Jan 25, 2021 07:46 PM

State-Owned Power Major Takes Lead in $1.54 Billion New Energy Fund

What’s new: A group of companies led by one of China’s top electricity producers has announced the formation of a 10 billion yuan ($1.54 billion) fund to invest in new energy technologies and related initiatives.

Investors include China Energy Investment Corp. Ltd., a company set up in 2018 through the merger of major power generator China Guodian Corp. and leading coal producer Shenhua Group; as well as China Reform Holdings Corp. Ltd. and China Orient Asset Management Co. Ltd.

The new fund will invest in projects involving solar and wind power, as well as hydrogen-based technologies.

What’s the Background: China has been investing heavily in new energy sources in recent years, both in power generation and in low- and zero-emissions vehicles. The drive is part of the country’s longer-term plans to wean itself off dirtier-burning coal and to reduce its greenhouse gas emissions.

China Energy Investment has previously said it plans to boost its renewable energy power generating capacity to between 70 gigawatts and 80 gigawatts in China’s five-year plan that runs through 2025, up from just 14 megawatts to 19 megawatts at the end of 2019.

Of China’s total power generating capacity, coal-fired power still accounted for the largest single part by supplying half the nation’s 2,100 gigawatts of capacity at the end of October. Hydropower was second with about 18%, while wind and solar each supplied about 11%.

Related: Solar Powers Its Way to China’s No. 3 Electricity Source

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full Caixin article in Chinese, click here.

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