Research On The Financing Method Of Distributed Gas Energy Station Project

With the continuous development of China’s economy, the dependency on energy is becoming stronger. Therefore, the total demand of energy will continue to grow. Distributed gas station has a great development prospect. Compared with traditional thermal power station, distributed gas station has many advantages. Firstly, it realizes laddering energy utilization, which can improve the energy utilization efficiency. Secondly, it defers and reduces the construction of large power plants and high voltage transmission network, which can save investment and minimize network losses. Thirdly, using gas can eliminate SO2 and dust pollution, and reduce CO2 emissions. Fourthly, distributed energy can starting and stopping quickly, which can be adjusted during peak and valley time. Finally, it also improves the security and reliability of power supply. However, the construction of distributed energy station requires large amount of capital investment. Due to its inherent nature, distributed power station faces financing difficulties.Firstly, this paper introduces fundamental theories of financing methods, and analyzes the main financing methods in China and abroad. It also compares and contrasts the advantages and disadvantages of traditional, latest and green financing methods. This paper also analyzes the factors the affects the determinants of financing methods, from inside, and outside of the project. Secondly, this paper summarizes the development process of financing for energy projects in and abroad. Through analyzing the history of financing for energy projects, we can learn from experiences. Thirdly, taking Huadian Jiujiang company for an example, this paper analyzes the financing environment that the company faces, and the advantages and disadvantages. Then, this paper describes how the company finance for capital, and why it choose the financing method. This paper analyzes the key issues of the financing, and proposes possible solutions to solve these issues. The solutions include selecting appropriate financing timing, standardizing financing process, improving corporate financial management, in order to ensure the operation of financing activities and get support from bank loan with favorable project net profit, which maximizes profits and achieves sustainable corporate development. Finally, this paper summarizes the application experience of Huadian Jiujiang distributed gas station financing method in electric industry, and suggests that green financing can be helpful for the financing of distributed gas station.The contribution of this paper is to provide financing method and financing experience for distributed gas station, which can provide experience for domestic distributed energy stations, which are planning to be constructed, and under construction, and promote the energy industry development of China further.