This photo taken on February 21, 2024 shows workers inspecting solar panels at a rooftop of a power plant in Fuzhou, in southern China's Fujian province. (Photo by AFP) / China OUT
BEIJING: Chinese power companies are expanding their presence in global green energy projects, with a particular focus on solar and wind power, according to an industry report.
Major Chinese power companies have so far invested in and operated 14 energy grid projects in 11 countries and regions, with the cumulative value of overseas engineering contracts reaching US$376bil and overseas investment at US$106bil, the China Electricity Council said in a report released in Beijing.
The outbound expansion of Chinese power enterprises in terms of investment, services, equipment and technology continues to accelerate, it said.
Chinese power companies have actively engaged in cross-border transmission line interconnections and electricity trading with neighbouring countries last year, including Russia, Mongolia, Vietnam and Myanmar, said Yang Kun, executive vice-chairman of the council.
This has not only promoted the sharing and exchange of clean energy resources but also supported the development and utilisation of renewable energy on a regional scale, Yang said.
Key components of wind turbines account for over 70% of the global market, while the production share of polycrystalline silicon, silicon wafers, solar cells and modules in the photovoltaic industry exceeds 80% globally, he said.
The council predicts the country’s combined installed capacity of grid-connected wind and solar power to exceed that of coal power by the end of this year, accounting for about 40% of the total installed capacity.
China’s installed capacity of non-fossil energy generation exceeded that of thermal power for the first time last year, accounting for more than half of the total installed capacity, hitting 53.9%, while the proportion of coal power installed capacity dropped below 40%, according to the council.
Driven by the overall recovery of the country’s economy, China is likely to experience robust growth in electricity demand this year, with power consumption on course to reach 9.8 trillion kilowatt-hours, up 6% year-on-year (y-o-y), supported by the ongoing electrification of the residential and transport sectors, as well as a notable expansion of the data centre sector, said the council.
“Chinese power companies have comprehensive advantages in technology, capital and equipment, making it competitive at the global stage while driving the greening trend worldwide,” said Luo Zuoxian, head of intelligence and research at the Sinopec Economics and Development Research Institute.
Ever since China ceased new overseas coal-fired power projects in 2021, the power industry in China has made active adjustments, with major domestic power companies shifting their focus to green investments, Luo said.
They are playing a greater role in injecting strong momentum into sustainable local economic and social development, he added.
In addition to solar and wind power, sectors including energy storage, hydrogen energy, carbon capture, utilisation and storage and integrated energy also possess massive development opportunities, Luo said. — China Daily/ANN
