By Eric Ng
China, December 14, 2016
Chinese state-funded renewable energy firms are spreading the net overseas, as quality new projects become harder to come by at home, and have already been successful in snapping up some prime operational projects, while bidding for others, both in developed and emerging markets.
The two most active are China General Nuclear Power Group, the nation’s largest nuclear reactor developer, and China Three Gorges, the country’s biggest hydro power projects developer.
The former has stuck at least eight deals in the past twelve month, while the latter has completed two major acquisitions.
“We are seeing a lot of interest from Chinese power companies in acquiring renewable energy assets including on- and offshore wind projects, large-scale solar farms and hydro projects,” said Daniel Mallo, head of Asia Pacific energy, infrastructure, metals and mining finance at French bank Societe Generale who have been working the Chinese firms on deals, told the South China Morning Post.
He said Western Europe has been a prime target for wind and solar power assets for Chinese companies, while Latin America is the major destination for hydro-electric projects.
The flurry of overseas activity comes as the domestic energy market remains oversupplies due largely to excessive construction of coal-fired power plants and a major slowdown in power demand growth as the economy becomes reliant less on energy-intensive industries.
Read more at South China Morning Post