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Thursday, September 28, 2023

China’s SOEs Ramp Up Green Investment, Paving the Way for Renewable Energy Development

BusinessChina's SOEs Ramp Up Green Investment, Paving the Way for Renewable Energy Development

China’s state-owned enterprises (SOEs) have been ramping up the construction of new energy projects since the start of the year. Analysts and industry observers expect these projects, from photovoltaic power stations to offshore wind farms, to become new engines driving the country’s economic growth. A large number of SOEs, including China National Nuclear Corp, State Power Investment Corp, and State Grid Corp of China, have all started new projects across the country following Chinese New Year. These efforts follow increased investments in the green sector, in accordance with the Chinese government’s pledge to peak carbon dioxide emissions by 2030 and achieve carbon neutrality by 2060.

State Power Investment Corp kicked off construction of a nuclear heat transmission pipe network in February. The network, a support facility of the 900-megawatt nuclear power-based district heating project in Shandong province, will further facilitate the expansion of nuclear power-based heating projects to more areas nationwide, reducing carbon emissions. Similarly, State Grid has launched the world’s highest-altitude UHV direct current power transmission project. The company plans to step up investment in the sector in 2023, with funds set aside for power grid construction up by 4% compared with the previous year.

SOEs are further expanding their investment in the renewable energy sector, with China Huaneng Group vowing to operate renewable energy projects with a total capacity of more than 30 million kW, and investment is likely to reach 100 billion yuan this year. Additionally, 152 new energy projects involving 29 provinces, municipalities, and autonomous regions are underway or in the preparatory stage.

These efforts are expected to bring impetus to the companies and the national economy, driving the development of related industries. Many SOEs that see traditional energy making up a dominant share in their business are also actively seeking transformation. According to the National Energy Administration, newly installed capacity of renewable energy reached 152 million kW last year, or 76.2% of the country’s total newly added installed energy capacity, including 37.63 million kW of wind power, 87.41 million kW of solar power, and 3.34 million kW of biomass power generation.

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