Chinese renewable energy firms look abroad for growth to offset domestic market lull
Beijing’s proposed cuts to wind and solar power tariffs have sparked fears of a drop off in installation volume
China’s wind and solar power developers are seeking growth overseas as they face a potential slowdown in the domestic market.
While some have a preference for developed markets with lower political and regulatory risks, others have found good reasons to invest in developing nations despite the challenges that can present.
Hu Guodong, deputy general manager of wind farms developer China Datang Corporation Renewable Power, said large state-backed firms like his may shift more resources to developing projects abroad in light of a possible decline in returns in the domestic market. The government has proposed cutting subsidies for renewable energy projects in 2018, which industry executives warn may lead to a drop in installation volume.
“In 2018 and 2019, we expect a decline in domestic installation and China’s large central government-backed firms may have to seek growth more aggressively overseas,” he said on the sidelines of a wind power conference in Beijing on Thursday. “Our domestic market is facing growth bottlenecks.”
Chinese equipment makers cannot only rely on the domestic market, they must go abroad to win orders
Beijing has proposed to cut subsidised solar power tariffs by up to 30 per cent for ground-mounted projects approved next year and those of wind farms by up to 6 per cent for new onshore projects approved in 2018.