Market review: this week, the public utility index fell 0.48%, the environmental protection index fell 1.54%, and the Shanghai Composite Index fell 0.94%. In the environmental protection sector, atmospheric treatment and testing services fell significantly, down 5.06% and 4.39% respectively. Among public utilities, hydropower rose the most, up 3.79%; The comprehensive services of thermal power and electric energy decreased significantly, by 3.64% and 3.36% respectively.
Industry trends:
Environmental protection:
1) promote joint prevention and treatment of environmental pollution and build a high-level Blue Bay urban agglomeration. Recently, the national development and Reform Commission issued the implementation plan of the 14th five year plan for the construction of Beibu Gulf Urban Agglomeration. Based on the urgent transformation of the traditional development path under the goal of carbon peak and carbon neutralization of Beibu Gulf Urban Agglomeration and the prominent shortcomings of environmental infrastructure, the plan puts forward the development directions of strengthening channel support, highlighting the development to the sea, deepening the guidance of opening-up and jointly protecting the clean water of one Bay. In addition, the plan also calls for promoting joint prevention and treatment of environmental pollution, accelerating the improvement of urban environmental infrastructure, improving the collection and treatment capacity of urban sewage and garbage, promoting the resource utilization of sewage and garbage, promoting the comprehensive utilization of solid waste in coastal cities, and steadily promoting the construction of “waste free cities”; Accelerate the green and low-carbon transformation, promote the energy-saving upgrading and flexible transformation of existing coal-fired power units, accelerate the construction of a diversified low-carbon clean energy system, build an offshore wind power base in the Beibu Gulf, develop distributed photovoltaic and decentralized wind power according to local conditions, and promote the construction of nuclear power projects on the premise of ensuring absolute safety. We will resolutely curb the blind development of “two high” projects and accelerate the green and recycling transformation of industries. It is suggested to pay attention to: waste incineration is the leading point, and high nickel matte starts [ Zhejiang Weiming Environment Protection Co.Ltd(603568) ] of the second growth curve; High quality waste incineration operation company [ Wangneng Environment Co.Ltd(002034) ] with power battery recycling opening up growth space; [ Zhejiang Heda Technology Co.Ltd(688296) ], focusing on information construction in the field of water affairs; The solid waste leader laid out new energy sources, and the progress of energy storage exceeded the expected [ China Tianying Inc(000035) ].
Public:
1) accelerate the deployment of pumped storage project development and construction, and steadily promote the industrialization of new energy storage. Recently, the national development and Reform Commission and the National Energy Administration jointly issued a notice to speed up the development and construction of pumped storage projects during the 14th Five Year Plan period. The circular stressed that we should accelerate the development of pumped storage and take the development and construction of pumped storage projects as an important energy work at present. Make good use of the land guarantee and coordination mechanism for major national projects, strictly implement ecological protection measures, and achieve coordinated development with the ecological environment. In addition, the notice also pointed out that we should take the two-part electricity price as the main body, form the electricity price through a competitive way, include the capacity electricity price into the recovery of transmission and distribution electricity price, and promote the pumped storage power station to participate in the market as an independent subject. At the same time, the planning and construction of pumped storage should also be well connected and coordinated with the planning of large-scale wind power photovoltaic base, project layout and transmission channel, so as to promote the large-scale and high-quality development of pumped storage. It is suggested to pay attention to [ Guangdong No.2 Hydropower Engineering Company Ltd(002060) ] of new energy and pumped storage; Pumped storage equipment [ Dongfang Electric Corporation Limited(600875) ]; Hydropower and pumped storage construction leader [ Power Construction Corporation Of China Ltd(Powerchina Ltd)(601669) ].
2) the “14th five year plan” for scientific and technological innovation in the energy field was released to continuously promote the construction of new energy systems. Recently, the national energy administration and the Ministry of science and Technology issued the scientific and technological innovation plan in the energy field during the 14th five year plan. The plan defines the overall goal of energy science and technology innovation. During the 14th Five Year Plan period, we will break through the shortcomings of existing major technical equipment in the energy field, rapidly rise forward-looking and subversive energy technologies, continue to emerge new business forms and models, and form a number of new advantages of energy long board technology. Further improve the energy science and technology innovation system to make energy science and technology innovation a strong support for leading the high-quality development of the energy industry. The roadmap for the development and application of new and efficient fossil energy technologies has also been formulated, and the relevant tasks related to the safe and efficient development and utilization of fossil energy have been focused on. The breakthrough of science and technology in the field of energy is bound to bring the take-off of new energy industry. It is suggested to pay attention to [ China National Nuclear Power Co.Ltd(601985) ] driven by nuclear power + wind solar dual core; New energy leader [ China Three Gorges Renewables (Group) Co.Ltd(600905) ], thermal power to new energy [ Huaneng Power International Inc(600011) ] [ Shanghai Electric Power Co.Ltd(600021) ] [China power] and biomass + scenery green power generation Star [ Harbin Jiuzhou Group Co.Ltd(300040) ].
This week’s topic: energy storage is a necessary means to improve the flexibility of power system. With the increasing proportion of new energy installed capacity, the importance of energy storage for building a new power system is also becoming increasingly prominent. In addition, the continuous introduction of policies to support the development of energy storage industrialization has greatly increased the installed scale of energy storage system. Electrochemical energy storage leads the rapid development of power energy storage projects with the breakthrough of lithium iron phosphate cost and its flexibility. According to the data of white paper on energy storage industry, the cumulative installed capacity of electrochemical energy storage is expected to reach 6614.8mw in 2021; At the same time, it predicts a new round of high growth from 2024 to 2025, with a cumulative scale of 32.7gw and 55.9gw respectively.
Investment suggestions: during the 14th Five Year Plan period, the state has put forward more requirements for environmental quality and industrial green and low-carbon development. Energy conservation, environmental protection and resource recycling are expected to maintain a high outlook. It is suggested to actively grasp the investment opportunities in energy conservation, environmental protection and renewable resources. It is suggested to pay attention to: Moon Environment Technology Co.Ltd(000811) , Qingdao Guolin Environmental Technology Co.Ltd(300786) , Beijing Geoenviron Engineering & Technology Inc(603588) , Zhejiang Weiming Environment Protection Co.Ltd(603568) , Wangneng Environment Co.Ltd(002034) , Jiangsu Huahong Technology Co.Ltd(002645) (mechanical coverage), China Tianying Inc(000035) , Hanwei Electronics Group Corporation(300007) . During the 14th Five Year Plan period, the low-carbon transformation of energy structure will continue to advance, the installed capacity of wind power and photovoltaic will still maintain rapid growth, hydropower and nuclear power will be promoted in an orderly manner, and energy storage, hydrogen energy and pumped storage will also enter a stage of rapid development. It is suggested to pay attention to: China National Nuclear Power Co.Ltd(601985) , China Three Gorges Renewables (Group) Co.Ltd(600905) , Longyuan Power, Jiangsu Linyang Energy Co.Ltd(601222) , Huaneng Power International Inc(600011) , Shanghai Electric Power Co.Ltd(600021) .
Risk warning: the project progress is not as expected; Intensified market competition; Changes in the international political situation; Policy promotion is less than expected; Risk of price reduction.
