(Yicai) March 24 -- China Power International Development has successfully transitioned into a clean energy-focused business, with green energy now accounting for more than 75 percent of its electricity generation mix, the chairman of the Chinese power producer told Yicai in a recent interview.

CPID has completed its transformation into a green energy-centric company, and as of June 2024, clean energy accounted for over 75 percent of its capacity, with profitability leaping about 10-fold from before the transition, He Xi told Yicai during an interview for the “ESG+20 Sustainable Development Leadership Series.”

CPID’s total installed capacity reached 48,329 megawatts as of June 2024, 37,249 MW of which came from renewable sources, according to the latest data.

The power sector is a major emitter of greenhouse gases and therefore is a key focus in the global energy transition, He said. From its origins in coal-fired power generation, CPID has branched into hydropower, wind power, solar power, natural gas, environmental protection power generation, energy storage, green energy transportation, and integrated energy services.

It is difficult to achieve the global temperature control target of 1.5 degrees Celcius solely by relying on the low-carbon transition of coal power, He said.

CPID’s vision is to become “a world-class green, low-carbon energy supplier,” He said. The Hong Kong-based company’s Environmental, Social, Governance strategy includes a goal to increase the share of clean energy in its installed capacity to 95 percent by 2035, with clean energy accounting for more than 70 percent of its power generation.

In line with these aims, in June 2024, CPID became a member of the UN Global Compact and joined the "Sustainable Development Goals Ambition Accelerator" project.

As the cost of renewable energies like wind and solar come down, the economic feasibility of the green transition has greatly increased, but the reliability and stability of these energy sources remain a challenge, He said. Wind and solar power are dependent on weather conditions, which poses a significant challenge to the power system and requires substantial investment in technological innovation.

To this end, CPID has established energy storage research institutes, national key laboratories and energy storage production lines, to find solutions for the shortcomings of renewable power generation through the integration of wind, solar, and storage.

Innovation is key to a company’s sustainable development, but the road to innovation is full of challenges, and failure must be embraced with an open mind, He said. The “Social” dimension in ESG is not just symbolic, and companies should deeply care about society and all of mankind to unite talents. In addition, the essence of sustainable leadership is to stimulate a company’s inner vitality, unite all forces, and keep the business moving forward.

World-class companies should have grand ambitions from the start and strive to make significant contributions to humanity and society, He said. When pursuing economic value, companies must prioritize social and human values. Only in this way can a business truly become a “century-old enterprise.”

Editor: Kim Taylor