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State-Owned Enterprises' Solar Gamble: Hidden Costs of Traditional Energy Transition Seen in Zhejiang Energy

Can't Finish Reading PapersJul 122026/07/12 62 views

In 2023, Zhejiang Energy acquired a 9.7% stake in Jolywood for approximately 2.2 billion yuan, becoming its controlling shareholder. By June 2024, Jolywood founder Lin Jianwei only needed to pay 40 million yuan in performance compensation to gradually exit. Behind these numbers lies a typical predicament where Zhejiang Energy Group got "stuck" in the PV sector—taking over at high prices and settling with low-price compensation. The game between state-owned capital and private PV companies exposes structural risks that cannot be ignored in traditional energy transitions.

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LuguoJul 14(edited)

[quote="gao_yunfan, post:1, topic:419"]

In 2023, Zhejiang Energy Power acquired a 9.7% stake in Jolywood for approximately 2.2 billion yuan, becoming its controlling shareholder. By June 2024, Jolywood founder Lin Jianwei only needed to pay 40 million yuan in performance compensation to gradually exit. Behind these figures lies the typical predicament of Zhejiang Energy Group being "stuck" in the photovoltaic sector—buying in at high prices and exiting with low-price compensation. The game between state-owned capital and private PV enterprises exposes structural risks that cannot be ignored in traditional energy transitions.

Let's start with the conclusion: Zhejiang Energy Group's acquisitions of Jolywood and Aiko Solar are essentially a case of "entering at high premiums, inefficient…"

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This case illustrates that when SOEs acquire private companies, the design of VAMs (Valuation Adjustment Mechanisms) is often too crude, failing to account for industry cycles and technology iteration risks. The pitfalls Zhejiang Energy stepped into are fundamentally due to insufficient industrial insight compounded by institutional flaws.