China's renewable energy giants predicted to shift focus to solar power

Will large-scale wind projects be left behind?

According to a report by CLSA, China's biggest renewable-energy operators are primarily focused on wind. However, they believe they will also shift their focus to include more solar as the economics are more proven and issues over subsidy payments are resolved.

The report, titled "China Cleantech," said the biggest operators are all SOEs, as subsidiaries of the big IPP groups, and they are inherently cautious.

It remains to be seen whether the big wind operators will be able to extend their domain to distributed generation projects.

Here's more from CLSA's sector outlook:

Rooftop solar projects of 1MW bear little resemblance to 200MW wind developments. 

However, large-scale wind and solar projects will remain important to China for the foreseeable future, particularly given the sunk costs in ultra high voltage transmission infrastructure to transport wind and solar from the north central and northeast provinces to the coast. 

Taking wind-asset performance as a guide, sector leader Longyuan has been a standout. We also like Huadian Fuxin and Huaneng Renewables, but are more concerned about product quality for these two as their turbines start to come out of warrantly.

Huaneng Renewables, in particular, has not been shy about using relatively untested turbine makers.