Green energy indicates this kind of energy sources which have less negative impact to the environment than traditional energy sources like petroleum, natural gas and coal. The aim of green energy is creating power with less pollution. The demand and importance for green energy is increasing significantly as our traditional sources of energy is decreasing rapidly. So investment in green energy is a wise investment for the investors.
Investment in green energy
Before selecting the investable green energy project in china we must analyze the overall green energy market, demand and profit potentiality. The current situation and prospect of china green energy market are given below:
Since 2009 china has invested around U.S. $50 billion annually into its renewable energy sector. It has expected that china’s environmental protection industry will be top U.S. $317 billion.
For the development of green energy practices and industry, china is planning to introduce a favorable tax and financial policies. It will build a fund raising environment for this purpose.
Chinese green energy companies are in difficulties regarding financing their profitable project for capital markets. They largely depend on the government fund and subsidy.
China set a target to get above 11% total energy production by 2015.
For foreign companies and investors merger and acquisition is a favorable way to do business in green energy sector in china. China are looking and at capitalization of foreign technology and expertise (Lee, Lee and Lee, 2009, Marney and Tarbert, 2009).
The green energy industry in china is very profit potential and growing. So investor may invest in any of the following 4 major green energy sectors.
Wind power sector
Hydro power sector
In china solar energy is accounted for less than .01% of total domestic production. China is the major player in the international solar power both in terms of consumption and solar power’s absolute production. Under the golden sun program government of china provides subsidies on investment in this sector. China quadrupled a domestic installation goal for sun derived energy projects to 21 gigawatts by the year 2015 (Jeffs, 2010).
China wind power is becoming the single largest driver for global wind power development with a total install wind power capacity of 44.5 gigawatts..
in china it has been observed that from 2004 to 2010 the compound annual growth rate of the wind energy sector was 134% this is equal to 13.8 gigawatts additional energy.
China government special attention and favor on this sector. Along with all other tax incentives the china government announced a tax rebate of 50% on self-manufacture electric power generated from wind power. The tariffs are set at RMB 0.51, RMB .54, RMB .58, RMB .61 for per kilowatt hour. Because of regulation it is difficult for direct foreign investment. But growing competition is allowing many foreign investors to involve in this sector through M&A and JVs.
According to market research china has total 213 gigawatts install hydropower at the end of year 2010. It is expected that chin’s installed hydropower capacity will reach at 380 gigawatts by the year of 2020. Foreign investors can invest in hydropower equipment production, construction material and operational support services, improvement of technology, and technology transmission (Jeffs, 2010).
In china bio gas is considered to be an important source of renewable energy sources. China needs to build installed biogas digester for utilizing about 500 million of animal waste annually. State government of china has mandated the installation of biogas digester for farms with over 100 cattle, 10000 pigs, or 100000 chickens (Jeffs, 2010).
Investment in geothermal energy sector in china is also a lucrative for investors. China has huge geothermal resources. Recently 49.17 billion cubic meters of underground hot water resources have been identified in the central eastern china. In comparison to other green energy geothermal resources are safe, and stable. Geothermal energy emanates from inside the earth. Every day the earth’s core radiates energy which is equivalent to 100 billion barrels of oil. Current exploitation of china in geothermal energy is 500 million cubic meters. Though over the past years geothermal did not receive much focus because of extensive concentration on solar, wind and nuclear energy. But recently geothermal energy has bee given special attention and this sector is growing at the rate of 10% per year.
Investable project in china
There is a potential investable project of Hebie Shangyi Chaoligai 49.5 MW wind Farm Project. The host party of this project is China.
Description of the project activity
This project is located in Chaoligi Village, Shangyi country, Zhangjiakou City, Hebie Province. The proposed project is undertaken by Shangyi Country Chahaer Wind Power CO. Ltd. Based on the condition of the project site, this project is to install and operate 33 wind turbines, with capacity of 1500KW each. That means the total install capacity of the potential project is 49.5 MW. It is estimated that it will generate 117,018 MWh each year. This outcome will be sold to the North China Power Grind (NCPG) (Jeffs, 2010).
Comparable capacity or electricity generation addition provided by the NCPG, is dominated by the thermal power generation. This potential project will reduce of CO2 by the amount of approximately 104,836 tones per year. Following table represents the participants of the project:
Relevant Indicators for financial assessment
For the proposed project total install capacity will be 49.5MW. Net supplied power to the grid would be 117.018MWh. Static investment is estimated to be 440.43 million Yuan RMB. Estimated Equity would be 88 million Yuan RMB and annual O&M is expected to be 13.77 million Yuan RMB. Free cash flow would be 1.49 million Yuan RMB. The life time of the operation is expected to be 20 years and depreciation ratio is estimated to be 6.47%. The depreciation term is considered to be 15 years. Expected operational lifetime of this project would be 20 years. Interest rate on long-term loan would be 5.94%. Feed- in tariff including VAT is 0.54 RMB/kWh. Value added Tax rate is 8.5% and additional tax rate is expected to be 8%. Income tax rate is 25%. Assumed CER price is 10.5â‚¬/tCO2e (Stewart and Ehrbar, 1998, Jeffs, 2010).
A sensitivity analysis can be helpful to asses the financial uncertainty by identifying the cost associated with the project such as capital investment, costs, prices etc., and considering the changes of this cost.
For a wind farm project the factors that influences the IRR of total investment arises mainly from:-
Static total investment
Annual O&M cost
Cost associated with electricity generations,
The following graph is taken from online sources which have show the sensitivity analysis of the proposed project by considering the 10% deviation of the cost parameters
As a growing market for the green energy industry in china it is expected that investor can invest in china. It will help the investors to make profit as well as to contribute in the global environment. It is recommended that before investing in green energy sector, investor must analyze the overall market and proposed project more details. More importantly investors must take a closer look on the competitive environment and the feasibility of the proposed project.
Jeffs, R (2010) Green Energy: Sustainable Electrical Supply with Low Environmental Impact. New York. CRC Press.
Lee, A., Lee, J., & Lee, C. (2009).Financial analysis, planning & forecasting: theory and application. (2nd Ed.). New Jersey: World Scientific Publishing Co.
Marney, J. And Tarbert, H. (2011) Corporate Finance for Business, Oxford University Press.
Stewart, B. & Ehrbar, A. (1998) EVA: The Real Key to Creating Wealth, John Wiley & Sons.
6 | Page
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.
Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.
While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.
Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.
In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.
Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.
We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!
We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.
Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.
We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.
Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.
There is a very low likelihood that you won’t like the paper.
Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.
We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.
You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.
We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.
You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY!!!
We provide professional writing services to help you score straight A’s by submitting custom written assignments that mirror your guidelines.
Get result-oriented writing and never worry about grades anymore. We follow the highest quality standards to make sure that you get perfect assignments.
Our writers have experience in dealing with papers of every educational level. You can surely rely on the expertise of our qualified professionals.
Your deadline is our threshold for success and we take it very seriously. We make sure you receive your papers before your predefined time.
Someone from our customer support team is always here to respond to your questions. So, hit us up if you have got any ambiguity or concern.
Sit back and relax while we help you out with writing your papers. We have an ultimate policy for keeping your personal and order-related details a secret.
We assure you that your document will be thoroughly checked for plagiarism and grammatical errors as we use highly authentic and licit sources.
Still reluctant about placing an order? Our 100% Moneyback Guarantee backs you up on rare occasions where you aren’t satisfied with the writing.
You don’t have to wait for an update for hours; you can track the progress of your order any time you want. We share the status after each step.
Although you can leverage our expertise for any writing task, we have a knack for creating flawless papers for the following document types.
Although you can leverage our expertise for any writing task, we have a knack for creating flawless papers for the following document types.
From brainstorming your paper's outline to perfecting its grammar, we perform every step carefully to make your paper worthy of A grade.
Hire your preferred writer anytime. Simply specify if you want your preferred expert to write your paper and we’ll make that happen.
Get an elaborate and authentic grammar check report with your work to have the grammar goodness sealed in your document.
You can purchase this feature if you want our writers to sum up your paper in the form of a concise and well-articulated summary.
You don’t have to worry about plagiarism anymore. Get a plagiarism report to certify the uniqueness of your work.
Join us for the best experience while seeking writing assistance in your college life. A good grade is all you need to boost up your academic excellence and we are all about it.
We create perfect papers according to the guidelines.
We seamlessly edit out errors from your papers.
We thoroughly read your final draft to identify errors.
Work with ultimate peace of mind because we ensure that your academic work is our responsibility and your grades are a top concern for us!
Dedication. Quality. Commitment. Punctuality
Here is what we have achieved so far. These numbers are evidence that we go the extra mile to make your college journey successful.
We have the most intuitive and minimalistic process so that you can easily place an order. Just follow a few steps to unlock success.
We understand your guidelines first before delivering any writing service. You can discuss your writing needs and we will have them evaluated by our dedicated team.
We write your papers in a standardized way. We complete your work in such a way that it turns out to be a perfect description of your guidelines.
We promise you excellent grades and academic excellence that you always longed for. Our writers stay in touch with you via email.