Optimize management structure and develop clean energy

Among the five major power generation groups, the development of clean energy is not a patent of China Power Investment Corporation, and its clean energy proportion ranks first among the top five power generation companies. The development of clean energy has become an extremely important part of the CLP Group's development blueprint. At the end of the “Twelfth Five-Year Plan”, CPI Group’s clean energy ratio will reach 40%, and by 2020, this proportion will reach 50%. “Power companies should take responsibility for low-carbon, clean development,” said Lu Qizhou, general manager of China Power Investment Group.

Talking about the past when he first started on the path of developing clean energy, Lu Qizhou said with a smile that the development of thermal power "congenital deficiency." CLP has a poor regional condition involving the development of thermal power, “there are no better conditions in the southern region, North China, and Shanghai in East China”. At that time, it proposed to engage in differentiated competition and develop clean energy. Today, the development of clean energy has long been an independent choice for CPI.

Photovoltaic power generation, wind power, and nuclear power all have good prospects for development and all face many problems. How to solve the problems in development? Lu Qizhou repeatedly mentioned relying on technological innovation. Photovoltaic power generation depends on technological advances to reduce costs, opening up a wider range of domestic markets. With respect to photovoltaic power generation, China Light Power's strategy is to “strengthen two ends and control the middle”, that is, to further grasp the polysilicon technology through technological innovation, reduce the cost, and complete the integration and construction of photovoltaic power stations. Lu Qizhou expects that the cost of photovoltaic power generation will be reduced to around RMB 0.6 per kilowatt-hour in 2020, at which time photovoltaic power generation will basically have commercial operating conditions.

The cost of wind power has been gradually reduced to below 0.4 yuan per kilowatt-hour, and with the rise in coal prices, thermal power prices will exceed 0.4 yuan per kilowatt-hour. “Once the rise or fall occurs, the popularity of wind power will be greatly enhanced.” Lu Qizhou said that wind power generation also depends on technological progress to improve the efficiency of wind turbines and form wind power technologies with its own characteristics, thus continuously reducing costs.

The increasing proportion of clean energy makes the power structure of China Light & Power Investment Group more optimized. This has become a bright spot in the reform and development process of China Light Power Investment Group. In order to deal with and avoid the risks of thermal power losses to the sustainable development of the company, CPI Investment Group has promoted the transition to an integrated energy group – based on the idea of ​​“electricity as the core, coal as the foundation, and industrial integration and synergy”, and the development is highly correlated. Downstream company.

Not only has the structure been optimized, but the management level of China Light & Power Investment Group has also gradually improved with a major internal reform. In Lu Qizhou's view, the current reform of state-owned enterprises is to reform the internal governance structure, and the second is to carry out reforms to allocate incentives for employment. In 2011, CPI Group initiated the largest reform since its establishment - the integration of management and control, which is precisely the reform aiming at internal governance structure.

Why do you want to change? "The drawbacks caused by the unfavorable internal governance structure have become more and more obvious." Lu Qizhou said, "Implementing control and integration is a huge and complicated project. Sooner or later, we must dare to step out of this step. !”

The new management and control system has established the three-level management positioning and three-level organizational structure of the entire group: the headquarters “four main bodies, two centers”, namely the planning main body, investment main body, capital operation main body, supervision and assessment main body, and decision-making center and management control center. The secondary unit is positioned as a profit center, and the tertiary unit is positioned as a cost center.

How do you think about the benefits of the management and control integration reform? Lu Qizhou said that in the face of multiple investment projects, how to choose between them? It used to be that the planning department manages project investment, and there are blindnesses when it comes to launching projects. Now it has been replaced by a professional department to look for the most suitable project within a certain limit to invest. "This change helps to better allocate resources."

Lu Qizhou frankly stated that the integration of management and control has just been implemented for a year. It is still too early to comment on the success of this reform. "However, the reform of the internal governance structure is not the best. It is only the most suitable. At present, this kind of reform is still suitable for the CPI Group."