China's Demand for Clean Energy Investment to Reach USD470 Billion by 2020, Study Shows
(Yicai Global) Sept. 4 -- China's 13th Five-Year Plan period, from 2016 through 2020, will see total funding volumes for energy projects exhibit explosive growth driven by a significant increase in demand for clean energy, a report by the International Institute of Green Finance at China's Central University of Finance and Economics states.>
Total demand for clean energy investment projects, including nuclear power but not new-energy vehicles, will reach USD469.7 billion (CNY3.1 trillion) during the period.
Investment in hydropower will reach USD75.76 billion (CNY500 billion) while solar energy will attract USD151.5 billion in funding. Wind power, nuclear power, biomass energy and geothermal projects are projected to see total investment values of USD106 billion, USD68.2 billion, USD29.7 billion and USD21.2 billion, respectively, online news outlet China Securities cited the report as saying.
The Chinese new-energy vehicle and charging infrastructure sector will grow to USD1.5trillion (CNY10 trillion) by 2020, representing tremendous growth in demand for funding from investors and financiers.
The need for financial products and services will continue to increase among Chinese energy companies throughout the period, and allocation of resources will improve thanks to a strong desire for effectively matching supply and demand ends of investment as well as financing resources for the energy industry, the report noted.
Greater relative cost competitiveness among clean energy technology will also bring more investors on board.
The Chinese government should introduce incentive policies for energy finance, especially green energy finance, to optimize the energy structure, the report suggests. Financial institutions should also proactively promote innovations related to exting energy financing tools and roll out more energy financial services.