However, Grid integration issues limit renewable energy full utilization- and millions of workers livelihoods at coal-fired plants and industry are at risk. Can foreigner project-collaboration play a role? Yes. Follow the examples ‘below.
China has achieved its 2030 renewable energy goals six years ahead of schedule, by installing a record 357 gigawatts of combined solar and wind power. Although, Coal accounts for nearly 80% of China’s fossil fuel emissions.
According to a survey by the Centre for Research on Energy and Clean Air (CREA), 21% of experts believe that China’s CO2 emissions will peak before 2025, up from 15% in the previous year’s survey. This is clearly in direct response from China investing US$940 Bil in Clean Energy. “Put your money where your mouth is- Bǎ qián fàng zài zuǐ biān” in tackling climate change for future generations, is paying off – primarily on electric vehicles (EVs), batteries, and solar power.
China is committed to grid modernization, renewables, and carbon neutrality (2060 goal). While direct grid investment remains restricted, foreign players can tap into the broader energy ecosystem, especially in smart grids, storage, and green finance.
Attracting Foreign Investment
To eliminate local market protectionism and fair competition through the dominance of state-owned enterprises (SOEs), the 2025 National Unified Market guideline is China’s “dual circulation” strategy aiming to spur domestic demand (internal circulation) while developing conditions to facilitate foreign investment and boost production for exports (external circulation). (China Briefing)
The State Grid Corporation of China (SGCC) and the China Southern Power Grid (CSG) dominate the electricity transmission and distribution sector, where SOEs control most of the country’s high-voltage infrastructure. Areas where foreign investment and collaboration is allowed is critical UHV technology and components; grid-connected renewable energy projects or energy storage systems; collaboration on smart grid innovations, energy management software, and grid automation.
Renewable Energy Projects & Grid Integration holds the most promise for foreign companies aiming to capitalise on China’s energy challenges. – China has opened its renewable energy sector (solar, wind, hydro) to foreign capital to invest in grid-connected renewable energy projects or energy storage systems to improve grid efficiency. Eg: Tesla Shanghai Megapack Battery project supports grid stability.
And China’s Modernisation of Smart Grid & Digital Infrastructure with AI, IoT, and smart meters. Foreign tech firms and investors can collaborate on smart grid innovations, energy management software, and grid automation. Eg: ABB and Siemens have worked with China on grid tech.
Australian companies are actively collaborating with China to address renewable energy challenges. However most foreign companies prefer to work on their own home turf to safeguard against China IP and tech transfer risks which is still a major deterrent in China for foreign tech companies.
AUSTRALIA IN CHINA
Solar Energy Collaboration- CSIRO and Thermal Focus: The Commonwealth Scientific and Industrial Research Organisation (CSIRO) has partnered with China’s Thermal Focus to advance solar thermal technology. This collaboration aims to enhance renewable energy capabilities and contribute to global climate mitigation efforts. Australian Embassy in China
SunDrive Solar and Trina Solar: Australian company SunDrive Solar has signed a memorandum of understanding with China’s Trina Solar to establish solar panel manufacturing in Australia. This joint venture seeks to bolster local solar manufacturing capabilities, leveraging expertise from both nations. Austrade
Green Technology and Resource Development Fortescue Metals Group: Recognising China’s demand for green iron, Fortescue is developing a pilot plant in Western Australia to produce high-purity green iron using renewable energy. This initiative aims to decarbonize steel production and aligns with global sustainability goals.
These collaborations underscore the complementary strengths of Australia and China in the renewable energy sector, fostering innovation and contributing to global efforts in combating climate change.
