HUANENG POWER INTERNATIONAL, INC. DOMESTIC POWER GENERATION DECREASED BY 0.24% FOR THE YEAR OF 2020

BEIJING, Jan. 15, 2021

According to the preliminary statistics of the Company, for the fourth quarter of 2020, the Company's total power generation by power plants within China on consolidated basis amounted to 110.410 billion kWh, representing an increase of 7.38% over the same period of 2019. Total electricity sold by the Company amounted to 103.979 billion kWh, representing an increase of 3.78% over the same period of 2019. For the whole year of 2020, the Company's total power generation by the power plants within China on consolidated basis amounted to 404.016 billion kWh, representing a decrease of 0.24% over the same period of 2019, and the total electricity sold by the Company amounted to 379.894 billion kWh, representing a decrease of 2.14% over the same period of 2019. For the whole year of 2020, the Company's average on-grid electricity settlement price for its power plants within China amounted to RMB413.63 per MWh, representing a decrease of 0.81% over the same period of 2019. For the whole year of 2020, the Company's market based electricity sold amounted to 221.405 billion kWh, with a ratio of 58.33% comparing to the corresponding total electricity sold, representing an increase of 1.93 percentage points compared to the same period of 2019.

The decrease in the Company's annual power generation was mainly attributable to:

1. In the first half of 2020, as affected by the pandemic, the electricity demand in the society as a whole decreased drastically, resulting in a significant decrease in power generation of the Company in the first half of the year. Although the Company achieved a year-on-year growth in both the third and fourth quarters, its annual power generation still decreased by 0.24% year-on-year.
2. This year, substantial amount of new power generation units, such as wind power and PV power, have been put into operation in China. Also, there is more water in the summer, and clean energy on-grid has been further increased, thereby squeezing the space for growth in thermal power generation.
3. The number of newly operated thermal power generation units in the region where the Company is located increased, resulting in a decrease in the average utilization hours of the local area. With fewer new thermal power units by the Company and the total installed capacity in the regions increases, the Company's capacity proportionate share decreases, resulting in a year-on-year decrease in thermal power generation..

The power generations (in billion kWh) of the Company, by regions, are listed below: