China Surges Ahead in Global Renewables Race
December 8, 2010 1 Comment
CFO Innovation Asia points to the new Ernst & Young report on China becoming the global leader in deploying renewable energy equipment. Chinese spending on new wind projects now accounts for one-half of global wind power spending. It is not surprising that China used local content requirements and tailored bidding processes to basically push foreign companies out of the China wind market and hand the market over to local companies in recent years. I recently met with some US wind power analysts who said that one unique element of the China wind power deployment is that a significant number of the wind turbines are being installed in places where there is little wind, and some big projects aren’t hooked up to the power grid.
CFO Innovation Asia excerpt:
China’s record spending on its wind industry this quarter represented nearly half of all funds invested in new wind projects around the world. Such heavy investment has ensured that approximately one in every two wind turbines to go live in 2010 will have been in China. The United States, which topped the indices between November 2006 and May 2010, is now five points behind the ascendant China.
“Since reaching top spot in our Index in September, China has opened up a healthy gap from other markets. Cleantech, including renewable energy, represents a significant part of the country’s future economic growth plans,” explains Ringo Choi, Cleantech Leader for Greater China, Ernst & Young. Choi continues: “The level of wind energy being deployed in China shows what can be achieved with a carefully planned energy and industrial policy that elevates cleantech to a national strategic level. The Chinese solar industry is also fast becoming of great importance in the global market place.”
E&Y Report Link: