The Application Research Based On The Financing Lease In The Wind Power Enterprise

Energy has long been serving as an important foundation for the social and economic development of human society as it provides us with essential material guarantee. Given that traditional energies are on the verge of depletion and the resulted environmental pollution cannot be ignored. Characterized by renew ability, huge reserve and low-carbon green, wind power as an ideal clean energy has been receiving more attention from all the countries in the world. Wind power generation is the main form of using wind energy, which has many advantages such as short construction period, high-level safety and low cost, creating great potential for large-scale commercial development.However, as a capital-intensive industry, wind power companies all have huge demands for capital. With the increasingly enhanced position of wind power enterprises in economic development as well as their constantly expanding scales, meeting the capital demand will become a key factor in determine the success for the future development of wind power enterprises. In other words, financing has become a key issue for the development of wind power enterprises. Since there are many restrictions for traditional financing methods, such as high threshold for getting loans and expensive comprehensive cost and so on, the development of finance lease in wind power industry is of great significance to the development of enterprises.Finance lease, also known as equipment leasing, refers to the lessor in essence transfers all the risks and rewards of property rights to the lessee, which is featured by the duality of fund raising and equipment leasing and long term of lease and so on. The emergence of finance lease integrates trade, finance and rent as a whole to achieve financing through equipment leasing and to realize equipment renting through fund raising. With its unique mode of operation, finance lease brings the lessee, the lessor, manufacturers and commercial banks a win-win outcome, which can not only promote the productivity development of manufacturing enterprises, but also enable enterprises to obtain new financing channels.Since 1952 when finance lease was introduced, it has developed into the second largest financing market so far following bank credit. This paper aims to study the application of finance lease in China’s wind power companies, analyzing the existing problems of China’s wind power business and raising the need for the introduction of financing and leasing business; then it makes analysis from the perspectives of the interests and risks of each stakeholder in finance lease, indicating the feasibility of its application in the field of wind power. The paper also summarizes current issues about finance leasing in China’s wind power companies, and puts forward some suggestions on the development of finance lease in China’s wind power business.Finance lease provides a new impetus for the development of wind power industry, which can not only solve the financial problems faced by domestic wind turbine manufacturers, but also offer an opportunity to promote fan localization, boosting the rapid technological development of wind power to support the Chinese enterprises; at the same time through finance lease, the technology of wind power equipment manufacturers is updated with enhanced investment efficiency and improved financing structure of China’s wind power projects by employing the method of surrender, renewal or purchase on maturity. However, in the financial leases of wind power business, due to the large amount of investment, long lease period and so many uncertain factors within the payback period, there will also be greater risks in the future. Based on the identification of financial leasing risks, the paper proposes the first class indexes of risk assessment, which are default risk, market environmental risk and technology risk respectively, and gives the suggestions such as retaining legal counsel to join the project, paying close attention to the whole process of finance leasing, making comprehensive forecast assessment on market demand and adopting floating interest rates and so on to avoid or reduce risks appropriately.To further promote the development of finance leases in China’s wind power business, the paper also discusses the policy responses to the current market conditions based on environment, human resources and business research and so on. In terms of risk control, China has advocated the establishment of insurance companies or security companies specialized in providing all kinds of risk guarantees for financial leasing industry to balance the overall risks in the financial leasing industry; at the same time more preferential policies are introduced to support healthy and stable development of finance leases in wind power companies through fiscal subsidies and tax incentives such as rent subsidies, investment credits and accelerated depreciation and so on; the legal system of finance leasing is established and improved to further strengthen the system construction of financial leasing companies, and new finance leasing model is explored to make advantages of leverage lease, commission lease, binding lease and co-tenancy lease to form a value chain of "shared interests, shared risk" by the cooperation of five bodies, "electricity generation companies- leasing companies- manufacturers- potential investors- banks ", which optimizes the capital structure of the wind power business and reduces financing costs to help China’s wind power companies to ease financing problems and promote its long-term healthy development.