When it comes to China renewable energy sources and investment, no country can surpass China. They were already the world large domestic investors in renewable energy in 2015 spending some $102 billion.
Since then, they have only gone further to cement their world dominance and lead the likes of US, Australia, and the UK who are now at the risk of missing out on this rapidly expanding market.
According to IEEFA (Institute for Energy Economics and Financial Analysis), China’s dominance is no longer restricted to domestic investment but is fast spreading overseas. They have accelerated their foreign investment and continue to acquire renewable energy sources and supporting technologies around the world.
IEEFA has been conducting surveys on how major leaders invest in various economic and financial sectors. In their 2016 study, China had some 13 different investments worth $32 billion compared to the US $1 billion.
This represented a 60% increase from 2015, which only shows how committed China is to assert their dominance on renewable energy.
Earlier this year, a report commented that China is poised to produce a quarter of all their electricity from wind power by 2030.
The big investments on foreign lands included two in Germany, Australia, and Brazil as well as other major deals in Vietnam, Egypt, Pakistan, Indonesia, and Chile. They struck a $1.1 billion deal in Australia to buy power from solar and wind farms and $1.6 billion in Germany to convert waste to energy.
The full report was a clear indication of China’s total dominance on renewable energies. They now own the following;
- Five of six largest solar module plants in the world
- Largest lithium-ion manufacturer in the world
- Largest wind turbine manufacturer in the world
- Largest electricity utility in the world
With these investments, China is taking a leading position in the clean energy sector that promises to overreach in the future. In fact, it is now for other countries to catch up over the coming years as all countries will align towards clean energy.
The Impact On Other Investors
In the light of China’s early takeoff and dominance, UK renewable investments are set to drop by some massive 95% over the next three years. However, these are only projections that may significantly change following one slight turn of events.
According to the director of IEEFA, Tim Buckley, there is no supportive policy in Australia and US new administration is more focused on coal and gas leaving these countries at risk of slipping further behind with regards to renewable energy investment.
Nonetheless, the director feels we are still in the early stages, and there is time for other countries to join in and spend more on renewable energy sources, development and supportive technology. It is more of a transition period, and most countries are still evaluating the overall ramifications of investing in clean energy and the potential therein.
China is already cementing its global dominance by investing in various available opportunities both at home and abroad. As they continue to acquire more deals and renewable energy plants, they are poised to be world leaders in future electricity supply, but this race is only bound to get tighter once other major investors realize clean energy is the future.