Study On The Huaneng Strategic Planning For Exploring Solar Power In Tibet

Solar energy is the dominant energy in the future. With the rapid development oftechnology, the cost differences between solar power generation and traditional powergeneration methods are diminishing. In the future, the problem of climate andenvironment will draw more attention. It has become an inevitable trend that solarpower generation will replace fossil energy and become the main power supply method.In China, the economic society development will be restricted deeply by the recoursesand environment. The rapid development of solar power generation is an inevitablechoice for power development strategy. In the future, the market shares of solar powergeneration will gradually become the important factor for evaluating the corecompetitiveness and affecting the status of power generation companies in China.China Huaneng Group is the largest power generation company in China. But theproportion of solar power generation in its power industry is small and the proportion ismuch smaller among the whole country, so the development of solar power generationneeds to be accelerated. There are rich resources, natural development conditions andpotential market environment for solar power generation in Tibet. Therefore, theresearch of solar power generation strategy in Tibet by China Huaneng will facilitateHuaneng formulate the reasonable solar power generation strategy.Growth rate-market share matrix, PEST analysis, SWOT analysis and the thinkingmode of game theory and real options are adopted in this study to investigate strategicpositioning of solar power generation in Huaneng power industry. Meanwhile, themacro-environment of exploiting solar power generation resources in Tibet, theadvantages and disadvantages of competitiveness and the external opportunities andthreats are studied. Results show that the development of solar power generation needsto be accelerated in Huaneng and exploiting solar power resources in Tibet is areasonable and viable option. Facing the existing competitive landscape of exploitingsolar resources in Tibet, the reasonable strategy target for Huaneng is scale out and thecurrent implementation plan is watching its time. When the project of direct currentnetworking in Qinghai-Tibet begins to send out solar power, expanding the scale of theprevious work rapidly is the optimal option. In view of the problems during the analysis, this paper proposes that Huneng should focus on the development of solar thermalpower generation, develop centralized planning and phased development to decreaseprevious job involvement and sharpen its edge.Besides qualitative analysis with strategic tools, the quantitative attempt using themethod of game theory and real options in the evaluation of projects is the maininnovation in this study. To analyze the market shares of different projects, the situationof mutual effects between Huaneng and its competitors is considered and differentincome levels are included when calculating the value of economic earnings. A newthinking method is provided for analyzing the competitive strategy of developing solarpower generation resources in Tibet.