China’s Renewable Edge: EPC Strategies and Multilateral Financing for Overseas Projects

Executive Summary

The paper concludes that the EPC-driven engagements by Chinese firms reflect a commercially pragmatic approach to securing a central role in the global Renewable Energy (RE) landscape. It allows them to expand their global footprint through their technical expertise and implementation efficiency, and 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.

Key takeaways from the study highlight the dominance of solar and wind energy projects in EPC contracts, alongside the growing role of local and multilateral banks and the corresponding decline of direct overseas energy finance for energy projects by Chinese Development Finance Institutions (DFIs). EPC contracts also enable RE equipment manufacturers in China to secure new markets. Finally, implementation standards of RE projects vary depending on the financing parties involved, and the regulatory framework of host countries.

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