Event: on March 4, Shandong Provincial Energy Bureau issued the guidance on energy work of the whole province in 2022, proposing to build an offshore wind power base with a planned total scale of 35gw, comprehensively start the development of sites in the sea areas under the jurisdiction of Bozhong and the south of the peninsula, with a construction scale of more than 5GW and a grid connection of about 2gw. Adhere to the principle of “integration and dual use” and promote the military civilian integration development of offshore wind power.
With a total scale of 35gw, Shandong has built an offshore wind power base. This plan mainly focuses on Bozhong and the south of the peninsula. According to the principle of overall planning and step-by-step implementation, the total scale of the plan is 35gw, focusing on promoting the centralized and continuous development of a number of million kilowatt projects, forming a large-scale and base effect, and building a ten million kilowatt offshore wind power base. Combined with the technological progress and future development trend of wind power, gradually promote the development of offshore wind power to deep and distant seas, select some sites, carry out far-reaching offshore wind power parity demonstration, and promote the innovative application of floating wind turbine foundation and flexible DC transmission technology.
Offshore wind power is the general trend, and the industry boom is further improved. The guidance marks the official implementation of the offshore wind power planning of Shandong Province, with a total planned scale of 35gw, and emphasizes that the construction scale is more than 5GW, and about 2gw will be connected to the grid to build an offshore wind power base. Offshore wind power has developed rapidly in recent years. After the refund in 2021, the parity rate of offshore wind power continues to accelerate, and coastal areas have joined the team of offshore wind power layout. The implementation of the offshore wind power planning in Shandong Province marks the further improvement of the offshore wind power market space and the prosperity of the industry.
The submarine cable pattern is excellent, and the industry boom is positive for leading manufacturers. The threshold for submarine cable suppliers is high, and there are many requirements for production qualification, port resources and past performance. The industry pattern is more concentrated than that in other fields of Haifeng. As an important green energy, offshore wind power is in a period of rapid development, and its attention has been continuously improved. During the “14th five year plan” period, the state and coastal cities have a clear plan for offshore wind power. China’s leading cable manufacturers have relatively obvious advantages with excellent products, systematic service capability and excellent past performance. We expect that the construction of offshore wind power will continue to accelerate during the 14th Five Year Plan period, and the whole marine sector is expected to enter a continuous upward stage.
The industry has been improving for a long time, focusing on the opportunities of leading submarine cable manufacturers. As one of the most important new energy sources, offshore wind power will continue to develop at a high speed. The submarine cable pattern is relatively more concentrated. The head manufacturers have full orders and strong business profitability. With the trend of large-scale wind turbines and the promotion of wind farms in deep and open seas, there is room for continuous iteration of submarine cable products, technologies and value, and the development prospect is good. Chinese submarine cable manufacturers have obvious competitiveness in all aspects and are basically not controlled by others. There is room and possibility for global layout in the future. Investment suggestion: we are optimistic about the overall development trend of offshore wind power industry, focusing on Jiangsu Zhongtian Technology Co.Ltd(600522) Zte Corporation(000063) and Hengtong Optic-Electric Co.Ltd(600487) Hengtong Optic-Electric Co.Ltd(600487) , which are relatively low valued and in the leading position in the submarine cable field. We recommend paying attention to Ningbo Orient Wires & Cables Co.Ltd(603606) Ningbo Orient Wires & Cables Co.Ltd(603606) .
Risk tip: the development of offshore wind power is less than expected, and the industry competition intensifies
