The "15th Five-Year Plan" carbon peak action plan is released, and grid and new energy operators will welcome certain benefits (J.P. Morgan)
J.P.
J.P. Morgan believes that China has released its “15th Five-Year Plan” Carbon Peaking Action Plan, which clarifies its carbon intensity and non-fossil energy proportion targets in 2030. Related measures will benefit power grid equipment and renewable energy operators. At the same time, China General Nuclear Power (CGN)'s nuclear power generation increased by 3.5% year-on-year in the second quarter, and Yangtze Power's hydropower generation increased by 2.8% year-on-year in the second quarter, showing solid operating data. One sentence conclusion: Policies and fundamentals resonate, new energy operators and power grid equipment manufacturers will usher in a new round of business cycle, and the value of industry leading configurations will be highlighted. Positive/negative: Positive for grid equipment manufacturers such as Sungrow, Dongfang Cable, and Tered, as well as new energy operators such as Longyuan Power. It is also good for power generation leaders with stable performance such as China Guangdong Nuclear Power and Yangtze Power. The market has responded to the short-term impact of the policy, but the long-term growth space has not yet been fully priced in. Catalysts: 1) Implementation of the “15th Five-Year Plan” carbon peaking action details; 2) New energy on-grid electricity prices and green electricity trading policies; 3) Monthly data on UHV and power grid investment.