Chinese Renewable Exports Surge 35% Amid Global Expansion, Batteries Lead Over Solar

Chinese exports of renewable products surged by 35% from 2019 to 2023, driven by competitive pricing and dominant production capacity, according to Wood Mackenzie’s new “Looking Overseas” report. During this period, energy batteries overtook solar modules as China’s primary renewable energy export. Investment in wind and solar projects also rose by 26%, making up 39% of Belt and Road Initiative projects in 2023.

The report notes that Chinese renewable energy firms are aggressively pursuing global opportunities. Investors in renewable energy typically target markets with high power demand, stable business environments, and predictable revenue streams. Chinese manufacturers are focusing on regions with local content requirements to establish regional manufacturing hubs.

Xiaoyang Li, Director of APAC Power & Renewables Research at Wood Mackenzie, stated, “Renewable energy is preferred by Chinese developers for near-term overseas investments compared to other conventional power technologies. Over the past decade, more than a hundred wind and solar projects have been developed in Belt and Road markets.”

China’s renewable manufacturers, benefiting from integrated supply chains, declining prices, and high performance standards, supply over 65% of global demand. Wood Mackenzie predicts this trend will continue. Chinese products are priced up to 200% lower than Western counterparts due to low manufacturing costs, making them highly competitive despite inflation and rising production costs.

The report also indicates that interest in overseas renewable projects by Chinese companies is growing, though progress is hindered by high development risks and uncertain revenue flows. Li explained that Chinese solar and storage investors prefer greenfield investments overseas, while wind power investors opt to acquire existing assets to mitigate long construction periods and high risks.

While Chinese investors favor markets with high power demand and stable environments, they also face geopolitical challenges in these regions.