Investors consider Chinese green technology companies attractive, as they generally offer a lower entry valuation than Internet enterprises and some consumer firms, and justifiably high growth predictions, according to a speaker at the recent "3rd Renewable Energy Finance Forum China 2008" convened in Beijing. A notable array of speakers laid out opportunities, risks and strategies facing investors chasing green gold in China, presenting an up-to-date snapshot of a fast-changing industry.
Excitement over the scale of the investment opportunities was balanced by awareness of the challenges – including barriers to competition; regulatory change; and the difficulty of connecting the renewable energy sources to China’s vested power infrastructure.
Green Opportunities
China’s green technology sector has come a long way in a few years. Most discussion at the first REFF China conference in 2005 centered on planning and developing renewable energy projects, says K.K. Chan, managing director for Greater China of for London-based Climate Change Capital. Now, many projects are up and running, and some investors are already receiving dividends, said Chan – double quick time for investment in infrastructure. He described the attraction of Chinese renewables investments: Besides being quick to execute, Chinese projects come cheap. A biomass power plant, for example, can be built in a third the time, and at a third the cost, as in the UK.
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