Study On The Investment And Financing Of The Wind Power Industry In China

Under the circumstance of facing the higher energy consumption and the heavy pollution of the traditional electrical power generation, the new energy one emerges as the times require. Because of the abundant wind resources and mature wind power technology, the power generation industry in China is considered as a kind of new energy power generation possessing the broad market prospect.Thanks to the support of the national policy, in recent years, the wind power industries has developed rapidly, especially in the aspects of the installed capacity and its newly increased speed which are ahead of most countries in the world. Whereas, the Chinese wind power industry is facing many problems, such as the adverse selection of financing market and the blind investment of projects, which can result in the financing difficulties in some good projects and the excess capacity of wind power equipments.The previous researches are more concerned about the prospect of the wind power industry and the discussion of financing methods, while the researches on the investment and financing of the wind power industry is few. This paper focuses on the study of investment and financing to the wind power industry and aims to construct the model of the influences of information asymmetry on the wind power industry financing selection and the model of asymmetric duopoly monopolistic competition within uncertain circumstances, to show that how the investors make the adverse selection when facing the investment and financing and that how the wind power industry applies the real option game method to assess the project value and investment critical point.Based on the analysis of the mathematical models, the paper makes the following conclusions:①A lthough the wind power industry has developed fast in China, it lacks the core technology competence. The main problem our industry faces is the lack of this core technology competence and it has certain disparity in main technologies between China and foreign countries.②B ecause of the information asymmetry between the enterprises and the investors in the wind power industry, there exists the adverse selection in the financing market of the wind power industry. Under the condition of the information asymmetry, the high-risk investment projects drive away the low-risk projects, while, the low-risk loan enterprises will withdraw from the market.③Through the game analysis on real options and the usage of the Matlab simulation, the following results were obtained. Firstly, the value of the high-cost enterprises in henchman position will be reduced with the increase of the risk-free rate of return and will be added as the demand increases; secondly, the value of the leading enterprises will be enlarged as the assets value fluctuation and the demand increase; thirdly, the higher the risk-free rate return, the lower the investment critical point is. That is, the access of the investment value of the enterprises is declining. Therefore, the government and the enterprises should develop various subjects of investment, improve the existing mechanism of the information disclosure and the index system of credit risk evaluation, and examine strictly the projects investment audit.