The rapid development of China's solar and wind energy sectors has spurred the market potential for energy storage batteries to ensure a stable supply of power.

Energy storage batteries are meant to store and discharge electricity generated by renewable energies such as wind and solar energy, both on-grid and off-grid.

The sales of energy storage batteries were 600 to 700 million yuan ($87.8 to $102 million) in 2008. Currently about 95 percent of the batteries are used for off-grid energy storage and only 5 percent for on-grid applications.

Even if the percentage doesn't change, the sales are likely to grow to 15 to 20 billion yuan ($2.2 to $2.9 billion) by 2015, Chen Zhenye, senior consultant of energy and power systems at the business consulting firm Frost & Sullivan, told the Global Times.

But Chen added that the trend is from off-grid to on-grid applications.

He estimated that if 10 to 12 percent of the batteries were used on-grid, the market would be as much as 100 billion yuan ($14.6 billion) by 2015.

Their alternative energy applications also give energy storage batteries huge potential, Zhao Yuling, Marketing Manager for North Asia at Exide Technologies, told the Global Times. US-based Exide, one of the world's largest lead-acid energy storage batteries producers, has about 40 percent of its products for energy storage, Zhao said.

Riding the wind

With 2.57 gW newly installed capacity in the first seven months of this year, China's accumulative wind power installed capacity is now at 14.74 gW. The total capacity is expected to further expand to 30 gW by the end of 2010, the deputy director of New Energy Department, State Energy Bureau, told Xinhua News Agency in June.

But insufficient grid connections currently hamper the country's wind power capabilities, Chen said.

"Grid infrastructure construction lags behind in the mid and western regions including wind bases in Inner Mongolia, Gansu, Qinghai, and Xinjiang," Chen said.

"In some places, about one third of the generated power cannot be transmitted. Consequently, one third of the generators are idled."

Without energy storage batteries, even if the power is generated by wind, without a sufficient grid, the power would be wasted, said Chen.

In addition, due to natural conditions, photovoltaic solar energy and wind power are interval and fluctuating energy sources respectively and thus unless there is a energy storage system, the grid's stability is uncertain, Jiang Qian, chief analyst for new energy industry at Shenzhen Zhongzhe Investment Consulting Ltd, told the Global Times.

Energy storage batteries are a major solution to the problem of storing surplus power and generating electricity back onto the grid when power is in short supply, said Jiang.

Wind power so far accounts for less than 2 percent of China's total power generation so the impact is not obvious. "However, if the wind and solar power account for about 10 percent of the total generated electricity, the interval energy transmission will affect the overall stability of the grid," said Chen at Frost & Sullivan.

Wind power's total installed capacity in China is currently estimated to be about 8.3 percent, and solar power's proportion will also rise to about 1.6 percent by 2020, according to Jiang.

China's plan to develop a smart grid is another plus for the growth of energy storage batteries. By the end of this year, the government is expected to unveil new plans for boosting renewable energies such as solar and wind power, and set industry standards for electric devices for a smart grid in 2010 or 2011. By then, solar and wind power will be integrated into the grid transmission system, giving another boost to the energy storage batteries industry, Chen said.

Battery types

Lead-acid batteries accounted for 90 percent of the storage battery market in 2008, while lithium-ion (Li-ion) batteries and nickel-metal hydride (NiMH) batteries take the remaining portion of the market share. Lead-acid batteries are low in cost and dominate the market. Currently about 10 percent of the lead-acid batteries have improved power capacity and follow higher environmental standards, noted Chen.

NiMH batteries are the midrange battery between lead-acid and Li-ion in terms of performance, but they are not convenient to discharge and recharge. Li-ion batteries perform better than lead-acid and NiMH batteries and are less polluting. However, the cost is about three times higher than lead-acid. In addition, there is a Li-ion technology bottleneck that Chen predicted will take at least five to six years to resolve in order to reduce the cost.

Domestic market

Because of low manufacturing costs, China is the world's largest energy storage producer and exporter and the output volume of China's energy storage batteries will grow significantly in the next 10 years, according to Zhao at Exide Technologies.

But small-scale production, disorderly competition and underdeveloped technologies are the major problems and challenges facing the development of the energy storage sector in China, said Zhao.

There are about 20 domestic producers of energy storage batteries. However, no single domestic producer has more than 10 percent of the market share, Chen at Frost & Sullivan said.

The off-grid market is government oriented, Chen noted, and predictably government recommended brands such as Zhejiang Tianneng and Jiangsu Shuangdeng have a greater advantage over others.

The high power lead-acid motive battery for electric car developed by Tianneng Power has passed the product function inspection of the national inspection authority North Vehicle Quality Supervision, Inspection & Approval Test Institute (北方汽車質量監督檢驗鑒定試驗所). The Group is the first enterprise in the industry to pass this professional function inspection with all inspection indexes found compliant with the state standards for battery for electric cars.  Having secured the accreditation, Tianneng Power now holds "the key" to tap the motive battery for electric car market and will further strengthen its leadership in the motive battery industry in China.

Tianneng Power is the largest motive battery supplier in China boasting the highest sales in the industry for 10 consecutive years. In July 2008, Tianneng Power was named the "The Best Chinese Motive Battery Brand" by the world authoritative organization FROST & SULLIVAN. It also claimed 22nd place in the Top 100 Hi-tech Enterprises in China (Hong Kong inclusive) list published jointly in May 2009 by CEO&CIO and BusinessWeek in the U.S.

Tianneng Power recently signed an agreement with Jiangsu Yadea Technical Development Co., Ltd, with the latter committing to using Tianneng motive batteries with high-power output capacity in the electric cars for serving the Shanghai World Expo.

Jiangsu Yadea Technical Development Co., Ltd is a large-scale electric car and special vehicle manufacturing enterprise in China specializing in developing environmentally friendly electric cars. The agreement has brought the two companies together, as a partner supplier of Shanghai World Expo, to provide with clean, efficient and quality electric vehicles.

On 28 June 2009, Tianneng Group laid the foundation stone for its major investment project – Tianneng Recycling Economic Industrial Park – in the Wushan Industrial District, Changxing County, Zhejiang Province this morning, which marked an important step in the Group's effort to grow and become the largest motive energy provider in China. Mr. Zhang Tianren, Chairman of the Group, presented an overview of the project at the ceremony. Other speakers included Mr. Zhang Shanmei, Chairman of the PRC Battery Industry Association and key officials of Huzhou City and Changxing County.

The industrial park which will span 858.6 mu (1 mu= 666.7 m²) is dedicated to promoting development of the recycle economy and new energy industry.  When it is completed, it can produce up to 6,000,000 KVAh of motive energy and wind and solar power storage batteries a year.  Conducive to environmental protection, it will be able to process without pollution waste lead-acid batteries of up to 150,000 tonnes a year and obtain from 100,000 tonnes of reusable recycled lead. The industrial park will become an important base for manufacturing motive and storage batteries and recycling lead-acid batteries in the country. 

Tianneng Group has been committed to fostering and developing the new energy industry in recent years and has made breakthroughs. The Tianneng Recycling Economic Industrial Park, which will not only be focusing on manufacturing batteries for electric cars, but will also cover operations in relation to recycling of batteries and developing and manufacturing storage batteries, allow the Group to capture the top market and a broader share of the new energy market as well as optimize product structure. It is expected to aid the enhancement of overall standard of the new energy battery industry and drive development of the entire industry.

Mr. Zhang Shanmei, Chairman of China Battery Industry Association, Mr Sun Wenyou, Secretary of Huizhou CPC Committee and Mr. Liu Guofu, Secretary of Changxing county CPC Committee, who spoke at the ceremony, congratulated the Group on occasion and praised the Group for its achievement in transforming its business and innovative efforts in fostering the development of new energy.

 Mr. Zhang Shanmei said, "Tianneng Group is a leading motive battery company in China, the Vice-president unit of the China Battery Industry Association and President unit of Zhejiang Storage Battery Industry Association. It has been active in recent years in developing innovative production techniques and new generation products and in turn has grown very rapidly." He also spoke highly of the industrial park saying the project agrees with the country's development plan for new energy and scientific pursuit of a recycle economy that emphasizes sustainable development. The recycling of used lead batteries into reusable recycled lead has critical value in the development of a recycle economy and the reuse of lead resources in China, an endeavor benefiting the environment and literally an 'after sale' service for the good of the community.

The growth of Tianneng Group, a leading motive battery producer in China, has major bearing on the development of the entire Yangtze River Delta as well as the battery industry in China, and the construction of Tianneng Recycling Economic Industrial Park is going to serve the entire industry as a signpost for advancement.

On 23 June 2009, Tianneng Group signed a strategic cooperation agreement with Sunnyspain Energy Group.

Spain is a global leader in green energy development and Sunnyspain Energy Group is a world-renowned new energy application enterprise that invests in solar and wind energy farms and related system engineering.

Sunnyspain Energy Group was looking for quality new energy battery products in China via the Shanghai New Energy Industry Association. After on-site visits to a number of companies in China, it finally chose Tianneng Group as its partner and the first batch of batteries it purchased will be used in solar energy street lights and rooftop solar installations in Europe. From now on, it will purchase plastic storage cells from Tianneng Group to use in its solar energy, wind energy and lighting projects around the world, and in turn the Group will provide comprehensive technological support and after-sale service to its Spanish partner.

The signing of the agreement was witnessed by guests including Mr. Mi Yue, Chairman of Shanghai New Energy Industry Association, Mr. Cheng Xiangmin, Deputy Administrator of People's Government of Shanghai Minhang District, Mr. Zhang Tianren, Chairman of Tianneng Group, and Mr. Zhao Changrong, Chairman of Sunnyspain Energy Group.

Tianneng Group has signed a supply contract with Wuhan Sunny Light, a renowned LED supplier in China, recently and is to supply the first batch of 600 plastic storage cells for to Wuhan Sunny.
 
Wuhan Sunny Light Co. Ltd is a new and hi-tech private company that focuses on the R&D, design, manufacturing and sale of high power LED lighting products. As a leading LED lighting supplier in Greater China, it manufactures 500,000 high-power LED chips and several hundred thousands LED lighting products a year.

On the Top 100 Hi-tech Enterprises in China (Hong Kong inclusive) list jointly published by CEO&CIO and BusinessWeek from the U.S. recently, Tianneng claimed 22nd place.  Other battery makers such as BYD, Coslight Group and Hunan Corun New Energy Co., Ltd. ranked 17, 54 and 74 respectively.

The list covers Chinese enterprises (including those in Hong Kong) listed in Shanghai, Shenzhen, Hong Kong, New York and the Nasdaq before 31 December 2008.  The enterprises were assessed on their competitiveness objectively and comprehensively with reference to four aspects namely revenue, revenue growth rate, return on equity and investment.

On 7 June 2009, Mr. Zhang Tianren, Chairman of Tianneng Group, visited the production base of leading Chinese electric vehicle manufacturer Shandong Incalcu Electric Vehicle Co., Ltd. ("Incalcu"), whose electric cars and bikes are distributed nationwide and also exported overseas to Japan, the U.S., Europe, the Middle-East, SE Asia and South America, etc.

The products of Incalcu are powered mainly by Tianneng batteries. To jointly boost the development of the electric vehicle industry in China, Tianneng and Incalcu became strategic partners in May 2009.

During the visit, Mr. Zhang took a ride on the latest electric vehicle of Incalcu.

Chief of Anhui Provincial Committee of the CPC Wang Jinshan receives Zhang Tianren, Chairman of Tianneng Power and Chairman of Zhejiang Merchants Association

In the morning of 4 June, Mr. Wang Jinshan, Chief of Anhui Provincial Committee of the CPC received a delegation of the Renowned Zhejiang Entrepreneurs Roundtable Conference in the company of Mr. Sun Jinlung, Member of the Standing Committee of CPC Anhui Provincial Committee, and Chief of Hefei Municipal Committee of the CPC, and Mr. Zhanxia, Member of the Standing Committee of CPC Anhui Provincial Committee, and Secretary-General of CPC Anhui Provincial Committee.

At 8:30 am that morning, Mr. Wong greeted the delegates in the meeting room warmly.  He said businessmen in Zhejiang are among the most capable, energetic and influential in the country and wherever they set foot on is set to grow and become prosperous, thus, their visit to Anhui speaks volume to the prospects of the province.  The roundtable conference provides an avenue for all-round and open discussion among participants, yet sitting at a square table suggested that cooperation will be guided by the principles of mutual benefit and fruitful collaboration, and for enterprises, within the permission of law and abiding by tax obligations. The opening remarks of Mr. Wang delivered with good humor won the applause of the audience.

Mr. Wang said Anhui was hit hard by the financial crisis, but at the same time has been presented with growth opportunities. The country's focus and policies on stimulating internal demand and defending GDP growth agree with the needs of the province and what the province was not capable of achieving before are possible now with support from the country. It has had a large number of projects given approval to proceed, putting Anhui in a favorable position never seen before. There is evidence that the policies and measures adopted by the central government in tackling the financial crisis have been effective and right on target. By exerting its best in implementing those policies and measures aiming for concrete results and sustained momentum, the province will be able to overcome the crisis, in other words, this is the best time for Anhui to seize opportunities and strive for development.

On 4 June 2009, Member of the Chinese Academy of Engineering and authority in the field of new energy battery and Nano-materials Mr. Wen Lishi visited Tianneng Group. He had in-depth exchange of views with Mr. Zhang Tianren, Chairman of Tianneng Group on the development of new energy battery in China.

On that day, the Group signed a cooperative agreement with Mr. Wen Lishi to appoint him as leader of the Group’s research to focus on application of nanotechnology in lead-acid motive battery, nickel hydride motive battery, lithium motive battery, fuel battery and storage battery to raise the technological standards of the batteries.

Green energy is a growing area of development of the energy industry in the Country and the Government has shown unprecedented support to electric cars that use new energy, and solar and wind power development. It is thus apparent that promotion of green energy will become a global trend. Wen said that it presents a unique opportunity for Tianneng Group and great prospects especially for its efforts in developing motive battery for electric cars, and solar and wind power storage battery. It is common knowledge that the lead-acid battery has been in use for more than 150 years and, because of its stability and renewable and reusable features, it has never been replaced by batteries made of other materials. If nanotechnology could be applied to lead-acid battery, it would not only extend the lifespan of the battery, but could also markedly increase its specific capacity. Whoever is first to make the breakthrough in this area will lead the industry. Wen also mentioned that the research and development of nanotechnology application in new energy battery should be rushed but pursued a solid step at a time, with the aim of achieving concrete results that could contribute to the development of innovative products at the time.

To celebrate development of the China power industry in the past 60 years, renewable energy channel of CCTV.com held the first "International Power Storage Technology Conference" in Beijing on 26 May 2009. The event featured esteemed guests and speakers including Dr. Zhang Yongwei from Development Research Center of the State of Council; Mr. Yang Yusheng, member of Chinese Academy of Engineering; Mr. Lai Xiaokang, Head of Electrical Engineering Research Team, China Electric Power Research Institute. And, Tianneng Power, which is the largest motive battery supplier in China, the leading storage battery supplier, Vice-president unit of China Battery Industry Association and Shanghai New Energy Industry Association, also attended the Conference, and its Chairman Zhang Tianren was interviewed by CCTV.

The aim of the Conference was to promote the development of power storage technologies in China, the industrialization of those technologies and international exchange and cooperation. With energy and environmental protection issues gaining attention, China and the rest of the world are going to increase use of renewable energy including solar and wind power and these new energy sources are going to   enter a new development stage. Moreover, hit by the global economic crisis, the US and Europe are directing their focus on to new energy sources and positioning them as the opportunities amid crisis. Such approach will see new energy technologies become a new growth driver of the global economy. Apart from a favorable macro environment such as supportive government policies, for automobiles powered by new fuel or electric vehicles, solar photovoltaic or wind power generation to gain popularity and boast commercial value, they have to be supported first and foremost by highly efficient and environmentally friendly storage technologies and products.

Development of power storage industry has strategic importance   Encourages development of different power storage technologies
Dr. Zhang Yongwei of the Development Research Center under the State Council said the development of power storage technologies is more than just a technological pursuit, but has strategic significance on the industrial level and even national level. He called on the authority to clearly define the strategic importance of the power storage industry, promote environmental protection and new energy sources, and enhance the capacity of power grids in the country, thus strengthen the nation's competitiveness. In advancing storage battery technology, the country should encourage development of different competitive technologies to serve different application markets, starting with more mature technologies. When the technologies and economic conditions agree, and with support from relevant policies, the power storage industry in China will be able to grow rapidly.

Development of lithium battery overheated Lead-acid batteries still prevalent and continue to enjoy growth potential
Mr. Yang Yusheng of the Chinese Academy of Engineering focused on discussing the assessment standard of large-scale storage technology. He said development of the power storage industry is a long term pursuit and should start early for the industry has direct bearing on the nation and people's livelihood and is expected to growing social and economic significance. Commenting on the direction of storage battery technology development, he pointed out that there are signs that the development of lithium battery is a bit overheated and the difficulty of producing the battery has been underestimated. The lead-acid battery, which boasts stable function, reasonable price and made of recyclable raw materials, is still prevailing, just like the fuel battery which has been around for a century and is still widely used.  The important thing to do is to step up efforts in developing new technologies for the lead-acid battery. Theoretically, 70% of the DOD cycle life of lead-acid battery can reach 4,500 times, meaning it has huge development potential. The current short lifespan of lead-acid battery is mainly from misuse of the battery resulting in over-discharge.

Storage batteries boast wide applications hence importance in the Country's power generation chain
The sustainable development of global energy supply hinges on the development of renewable energy, and the stable and continuous supply of renewable energy relies on the support of considerable amount of large-scale storage batteries. Large-scale storage technology can be widely used in off-grid wind and solar power generation systems, backup power supply and achieving a more balanced distribution of power grids and supply.

According to the estimate of the US market research institute Lux Research, the current global power storage market is worth US$2.4 billion. If 10% of the same-grid wind farms in the world use power storage devices, the power storage market alone will worth US$50 billion. And, the forecast of Fuji Research Institute has global renewable energy storage volume growing to 2050MW by 2014, with solar power accounting for 41% and wind power 59%.

Looking at China, Mr. Lai Xiaokang, Head of Electrical Engineering Research Team, China Electric Power Research Institute, has conducted in-depth analysis on the demand for storage battery of power grids and concluded that storage battery has significant value to realizing interactive management of power grids across the nation. Storage battery is applied in power grids in two main modes namely load tracking type and power supply tracking type, which can ensure smooth output of renewable power and reduce deviation of power forecast. And distributed storage technology can be used to solve problem with partial power voltage control and hence save energy and lower emissions, and heighten equipment efficiency, reduce wastage of resources, improve reliability of supply and supply quality. Regarding achieving a more balanced distribution of power supply in cities and development of wind power, Mr. Lai said the country planned to commence a liquid power storage project in 2010 and is preparing to embark on a 100 MW wind power, photovoltaic and energy storage model project.

Industrialization of storage battery in critical stage Needs greater government policy support
All participants agreed that the government should include large-scale battery technology and its industrial applications as a major item in the Twelfth Five-year Plan of the country. They also recommended that the government step up investment in basic research of power storage technology, encourage innovation and intellectual property ownership, emphasize environmental protection at the beginning of development of large-scale storage technology so as to prevent pollution, and fully utilize energy storage in energy conservation and emission control, in other words, extend supportive policies on new energy to cover also the power storage sector.

 MSCI announced that 48 enterprises have been included in the China Small Cap Index and 17 have been taken out. Tianneng (819) is one of the new additions and the others are A8（800), China Automation（569), China Haidian (256), Hui Yuan (1886), China Oil & Gas (603), China Oriental (581), China Resources Microelectronics (597), Chongqing M&E (2722), Clear Media (100), Coastal Greenland (1124), United Gene High-Tech (399), Franshion Properties (817), Fufeng Group (546), GCL-Poly (3800), Genesis Energy (702), Goldbond (172), GST Holdings (416), Kai Yuan (1215), Kingboard (1888), Lai Fung (1125), Lee & Man Paper (2314), Maoye Int’l (848), Media China (419), Min Xin (222), Nanjing Panda (553), Pacific Online (543), Ports (589), Realgold Mining (246), REXLot (555), Shandong Molong (568), Shanghai Zhengda (755), Silver Grant (171), SinoMedia (623), Sinopec Kantons (934), Sun Man Tai (433), Truly (732) and Yip’s  Chemical (408). This list may serve as reference for retail investors.
Those taken out of the index included Shanshui Cement (691), ChongqingIron (1053), Guangzhou Ship (317), XinAo Gas (2688) and CSR Times (3898). Many stocks had prices shot up in folds indicative of their high risk.

In the afternoon of 14 May, Mr. Xia Baolong, Deputy Secretary of Jiangsu CPC Committee, accompanied by Mr. Sun Wenyou, Secretary of Huzhou CPC Committee and Mr. Liu Guofu, Secretary of Changxing county CPC Committee visited Tianneng and expressed appreciation and support to the Group’s effort to transform its business to maintain growth.  He also urged the Group to speed up research and development and production of new energy products to make sure the Group is able to grow its business fast and strong.

Mr. Xia was joined by Mr. Zhang Tianren, Chairman of Tianneng, on the tour of the Group's electric bike product exhibition center. He was particularly excited on seeing many different electric bikes displayed. He was told that all the electric bikes use Tianneng's batteries including the latest patented nickel hydride and lithium batteries of technological standards higher than similar products available in the Country.  Mr. Xia got on to one of the bike and said, "This is the bike to buy!" His comment won a round of applause from all those who were present.

On learning that Tianneng had succeeded in developing high-performance batteries for electric bikes, Mr. Xia went in front of the test model bike and enquired about including the performance indices of environmentally-friendly high-performance batteries developed by Tianneng. He also drove the bike around the center and was happy with its performance. He said to Mr. Sun Wenyou that electric car was a key development focus in China and overseas countries, thus local governments might consider supporting the adoption of electric cars  in their jurisdiction to help foster growth of environmentally friendly and energy saving vehicles, which was set to become a prevalent trend in the future. He stressed that the main direction of developing new energy was right on target and urged Mr. Zhang to speed up research in the new energy area and contribute to the development of the environmental protection industry of China.

Different advanced technologies were unveiled at the “SNEC PV Power Expo” themed “Developing new energy to foster the well-being of mankind”

On 5 May 2009, the “SNEC 3rd PV Power Expo” opened at the Shanghai International Convention Center. The largest photovoltaic (PV) exhibition and conference in Asia, the event attracted participation of industry professionals, scholars, academics and entrepreneurs from more than 40 countries and regions including Germany, the US, Japan, France, Austria, Holland, Switzerland, Belgium, Singapore, Spain and Taiwan.  Participants were engaged in discussions on a variety of topics from future market trends and cooperation strategy to political direction, and front-end technology of the solar energy and PV industries. The event also showcased some of the most advanced PV technologies of major domestic and foreign PV companies. Among them, the revolutionary [雙結薄膜] technology of American Applied Materials Inc. is the first and only production line for manufacturing the super-thin film solar cell on a super-large 2.2m x 2.6m panel. That size panel is four times the largest used now in solar cell production. A leading motive and storage batteries supplier in China, Tianneng displayed the fruits of its latest R&D efforts – plastic storage cells for wind and solar energy.

Solar energy is the only renewable energy that can meet the biggest share of future energy demand of mankind.  This explains the emphasis of many countries including China on developing solar energy. According to the forecast of an authoritative international report, by 2030, renewable energy will account for over 30% of the global energy supply and solar energy will make up more than 10%; and, by 2040, the former will increase to over 50% and the latter to 20%. By the end of the 21st century, renewable energy and solar energy will account for more than 80% and 60% respectively of the total energy supply in the world.

Suntech and Tianneng jointly initiated the set up of APVIA

According to the Shanghai New Energy Industry Association, the registration of  APVIA in Singapore was formally approved on 23 January 2009 after close to a year of preparation, and a preliminary meeting for the inauguration of the organization was recently held in Shanghai.

China has the largest PV industry in the world and the industry has reported consistent tremendous growth. It put out a total of 6,000 kilowatt of solar cells in 2002 and, by 2008, its output had risen to 2,000,000 kilowatt, putting the country in the top spot of the global market.

To lead the development of the PV industry in China and Asia at a higher level, institutes and companies including the Chinese Renewable Energy Society, Shanghai New Energy Industry Association, Suntech and Tianneng initiated the APVIA. The new organization and its European counterpart are expected to support each other and make advancement together in the future.

Driven by favorable government policies, PV industry focuses on quality enhancement amid adverse market conditions

Authoritative sources have revealed that China is drawing up a series of plans to invigorate the new energy industry and these plans will be implemented gradually in the near future.

Mr. Zhao Yuwen, Deputy Director of the Chinese Renewable Energy Society and head of the PV Division, told the media recently that the 《Regulations on on-grid Power Tariff》 might be applied to the PV energy industry this year.

Prior to that, the Ministry of Finance and Ministry of Housing and Urban-Rural Development had already introduced the new policies that are conducive to development of the solar PV industry.

According to the these policies, the Central Government can allocate part of the fund in the renewable energy project fund to promote model solar energy project in urban-rural construction. For 2009, the standard subsidy is set at 20 yuan /Wp. Subsequent standard annual subsidy in the future will be adjusted with reference to the development status of a project.

Ministry of Housing and Urban-Rural Development Department estimates the gross floor area of construction in villages in China at 25,000,000,000m2 and that in cities at approximately 22,000,000,000m2.  Based on the average plot ratio of 1 for both villages and cities and the presumption of a 50% solar cell installation rate, the installable area for solar cells will be 23,500,000,000m2 or 2,350,000,000,000 watt of electricity supply with 100 watt generated per square meter of the cells, which is 400 times the total number of solar cells installed globally last year.

The industry welcomes this first concrete policy to support the PV market in China. Informed sources told the reporter that the policy mainly targets large PV constructions and relevant “advice” on such as terrestrial and rooftop applications and on-grid pricing will be unveiled later.

As the authority continues to roll out supportive policies, the new energy industry in China is expected to see a very bright future.

In the morning of 16 April, Tianneng and the Zhejiang University of Technology, represented by Mr. Zhang Tianren, Chairman of Tianneng, and Mr. Ma Chun’an, Vice-President of the University, signed a cooperation agreement on production studies at the signing ceremony held at Changxing International Hotel.
 
The Zhejiang University of Technology is a first-tier integrated university directly under the provincial municipality. It has the best teaching staff and boasts top scientific R&D level among universities in the province with support of a national grade laboratory. The University has achieved major breakthroughs in the R&D of new battery models for lithium batteries, solar power batteries and fuel batteries, etc.  It has developed new technologies that filled the technological gaps in the battery industry in China and it is rated among the top in the country in terms of technological level.

Tianneng has maintained close relationship with the Zhejiang University of Technology over the years. The latest agreement represents the commitment of both parties to enhance the technological level of the new energy industry in China and foster industry development after extensive and in-depth discussion. Accordingly, the two parties will set up a joint R&D center and focus on R&D and promotion on the development of nickel hydride batteries, lithium batteries, solar and wind power storage batteries and fuel batteries.

In line with the strategic move of the State Council in reducing carbon emission, the Ministry of Finance and Ministry of Housing and Urban-Rural Development recently published a series of policies and comments to accelerate the use of solar energy in buildings in both the urban and rural areas.

At the same time, the country has pledged financial support to the "Solar Power Panel Rooftop Plan" (太阳能屋顶计划), hoping to build a mechanism with the market’s impetus and government’s support to provide the leverage to guide development of the photoelectric industry. Related measures included firstly funding of model photoelectric construction projects. Qualified projects will be given subsidies arranged by the government to compensate part of the initial investment in the projects. Secondly, the government will also encourage efforts to develop advance techniques and technological innovation and, thirdly, local governments are urged to launch related financial support policies.

The Ministry of Finance has recently promulgated and issued a set of "Provisional Measures for the Management of Application of Financial Grant for Construction Projects that Employ Solar Energy Photoelectric Technology" (太阳能光电建筑应用财政补助资金管理暂行办法) to strengthen management of related funding applications aiming for more effective utilization of funds.

Furthermore, the Ministry of Finance and Ministry of Housing and Urban-Rural Development have stepped up support for the construction industry. Relevant departments at various levels are to diligently fulfill their duties with respect to make usage of solar energy photoelectric technologies an integral part of their energy saving work plan, push for perfection of technical standards and technological advancement, and strengthening of capabilities so as to gradually raise the standard of application of solar energy photoelectric technologies in buildings.
 

Mr. Zhang Tianren, Chairman of the Board of Tianneng Group, was among the outstanding Chinese honored at the "11th World Outstanding Chinese Award and 1st World Outstanding Chinese Artist Awards" jointly organized by the World Chinese Business Fund, the Worldwide United Chinese Association and United World Chinese Association. He was also presented an Honorary Doctorate Degree by United States International University, California. The presentation ceremony was held at the Hong Kong Convention and Exhibition Centre on 21 March 2009.

The "World Outstanding Chinese Award" is a prominent award organized by the United World Chinese Association to honor Chinese elites around the world for their excellent performance in various industries and contribution to charitable causes. Over the years, the Award has inspired many Chinese and gained influence in Chinese communities around the world.

Winners of the 18 awards also included Mr. Wang Jin-Pyng, who is head of the Legislature of Taiwan.

During a recent meeting with Mr. Zhang Tianren, Chairman of Tianneng Group, Mr. Qiu He, Secretary of Yunnan Provincial Committee of the CPC and Secretary of Kunming Municipal Committee of the CPC stated clearly that "Kunming will focus on developing constant speed transportation" and "the electric cars are good substitutes."

At the meeting, Mr. Qiu said that traffic congestion is a serious problem in Kunming and one solution to the problem is to develop constant vehicles such as electric cars which are energy efficient and environmentally friendly. He will contact institutions of various countries in Yunnan and present Yunnan to them as a window to reach out to Southeast Asian countries, in the hope of rallying concerted efforts of different countries to promote the use of green transportation such as the electric car.

Mr. Zhang was invited to visit Kunming to see the investment environment in the region with the company of Mr. Ho Tso Hsiu, a member of the Chinese Academy of Sciences.

The Ninth UBS Greater China Annual Meeting was held at Pudong Shangri-La, Shanghai on 12 January 2009 and Tianneng Power, which is a leading enterprise in the China motive battery and representative of Hong Kong-listed companies, was invited to the event.

At the event, Mr. Chen Minru, Executive Director and General Vice President of Tianneng Power, explained to heads of international and domestic fund houses, and securities and investment institutions the development of the motive battery industry in China and the operation of the Company. The participants expressed their views on the development of the Company in the future.

On 21 January, the Group held its 2008 sales and marketing annual review and achievement award presentation in Changxing Country. Representatives of four main Communist Party and government arms, namely the Changxing County Party Committee, the county government, the Political Consultative Conference and National People's Congress, also attended the event and presented awards to staff members of the Group who delivered outstanding performance during the year.

That was the second time representatives of the major party and government arms attended the Group's annual achievement award presentation, which is rare in the history of Changxing County. This speaks to the high regard and great expectations the county party committee and county government have for Tianneng Group, and also the solid leadership of the Group in the industrial sector in Changxing.

On 26 December 2008, the Chinese Cycling Association held its annual meeting at the Lakeview Hotel Hangzhou to elect the seventh management council and Mr. Zhang Tianren, Chairman of Tianneng Group, was appointed an Associate Council Member. The Company was the only battery enterprise among the 55 newly elected council members and 20 associate council members this year.

Founded in 1985, the Chinese Cycling Association is a national organization in the cycling industry in China with close to 500 group members. Its members all together account for 80% of the national output and export. A total of 100 council members attended the conference this year including Mr. Xu Xiangnan, Deputy Director of the Personnel and Educational Department of the China National Light Industry Council. The meeting received a congratulatory note from Mr. Chen Shineng, President of the China National Light Industry Council and heard the report from Mr. Wei Jianing, Deputy Director of the Marco-economic Department of the Development Research Center of the State Council on the current situations and trends of the economy.

Being a core part in electric bikes, batteries and their R&D standards and functionality are crucial to the development of the electric bike industry. In recent years, drawing from the R&D capabilities of Post-doctoral Workstation, the Company has launched a series of market-oriented "Tianneng" brand electric bike motive batteries and established long-term strategic cooperative relationship with more than 300 renowned electric bike manufacturers in the country. It has helped to boost the popularity of electric bikes in the country and is trusted and supported by different electric bike manufacturers in China. Other participating council members said with Tianneng Group] as [Associate Council Member of the Association, the industry can expect to see integration of resources quickly, which will be favorable to the rapid and healthy growth of the electric bike industry in China.

On October 21, 2008, Zhejiang Tianneng Battery (Jiangsu) Co., Ltd. was presented the ["Certificate of Advanced Technology Enterprise"] by the Science and Technology Department, Finance Department and the State and Local Administration of Taxation Bureaus of Jiangsu Province. The certificate numbered GR200832001161 is valid for three years.

According to relevant provisions, the Company is entitled to a preferential taxation status granted by the State to advanced technology enterprises for three years starting from 2008 up till 2010, and the rate of corporate income tax will be 15% instead of the regular 25%.