...June 11, 2024 Average power tariff to decline over time: Average power tariffs for China Longyuan Power Group Corp. Ltd. could decline by 5%-7% over 2024-2025. This is as the company trades more power volume in the market. Its mix of market traded wind power volume increased to 47% in 2023 from 39% a year ago. The number could further climb to 50%-55% over the next two years. Partly tempering the tariff decline will be steady utilization hours for Longyuan's power plants. The company's wind power utilization hour was 5% higher than the national average in 2023. Market-based trading may increase both price and volume risks for operators, but also improve their flexibility for dispatching and reducing curtailment risks. Aggressive expansion constrains financial ratios: Longyuan aims to add 7.5 gigawatts (GW) of new wind and solar capacity in 2024. We expect the company to add a total of 15 GW and upsize 1.2 GW of existing projects over the next two years. This will require capital expenditure...
