The Chinese market of renewable energy is booming and even further growth can be expected. Experts see very profitable investment opportunities.
In earlier posts (“More ethical investment after the crisis!” and “‘Welcome’ to the paradise.“) we discussed the growing awareness and increase of sustainable investments. A German article in the “Wirtschaftswoche” is explaining how China manages to “overrun” the alternative energy market worldwide.
China’s aim is to become the world leader in providing solar and wind power. Companies, therefore, are heavily subsidised and cheap loans as well as free land is provided. Through joint ventures with western firms technologies could be improved and Chinese companies have the possibility to offer good quality for prices approximately 20% below their German competition, the “Wirtschaftswoche” describes.
It is thus no surprise that China has already surpassed Germany as well as the USA and has become the world’s largest market for wind power as reported in the engineering news.
Not only the Chinese wind power industry is booming. Experts from Glodman-Sachs expect China’s solar power providers to obtain 65% of the world market by the end of the year.
Chinese wind power providers like Goldwind or Sinovel and solar experts like Suntech, Yingli or JA already have a high market share but thanks to billions of domestic earnings, as the Chinese government gives foreign competition barely any chance, they have great potential to expand.
The European Union goal to attain 20% of energy from renewable sources by 2020 gives a promising outlook for growth opportunities and the enormous increase in fossil fuel prices will even enhance the competitiveness of renewable energies.
Other countries have a hard time to compete with China and according to Worldwatch president Flavin, China has high potential to become the world leader in clean energy within the next two years, as stated in the engineering news.
The accounting and consulting firm Ernst & Young even rates China as “the most attractive market for investment in renewable energy”.
See also this wallstreetnewscast article for some fast-growing public companies in the wind power industry.