Alliance established to tap emerging renewables market

Leading new energy companies in China established an alliance on Monday to better integrate resources and tap the global new energy market.

The International Investment Alliance for Renewable Energy, covering China Energy Engineering Investment Corp Ltd, China Gezhouba Group Overseas Investment Co Ltd, JinkoSolar Holding Co Ltd and wind turbine manufacturer Goldwind, was set up under the guidance of the National Development and Reform Commission, the National Energy Administration and the Ministry of Commerce.

It is the first domestic organization that covers investment in, and construction and operation of new energy companies.

The global power market witnessed dynamic growth with new energy contracts increasing by 200 percent during the past two years, said Chen Xiaohua, head of China Gezhouba Group International Engineering Co Ltd.

However, with inadequate integration of capital operations, disordered competition and poor integration of investment, construction and operation, Chinese new energy companies still see much potential in integrated competitive power to increase their presence on the global stage, he said during the inauguration ceremony of the alliance held in Beijing on Monday.

New energy is playing an increasingly significant role in global energy. According to Xu Xiaodong, deputy head of the China Electric Power Planning and Engineering Institute, China has been shifting toward a cleaner energy mix with the share of clean energy increasing thanks to advanced technology development and cost reduction.

"China is willing to share knowledge of advanced new energy technologies－including hydropower, photovoltaics and wind power－with other countries," he said.

According to Zhou Chao, head of China Overseas Infrastructure Development and Investment Corp Ltd, Chinese new energy companies are already taking the lead after decades of development. The alliance－consisting of the top domestic companies in the fields of new energy planning and consulting, development and investment, engineering and construction, equipment manufacturing, technical service operation and maintenance－represents the major players of the domestic new energy sector.

Joseph Jacobelli, a senior analyst of Asian utilities at Bloomberg, said Chinese clean energy companies see tremendous opportunities abroad especially in solar, wind and nuclear power.

He said he believes there is a good chance that China's clean energy cooperation will continue expanding in these attractive growth markets in the coming years as many countries are still developing their wind, solar, and other zero-carbon sources.

The country's capacity to control costs will also provide the companies in the alliance with an advantage, he said.