Jiefang Daily, Shanghai Observer: SEP's Installed Capacity Exceeds 10 GW

According to the latest data released by the company, SEP's controlling installed capacity has exceeded 10 GW.

 

At the end of 2010, the company's controlling installed capacity was just over 5000 MW, and the total assets were just more than RMB 30 billion.

 

At present, the company is positively transforming to an innovative and international modern energy enterprise with clean energy, new energy, energy technology R&D and modern electric power service all rolled into one.

 

Seven years ago, the total installed capacity of SEP was fairly small, and its power mix was quite single, with all coal-fired power generation except for Caojing Cogeneration. In order to respond to the national policy of "developing large units and shutting down small ones" and the requirement for Shanghai municipal government to hold the Shanghai World Expo 2010, small units with total capacity of about 1740 MW were shut down in Shanghai, among which the units of SEP accounted for 80 percent. At that time, the total number of the company's staff was more than 8000. However, after shutting down the units of Nanshi, Minhang, Yangshupu and Wujing Power Plants, the number of employees in actual need was only about 2000, which meant that around 6000 employees would become redundant, and thus the career prospect for the vast number of staff became a primary problem for the company to solve.

 

The leading group of SEP treated it a mission to realize the value preservation and appreciation of state-owned assets, and put forward a series of reform measures for the century-old electricity enterprise to accomplish transformation and upgrading.

 

The company considered talent as the most valuable wealth, and has been improving its human resource management system continuously since the 12th Five-Year Plan period (2011-2015), optimizing the staff team structure, enhancing the staff's capacity and quality, and innovating the talent reserve model, in order to provide talent guarantee for the company's development. At present, the total number of the company's staff is 6015, with high-skilled personnel accounting for 62 percent of all production personnel and staff with bachelor's degree or above accounting for 35 percent of all staff. The company resorted to various measures such as developing power plant service industry at home and abroad, attempted to solve the re-employment issue of redundant employees on its own, and realized the sustained stability of the enterprise and staff successfully.

 

Confronted with the pressure of electricity market changes on the company's sustainable development, SEP proposed and actively implemented the "1234" development strategy. As of 2015, the company's controlling installed capacity increased from 6010 MW to 9360 MW, the installed capacity of renewable energy rose from zero to 813.9 MW, the proportion of clean energy added to 30.79 percent, the total assets jumped by 62 percent, the total profit soared fivefold, the net profit rocked nearly sevenfold, and the total profit and net profit created new highs for five consecutive years.

 

In the meantime, SEP has been vigorously promoting the innovation and implementation of energy conservation and emission reduction technology, has completed high-efficiency de-dusting, de-SO2 and de-NOx rehabilitation on all of its coal-fired units, accomplishing the emission reduction goal for the 12th Five-Year Plan a year in advance, and carried out ultra-clean emission retrofitting on Caojing Power Plant, which was among the first batch in the industry. The company's emission performance for SO2, NOx and dust has increased significantly, and the net coal consumption rate and comprehensive station service power consumption rate has decreased year by year.

 

As a public company, SEP has been enhancing the net profit through main business development, with management situation improving steadily and the total market value more than doubling from that in 2010, reflecting the highly recognition of the capital market for the company's value. Besides the highest credit rating of AAA from CCXI, SEP was granted the ratings of BBB+, Baa2 and BBB from the three major international credit rating agencies Fitch, Moody's and Standard & Poor's  respectively. The company was also awarded the title of "National Civilized Company" and "National May 1 Labor Certificate".

 

At the beginning of the 13th Five-Year Plan period (2016-2020), SEP revised the original "1234" development system as follows: building an innovative and international modern energy enterprise; dual drive of innovation and talent; being excellent in Shanghai, superior in China and strong in the world; "four further transformations", i.e., further transformation to a clean, high-efficient and diversified green low-carbon enterprise, further transformation to a listed company with stronger value creation ability, further transformation to an innovative, pioneering and customer-oriented integrated smart energy supplier and service provider, and further transformation to a multinational enterprise with global competitiveness.

 

The company has been amply rewarded for its endeavors. As of end-August 2017, its controlling installed capacity exceeded 10 GW, almost doubling from that in the end of 2010, the installed capacity for renewable energy reached 1490 MW, and the proportion of clean energy further increased to 33.5 percent. Moreover, the emission indicators for coal-fired power generation has mainly reached or surpassed those for gas-fired power generation.

 

In terms of enterprise management, the company, starting with conventional thermal power generation, has preliminarily formed a complete set of modern management system featured with constant improvement. The company developed a whole staff performance management system based on EVA value management and using KPI as the assessment tool, carried out BPR on core business management process, and obtained certification from DNV for its QHSE system. The company also formed and executed the allocation mechanism with the performance assessment which base pay, performance bonus and capability bonus account for 50 percent, 35 percent and 15 percent respectively linked to salary distribution, and thus created a good atmosphere which let people who want to work have the opportunity, let people ready to work have a stage, let people capable of work have good pay, and let people who succeed in work win recognition. Meanwhile, the company has been constructing a PRO platform for its Informatization positively, and launched a three-year lean management improvement initiative in 2015, which boosted the enterprise management capacity to a new level.

 

At home, SEP firmly implemented the country's supply-side reform, pursued the synchronous growth between quality and scale, and has carried out sustainable energy development extensively in nearly 20 provinces and municipalities including Zhejiang, Jiangsu, Shandong, Hebei, Anhui, Hubei and Xinjiang.

 

In the overseas market, the company actively executed China's Belt and Road Initiative and SPIC's international strategy. As of the end of 2016, the company had carried out related work in a total of 43 projects located in 19 countries, and the overseas total assets reached RMB 7.559 billion. Among them, SEP's acquisition of 66.4 percent stake of Pakistan-based K-Electric (KE) was awarded the "Best Pakistan Deal" in 2016 by Finance Asia; the purchase of Enemalta and Delimara 3 Power Plant in Malta became SEP's first project implemented in Europe; Hunutlu Thermal Power Project was the largest project invested by Chinese enterprise in Turkey; the PV power project in Japan became the first project developed by Chinese enterprise to realize commercial operation and make profit in G7 countries.

 

The company will strive to achieve the goal of "building another SEP by 2020", i.e., by 2020, the company's controlling installed capacity will reach 16.8 GW, the overseas controlling installed capacity will reach 5800 MW, and the proportion of clean energy will be not lower than 50 percent; the company's revenue will exceed RMB 28 billion and total profit will arrive at RMB 6 billion.

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