China’s renewable energy exports surge 35% amid global expansion, batteries overtake solar power

China’s exports of renewable products increased by 35% between 2019 and 2023, driven by competitive prices and dominant production capacity, according to Wood Mackenzie’s new “Looking Overseas” report. During this period, energy batteries overtook solar modules to become China’s main renewable energy export. Investments in wind and solar projects also increased by 26%, accounting for 39% of Belt and Road Initiative projects in 2023.

The report noted that Chinese renewable energy companies are aggressively pursuing global opportunities. Renewable energy investors typically target markets with high energy demand, a stable business environment and predictable revenue streams. Chinese manufacturers are focusing on regions with local content requirements to establish regional production centers.

Xiaoyang Li, director of APAC energy and renewable research at Wood Mackenzie, said: “Chinese developers prefer renewable energy for short-term overseas investment over other conventional energy technologies. Over the past decade, over a hundred wind and solar projects have been developed in Belt and Road markets.

Chinese renewable energy producers, benefiting from integrated supply chains, falling prices and high efficiency standards, meet more than 65% of global demand. Wood Mackenzie predicts this trend will continue. Chinese products are priced up to 200% cheaper than Western counterparts due to low production costs, making them highly competitive despite inflation and rising production costs.

The report also shows that Chinese companies’ interest in overseas renewable energy projects is growing, although progress is hampered by high development risks and uncertain revenue flows. Li explained that Chinese solar and storage investors prefer greenfield investments abroad, while wind investors choose to acquire existing assets to mitigate long construction periods and high risks.

While Chinese investors favor markets with high energy demand and a stable environment, these regions also face geopolitical challenges.

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