Green capex in China to zero in on wind, solar in next 3 years: report
It will also focus on grid efficiency, and storage systems amongst others.
The green capital expenditure in China is expected to focus on building up the country’s wind and solar capacity in the next three years, CreditSights reported.
It will also likely focus on improving grid efficiency, and energy storage systems, amongst other infrastructure development.
“We also expect the Chinese National Oil Companies (NOCs) to scale up their renewable energy portfolios,” the report read in part.
“In addition, we think that domestic banks would continue to be guided to provide long-term and low cost funding to renewable energy projects.”
CreditSights, in particular, expects an aggressive expansion in wind and solar through projects such as the high-capacity offshore wind farm development projects, small scale distributed solar projects on the rooftops of industrial parks, economic zones, and public buildings.
The green CAPEX will also likely be intended to increase the proportion of renewable energy transmitted from wind and solar power bases to at least 50%.
Moreover, pumped storage hydro-power capacity will be increased to at least 62 gigawatts.
This also comes as China announced its 14th five-year plan that sought to amongst others facilitate its commitment to reduce carbon emissions and achieve neutrality by 2060.
“As a result, the numerical targets detailed in the 14th Five-Year renewable development plan are not a surprise to us,” CreditSights said.
“In our view, the plan also reflects the policymakers' intention to use green CAPEX to boost infrastructure spending and GDP growth this year.”