Huaneng Renewables Corporation

China’s Largest Producer Of Wind Power

Background

Huaneng Renewables Corporation Limited (HNR) is a subsidiary of China Huaneng Group, China’s largest electric power producer, and is the largest producer of wind power in the country by revenue.

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Huaneng Renewables Corporation

It sells wind power directly to the grid operators, as well as in the market. It also sells solar power.

Business Description

HNR is the wind power producing subsidiary of China’s biggest power company, China Huaneng Group, and has the highest wind power utilization rate in the country. As of 2017, the company had total installed capacity of 11,567MW, 92% of which was wind power. Of total revenue, 91% comes from wind power and 9% from solar power.

In 2017, HNR sold just under 1/3 of total power output through direct sales, while the rest was sold into the market.

Huaneng Renewables Corporation

Thanks to government policy, China is now the biggest market globally for wind power. However, the country’s grid-connected capacity is vulnerable to curtailment restraint, meaning wind is available but left unused. Curtailment occurs for any number of reasons ranging from grid congestion to local incentives to support the coal industry over renewables. For example, in 2015, about 15% of China’s wind energy was wasted because of curtailment issues.

Against this backdrop, HNR has been slowing its capacity expansion which will boost utilization and help offset the curtailments.

Leadership

Lin Gang currently serves as the Chairman of Huaneng Renewables after being appointed to this position in 2017. He joined the company in 2008 as a Senior Engineer and later became the President before he was appointed to his current role. He has also held numerous other positions within Huaneng Group. His education consists of a Bachelor’s degree from Peking University and another Bachelor’s degree along with Master’s degree from North China Power College.

Huaneng Renewables Corporation

Cao Shiguang was appointed the President of HNR in 2017 as well. In addition to his presidency, he also holds the position of Chief Accountant and Executive director at HNR as well as other positions within the Huaneng Group. He graduated with Master’s degree in Engineering from North China Electric Power University and received his doctorate degree from Harbin Institute of Technology, China.

World Class Benchmarking

Huaneng Renewables has had a fairly average Profitable Growth, ranked at #5 since 2016. The company ranked among the top 140 of 280 large Utilities companies worldwide.

Profitability has improved to #4 from being ranked at #8 in 2013-2014. Growth has mostly ranked above average and fell to #2 from #4 in the past 12 months.

Huaneng Renewables Corporation

Asset utilization has consistently been ranked among the worst while the opposite is true for Profit margin.

Sales growth has ranked in the top 20% all years except in 2014. Margin change has mainly been in the green as well, but fell to an average rank in the past 12 months.

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