Chinese clean energy firms boost global green shift

BEIJING -- Across the sweeping expanse of Kazakhstan's desert, rows of photovoltaic panels glisten like a shimmering lake under the sun's brilliance. This impressive sight belongs to the Kapchagay 100MWp Solar Power Station, a large single photovoltaic power plant developed by Universal Energy, a leading Chinese clean energy provider.

To date, Universal Energy has completed eight renewable energy projects in Kazakhstan, significantly reducing local electricity costs. According to Nan Yi, the company's chairman, these plants meet the energy needs of around one million households and cut carbon dioxide emissions by 1.6 million tonnes annually.

The company is part of a larger picture of Chinese renewable energy firms expanding their global footprint. Despite headwinds in a year marked by mounting protectionism, these companies have accelerated their international ventures, injecting much-needed momentum into global green transition.

Exports of new-energy vehicles (NEVs) reached 1.17 million units in the first 11 months of 2024, a remarkable 24.6 percent increase compared to the same period in 2023.

Chinese energy storage firms secured over 115.63 GWh of overseas orders from January to October.

As the world's largest producer of solar photovoltaic modules, China accounts for approximately 80 percent of global module manufacturing and has driven a more than 80 percent reduction in the price of solar panels over the past decade, according to Heymi Bahar, a senior analyst with the International Energy Agency.

He said this has played a key role in helping countries worldwide expand their solar photovoltaic deployments.

In 2024, confronted with rising trade barriers from the EU and the United States, numerous Chinese firms are deepening their presence in emerging markets across Asia, the Middle East, and Africa, backed by the Belt and Road Initiative.

Chinese companies' non-financial outbound direct investment in Belt and Road partner countries expanded 5.1 percent from the previous year to a total of $30.17 billion from January to November, according to the Ministry of Commerce.

A case in point is that in July 2024, the Saudi Public Investment Fund announced partnerships with Jinko Solar, TCL Zhonghuan, and wind turbine maker Envision Energy, to localize the manufacturing and assembly of solar and wind power equipment.

These collaborations align with the world's largest oil producer's ambitious goal of having renewable energy comprise over 50 percent of its energy mix by 2030.

China's new energy industry also helps forge a win-win model for green and low-carbon energy transitions. In Kenya, for example, the 50-megawatt Garissa solar power station developed by the China Jiangxi Corporation for International Economic generates an average of over 76 million kilowatt-hours of electricity annually. It reduces approximately 64,000 tonnes of carbon dioxide emissions each year.

The project has freed local residents from frequent power outages and promoted local industrial and commercial development, creating numerous job opportunities.

Moses Masika Wetangula, speaker of Kenya's National Assembly, said China has always been a reliable partner, and its support is critical for Africa's development.

With deeper engagement in global markets, Chinese companies have accelerated the "going global" strategy by relocating industrial chains and factories abroad. This approach aims to establish comprehensive industrial ecosystems overseas, bringing advanced technology to these countries and fostering improved local industrial frameworks.

A notable example is Chinese NEV giant BYD, which signed a preliminary sales and purchase agreement in January 2024 with Szeged, Hungary, for land to establish its first European factory. The facility will include an advanced car production line tailored for localized European markets and will be put into operation in 2025.

BYD chairman Wang Chuanfu said BYD is ready to bring highly advanced technologies and automated manufacturing lines to Hungary to facilitate local EV development. He added that BYD will produce localized products for European markets by collaborating with Europe to achieve the goal of global sustainable development.

Hungarian Minister of Foreign Affairs and Trade Peter Szijjarto said that BYD's manufacturing plant was the largest and the most important investment project in Hungary's history, which will strengthen Hungary's economic position and foundations for long-term growth.

As the global energy landscape undergoes rapid transformation, the demand for renewable energy is projected to grow steadily. Chinese renewable energy enterprises have a big role to play.