The world is increasingly turning to renewable energy as a way to power our homes and businesses. And with good reason – renewable energy is sustainable, efficient, and often cheaper than traditional forms of energy.
But what does that mean for investors?
As renewable energy becomes more popular, there are more opportunities to invest in the industry. And one way to do that is to bet on Chinese renewable energy companies.
Here’s what you need to know about investing in China’s renewable energy sector.
The Chinese renewable energy market is growing rapidly
China is the world’s largest market for renewable energy, and the sector is growing quickly.
According to the International Energy Agency, China added more renewable energy capacity in 2016 than any other country. And Bloomberg New Energy Finance forecasts that China will invest $360 billion in renewable energy between now and 2020.
That’s good news for investors, because it means there are plenty of opportunities to profit from the growth of the Chinese renewable energy market.
There are a few reasons for the rapid growth of the Chinese renewable energy market.
First, the Chinese government is committed to transitioning the country to a low-carbon economy. In its 13th Five-Year Plan, the government set a goal of increasing the share of renewable energy in the country’s energy mix to 20% by 2030.
To meet that goal, the government has been investing heavily in renewable energy. Between 2011 and 2015, the government invested $102 billion in the sector. And that investment is paying off – China now has the world’s largest installed capacity of solar power, wind power, and hydroelectric power.
Second, the cost of renewable energy has fallen sharply in recent years. The cost of solar panels has fallen by more than 70% since 2010, while the cost of wind turbines has fallen by 50%.
As a result, renewable energy is now cheaper than coal in many parts of China. That’s a big deal, because coal has long been the dominant source of energy in China.
The shift to renewable energy is already having a major impact on the country’s energy mix. In 2016, renewable energy accounted for almost a quarter of the new power capacity added in China. And according to the National Energy Administration, renewable energy accounted for 11.4% of China’s total power generation in 2017.
That’s up from just 3.8% in 2010.
The Chinese renewable energy market presents a big opportunity for investors
The growth of the Chinese renewable energy market presents a big opportunity for investors.
There are a few reasons for that.
First, as the world’s largest market for renewable energy, China is leading the global transition to a low-carbon economy. That’s good news for the long-term prospects of the renewable energy industry
Other related questions:
Q: How do I invest in renewable energy?
A: There are a few ways to invest in renewable energy:
1. Invest in a renewable energy company: You can invest in a company that specializes in renewable energy production, such as a solar or wind company.
2. Invest in a company that uses renewable energy: You can also invest in a company that uses renewable energy to power its operations.
3. Invest in a company that supports renewable energy: You can also invest in a company that provides products or services that support the growth of renewable energy.
4. Invest in a fund that invests in renewable energy: There are also a number of investment funds that focus on investing in renewable energy companies.
Q: What is the most used renewable energy source in China?
A: The most used renewable energy source in China is hydroelectricity.
Q: How much is China investing in renewable energy?
A: According to the International Renewable Energy Agency (IRENA), China invested a record $103.6 billion in renewable energy in 2017, up 32% from the previous year. This made China the world’s largest investor in renewable energy for the sixth consecutive year.
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