Goldwind Science And Technology : 2023 Annual Results Presentation

2023 Annual Results

• • Global new installations in 2023 achieved 118GW, an increase of 36% yoy, with onshore wind of 106.7GW，an increase of 37% yoy, and offshore wind totaling 11.3GW, an increase of 25% yoy.

Note: data from Bloomberg New Energy Finance.

• • Mainland China's booming wind market underpinned the strong growth, with 77.1GW of new capacity added, accounting for 65% of global new build, and surpassed the second largest market, the United States (7.2GW), with nearly 70GW. Brazil took the third place in the ranking, its installed capacity increased significantly to 5.0GW in 2023.

• • In 2023, China recorded 75.7GW of new grid-connection, an increase of 101% yoy.

• • As of the end of 2023, China's cumulative grid-connected wind power capacity totaled 441.3GW, taking 15.1% in China's power mix. Meanwhile, thermal power declined to 47.6%.

Note: data from National Energy Administration, China Electricity Council and Wind Europe. *Wind Penetration rate=wind power production/total power consumption.

2019

2020

2021

2022

2023

• • In 2023, China's total power consumption was 9,224.1 billion kWh, an increase of 6.7% yoy. 885.8 billion kWh of wind power production represented an increase of 16.2% yoy and a penetration rate* of 9.6%.

• • 27 member states of the European Union and the UK had an average wind energy share reached 20% in 2023. Denmark had the highest share of wind (56%).

2019

2020

2021

2022

2023

• • National average wind utilization was 2,225 hours in 2023, up 7 hours relative to 2022.

• • National average wind power utilization rate was 97.3%, increasing by 0.5 percentage point yoy. The utilization rate of wind power in 12 provinces and cities, including Tianjin, Shanghai, Jiangsu, Zhejiang, Anhui and so forth has reached 100%, respectively.

Note: data from China Electricity Council，China Renewable Energy Monitoring Platform and IRENA.

2018

2019

2020

2021

2022

• • Levelized cost of electricity (LCOE) of China's onshore wind dropped to a more competitive level of USD 0.027/kWh in 2022, reducing 53% in the past 5 years.

• • China's average construction cost of onshore wind in 2022 lowered to USD 1,103/kW, decreasing 15% relative to 2018. The global average construction cost for onshore wind in 2022 was USD 1,274/kW.

• • Domestic public tender market totaled 86.27GW in 2023, representing 12.5% yoy decrease.

• • Onshore public tender totaled 77.38GW and offshore totaled 8.89GW.

• • By region, 71% of the tenders originated from the Northern part of China while 29% were in the South.

Note: data from public information.

• • In December 2023, the overall average bidding price of all WTG suppliers in the market recorded Rmb 1,555/kW.

1Continue to improve the top-level design of energy policies and accelerate the transformation towards green energy and low-carbon

•  On 19 January, the State Council Information Office released the white paper "China's Green Development in the New Era", proposing to promote green and low-carbon energy development and vigorously develop non-fossil energy. With an aim to accelerate the construction of large-scale wind power photovoltaic bases focusing on deserts, Gobi, and desert areas, China will actively and steadily develop offshore wind power, actively promote urban and rural rooftop photovoltaics, and encourage the development of decentralized wind power in rural areas.

•  On 6 April, the NEA issued the "Guiding Opinions on Energy Work in 2023", proposing to further promote structural transformation and increase the proportion of non-fossil energy in total energy consumption to about 18.3%. The proportion of non-fossil energy power generation installed capacity should be increased to about 51.9%, and the proportion of wind power and photovoltaic power generation accounted for 15.3% of the electricity consumption of the whole society.

•  On 2 June, the NEA organized and released the "Blue Book on the Development of New Power System", proposing the overall structure and key tasks of building the new power system, which includes strengthening the construction of the four major systems such as the power supply support system, the new energy development and utilization system, the large-scale layout and application system of energy storage, and the intelligent operation system of the power system, while enhancing the standards and specifications adapted to the new power system, core technologies and major equipment, and promoting the relevant policy and institutional mechanism innovation so as to formulate the three-dimensional pillar support.

Improve green power and green certificate policy mechanisms to ensure the consumption of renewable energy



On 15 February, the NDRC, the Ministry of Finance, and the NEA jointly issued the "Notice on Matters Related to the Participation of Green Power Projects Enjoying Central Government Subsidies in Green Power Trading", proposing to expand the scale of green power projects participation in the market. With an aim to promote all renewable energy grid-parity projects participating in green power trading, China will steadily promote the participation of green power projects enjoying national renewable energy subsidies in green power trading.

 On 3 August, the NDRC, the Ministry of Finance, and the NEA jointly issued the "Notice on Full Coverage of Renewable Energy Green Power Certificates to Promote Renewable Energy Electricity Consumption", proposing to issue green certificates for all the electricity produced by registered renewable energy power generation projects nationwide to achieve full coverage of green certificate issuance.



On 4 August, the NDRC and the NEA jointly issued the "Notice on the Responsibility Weight of Renewable Energy Power Consumption and Related Matters in 2023", proposing the weight of the renewable energy power consumption responsibilities of each province (autonomous region and municipality) in 2023 and requiring the national non-hydropower generation capacity to be no less than 1.6 trillion kWh. It is expected that for weight of the renewable energy power consumption responsibilities of each province (autonomous region and municipality) in 2024, the target national non-hydropower generation capacity will be no less than 1.83 trillion kWh.

Continue to strengthen greenhouse gas emission management and enhance carbon footprint management levels

 On 18 October, the Ministry of Ecology and

Environment issued the "Notice on Completing Greenhouse Gas Emission Reporting and Verification of Enterprises in Certain Key Industries from 2023 to 2025" to clarify that for key industries such as petrochemicals, chemicals, building materials, steel, non-ferrous metals, papermaking, and civil aviation, key enterprises with annual greenhouse gas emissions of 26,000 tons of carbon dioxide equivalent (comprehensive energy consumption of approximately 10,000 tons of standard coal) or above are included in the scope of the notice's annual greenhouse gas emission reporting and verification.



On 24 November, the NDRC and other departments issued the "Opinions on Accelerating the Establishment of Product Carbon Footprint Management System", proposing that by 2025, about 50 key product carbon footprint accounting rules and standards will be introduced at the national level, a number of key industry carbon footprint background databases will be initially established, a national product carbon label certification system will be basically established, the application scenarios of carbon footprint accounting and labeling in the fields of production, consumption, trade, and finance will be significantly expanded, and the carbon footprint accounting rules, standards, and carbon labels of several key products will achieve international mutual recognition.

Note: information from NEA (National Energy Administration), NDRC (National Development and Reform Commission)

Promote the development of decentralized wind power and strengthen the Renovation, upgrading and decommissioning management of wind farms

 On 23 March, the NEA, the Ministry of Ecology and

Environment, the Ministry of Agriculture and Rural Affairs, and the National Rural Revitalization Bureau issued the "Notice on Organizing the Construction of Rural Energy Revolution Pilot Counties", proposing to coordinate the development of urban and rural clean energy with the county as the basic unit. By 2025, renewable energy in the pilot counties will account for more than 30% of the total primary energy consumption and more than 60% of the increase in primary energy consumption.



On 17 August, six departments including the NDRC, the NEA, and the Ministry of Industry and Information Technology jointly issued the "Guiding Opinions on Promoting the Recycling of Decommissioned Wind Power and Photovoltaic Equipment", proposing to establish and improve the responsibility mechanism for the disposal of decommissioned equipment, improve the equipment recycling system, and encourage wind power and photovoltaic equipment manufacturing enterprises to proactively provide recycling services. By 2025, the responsibility mechanism for the disposal of decommissioned equipment in centralized wind farms and photovoltaic power stations will be basically established, and standards and regulations related to the recycling of decommissioned wind power and photovoltaic equipment will be further improved. By 2030, the full-process recycling technology system for wind power and photovoltaic equipment will be basically mature.

Industry Review Business Review Financial Results Outlook

9

Business layout and segment results

WTG Manufacturing & Sales

R&D, Manufacturing & Sales of Onshore & Offshore WTG & Component

Wind Farm Investment & Development

Wind Farm Development, Transfer & Operation

Green Power Sale

Wind Power Service

Comprehensive Solution of Wind Power

Load-side Power Service

Other Businesses

Integrated Energy and Carbon Management, Water Treatment Investment & Technology

Financial Service & Equity Investment

13,871

13,772

For the full-year 2023, the Company′s external sale capacity totaled 13,772MW, slightly down 0.7% yoy, among which:

• • The sale capacity of WTG below 4MW totaled 143MW， taking 1.1% of total sale capacity

• • The sale capacity of WTG 4MW(incl.) -6MW totaled 7,483MW， taking 54.3% of total sale capacity

• • The sale capacity of WTG 6MW and above totaled 6,147MW， taking 44.6% of total sale capacity