On May 28th, Bian GE, head of overseas projects of China Construction Group, VP of Zhejiang region of Heguang, and Xu Haoyi, founder of Fuer Capital, visited the “Golden Power School” live studio. The live broadcast was hosted by Wang Yukun, director of golden financial content, with the theme “talking about the foreign-related ‘new infrastructure’ of industrial blocks landing from the 100MW photovoltaic power plant in Mali”.
During the live broadcast, the three guests shared topics such as the combined development of technologies such as photovoltaic industry and blockchain, the layout of state-owned enterprises on blockchain, the application of overseas projects to blockchain, and the development of blockchain in entity industry.
The following are the core points of this LVB:
Wang Shuming: energy economy and block chain have the characteristics of natural combination, whether it is traditional power generation or photovoltaic power generation, electricity is reflected in front of us in the form of data, and block chain technology can help data produce better value.
Bian GE: in the matter of blockchain, state-owned enterprises did not stop at shouting slogans and appearances, but rolled up their sleeves and went to war.
Xu Haoyi: blockchain is very similar in nature to the Internet, but there is a difference. Blockchain does the transmission of value data.
Blockchain technology is not omnipotent, and its development is not achieved overnight, which needs to be supported by basic technologies such as industrial intelligence, big data, cloud computing, Internet of things and so on.
E-Pool combines digital identity with digital payment, and uses this basis to do DeFi–EOT, that is, the circulation certificate in E-Pool.
E-Pool will use 20% of its electricity (about 3600 watt-hour) for mining, and the annual production capacity of about 300 BTC, these BTC will be returned to the project participants.
The following are the details of the LVB:
Wang Yukun: first of all, would you please introduce yourself, and introduce the business of your unit or organization and the details of this cooperation?
Bian GE: I come from the professional subsidiary of China Construction Group, which specializes in clean energy and power construction. We are mainly engaged in the design, construction and related investment and financing of Scenic Power Station. I am currently engaged in the development of overseas power station projects, based in West Africa. It is a great honor to be invited by Golden Finance to talk to you about the development of clean energy and the application of new technologies.
Wang Shuming: during my tenure at Trina solar, I was mainly engaged in photovoltaic smart energy overall solution provider, the main business includes photovoltaic products, photovoltaic systems, smart energy three major sectors. Today, I am honored to be invited by Golden Finance to share with you some topics such as the development of clean energy, industrial upgrading, the application of new technologies, opportunities and challenges. I am also very optimistic about the combination of photovoltaic industry and blockchain industry, blockchain is a hot topic in society, I also need to keep pace with the times. So when Mr. Xu of Fuer Capital told me about E-Pool, based on my expertise in the photovoltaic industry, I also made a series of adjustments in the early stage, which I thought was feasible, and then I would join the ecological construction of E-Pool in the form of an industry consultant.
Xu Haofeng: I am Xu Haoyi, founder of Fuer Capital. Fuer Capital is a venture capital company focused on the early stage of the project, mainly focusing on exchanges, blockchain +, and new infrastructure fields. we hope to study the upstream and downstream enterprises of industrial ecology in the form of project investment and cooperation, integrate these industry resources, build the whole industrial ecosystem, and promote the healthy and stable development of the project in the industry. For this cooperation, China Construction overseas is the actual contractor of this project, and Mr. Wang is a good friend of ours. He used to be the vice president of Tianhe Solar Energy in Zhejiang Province. Trina Solar is a listed company, and Fuer is the governing unit of his foundation. It is also a coincidence that we have come into contact with the E-Pool project, and we are very optimistic about the E-Pool project within Fuer.
Now there is a problem in the blockchain industry, that is, I often encounter a situation, when I tell my friends what we are doing in the blockchain, they say that the blockchain is not all liars. Therefore, we hope to prove for the blockchain industry and contribute to the blockchain industry through this project.
Wang Yukun: first of all, I would like to ask Mr. Wang that the photovoltaic industry has developed into a relatively perfect industrial chain in many places. Please analyze the current development trend of the photovoltaic industry for everyone. What is the focus of industrial progress and upgrading in the future?
Wang Shuming: (1) further increase in industrial concentration: in 2020, industrial concentration will be further enhanced, mainly reflected in the following two aspects. On the one hand, the elimination of backward production capacity is accelerated. On the other hand, head enterprises are accelerating their expansion.
(2) the market space is further expanded: 2020 is the key year for China’s photovoltaic power generation to move from subsidy dependence to parity. Overall, the photovoltaic market will resume growth in 2020.
(3) the profit level of the manufacturing side is further reasonable: in the polysilicon link, major enterprises have no plans to expand production in 2020, and the backward production capacity will be gradually cleared under price pressure. it is expected that the overall supply and demand pattern of the polysilicon link will tend to be tight in 2020. Under the strong market demand in 2020, the profitability of the component link is expected to continue to be repaired upward.
(4) further diversification of photovoltaic applications: based on the wide distribution of photovoltaic resources and the application flexibility of photovoltaic power generation, the trend of cross-border integration of photovoltaic power generation in application scenes with different industries in China has become more and more prominent in recent years. Agricultural-photovoltaic complementary, fishing-photocomplementary and other application models have been continuously promoted.
(5) with the decline of the price of photovoltaic products, the cost of photovoltaic power generation continues to decrease, and photovoltaic power generation is widely used in more and more countries.
From the perspective of long-term development, industrial upgrading should focus on the incremental market brought about by demand transformation. Similar to Australia and even Germany, it is worth learning from. Photovoltaic has become a kind of demand from a recommended product, and the owner can install it independently according to his own needs. As the saying goes, the most beautiful thing in the world is “I happen to have it when you want it.” this is an ideal market tacit understanding and a huge increase in national awareness.
Wang Yukun: what is the development of the integration of photovoltaic industry and high and new technology? In the face of all kinds of high-tech tuyere in recent years, what are the opportunities and challenges facing the photovoltaic market? What are the opportunities in the blockchain area?
Wang Shuming: at present, photovoltaic power generation is about to break away from the dependence on subsidies. Due to the huge pressure on photovoltaic parity targets, photovoltaic manufacturing enterprises are forced to accelerate the reduction of photovoltaic power generation costs, and the pace of application of new technologies continues to accelerate. It will even show a development trend that exceeds expectations. Take 210mm size as an example, after Central shares launched the 210mm “Kuafu” series of super-large wafers on August 16, 2019, within a short period of half a year, Aixu Technology’s 5GW210mm battery chip in Yiwu has been mass produced, equipment enterprises Jiejia Weichuang, Jingsheng Mechatronics, Ningxia Mavericks have announced the progress of 210equipment, Trina Solar Energy, Oriental Sunrise and other component companies have also released the application of 210mm wafer component products.
In addition, the expansion of high-efficiency battery technologies such as heterojunction batteries and TOPCon batteries is also advancing steadily. It is estimated that in 2020, the conversion efficiency of P-type PERC single crystal and N-type TOPCon single crystal batteries produced by industrialization will reach 22.7% and 23.3% respectively, and the power of mainstream components will reach more than 325W; PERC battery technology will still be dominant in the battery market, but the output of TOPCon batteries will increase by a large margin; half-chip and 9BB technology will increase rapidly due to obvious efficiency improvement and mature yield.
Opportunities continue: after the epidemic, the world will increase investment in renewable energy to boost economic growth. The (IEA) of the International Energy Agency believes that affected by the COVID-19 epidemic, electricity consumption around the world has dropped sharply, and the total energy demand is expected to reach the largest decline in nearly 70 years, but renewable energy will become the only way of energy with positive demand growth in 2020. At the same time, the G20 Energy Ministers’ meeting said it would assess the response to the COVID-19 epidemic in September, as well as the broader G20 agenda for cleaner and sustainable energy system transformation. We believe that after this epidemic, renewable energy represented by photovoltaic will have greater opportunities for development.
The market pattern of all aspects of the manufacturing industry will become more stable. The epidemic situation is difficult to stop the head enterprises to accelerate the pace of production expansion, and the head enterprises in all aspects of the industrial chain, such as Tongwei, Jingke, Longji, Aixu, Central and so on, have issued production expansion plans, and the degree of industrial concentration has been further enhanced. As the head enterprises have stronger anti-risk ability, new orders will accelerate the concentration of new orders to the head enterprises during the epidemic, further accelerate the “big-to-big” development pattern, and the follow-up market will become more mature and stable.
There are many challenges: the pressure on the cost of backward production capacity is increasing. The capacity of photovoltaic enterprises is continuing to expand, but demand has slowed down due to the impact of the epidemic, and a fall in prices is imperative, which is bound to put great pressure on the higher-cost old capacity. The epidemic has accelerated the accelerated withdrawal of backward production capacity and small second-and third-line factories, the production cost and price of polysilicon have been upside down, and it is difficult to resume production of the old capacity that has been shut down for overhaul. at the same time, the operating rate of small and medium-sized battery plants is low, due to technological renovation demand and lack of funds and other reasons, the operation is not sustainable, the future is bound to leave gloomily. Although the photovoltaic industry faces many challenges, the market opportunity is also at hand.
Energy economy and block chain have the characteristics of natural combination, because whether it is traditional power generation or photovoltaic power generation, electricity is always reflected in front of us in the form of data. And blockchain technology happens to help data generate better value. For example, the output, transmission and even trading of energy can be carried out on the chain, which is the combination I can see.
I also gave some advice on the photovoltaic industry to the E-Pool team, hoping to be helpful to their project development. But more importantly, we hope that the photovoltaic industry can have a good development.
Wang Yukun: what opportunities do you think the photovoltaic industry has in the offshore market?
Wang Shuming: in recent years, under the initiative of “Belt and Road Initiative”, Chinese photovoltaic enterprises have actively gone abroad and actively distributed overseas markets, and the diversified development of export markets has been significantly enhanced. By the end of last year, the new size of the global photovoltaic market is expected to reach 130GW, with an average annual compound growth rate of 38% over the past 15 years compared with 1GW in 2004, making it one of the fastest growing industries in the world. Jans é nio Delgado, a renewable energy expert at the (ECREE) Center for Renewable Energy and Energy efficiency in the Economic Community of West African States, said that at least 52% of the population in the region has no access to electricity. “therefore, we face great challenges in terms of energy and electricity access.” The clean energy corridor project aims to increase power penetration in the region to at least 88% by 2030. With the advantage of solar resources in the Republic of Mali, the 100MWP photovoltaic station is expected to generate 157.1 million kilowatt-hours a year, and the total power generation of the photovoltaic power station after 25 years of operation is 3.9275 billion kilowatt-hours, which can meet part of the.
Now the global photovoltaic industry is booming, and there are more and more large markets. Opening up foreign markets will significantly enhance the expectation, confidence and anti-risk ability of Chinese enterprises.
Wang Yukun: would you please explain for us how to understand and implement the application of blockchain in the dimension of state-owned enterprises?
Bian GE: let me first take Mr. Wang’s words to cut into a topic. I want to talk about the value of the photovoltaic project at this time. I don’t know if you have paid attention to a piece of news recently. in the African country of Zambia, three local Chinese were slaughtered by local people. in the name of the so-called COVID-19 epidemic, their bodies were burned together with their company. The Ministry of Foreign Affairs also spoke about this incident.
In fact, Zambia has a very long history with our country. When our country first began to implement some foreign aid policies in the 1960s, the first large-scale foreign aid project done by China was for Zambia. At that time, because Zambia had copper mines, they wanted to be able to transport domestic copper mines through Tanzania, so they planned a railway, which was the Tanzania-Zambia railway. At that time, he applied for a loan from the World Bank, including the Soviet Union, but was rejected for economic reasons. At that time, after he came to talk to China, we hit it off, so he became our first country with a super-large foreign aid project. The total amount of aid for this project reached 1 billion yuan. What was the concept of 1 billion yuan in 1967? It accounts for 1% of China’s total foreign exchange reserves.
Why should I talk about this topic? As a matter of fact, today, the Tanzania-Zambia Railway is on the verge of abandonment. Many people may say, is it worthwhile for us to spend so much money on such a project in the first place? It is difficult for us to comment on this matter now. But now that we are at the international level, including along the Belt and Road Initiative route, we will do a lot of projects to build camps. What are the advantages of this photovoltaic project among these projects? First of all, its development process is very convenient, relatively compared with a coal-fired power station, the coal-fired power station should take into account the local coal mine and whether the coal mine can be transported in, and the electricity price sold is closely related to the price of coal at that time. Basically, as long as the location of the photovoltaic power station is selected, the meteorological conditions are met, and the government has the corresponding approval, it can be developed and built very quickly. Secondly, photovoltaic is also financiable, and its financing is very strong, because it belongs to green clean energy, and it is now welcomed by the world’s financial institutions, including some large pension institutions, listed companies, banks, and so on. They all like to hold such assets, and now there is also the topic of climate protection in the world.
At present, the mainstream financial institutions in the world have gradually suspended or stopped lending to thermal power, and the financing of the photovoltaic industry is very strong. In addition, connected with the recent unfortunate events that just happened in Africa, I can withdraw from the countries concerned at any time and minimize losses. Therefore, the anti-risk ability of photovoltaic projects is also very strong, which is a digression that I would like to say.
In fact, when we discuss the application and landing of blockchain, the first thing we should pay attention to is the scenario of its application. The “food, clothing, housing and transportation” around people’s life in modern human society has given birth to industries with energy, communications, manufacturing, finance, medical care, retail and logistics as the core, in which there are huge opportunities for the application of blockchain technology. so from the technological dimension, there is no distinction between private enterprises and state-owned enterprises, the starting point of the bottom is the use of new technology to meet the Chinese people’s yearning for a better life.
Therefore, through careful observation, we can find that in the matter of blockchain, state-owned enterprises do not stop at shouting slogans and appearances, but roll up their sleeves and fight. In the field of communications, several major operators began to layout block chain technology patent applications and joint international standards organizations to customize international standards several years ago, the standard is the right to speak, that is, the top of the industry chain. In the electric power field, the two major power grids have invested more than 100 billion yuan in infrastructure construction and technical research of power Internet of things and blockchain technology, and even the State Grid Company set up a separate blockchain technology company last year.
In the energy, trade and transportation industries, Sinopec, Sinochem, Cofco, COSCO, China Railway and other groups have carried out corresponding research and exploration in the fields of supply chain certificates, commodity trading and underlying system construction based on blockchain technology. This is the most important weapon of the country. While enjoying a large amount of dividends from the country’s development, state-owned enterprises must also bear the responsibility of national rejuvenation.
Wang Yukun: just now you also mentioned the importance of overseas project construction and the importance of the national team block chain. What help can high and new technologies such as block chain give to overseas project construction, and what problems can be solved?
Bingo: actually, this is a very difficult question to answer. As soon as we hear about the giants of overseas project contracting, such as China Construction, China Railway, China Power Construction and CITIC, they all think that they are quite classy, but in fact, the dirtiest things such as soil, sand and bricks that they deal with most in the field of engineering construction. Block chains obviously cannot give play to any advantages in these aspects, because any project has to be done brick by brick by migrant workers’ brothers. However, due to its particularity, China’s overseas project contracting has basically gone through several stages:
The first stage is the state free aid that began in the 1970s, focusing on infrastructure-based aid projects for the third World countries in Asia, Africa and Latin America. It was at this time that the first wave of overseas engineering companies went out.
The second stage is the overseas project contracting business that began in the 1990s. In this wave, a large number of window companies have emerged by undertaking projects overseas and docking national policy banks with aid loans, which is the so-called EPC+F, project general contracting + financing mode.
Wang Yukun: would you please share with us what achievements China Construction has made in supporting construction projects? What is the situation in the aid area? From the point of view of the design and construction of energy and power engineering, what are the innovative cases of making use of high and new technology?
Bian GE: the predecessor of China Construction is the State Administration of Construction and Engineering. Before the reform and opening up, you can understand the departments that specialize in building construction for the country. Therefore, under this background, the development history of China Construction is the development history of China’s construction industry, and the development history of overseas projects of China Construction is the development history of China’s construction industry going out. That’s the right way to understand it. During the 20 years from 1959 to 1979, the main mission and responsibility of China Construction was to undertake the task of engineering construction in the state’s foreign economic assistance. So with regard to the achievements of China State Construction Assistance Project, for example, we asked Alibaba what achievements he had made in the field of e-commerce in China. Our company has been developing projects in West Africa since 2017. my country, the Republic of Mali, is a former colony of France. My family was frightened when they first heard that I was going to Mali on a business trip, saying, “how can you go to a country where piracy is prevalent?” It turns out that they regard Mali as Somalia. In fact, I believe many people can’t react to it when they hear it for the first time. Well, after our working group arrived in Mali, after a period of time, we found that there is still a very close relationship between Mali and China. Their first president was a very good friend of Chairman Mao, or a die-hard fan. we saw a lot of infrastructure built by China at that time, including bridges over the Niger River, roads, universities, hospitals and factories. When you are on the road, you will inadvertently find buildings with obvious Chinese characteristics. Therefore, thanks to the friendship between the two countries, we finally successfully developed large-scale ground power stations and transmission and distribution lines, and last year the two countries successfully signed a cooperation agreement with Belt and Road Initiative.
At present, the innovation cases of high and new technology are mainly concentrated in three major fields: green construction, intelligent construction and construction industrialization. As the name implies, green building mainly revolves around the building energy saving and emission reduction technology, forms a complete set of technology in building materials and construction, and builds the overall operation platform of green building. In the aspect of intelligent construction, China Construction has led the domestic construction application standard of BIM (Building Information Modeling). This BIM literal translation is “building information model”, which is a breakthrough in the use of modern computer computing power, through three-dimensional software “virtual design and construction on the computer”. Get rid of the design method of “drawing” for thousands of years.
Wang Yukun: next, I would like to invite Mr. Xu, for the physical industry, how to reflect the value of the blockchain? Between the blockchain industry and the physical industry, how to complement each other to promote the mature development of the industry?
Xu Haoyi: when it comes to this problem, we should first examine the nature of the lower block chain. The bottom of this era is interconnection, and the essence of interconnection solves the problem of information and data transmission. For example, whether it is Afu’s Express or Taobao, what he does is to put the merchant information of the manufacturing industry on the Internet, so that more customers can see the arrival to facilitate the transaction. Blockchain is similar in nature to interconnection, but there is a difference. Do blockchain transfer value data, or take the manufacturing industry as an example. “for example, in the most global manufacturing industry, the rack has tens of thousands of parts, and the standard and replacement frequency of these parts are” constant “. Then the time cost and trust cost of obtaining the huge amount of data behind these parts will be” constant “. Block chain technology can quickly and accurately understand the source of each component and reduce the repair cost of these parts. This is not my brag. At present, Airbus’s system is mature and in operation.
To be honest, it is too early to talk about how to complement each other, because there is no set of mature criteria to define what can be done, and we only know what can not be done, so we are also in the process of exploring, touching the head and crossing the river, and Nuda is paving the way for projects like E-pool. In the process of crossing the river, we should try to get rid of the current situation of fraud, so I would like to reiterate that blockchain technology is not omnipotent, it is only a technology, and its development is not achieved overnight. He needs a series of basic technologies such as industrial intelligence, big data, cloud computing, Internet of things and so on, so please invest rationally.
Wang Yukun: in fact, today we are talking about the power station, photovoltaic, there is a landing site-E-pool. Through blockchain technology and pass economy, what kind of new form can E-pool build in the deployment, operation and maintenance, finance and derivatives of electric energy? What is the current progress of the project? How is the development roadmap planned?
Xu Haofeng: E-Pool is an alliance chain, which is a suggestion given by us after we invested in the team. The team originally wanted to make a common chain, but because the cost of the public chain was too high and the integration with the industry was not appropriate enough, the E-Pool team finally accepted our suggestion to build an alliance chain suitable for energy finance.
In E-Pool, the team will combine digital identity with digital payment, and use this basis to do DeFi–EOT, the circulation certificate in E-Pool, which can be understood as DC-EP in Mali. And in the use of energy, 80% of the production capacity will be used for local domestic and industrial use in Mali, electricity revenue will last for 25 years, the annual profit of the 100MW power station will be about 200 million yuan; another 20% of the electricity will be used for mining, and the annual production capacity will be about 300 BTC, these BTC will be returned to the project participants in the wave superposition plate. These allocations will be made directly with smart contracts. It can significantly reduce the cost of operation and maintenance.
The key point is that electricity is free. At present, the project is gradually introduced to the market, and many institutions have also expressed a strong willingness to follow suit. The team plans to complete the marketing part in the third quarter and build the plant and run it on the chain in the fourth quarter of this year. The E-Pool team also welcomes organizations or teams interested in the industrial blockchain to participate in this project.
We believe that it must be the industrial blockchain to survive in the industry, and there are still too many bad projects in the industry in the past two or three years and even in the first half of this year. E-Pool will be the brightest industrial block chain project this year, without one.
Wang Yukun: finally, please imagine what kind of industry changes the physical industry will show under the wave of block chain and new infrastructure.
Xu Haofeng: this issue is often discussed within Fuer Capital, especially after coming into contact with E-Pool. In fact, when it comes to physical industry, our first concept is to think of industry, especially heavy industry. But let’s think about it carefully, the scope of the real industry is very large, consumption and production are related to the real industry. Looking at the changes, DC-EP will soon be on the ground, and our assets will be more digital. “New Infrastructure” is the main investment track of Fuer Capital this year, and E-Pool is the representative of “New Infrastructure”. The most direct change that E-Pool brings to Mali is to improve the local power grid organization, because the power grid is actually an entity organization that fits the block chain very well, a super ledger, peer-to-peer power supply. Mali is very limited in this respect because of its own development, and what E-Pool does can enable them to get a strong power grid system in the shortest possible time, based on this premise. E-Pool can obtain rich value data, so as to build a real DeFi platform, enrich the business and investment environment in Mali, and realize the integration of industry and finance. Well, the Malian government also thinks so, and the Ambassador of the Republic of Mali to China also invited us to go to the Embassy of the Republic of Mali in China in early June to have an in-depth discussion on the development of local energy and blockchain. So the value brought by the blockchain when it really hits the ground is inestimable.