China’s Renewable Edge
EPC Strategies and Multilateral Financing for Overseas Projects
Authors
Executive Summary
The surge in global demand for RE opens up a significant market for Engineering, Procurement and Construction (EPC) contractors, wherein Chinese firms in particular have been adept in seizing these opportunities across diverse geographies. This study aims to understand the diverse capabilities of Chinese EPC contractors in the RE sector, their project implementation ways and the reasons for their popularity amongst developing countries. The study takes into account 20 most visible and well-documented projects to provide insights on both EPC contracts and DFI-financed projects involving Chinese entities.
The paper concludes that the EPC-driven engagements by Chinese firms reflect commercially pragmatic approach to securing a central role in the global RE landscape, and allows Chinese firms to expand their global footprint through their technical expertise and implementation efficiency, as well as mitigate financial risks. For host countries, such engagements allow them to tap into affordable RE infrastructure that support their energy transition goals, while mitigating risks of unsustainable debt.