Chinese renewable power giant builds global empire
Chinese renewable power giant builds global other investors are wary of Brazil, but when Duke Energy wanted to sell 10 hydropower dams, one Chinese utility would have to pay $ 1.2 billion to finance the economic turmoil in Malaysia, bringing energy from Amazon to Germany I added an empire. State-owned China The Three Gorges Group is planning to buy hydropower, wind, and solar energy projects in the period when western utility investors withdraw and Vice President Donald Trump pledges to revive coal use, We spend a lot of money to do that.
Andrew Shepherd, who follows BMI Research’s global utility industry, said: “They are happy to invest wherever they are worth it.
Chinese renewable power giant builds global empire as other state owned utilities, including CTG, who is willing to risk cash and overturning old competitors, and State Grid Corp., the world’s largest power supplier, are expanding overseas to find new sources of revenue with home economic growth and electricity demand. There is. cool.
Ten years ago, we built dams and power plants in Asia and Africa. Currently, we are playing a long-term role as a utility operator in Europe and Australia and we are looking at the US market. Issues such as Brazil and southern Europe provide a welcome investment in many markets.
In 1993, the CTG has a global ambition to operate the Central Delta dam, but it is unusual in its position as a state-level Chinese power company that relies on non-fossil fuel resources.
The company still produces a capacity of 60 gigawatts in dam. The 46-gigawatt facility on the Yangtze River competes against the Itaipu Dam in Brazil and the world’s largest hydroelectric power plant.
These projects face opposition to environmental damage and forced migration from the community.
In August, the Brazilian Environment Agency rejected an offer by CTG and Energias de Portugal, a Portuguese state energy company, to build an 8 gigawatts Sao Luis do Tapajos dam in the Amazon. The dam would have flooded the land belonging to Munduruku Indians.
CTG is active in 40 countries and has started investing in wind power in 2007 and said 2011 solar projects are easier and more politically attractive.
In June, Blackstone Energy Partners acquired a German wind farm. CTG Construction Dam in Malaysia started commercial production in May. CTG has partnered with Australian startup RayGen Resources to set up solar projects in China.
Over the past five years, CTG has spent more than $ 10 billion on hydro and wind assets in Brazil, Germany, Italy, Poland and Portugal, said financial data provider Dealogic. We have also built dams in Laos and wind farms in neighboring Pakistan.
“The Three Gorges Group takes the international first-class clean energy group as its strategic goal,” the company said in a written response to the question. Europe is a “development platform” for North America.
The ruling Communist Party is spending huge sums on renewable energy to control dependence on imported oil, gas and coal, reduce smog that does not snow, and create profitable technology. With the exception of large hydroelectric dams, China has invested $ 103 billion in wind, solar and other renewable resources last year under the UN Environment Program. The United States spent $ 44 billion.
Beijing’s expenditure is fostering the Chinese export industry. South Korea’s solar panel manufacturers are world-class industry leaders, and wind turbine manufacturers are boosting exports.
In the United States, CTG and other Chinese investors may face more scrutiny under Trump under which they accused Beijing of their campaigns and appointed advisors who favor a more hostile attitude toward the trade.
When acquiring US assets, experienced and potent potential competitors such as Duke, Southern Company, and Dominion Resources are crowded into the market.
“Chinese utilities may be interested in seeing opportunities in North America, but so far,” said Daniel Qiu, executive director of Credit Suisse’s Asia Pacific Investment Banking Group.
As a springboard for the new market, CTG paid $ 3.5 billion in 2011 for 21% of Energias de Portugal, one of the largest global investors in wind energy.
Their partnership with EDP’s Houston-based US arm has owned wind power plants in New York, Iowa, Texas and other states, which can help ease CTG’s entry into the US.
“It’s an exciting way for Three Gorges to access the US renewable projects through backdoors,” shepherd says.
The two companies are building two hydropower projects in Brazil, in addition to a dam that CTG buys from Duke Energy.
CTG has an abundance of assets of 563.7 billion yuan ($ 82.8 billion), including 18.7 billion yuan ($ 2.7 billion), more than double the price of Duke Energy’s Brazil dam. The company generated revenues of RMB 28.8 billion ($ 4.2 billion) in 2015 with revenues of RMB 63.5 billion ($ 9.3 billion).
Worldwide, state-owned utilities in China say that according to Dealogic, over the last five years, they have purchased over $ 3 billion of all or some of the power suppliers in Brazil, Germany, New Zealand and other countries. Brazil, Australia, Italy, Greece and Portugal. Australia’s SGSP (Australia) assets in gas and distribution network operator Pty. Ltd. paid $ 6.7 billion for 60% of the total. They are much more aggressive and risk taking.