# China poised to strengthen its leading position in renewable energy in Asia

- Link: https://www.thailand-business-news.com/china/114525-china-poised-to-strengthen-its-leading-position-in-renewable-energy-in-asia
- Published: 2023-11-28T14:44:47+07:00
- Author: Li Zhong

China is set to increase its dominance in renewable energy markets in developing
Asian countries as it moves away from financing coal-fired power projects abroad,
according to a report by energy consultancy [Wood Mackenzie](https://www.woodmac.com/).

## Key Takeaways

 * Chinese companies have made significant investments in energy projects across
   developing Asian countries, with a focus on coal and gas projects, but a recent
   trend shows the shelving and cancellation of many planned coal projects in Southeast
   Asia.
 * China’s decision to stop funding new coal projects overseas and move away from
   exporting coal technology has led to a shift towards renewable power markets,
   with Chinese companies becoming increasingly influential in providing green-power
   technology and equipment to developing countries.
 * Developing countries in the Belt and Road Initiative heavily rely on affordable
   Chinese equipment and technology for renewable energy projects, as other countries
   cannot provide the same low-cost options, resulting in better cooperation between
   these markets and Chinese technology providers.

Chinese companies have made significant progress in the energy sector, installing
128 gigawatts of power abroad, with three-quarters of that in Asia. However, in 
the past three years, many coal projects in Southeast Asia that were originally 
planned by Chinese companies have been canceled or shelved. China announced plans
to stop funding new coal projects overseas in 2021.

ADVERTISEMENT

> The numbers are undeniably impressive. Over the last 10 years, Chinese companies
> have installed 128 GW of overseas power projects – greater than the total generation
> capacity of the United Kingdom – with around 70% of this across South and Southeast
> Asia.
> https://www.woodmac.com/news/the-edge/china-belt-road-initiative-turns-away-from-
> coal/

As a result, China is expected to become more influential in renewable power markets,
with the export of green-power technology and equipment booming. Chinese companies
are improving their foreign investment strategies and forming partnerships with 
local firms in developing countries. These countries can afford renewables due to
the low costs of Chinese equipment and technology, which are not available from 
other countries.

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The influence of the Belt and Road Initiative (BRI) on power markets is projected
to expand, as there are already 80 GW of additional capacity either under construction
or in the planning stage. In order to enhance its overall approach, China is expected
to shift its focus towards direct investment, moving away from the previous emphasis
on bilateral lending that characterized the early years of the BRI. As a responsible
lender, China is mindful of the risks associated with debt defaults, particularly
when borrowers struggle to repay loans with higher interest rates.