Energy Internet boom is surging, photovoltaic companies need strategic transformation

China Energy Storage Network: As the country attaches importance to and promotes the energy Internet, industries and enterprises are also actively integrating with the Internet, and embracing the Internet has become a hot word of the times. In the field of energy Internet, Aikang is also starting a new transformation and exploration.

As one of the leading comprehensive suppliers and system integrators in the new energy industry, Akcome has decisively positioned the next 10 years as the era of opening up the energy Internet - promoting changes in energy production and consumption methods, using the Internet, big data and inclusive new financial services to connect the energy production and consumption ends, and provide innovative new energy solutions for society, enterprises and end users, creating an intelligent green energy ecosystem and promoting sustainable development.

At the 2016 Photovoltaic + Energy Internet Seminar and Akcome 10th Anniversary Celebration held recently, the reporter interviewed Zou Chenghui, Chairman of the Board of Directors of Akcome Group, on topics such as the layout of the future new pattern of energy Internet.

Comprehensive positioning of energy internet

Reporter: Amid the energy internet boom, although many companies are also making plans in this area, Aikon is making a strategic transformation to energy internet across the entire industry chain. What is the basis for making such a decision?

Zou Chenghui: It is mainly based on two points: First, it provides a very important foundation for deepening power reform. With the release of the opinions on power system reform and the clarification of specific measures, the new round of power reform has entered the stage of full implementation, covering six aspects: power transmission and distribution price reform, power market construction, establishment of trading institutions, release of power consumption plans, power sales reform, and supervision of self-owned power plants. This marks the beginning of energy entering the consumption side.

Second, with the vigorous development of new energy, distributed energy will become an important direction for the development of new energy, and the development of energy Internet, such as microgrid technology, will undoubtedly greatly promote the advancement of distributed energy.

Reporter: What is Aikon's strategic layout for the development of energy Internet?

Zou Chenghui: I think that Akcome’s strategic layout should start with power generation and build power stations of a certain scale. In addition to its own power stations, it should also control a number of power stations through asset securitization and other means, such as providing photovoltaic power station solutions for management and operation. At present, Akcome has managed and operated photovoltaic power stations with a scale of more than 1GW, and has the ability to manage and operate 10GW photovoltaic power stations. The goal is to manage and operate 20% of the country’s solar photovoltaic power stations. On the basis of solar power generation, we will also actively explore green power generation such as wind, water, nuclear, and gas to seek a broader energy space.

Secondly, it is to develop the electricity sales market. The power reform has made the electricity sales business market-oriented. As a photovoltaic power generation company, in order to adapt to the power system reform, Aikang has made extensive layouts in the electricity sales market this year, and is also actively deploying new energy vehicles and charging piles. New energy vehicles are a good energy storage platform. At the same time, through intelligent management and control, the car and the charging pile are effectively connected to achieve power generation and power consumption management and control.

Thirdly, between the electricity production and consumption ends, through Internet finance, the capital flow, information flow and electricity flow are organically combined, giving full play to Aikon's advantages in capital flow, information flow and electricity flow.

Reporter: Although the energy Internet is very popular, the profit dilemma cannot be ignored. The industry has not yet found a profit model. What is Aikang's profit expectation?

Zou Chenghui: We will not make losses. We are asset-light, not asset-heavy.

Reporter: At present, it can be said that Aikon is making comprehensive efforts to transform the energy Internet across the entire industrial chain, and the steps are quite big.

Zou Chenghui: We have been developing at a fast pace. In the past 10 years, Akcome has made major moves every year, from photovoltaic accessories to battery components to power station operation and maintenance.

With an average annual growth rate of 80%, Aikang ranked 325th in the list of "Top 500 Chinese Private Enterprises in 2016" released by the All-China Federation of Industry and Commerce. The characteristic of Aikang is to do what it sees right.

To provide value-added services for electricity sales

Reporter: Aikon started out as a photovoltaic power generation company. Does it have any advantages in selling electricity?

Zou Chenghui: The electricity sales market has just emerged, and no one has an advantage. Everyone is making plans. Although there are many registered electricity sales companies across the country, the electricity sales market is still in a competitive situation, and no real market leader has yet formed.

Reporter: In which regions will Aikon develop its electricity sales layout?

Zou Chenghui: We prefer to develop in regions where we have advantages, such as Jiangxi and Hunan, rather than madly deploying across the country from the beginning. Aikang mainly relies on cooperation and interaction with local governments to promote the development of electricity sales business.

Reporter: There is news that Aikon has now established four electricity sales companies. Is that true?

Zou Chenghui: Our latest announcement is that we have set up 6 power sales companies with a total investment of 1.6 billion yuan, located in Shanghai, Guangdong, Qinghai, Xinjiang, Inner Mongolia and Jiangsu.

Reporter: Because the power sales company is a new link in the industrial chain, if it does not create value, adding a link means increasing costs. The power sales company cannot just focus on earning the difference between wholesale price and retail price. So what value-added services will Aikang Power Sales Company provide?

Zou Chenghui: We don't make a price difference, we definitely want to provide more services. The services we provide are very extensive, such as financial services. Traditional power companies require users to pay first and then use electricity, but we welcome users to buy our financial products. For example, we provide a photovoltaic power station with a cost of 70,000 yuan and an installed capacity of 10,000 watts to a family with good credit. They don't need to take out a loan. We only charge an annual interest of 5%. The 10,000 watt installed capacity has an annual power generation of 12,000 kWh. If we sell it to the power grid at 1 yuan per kWh, we can earn 12,000 yuan, 350 yuan in interest per year, and the 70,000 yuan will be repaid in 10 years, with an annual principal repayment of 7,000 yuan. The total repayment amount for one year is 7,350 yuan, so the user still makes a net profit of nearly 5,000 yuan. This is our financial service.

Aikang sells electricity, and its advantage lies in service. It is inconvenient for users to go to the business hall to buy electricity, so we can connect with WeChat. In addition, the interface of electricity is also the interface of information. We will rely on these to develop more and better services.

Now our power sales team has set up a framework, and the business scope is initially planned to include power sales, power project development and investment, power engineering design, construction, commissioning, power production, power station operation and maintenance, solar energy product sales, technical services and training, and gradually layout the power sales market.