Energy is the foundation and lifeblood of modern economic and social development, and high-quality energy development is both the driving engine and a strong guarantee for high-quality economic and social growth. In recent years, under the guidance of the new energy security strategy proposed by President Xi Jinping — known as "Four Revolutions, One Cooperation" (energy consumption revolution, energy supply revolution, energy technology revolution, energy system revolution, and enhanced international cooperation), China has made historic achievements in terms of energy transition. The country has charted a path that is in line with its national conditions, aligned with global development trends, and meeting the demands of the times.

The report of the 20th National Congress of the Communist Party of China and the Third Plenary Session of the 20th Central Committee both promulgated the strategic decision to "accelerate the planning and construction of a new energy system," clarifying the goals and directions for steadily advancing peak carbon and carbon neutrality, as well as ensuring a smooth transition to green energy.

With this clear direction, the path has been set. JIC Leasing remains committed to directing financial resources to key areas and weak links in economic and social development. By promoting innovation in financial leasing and its deep integration with the new energy industry, JIC Leasing strives to turn the green development blueprint into new "construction plans" and "real-world outcomes."

I. The Urgency of New Energy Transition and the Path to Industrial Breakthroughs

The world is currently undergoing profound changes unseen in a century, with climate change and geopolitical rivalries having a significant impact on global energy industries. China has committed to achieving peak carbon within 10 years and carbon neutrality within the following 30 years. The timeline is tight and the tasks are numerous, with the country facing challenges such as high energy consumption, a coal-dependent energy structure, and a large carbon emission base. Additionally, given China's energy situation of being "rich in coal but poor in oil and gas," the country has a high dependence on imported oil and gas, making clean and renewable energy a key force in the energy transition. Therefore, building a new energy system is an urgent task.

Long as the journey is, we will reach our destination if we stay on the course; difficult as the task is, we will get the job done if we keep working at it. The report of the 20th National Congress of the Communist Party of China has proposed that, based on China's energy resource endowments, the country should adhere to the principle of establishing the new before abolishing the old and gradually proceed with the implementation of the peak carbon plan.

The Central Financial Work Conference has pointed out that finance should provide high-quality services for economic and social development, with a focus on intensifying quality financial services in key strategic areas, crucial fields and weak links, especially in the areas of technology finance, green finance, inclusive finance, pension finance, and digital finance. As a powerful financial tool to implement the Party and the country's green development policies, financial leasing combines "financing + leasing assets" and boasts a range of advantages including flexible terms, diverse models, and efficient implementation. It can effectively support investment and financing in social sectors, helping to build a new energy system and contribute to achieving the peak carbon goal.

Firstly, the "financing + leasing assets" feature of leasing is a natural fit for "dual carbon" industries.

"Dual carbon" industries are largely asset-intensive. Both new energy industries such as photovoltaic power stations, wind power, and energy storage equipment, as well as the green transition of traditional energy-consuming industries like coal refining, coking, and steelmaking, all face the dilemma of huge investments and a lack of collateral for financing.

For financial leasing, however, industrial equipment is ideal. Leasing companies can fully utilize their resource endowments to provide financing solutions that meet the needs of clients while ensuring robust risk management, thereby injecting vitality into enterprise development.

Secondly, the flexible transaction structure of financial leasing gives it greater "inclusivity."

Leasing companies provide financing support that combines flexibility and efficiency, with a typical payback period for "dual carbon" industries of around 10 years. Since financial leasing offers flexible repayment methods and financing periods, it is able to provide specialized financial solutions that meet the long-term and large-scale financing needs of photovoltaic power stations, energy storage power stations, and similar applications. This approach allows for batch, standardized operations and better addresses the diversified needs of industrial clients.

Given the high level of alignment between financial leasing and "dual carbon" industries, the industry model has increasingly gained attention at the national level in recent years.

II. Diverse Paths to "Green" Development, with Promising Prospects for Four Key Industries

The "Opinions on Accelerating the Comprehensive Green Transition of Economic and Social Development," issued by the Central Committee of the Communist Party of China and the State Council, proposes the following: "Vigorously develop non-fossil energy. Accelerate the construction of clean energy bases such as wind power and photovoltaic energy in the Northwest, hydropower in the Southwest, as well as offshore wind power, and nuclear power along the coast. Actively develop distributed photovoltaic and decentralized wind power, develop biomass energy, geothermal energy, ocean energy, and other new energy sources according to local conditions, and promote the full-chain development of hydrogen energy, covering production, storage, transmission, and utilization." This further clarifies the latest direction for the development of the financial leasing industry and provides essential guidance for its future.

Riding the wave of historical momentum and staying on the right path for long-term success, JIC Leasing has adopted an integrated approach in the fields of wind, solar, hydrogen, and energy storage. The company continues to increase its service support, contributing to the realization of a new energy system characterized by multi-energy reciprocity, and by driving the green and low-carbon transition of the economy.

Riding the Wind: "Super Wind Turbines" Generate New Green Momentum

Wind power is a key form of clean energy, and currently one of the main alternatives to fossil fuels. The Third Plenary Session of the 20th Central Committee emphasized the need to accelerate the research, development and application of new energy technologies, particularly in the fields of wind and solar energy, in order to address current energy shortages and environmental challenges. In recent years, China has rolled out a series of policies related to wind power. The National Development and Reform Commission, among other departments, has organized the "Wind Action in Thousands of Villages," bringing favorable policies for the deployment of new energy in rural areas and creating new growth opportunities for the sector. This is expected to drive a rural energy revolution and further advance the wind power industry. As a new energy source, wind power has become the third-largest electricity source in China, after thermal power and hydropower, and its significance continues to grow. From January to November 2024, the national installed wind power generation capacity reached 492.18 million kW, a year-on-year increase of 19.2%. The wind power generation of large-scale enterprises nationwide amounted to 843.77 billion kWh, a year-on-year increase of 11.5%.

"The terrain varies in terms of fertility, and mountains and wetlands each have their own specific uses." Wind power generation includes both onshore and offshore wind energy, with onshore wind power further divided into centralized and distributed systems. JIC Leasing has been actively exploring the distributed wind power sector. By promoting the development of new energy systems such as multi-energy reciprocity and microgrids, the company encourages innovation in energy development models. It has tailored personalized financial service solutions for a new energy company to support the investment in and construction of a 60 MW distributed wind power project, effectively reducing capital costs and operational risks. Additionally, JIC Leasing has provided financial leasing services to a wind power project in Shanxi, with an installed capacity of 100 MW. This project has already been fully connected to the grid, and is operating stably at near full capacity. It has become an important part of supporting the local power supply.

Chasing "Light" and Pursuing "Green": The Photovoltaic Industry Thrives in the Sun

"Only with deep roots can a tree yield rich fruit; only when filled with oil can a lamp burn brightly." Against the backdrop of the accelerating global energy transition, the photovoltaic industry is a shining star in the clean energy sector, embracing unprecedented development opportunities. The report of the 20th National Congress of the Communist Party of China states: "Accelerate the green transition of development methods, implement a comprehensive conservation strategy, develop green and low-carbon industries, advocate for green consumption, and promote the formation of green, low-carbon production and lifestyles." As one of the "new three staples" driving China's foreign trade (exports), China's photovoltaic industry has made rapid strides in recent years. According to data from the China Photovoltaic Industry Association, China has ranked first in the world in terms of newly installed photovoltaic capacity for 11 consecutive years. As of the end of November 2024, the total national installed generation capacity reached approximately 3.23 billion kW, a year-on-year increase of 14.4%. Of this, installed solar power generation capacity reached about 820 million kW, a year-on-year increase of 46.7%. The combined driving force of policies, technology and economic benefits has injected new impetus into the healthy and high-quality development of the photovoltaic industry.

JIC Leasing has continuously increased its support for the photovoltaic sector, having invested in nearly 300 MW of distributed photovoltaic projects in Jiangsu, Guangdong, and Shandong provinces. This alone saves approximately 119,200 tons of standard coal annually and reduces carbon dioxide emissions by 297,000 tons, effectively supporting the green and low-carbon energy transition. JIC Leasing has also provided financial leasing services for two centralized photovoltaic power stations in Xinjiang and Inner Mongolia for a particular energy group, with a total installed capacity of 40 MW. These stations generate more than 51 million kWh of green electricity annually, and, based on an average standard coal consumption of 300.2 g/kWh for thermal power generation, they save an average of more than 15,300 tons of standard coal, reducing carbon dioxide emissions by 42,000 tons, sulfur dioxide by 4.23 tons, and nitrogen oxide by 6.78 tons. JIC Leasing has also offered financial leasing services to a photovoltaic power station developer in Hainan Province, with an installed capacity of about 7.66 MW. After this is put into operation, it will significantly increase the local supply of clean energy. It has provided financial leasing services for two power station developers in Shanghai and Anhui provinces, with a total rooftop area of approximately 100,000 m² and an installed capacity of 10.24 MW. This project is expected to generate over 9 million kWh of renewable energy per year, using a model of self-sufficiency with excess electricity being fed back to the grid, helping to alleviate local power shortages in the regions once operational. JIC Leasing also supports a new energy company in Zhejiang by providing financial leasing services during the construction phase of a distributed photovoltaic power station, facilitating the development of the supporting infrastructure. In collaboration with an energy company, In addition, JIC Leasing supports the operation of its distributed photovoltaic power station, benefiting over 20 village collectives and more than 400 impoverished households.

"Hydrogen" Takes the Stage: The Promising Future of the Hydrogen Energy Industry

"Good chess players plan for their position, and good planners aim for long-term success." Hydrogen energy is an important part of the future national energy system, and is also a crucial carrier for achieving the green and low-carbon transition of our energy consumption. It plays a significant role in the large-scale, deep decarbonization of sectors such as transportation, industry, and construction. By seizing the development trends and opportunities in global energy transformation, accelerating the cultivation and development of the hydrogen energy industry has become an important part of China's clean and low-carbon energy transition.

China is actively advancing the development of the hydrogen energy industry. The National Development and Reform Commission and the National Energy Administration jointly issued its "Medium- and Long-Term Development Plan for the Hydrogen Energy Industry (2021-2035)," which proposes that by 2025, the number of hydrogen fuel cell vehicles in China will reach 50,000, with the deployment of a number of hydrogen refueling stations and a production capacity of 100,000–200,000 tons of hydrogen per year from renewable energy sources. This plan has provided a clear road map for the development of the hydrogen energy industry. At the same time, the 2024 government work report highlighted the acceleration of cutting-edge emerging industries such as hydrogen energy and new materials. This marks the first time in four years that hydrogen energy has been mentioned again in the national government work report.

JIC Leasing has partnered with a hydrogen energy vehicle operation company in Zhejiang Province to support its hydrogen fuel cell logistics vehicle leasing and operation services for express delivery, fresh food cold chains, and bulk goods sectors in the Yangtze River Delta region. In collaboration with a hydrogen energy vehicle technology company, the company is also assisting in the promotion of hydrogen fuel cell vehicle application technologies. Additionally, JIC Leasing has provided financial leasing services to a specialized, refined, differential, and innovative "little giant" enterprise in Hebei, which has built the largest hydrogen production project in China using exhaust gases from the steel industry (coking). This project can produce 100 million m³ of hydrogen annually, enough to supply 700 hydrogen fuel cell heavy trucks and other fuel cell vehicles every day.

Energy Storage, Solving the Challenge of Consumption with "Giant Power Banks"

Energy storage refers to the process of storing energy in some form using mediums or devices, and then releasing it in a specific form when needed, with electricity being the primary form stored in the power sector.

According to the 14th Five-Year Energy Plan, by 2025, China's non-fossil energy consumption will account for around 20%, with non-fossil energy power generation making up around 39%, and electricity's share of terminal energy consumption reaching approximately 30%. As a large amount of new energy is integrated into the grid, the mismatch between clean power generation and electricity consumption in terms of time and location becomes increasingly evident. Problems such as grid regulation and challenges in the local consumption of clean energy arise, which will likely exceed power regulation capabilities and impact the safe, stable operation of the grid. Developing new forms of energy storage is an inevitable requirement for a high proportion of renewable energy and an essential part of the carbon-neutral era.

Energy storage power stations act as "giant power banks," and are key links connecting energy production and consumption. Energy storage can effectively solve the mismatch between power generation peaks and electricity consumption peaks caused by the large-scale integration of renewable energy, as well as issues involving grid instability. By shaving the peaks and filling the troughs, it facilitates the consumption of renewable energy and alleviates peak regulation pressures on the grid. In addition, energy storage can also provide frequency regulation services, which address the inherent randomness, intermittency, and fluctuation of wind and solar power, stabilizing frequency and enhancing system safety and stability.

JIC Leasing focuses on ensuring full-chain coverage across the upstream and downstream segments of the energy storage industry. It has provided production equipment for a lithium battery cathode material company in the western region of China; this company boasts a broad portfolio of upstream material resources, including lithium, manganese, and nickel. Its products offer outstanding performance and charging stability. JIC Leasing has also developed standardized financial leasing products for industrial and commercial energy storage power stations, supporting the rapid construction of such stations. These projects have already been successfully implemented in several provinces, including Zhejiang, Jiangsu, Guangdong, Anhui, Hunan, and Hubei.

"Things cannot come into being without a cause, nor can they succeed without transformation." Driven by a concept of sustainable global development, the creation of a new energy system and the integrated development of wind, solar, hydrogen, and energy storage are leading a profound energy revolution. Based on China's energy resources and committed to the "dual carbon" goals, JIC Leasing focuses on seeking improvement in stability, promoting stability through development, and adhering to the principle of establishing the new before abolishing the old. It is contributing to the construction of a new energy system, along with the green, low-carbon development of energy.