Chinese renewable exports up 35% from 2019 to 2023

The country’s manufacturing costs were up to 200% lower than Western rivals.

Chinese renewable product exports grew by 35% from 2019 to 2023 due to their competitive prices and production capacity, with the local  manufacturers supplying over 65% of the total global demand

In a report, Wood Mackenzie manufacturing costs in China were up to 200% lower compared to Western industry players.

“Benefitting from a robust domestic supply chain, equipment produced by Chinese manufacturers overseas remains price-competitive despite an uplift due to inflation uncertainty and higher production costs,” Xiaoyang Li, Director APAC Power & Renewables Research at Wood Mackenzie, said.

ALSO READ: China's carbon market tightening to boost RE demand

The report noted that Chinese renewable firms target global expansions, with Chinese manufacturers targeting markets with local content requirements to become regional manufacturing hubs.

This strategy is different from the tendency of renewable energy investors to invest in markets with high power demand, stable business environments and predictable revenue flows. 

“Renewable energy is favoured by Chinese developers in near-term overseas investment compared to other conventional power generating technologies. More than a hundred wind and solar projects have been developed in the Belt and Road market in the past decade,” Li said

On the other hand, Chinese forms’ interest in overseas renewable projects is on the rise but remains slow because of high development risks and revenue uncertainty.

Meanwhile, in terms of technology, storage surpassed solar modules to be the primary renewable commodity export during the period.