Profitability Analysis Of Offshore Wind Power Projects Under The Background Of Green Finance

On 2020.9.22,General Secretary Xi Jinping announced a proposal that strive to achieve peak carbon emissions before 2030 and gradually promote carbon emission reduction after 2030,achieving carbon neutrality before 2060 at the United Nations General Assembly.The proposal to achieve carbon neutrality before 2060 brings opportunities,but also brings challenges for the power industry.According to the carbon neutrality planned by the European Union and the United States,the time for the power industry to achieve the carbon neutrality is 10 to 15 years earlier than the carbon neutrality time.China is the country with the highest carbon emissions in the world,and it will face huge challenges to comprehensively promote the implementation of carbon emission reduction.Because the power industry is the largest proportion of carbon emissions in China’s major industries,we must pay more attention to renewable energy.In China,the development of renewable energy power generation industry is very significant for China to achieve carbon neutrality.We collected basic data on offshore wind power projects to start in 2020,and estimated the average annual cost of generating electricity over the life cycle of offshore wind power using the levelized cost of electricity(LCOE)model.In the context of green finance,try to use green financial instruments to reduce the LCOE of offshore wind power projects,so that offshore wind power projects in various provinces have better profitability and achieve grid parity as soon as possible.This paper calculates the LCOE of offshore wind power projects under four different scenarios are as follow: baseline scenario,the green credit scenario,the green credit + central bank re-lending scenario and the deep green credit scenario.By calculating the LCOE under these 4 scenarios,comparing the differences of offshore wind power projects between provinces,analyzing the profitability of offshore wind power projects in each province under these four scenarios,we can provide the government with a suitable green financial policy suggestion.,to help the offshore wind power projects achieve profitability,and eliminate the remaining projects with insufficient profitability,so as to achieve the development of offshore wind sustainably power projects as soon as possible,and to ensure that profits can still be guaranteed in the process of the gradual decline of policy subsidies in the future.Finally,this paper is concluded that the current green credit policy still needs to be improved.By appropriately adjusting the loan interest rate of green credit,it will be found that the green credit policy can be very effective in helping offshore wind power projects reduce their LCOE,helping the every offshore wind projects become profitable with the help of the new green credit policy.