SPIC News: SEP Plays 'Existing Deck of Cards' Well with Precise Measures

In the first half of 2020, SEP actively coped with the impact of COVID-19, followed the deployment of SPIC Party Leadership Group, adhered to the principle of "one plant, one policy", solidly promoted the implementation of SDSJ system, aimed at profit maximization, and played the "existing deck of cards" well with flexible execution of business strategies, which resulted in a 20% increase in power generation, a 35% year-on-year increase in the procurement of imported coal, a significant reduction in thermal coal cost, along with RMB 6.8 billion replacement of high-cost existing loans, thus achieving a remarkable growth in profit despite the global economic recession.

The company made every effort to improve the quality and efficiency of old power plants. For instance, Waigaoqiao Power Plant, located in Shanghai Waigaoqiao Free Trade Zone, was established in late 1990s. As an old power plant with 300 MW-class units, its major indicators, such as net coal consumption rate and station service power consumption rate, has fallen far behind those newly built 1000 MW-class units. In previous years, Waigaoqiao Power Plant would transfer its power generation to obtain profits, but since this year, it has generated more than 1 billion KWH of electricity, an increase of 54.1% year-on-year, with total profits of RMB 11.87 million in the first half of the year. The power plant GM Shen Haihua attributed this to the parent company SEP's insistence on flexible business strategies and orientation of profit maximization.

Regarding the existing renewable energy projects, SEP attempted to improve efficiency through lean management and precise measures. Take SEP Xinda as an example. Internally, the company organized expert teams to conduct plant site problem diagnosis on a regular basis, especially real-time evaluation of power output and analysis of inverter power generation, combined with the normalization of work safety inspection, sorted out various types of production problems already identified, so as to ensure the optimal operation conditions of the plant. Externally, the company communicated with the wind power prediction system manufacturers in an in-depth manner, and endeavored to increase the accuracy of wind power prediction and reduce the assessment of "two detailed rules". Besides, it negotiated with the financial institutions on the project financing replacement, and strove to further reduce the interest rates and lower the financial expenses. It also strengthened exchanges and coordination with power grid companies, studied the power market trading mechanism, reduced the losses of brownouts, strove for the power output of generation rights trade, so as to increase the profits.

In the second half of the year, SEP will uphold its annual goals firmly, continue to make good use of two major tools, i.e., JYKJ and SDSJ systems, adhere to "one enterprise, one policy" and flexible operation, and play the "existing deck of cards" well.

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