The national Standing Committee approved three new nuclear power units, and the acceleration of nuclear power development can be expected; The price department of the national development and Reform Commission made it clear that the new scenery projects in 2022 will continue to implement the parity Internet policy to help stabilize the market and the expected return of the projects. The general office of the Ministry of agriculture and rural areas and the comprehensive Department of the National Rural Revitalization Bureau jointly issued the guidelines for social capital investment in agriculture and rural areas (2022), encouraging the development of key industries and fields such as agricultural and rural green development, agricultural and rural infrastructure construction and rural residential environment improvement.
Market performance review: this week, the Shanghai Composite Index fell 3.87%, the Shenzhen Component Index fell 5.12%, the gem index fell 6.66%, the Shanghai and Shenzhen 300 fell 4.19%, and the CITIC power and Utilities Index fell 0.85%.
Public latest view: the national Standing Committee approved the new nuclear power unit and continued the parity Internet access mechanism. The executive meeting of the State Council pointed out the need to strengthen energy supply and promote the continuous optimization of energy structure. Among them, it is proposed to carry out the “three transformation linkage” of coal-fired power units, and complete the installed transformation of coal-fired power more than 220 million KW throughout the year; Approve the construction of three new nuclear power units in Sanmen, Zhejiang, Haiyang, Shandong and Lufeng, Guangdong, and actively and orderly develop nuclear power on the premise of ensuring absolute safety. The price department of the national development and Reform Commission issued the letter on the continuation of the parity Internet access policy for new wind power and photovoltaic power generation projects in 2022, which made it clear that the parity Internet access policy will continue to be implemented for new scenery projects in 2022, and they can voluntarily participate in market-oriented transactions, and required all localities to issue relevant support policies according to the actual situation. The acceleration of nuclear power is in line with the policy deduction that nuclear power will act as an important basic nuclear power supply under the background of carbon neutrality, laying the foundation for the sustained, healthy and prosperous development of nuclear power. Considering the long construction cycle of nuclear power projects, the flexibility of project approval for the short-term performance of nuclear power operators is limited, and the rise of market transaction electricity price has a more significant catalytic effect on the stock price of nuclear power. Coal power flexibility transformation is a better way to deal with the impact of large-scale access to new energy on the power grid system. How to channel the transformation cost to the downstream has become a difficulty. It is necessary to straighten out the price transmission mechanism to solve the problem of insufficient economy in the transformation of coal power enterprises. For new energy projects, the continuation of the benchmark price mechanism will help stabilize the expectation of market return and provide institutional guarantee for the healthy development of new energy.
The latest viewpoint on environmental protection: the guidelines for social capital investment in agriculture and rural areas (2022) was issued to encourage the development of green industries in rural agriculture. Recently, the general office of the Ministry of agriculture and rural areas and the comprehensive Department of the National Rural Revitalization Bureau jointly issued the guidelines for social capital investment in agriculture and rural areas (2022). The guidelines are aimed at standardizing social capital investment and guiding effective investment in agriculture and rural areas. Key industries and fields that encourage investment and involve energy conservation and environmental protection include:
Green development of agriculture and rural areas, construction of agricultural and rural infrastructure and improvement of rural living environment. Specifically, the guidelines encourage social capital to actively participate in the development and utilization of rural renewable energy, support the research and application of carbon reduction and exchange enhancement agricultural technologies, participate in the ecological protection of the Yangtze and yellow river basins, the protection of black land in Northeast China, and the treatment and restoration of heavy metal polluted cultivated land, encourage participation in the construction and operation of rural toilet revolution, rural domestic waste treatment, rural domestic sewage treatment and other projects, and improve the collection, transportation and disposal system of rural domestic waste, Strengthen the construction of comprehensive disposal and utilization facilities of organic waste in villages. In order to promote the implementation of the above investment, the guidelines encourage innovation in the cooperation mode between the government and social capital, explore the establishment of Rural Revitalization investment fund and other investment and financing modes, comprehensively improve the planning system platform, build a modern agricultural park platform, fully mobilize the positive polarity of social capital and the multiplier effect of government investment, and provide an important guarantee for the healthy development of rural clean energy, energy conservation and environmental protection industries.
Risk factors: sharp rise in fuel costs; The electricity price fluctuates more than expected; The government’s ability to pay has declined; The progress of the project was less than expected.
Investment strategy: the power investment proposal follows three main investment lines: business model reconstruction and value revaluation brought by thermal power transformation and new energy; New energy operators who are in a high-speed growth cycle and enjoy the dividends of technological progress; High quality hydropower and nuclear power with growth expectations and continuous improvement in cost performance in the process of rising thermal power. Environmental protection suggestions focus on high-quality segments, and continue to be optimistic about waste power generation at the end of the large solid waste industrial chain and front-end sanitation operation; The testing industry is at a critical stage of upgrading from a large industry to a large company, and the leading comprehensive testing companies benefit from the growth and concentration of the industry. Recommendations include the recommendation of China Three Gorges Renewables (Group) Co.Ltd(600905) , Pony Testing International Group Co.Ltd(300887) , Guangzhou Grg Metrology&Test Co.Ltd(002967) , etc.
