 29.3GW in Shanghai has been approved by the state. On July 19th, the 6,500MW deep sea wind power project in Guangxi is about to start. With frequent actions across the country, is a new round of offshore wind construction imminent?
Not only in China, but offshore wind in Europe and other overseas markets is also expected to usher in a wave of construction boom. Analysts believe that the future domestic and overseas markets may resonate with each other and relevant listed companies are expected to benefit.
Recently, the Shanghai Political Consultative Conference held a special supervision and handling promotion meeting on the key proposals for promoting the transformation of the energy structure and helping Shanghai implement its dual-carbon strategy. It was proposed that deep sea wind power is the largest green energy resource treasure trove for Shanghai's future sustainable development. The Shanghai Development and Reform Commission has formulated a plan and obtained national approval, with a total scale of 29.3 million kilowatts. After all construction is completed, it can provide about 100 billion kilowatt hours of green electricity per year.
On July 19th, the National Energy Group released the bidding announcement for the competitive allocation technical service of Guangxi Electric Power Development Co., Ltd.'s offshore wind power project. The 6,500MW deep sea offshore wind power project in Guangxi is about to start.
The relevant person in charge of a wind turbine manufacturer in China said to Yicai that there have been many actions in offshore wind power across the country recently, which indicates that the industry will usher in a new round of prosperity. The staff of the securities department of Jinlei Technology (300443.SZ) said that there were fewer offshore wind bidding projects in the domestic market in the first half of this year, but judging from the current project reserves, the second half of this year is expected to increase the bidding volume, and next year is the year of the end of the "Thirteenth Five-Year Plan" period. Offshore wind power construction is expected to accelerate further.
In foreign markets, Portugal's Ministry of the Environment and Energy recently issued a statement saying that according to the latest energy and climate plan, the offshore wind power capacity in nearby waters will increase from 0.03GW in 2025 to 2GW in 2030.
According to Wind Europe's forecast, the newly installed capacity of European offshore wind power will be about 5GW and 6.7GW in 2024 and 2025, respectively. Starting from 2026, offshore wind power in Europe will experience explosive growth, with an average annual newly added installed capacity expected to exceed 8GW. By 2029 and 2030, the annual newly added installed capacity of offshore wind power in Europe will reach high levels of 24GW and 31GW, respectively. The compound annual growth rate of installed capacity of European offshore wind power from 2023 to 2030 is expected to reach about 35%.
Li Caiqiu, an industry observer, revealed to Yicai that in more than a year after the strengthening of the deep sea policy orientation in 2022, the newly adjusted offshore wind power construction is expected to start comprehensively, and the prosperity of the offshore wind power industry is expected to rebound significantly. In the new wave of prosperity, the domestic and overseas markets are expected to resonate and boost relevant market demand.
On the level of listed companies, the production capacity of offshore cables and pile tubes in Europe and other places is limited, and the production expansion cycle is long. Orders overflow to Chinese enterprises. Since 2022, Zhongtian Technology (600522.SH) and Ningbo Orient Wires & Cables have won orders for European offshore cables. Dajin Heavy Industry (002487.SZ) has continuously occupied a relatively high market share in overseas orders.
In July, Orient Cable (603606.SH) announced that the company's offshore cable system business had won bids for China Power Construction Huadong Institute's submarine cable of approximately RMB 80 million, SSE's submarine cable of approximately RMB 150 million, and Inch Cape Offshore's submarine cable of approximately RMB 1.8 billion. The total bid amount for the cable system was approximately RMB 2.03 billion.
"The promotion of offshore wind power in China has been relatively slow in the first half of this year, and is expected to increase in the future, but the specific release rhythm depends on the progress of the project. The companies in the overseas market have been actively promoting, and there are also many orders." The staff of the securities department of Orient Cable said to Yicai responding as an investor.