Core Viewpoint - The development of offshore wind power in Shandong has significantly increased green electricity supply and reduced carbon emissions, positioning the region as a leader in renewable energy in northern China [1][6]. Group 1: Offshore Wind Power Development - The construction of 235 giant wind turbines by State Power Investment Corporation (SPIC) in the southern sea area of Shandong generates 4.35 billion kilowatt-hours of green electricity annually, equivalent to the carbon absorption of 14 million trees [1]. - As of October 2023, Shandong's offshore wind power installed capacity reached 5.92 million kilowatts, making it a crucial engine for the province's green, low-carbon, and high-quality development [1]. Group 2: Operation and Maintenance Innovations - Offshore wind power operation and maintenance (O&M) costs typically account for 20%-30% of project construction costs, which is significantly higher than onshore wind power [3]. - The integration of AI in offshore wind power O&M has improved efficiency, with a smart system capable of real-time monitoring and alerts for equipment issues, thus preventing potential damages [3][4]. Group 3: Communication and Inspection Enhancements - A 5G base station has been established at the offshore wind farm, extending coverage up to 77 kilometers, which enhances communication capabilities for maintenance and safety [5]. - The deployment of inspection robots has replaced 70% of manual inspection work, improving efficiency and ensuring the safety of personnel during maintenance operations [5][6]. Group 4: Renewable Energy Growth and Future Goals - Shandong aims to achieve a total installed power capacity of over 250 million kilowatts by October 2025, with clean energy accounting for one-third of electricity consumption [6][9]. - The province has seen a nearly 10 percentage point increase in the share of renewable energy generation from 2021 to 2024, with new energy storage capacity growing more than fivefold compared to the end of 2022 [9].

Investment Rating - The report indicates a positive investment outlook for the offshore wind operation and maintenance (O&M) industry, highlighting its long-term growth potential driven by policy support and technological advancements [3][30]. Core Insights - The offshore wind O&M industry focuses on the lifecycle maintenance of offshore wind farms, ensuring the safe and efficient operation of wind turbines while minimizing lifecycle costs. The industry is characterized by high technical and cost requirements, extensive operational scope, and limited working windows [3][4]. - China's offshore wind resources are abundant, and the market is expanding due to strong government support. The installed capacity of offshore wind power in China has seen significant growth over the past decade, with expectations for continued expansion [3][30]. - By 2025, it is projected that China's newly installed capacity will reach 88 GW, indicating a stable increase in market size [30]. Industry Definition - The offshore wind O&M industry encompasses specialized services for the operation, maintenance, repair, and management of offshore wind farms, aiming to maximize generation efficiency and extend equipment lifespan while reducing lifecycle costs [4][5]. Industry Classification - The offshore wind O&M industry can be categorized based on service providers into three types: developer self-operation, manufacturer-contracted operation, and independent third-party operation [4][5]. Industry Characteristics - The industry features high operational technology and cost, extensive operational scope, and short working windows. The complexity of offshore environments leads to higher failure rates for offshore wind turbines compared to onshore ones [5][6][8]. Development History - The offshore wind O&M industry has evolved through four stages: initiation and acceleration (2001-2009), phase adjustment (2010-2013), stable development (2014-2020), and a new growth phase (2021-present) [9][10][12][14]. Market Size - The market size of the offshore wind O&M industry in China grew from 400 million RMB in 2017 to 7.52 billion RMB in 2024, with a compound annual growth rate (CAGR) of 52.06%. It is expected to reach 10.51 billion RMB by 2025 and 19.1 billion RMB by 2026, with a CAGR of 81.73% [27][28]. Future Market Drivers - The growth of the offshore wind O&M market is driven by large-scale offshore wind construction, policy support, and decreasing construction costs. The increasing number of offshore wind turbines reaching the end of their warranty period will also boost demand for O&M services [30][31].

Core Insights - A patent application for an "Operation and Maintenance System for Offshore Wind Power Equipment" has been filed by several companies, indicating a focus on enhancing operational efficiency in the offshore wind sector [1]. Company Summaries - **Three Gorges New Energy Yangjiang Power Co., Ltd.**: Established in 2016, located in Yangjiang, primarily engaged in electrical machinery and equipment manufacturing, with a registered capital of 1,818.1 million RMB. The company has participated in 313 bidding projects and holds 115 patents [2]. - **Guangdong Yangjiang Chuangyuan Offshore Wind Power Comprehensive Investment Co., Ltd.**: Founded in 2021, also located in Yangjiang, focuses on business services with a registered capital of 250 million RMB. The company has been involved in 32 bidding projects and holds 7 patents [2]. - **China Three Gorges Corporation**: Established in 1993, based in Wuhan, primarily involved in electricity and heat production and supply, with a registered capital of 21,150 million RMB. The corporation has invested in 43 companies, participated in 5,000 bidding projects, and holds 4,808 patents [3]. - **China Three Gorges New Energy (Group) Co., Ltd.**: Founded in 1985, located in Beijing, primarily engaged in electricity and heat production and supply, with a registered capital of 2,862.5 million RMB. The company has invested in 523 enterprises and participated in 4,672 bidding projects, holding 811 patents [3]. - **Yangtze Three Gorges Investment Management Co., Ltd.**: Established in 2020, located in Shanghai, primarily focused on water resource management, with a registered capital of 500 million RMB. The company has invested in 18 enterprises and participated in 69 bidding projects, holding 16 patents [3]. - **China Energy Engineering Group Guangdong Electric Power Design Institute Co., Ltd.**: Founded in 2001, located in Guangzhou, primarily engaged in professional technical services, with a registered capital of 105.33 million RMB. The institute has invested in 29 enterprises, participated in 5,000 bidding projects, and holds 2,486 patents [3].