Background

Huaneng Renewables Corporation Limited (HNR) is a subsidiary of China Huaneng Group, China's largest electric power producer, and is the largest producer of wind power in the country by revenue.

It sells wind power directly to the grid operators, as well as in the market. It also sells solar power.

Business Description

HNR is the wind power producing subsidiary of China's biggest power company, China Huaneng Group, and has the highest wind power utilization rate in the country. As of 2017, the company had total installed capacity of 11,567MW, 92% of which was wind power. Of total revenue, 91% comes from wind power and 9% from solar power.

In 2017, HNR sold just under 1/3 of total power output through direct sales, while the rest was sold into the market.

Thanks to government policy, China is now the biggest market globally for wind power. However, the country's grid-connected capacity is vulnerable to curtailment restraint, meaning wind is available but left unused. Curtailment occurs for any number of reasons ranging from grid congestion to local incentives to support the coal industry over renewables. For example, in 2015, about 15% of China's wind energy was wasted because of curtailment issues.

Against this backdrop, HNR has been slowing its capacity expansion which will boost utilization and help offset the curtailments.

Leadership

Lin Gang currently serves as the Chairman of Huaneng Renewables after being appointed to this position in 2017. He joined the company in 2008 as a Senior Engineer and later became the President before he was appointed to his current role. He has also held numerous other positions within Huaneng Group. His education consists of a Bachelor's degree from Peking University and another Bachelor's degree along with Master's degree from North China Power College.