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Review of renewable energy investment and financing in China: Status, mode, issues and countermeasures

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  • Ming, Zeng
  • Ximei, Liu
  • Yulong, Li
  • Lilin, Peng

Abstract

With the support of national policies, China's renewable energy generation industry has experienced a rapid development period and entered the world forefront level, especially in the aspects of installed capacity and speed of newly installed capacity. However, with the rapid development of renewable energy, the power generation industry is facing more and more challenges, particularly in investment and financing. As for wind power industry, there are also some problems such as single financing channels, blindness of projects investment and so on, which will result in financing difficulties for some advanced projects. In addition, the problems for the investment of photovoltaic (PV) power generation leads to vicious competition and a tumble in international market, thus the overcapacity of China's entire PV industry emerges. Generally speaking, the renewable energy industry is facing a seemingly contradictory predicament of funding deficiencies and blind investment, which is derived from the government-centered renewable energy investment and financing. This government-centered mode has promoted the development of renewable energy industry in the early stage, but it cannot be adapted to the requirements of sustainable development. In view of these, the problems of renewable energy investment and financing are deeply studied in this paper.

Suggested Citation

  • Ming, Zeng & Ximei, Liu & Yulong, Li & Lilin, Peng, 2014. "Review of renewable energy investment and financing in China: Status, mode, issues and countermeasures," Renewable and Sustainable Energy Reviews, Elsevier, vol. 31(C), pages 23-37.
  • Handle: RePEc:eee:rensus:v:31:y:2014:i:c:p:23-37
    DOI: 10.1016/j.rser.2013.11.026
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    Cited by:

    1. Liu, Ximei & Zeng, Ming, 2017. "Renewable energy investment risk evaluation model based on system dynamics," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 782-788.
    2. Zou, Hongyang & Du, Huibin & Ren, Jingzheng & Sovacool, Benjamin K. & Zhang, Yongjie & Mao, Guozhu, 2017. "Market dynamics, innovation, and transition in China's solar photovoltaic (PV) industry: A critical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 197-206.
    3. Thapar, Sapan & Sharma, Seema & Verma, Ashu, 2016. "Economic and environmental effectiveness of renewable energy policy instruments: Best practices from India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 66(C), pages 487-498.
    4. repec:eee:rensus:v:74:y:2017:i:c:p:860-872 is not listed on IDEAS
    5. Ximei, Liu & Ming, Zeng & Xu, Han & Lilin, Peng & JunRong, Deng, 2015. "Small hydropower financing in China: External environment analyses, financing modes and problems with solutions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 48(C), pages 813-824.
    6. Geng, Wu & Ming, Zeng & Lilin, Peng & Ximei, Liu & Bo, Li & Jinhui, Duan, 2016. "China׳s new energy development: Status, constraints and reforms," Renewable and Sustainable Energy Reviews, Elsevier, vol. 53(C), pages 885-896.
    7. repec:eee:rensus:v:77:y:2017:i:c:p:1349-1362 is not listed on IDEAS
    8. Fan, Xiao-chao & Wang, Wei-qing & Shi, Rui-jing & Li, Feng-ting, 2015. "Analysis and countermeasures of wind power curtailment in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 1429-1436.
    9. Ming, Zeng & Shaojie, Ouyang & Hui, Shi & Yujian, Ge, 2015. "Is the “Sun” still hot in China? The study of the present situation, problems and trends of the photovoltaic industry in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 43(C), pages 1224-1237.
    10. repec:gam:jsusta:v:9:y:2017:i:10:p:1722-:d:113144 is not listed on IDEAS
    11. Deng, Qianli & Jiang, Xianglin & Zhang, Limao & Cui, Qingbin, 2015. "Making optimal investment decisions for energy service companies under uncertainty: A case study," Energy, Elsevier, vol. 88(C), pages 234-243.
    12. Kayser, Dirk, 2016. "Solar photovoltaic projects in China: High investment risks and the need for institutional response," Applied Energy, Elsevier, vol. 174(C), pages 144-152.
    13. Kim, Taeyun & Park, Jeong-Il & Maeng, Junho, 2016. "Offshore wind farm site selection study around Jeju Island, South Korea," Renewable Energy, Elsevier, vol. 94(C), pages 619-628.
    14. Zeng, Ming & Duan, Jinhui & Wang, Liang & Zhang, Yingjie & Xue, Song, 2015. "Orderly grid connection of renewable energy generation in China: Management mode, existing problems and solutions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 14-28.
    15. Bobinaite, Viktorija, 2015. "Financial sustainability of wind electricity sectors in the Baltic States," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 794-815.
    16. repec:eee:tefoso:v:131:y:2018:i:c:p:31-37 is not listed on IDEAS

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    Keywords

    Renewable energy; Investment; Financing mode;

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