What latest data tell us about wind in China?

New investment in renewables fell 18% worldwide, from $349bn in 2015 to $287bn in 2016. And it is mainly China’s fault.

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A Word About Wind
February 14, 2017
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What latest data tell us about wind in China?

New investment in renewables fell 18% worldwide, from $349bn in 2015 to $287bn in 2016. And it is mainly China’s fault.

Last week, Bloomberg New Energy Finance published its annual report on clean energy investment, which showed how the performance of renewables on a global level in 2016 was highly influenced by the slowdown of Chinese investment in the sector.

Green energy investment in China in 2016 was $87.8bn, down 26% on the all-time high of $119.1bn reached in 2015.

Was last year just a one-off or a signal of a downward trend that will keep going this year? If we look at the signals from the Chinese economy so far this year, we think the latter.

In 2016, the Chinese economy grew by 6.7% compared with 6.9% a year earlier, according to the government’s often-disputed official data. It was the slowest growth since 1990. And while government and central bank have spent the last two years focusing on steadying the economy, investment is still dropping in every sector.

Massive cashflows from China have represented one of the country’s biggest issues. Having limited domestic investment opportunities and very low returns, Chinese investors carried out a series of overseas deals in 2016. Chinese corporations are looking for cross-border merger and acquisitions and high-profit deals, especially in Europe, including in wind.

In June 2016, state-owned power company China Three Gorges acquired an 80% stake in German offshore wind farm operator WindMW for $1.9bn. Earlier last year, Chinese state-owned investment holding company State Development and Investment Corporation acquired Spanish firm Repsol's offshore wind business for €238m ($252m), including a 25% stake in the 588MW Beatrice project in Scottish waters.

Following on from this, last month the Chinese government announced new investment in green energy for 2.5tn yuan ($364bn) by 2020, with 700bn yuan ($102bn) just in wind. This should help to restore annual investment to the level seen in 2015.

While costs in renewables are going down, China needs to stabilise its economy in order to attract again investors, both domestic and international, to its energy sector. However, this doesn’t mean that Chinese investors’ appetite for renewables will stop.

They will still play a big role on an international level.

New investment in renewables fell 18% worldwide, from $349bn in 2015 to $287bn in 2016. And it is mainly China’s fault.

Last week, Bloomberg New Energy Finance published its annual report on clean energy investment, which showed how the performance of renewables on a global level in 2016 was highly influenced by the slowdown of Chinese investment in the sector.

Green energy investment in China in 2016 was $87.8bn, down 26% on the all-time high of $119.1bn reached in 2015.

Was last year just a one-off or a signal of a downward trend that will keep going this year? If we look at the signals from the Chinese economy so far this year, we think the latter.

In 2016, the Chinese economy grew by 6.7% compared with 6.9% a year earlier, according to the government’s often-disputed official data. It was the slowest growth since 1990. And while government and central bank have spent the last two years focusing on steadying the economy, investment is still dropping in every sector.

Massive cashflows from China have represented one of the country’s biggest issues. Having limited domestic investment opportunities and very low returns, Chinese investors carried out a series of overseas deals in 2016. Chinese corporations are looking for cross-border merger and acquisitions and high-profit deals, especially in Europe, including in wind.

In June 2016, state-owned power company China Three Gorges acquired an 80% stake in German offshore wind farm operator WindMW for $1.9bn. Earlier last year, Chinese state-owned investment holding company State Development and Investment Corporation acquired Spanish firm Repsol's offshore wind business for €238m ($252m), including a 25% stake in the 588MW Beatrice project in Scottish waters.

Following on from this, last month the Chinese government announced new investment in green energy for 2.5tn yuan ($364bn) by 2020, with 700bn yuan ($102bn) just in wind. This should help to restore annual investment to the level seen in 2015.

While costs in renewables are going down, China needs to stabilise its economy in order to attract again investors, both domestic and international, to its energy sector. However, this doesn’t mean that Chinese investors’ appetite for renewables will stop.

They will still play a big role on an international level.

New investment in renewables fell 18% worldwide, from $349bn in 2015 to $287bn in 2016. And it is mainly China’s fault.

Last week, Bloomberg New Energy Finance published its annual report on clean energy investment, which showed how the performance of renewables on a global level in 2016 was highly influenced by the slowdown of Chinese investment in the sector.

Green energy investment in China in 2016 was $87.8bn, down 26% on the all-time high of $119.1bn reached in 2015.

Was last year just a one-off or a signal of a downward trend that will keep going this year? If we look at the signals from the Chinese economy so far this year, we think the latter.

In 2016, the Chinese economy grew by 6.7% compared with 6.9% a year earlier, according to the government’s often-disputed official data. It was the slowest growth since 1990. And while government and central bank have spent the last two years focusing on steadying the economy, investment is still dropping in every sector.

Massive cashflows from China have represented one of the country’s biggest issues. Having limited domestic investment opportunities and very low returns, Chinese investors carried out a series of overseas deals in 2016. Chinese corporations are looking for cross-border merger and acquisitions and high-profit deals, especially in Europe, including in wind.

In June 2016, state-owned power company China Three Gorges acquired an 80% stake in German offshore wind farm operator WindMW for $1.9bn. Earlier last year, Chinese state-owned investment holding company State Development and Investment Corporation acquired Spanish firm Repsol's offshore wind business for €238m ($252m), including a 25% stake in the 588MW Beatrice project in Scottish waters.

Following on from this, last month the Chinese government announced new investment in green energy for 2.5tn yuan ($364bn) by 2020, with 700bn yuan ($102bn) just in wind. This should help to restore annual investment to the level seen in 2015.

While costs in renewables are going down, China needs to stabilise its economy in order to attract again investors, both domestic and international, to its energy sector. However, this doesn’t mean that Chinese investors’ appetite for renewables will stop.

They will still play a big role on an international level.

New investment in renewables fell 18% worldwide, from $349bn in 2015 to $287bn in 2016. And it is mainly China’s fault.

Last week, Bloomberg New Energy Finance published its annual report on clean energy investment, which showed how the performance of renewables on a global level in 2016 was highly influenced by the slowdown of Chinese investment in the sector.

Green energy investment in China in 2016 was $87.8bn, down 26% on the all-time high of $119.1bn reached in 2015.

Was last year just a one-off or a signal of a downward trend that will keep going this year? If we look at the signals from the Chinese economy so far this year, we think the latter.

In 2016, the Chinese economy grew by 6.7% compared with 6.9% a year earlier, according to the government’s often-disputed official data. It was the slowest growth since 1990. And while government and central bank have spent the last two years focusing on steadying the economy, investment is still dropping in every sector.

Massive cashflows from China have represented one of the country’s biggest issues. Having limited domestic investment opportunities and very low returns, Chinese investors carried out a series of overseas deals in 2016. Chinese corporations are looking for cross-border merger and acquisitions and high-profit deals, especially in Europe, including in wind.

In June 2016, state-owned power company China Three Gorges acquired an 80% stake in German offshore wind farm operator WindMW for $1.9bn. Earlier last year, Chinese state-owned investment holding company State Development and Investment Corporation acquired Spanish firm Repsol's offshore wind business for €238m ($252m), including a 25% stake in the 588MW Beatrice project in Scottish waters.

Following on from this, last month the Chinese government announced new investment in green energy for 2.5tn yuan ($364bn) by 2020, with 700bn yuan ($102bn) just in wind. This should help to restore annual investment to the level seen in 2015.

While costs in renewables are going down, China needs to stabilise its economy in order to attract again investors, both domestic and international, to its energy sector. However, this doesn’t mean that Chinese investors’ appetite for renewables will stop.

They will still play a big role on an international level.

New investment in renewables fell 18% worldwide, from $349bn in 2015 to $287bn in 2016. And it is mainly China’s fault.

Last week, Bloomberg New Energy Finance published its annual report on clean energy investment, which showed how the performance of renewables on a global level in 2016 was highly influenced by the slowdown of Chinese investment in the sector.

Green energy investment in China in 2016 was $87.8bn, down 26% on the all-time high of $119.1bn reached in 2015.

Was last year just a one-off or a signal of a downward trend that will keep going this year? If we look at the signals from the Chinese economy so far this year, we think the latter.

In 2016, the Chinese economy grew by 6.7% compared with 6.9% a year earlier, according to the government’s often-disputed official data. It was the slowest growth since 1990. And while government and central bank have spent the last two years focusing on steadying the economy, investment is still dropping in every sector.

Massive cashflows from China have represented one of the country’s biggest issues. Having limited domestic investment opportunities and very low returns, Chinese investors carried out a series of overseas deals in 2016. Chinese corporations are looking for cross-border merger and acquisitions and high-profit deals, especially in Europe, including in wind.

In June 2016, state-owned power company China Three Gorges acquired an 80% stake in German offshore wind farm operator WindMW for $1.9bn. Earlier last year, Chinese state-owned investment holding company State Development and Investment Corporation acquired Spanish firm Repsol's offshore wind business for €238m ($252m), including a 25% stake in the 588MW Beatrice project in Scottish waters.

Following on from this, last month the Chinese government announced new investment in green energy for 2.5tn yuan ($364bn) by 2020, with 700bn yuan ($102bn) just in wind. This should help to restore annual investment to the level seen in 2015.

While costs in renewables are going down, China needs to stabilise its economy in order to attract again investors, both domestic and international, to its energy sector. However, this doesn’t mean that Chinese investors’ appetite for renewables will stop.

They will still play a big role on an international level.

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Become a member of the 6,500-strong A Word About Wind community today, and gain access to our premium content, exclusive lead generation and investment opportunities.