29 Apr, 2016

PwC report shows promise in China's clean-tech industries

Renewable Energy & Energy Efficiency | CHINA | 29 Apr, 2016
Published by : Eco Media Asia

There were 143 private equity and venture capital investments made in clean-tech industries last year totalling $1.1 billion, decreasing 11.3 percent year on year, according to the latest PwC report.

The figures correspond with a shift in outlook by investors who became more cautious last year due to market volatility and a temporary halt in A-share IPOs.

In addition, the volume and value of mergers and acquisitions along with the numbers of successful IPO listings in the industry decreased in 2015 compared to 2014 levels.

Affected by the volatility of capital markets in 2015, mergers and acquisition activity declined both by volume and value in China's renewable and clean-tech industries. Volume saw a reduction from 183 in 2014 to 159 in 2015. While total value dropped slightly from $6.795 billion in 2014 to $6.706 billion in 2015.

Sunset on more than 200 Windturbines at Guazhou (瓜州县) wind farm, Gansu province, China | CC-BY-SA-3.0

Last year, there were a total of 10 successfully listed enterprises in renewable and clean-tech industries, marking a decline from 2014's total. Of these, six were in the field of energy saving and environmental protection, two in new energy and two in new materials. Listed companies secured total funds of $2.853 billion, with new energy companies contributing 80 percent of the total.

Gavin Chui, PwC China energy, utilities and mining industry leader said, "We see China's future energy industry transitioning to a lighter structure, aided by continuous advances in green technology. Such steps are being guided by a range of influential energy policies."

"Consequently, the renewable and clean-tech industry is poised to usher in a new round of development, which should lead to a corresponding upsurge of labour, capital and technology."

The renewable energy investments were focused more on the developing world, particularly China, where it increased to $103 billion which is more than one third of the world total.
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Article by Cai Xiao at Chinadaily.com.cn