Asia Energy Transition: El Niño and energy opportunities

Research evidence excerpt

Asia Energy Transition: El Niño and energy opportunities

ed on recent El Niño cycles in 2015-16 and 2023-24. Water utilities could be put to test, sambhav.kela@hsbc.co.in

+91 22 40891464

depending on coordination and capacity sufficiency in reservoirs. While implications for

hydropower operators are dependent on location, we like CYPC (Buy; lift TP to RMB32, LiAnalyst,Quan* A-Share(Reg. No.ConsumerS1700520030002)Sector

from RMB31) as it tends to benefit from stronger rainfall in the upper Yangtze River basin, HSBC Qianhai Securities Limited

li.quan@hsbcqh.com.cn

based on historical data. +86 755 8898 3471

Higher intermittency of renewables benefits battery storage: During El Niño, solar Kathy Song* (Reg. No. S1700517120001)

Head of A-share Consumer Research

irradiance in southern China may decline, while wind resources in the north could weaken, HSBC Qianhai Securities Limited

therefore leading to downside to average output and higher intermittency for wind and kathy.l.h.song@hsbcqh.com.cn

+86 21 5066 2007

solar, which together account for 20% of total power supply. Solar panels perform most

Nneka Chike-Obi

efficiently at around 25°C (77°F) for photoelectric conversion, so extreme heat could weigh Director, Sustainability Research

on solar output. Meanwhile, more volatility in renewables output – especially during peak The Hongkong and Shanghai Banking Corporation Limited

nneka.chike-obi@hsbc.com.hk

demand hours – could favour battery energy storage and merchant-based power plants +852 2284 1241

taking advantage of peak-valley price differences; here, India’s ReNew (Buy) is relevant.

Remain cautious on China thermal power; AC exporters as heatwave play: While * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is