CINNO: China's new energy industry investment scale will exceed 9 trillion yuan in 2022

As my country's industrialization system becomes more and more complete, with a complete industrial chain, energy demand is becoming more and more urgent. At the same time, under the "dual carbon" strategy, avoiding the excessive use of traditional fossil energy and adopting new energy that is low-pollution, clean, convenient and renewable can effectively achieve high-quality development. Therefore, the development of the new energy field has attracted much attention from the market in recent years.

The most widely used applications of new energy are currently concentrated in electricity and new energy vehicles. New energy belongs to unconventional energy. In a narrow sense, new energy mainly refers to the development and application of new energy, such as solar energy, geothermal energy, wind energy, ocean energy, biomass energy, and nuclear fusion energy. In a broad sense, the new energy industry may also include new energy vehicles (which can be derived from batteries, charging, battery replacement, hydrogen fuel, etc.), energy storage, and comprehensive energy.

According to CINNO Research statistics, China's investment in new energy projects in 2022 will reach 9.2 trillion yuan (including Taiwan), and the new energy industry has become a key investment area for emerging technology industries.

Data source: CINNO Research monthly China's five major emerging technology industry investment survey report

The flow of funds within the new energy industry

In 2022, investment funds in China's (including Taiwan) new energy industry will mainly flow to wind power and photovoltaic power, with an amount of about RMB 3.4 trillion, accounting for about 36.9%; the total investment in energy storage is RMB 2.7 trillion, accounting for about 29.3%. The total investment in lithium battery energy storage is RMB 2.2 trillion, accounting for about 23.6%; the total investment in hydrogen energy exceeds RMB 680 billion, accounting for about 7.4%.

The three driving forces of the new energy industry

Wind power, photovoltaic power, energy storage and lithium batteries are the three pillars of the new energy industry in 2022. In 2022, China's (including Taiwan) photovoltaic investment funds will mainly flow to silicon wafer and silicon rod projects, while wind power investment funds will mainly flow to wind power operation projects. Energy storage investment funds mainly flow to pumped storage. From a geographical distribution point of view, the investment funds are mainly distributed in Hubei, Zhejiang and Hunan, and the total share of these three regions is about 25.6%. Lithium battery investment is mainly concentrated in Hubei, Sichuan and Jiangxi, and the total share of these three regions is about 38.5%.

Against the backdrop of global climate change and Industrial Revolution 4.0, new energy is a major trend in the foreseeable decades and is also a trending industry that will affect the community of human destiny. Overall, the overall new energy industry is currently in a stage of rapid growth and will continue to maintain high growth in the next 3-5 years, and will also become an important growth engine for China's future economic development.