China: Widening horizons for new energy investors

BEIJING (Caixin Online) — A struggle for dominance in the fast-growing electric-vehicle charging business is pitting some of China’s biggest state-owned companies, as a domestic “new energy” movement — from battery-making to wind power — gathers steam.

One battle is being played out in Shenzhen, where China National Offshore Oil Corp. (Cnooc) and Putian Group have teamed up to take on a regional power-distribution monopoly, China Southern Power Grid.

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• Get the Caixin e-newsletter/conga/story/misc/caixin.html 61611 In the northeast, China Petrochemical Corp. (Sinopec) and Beijing Capital Sci Tech Group recently announced a new venture to install charging terminals at Sinopec’s existing refueling stations in Hebei Province, the city of Tianjin, and elsewhere.

Not to be outdone, China National Petroleum Corp. (PetroChina) is in talks with the Jiangsu Development and Reform Commission about building charging stations in that coastal province.

The flurry of activity began even before a call to “actively promote new energy vehicles” was written into a recent government policy report. The growing interest also bears likeness to the enthusiasm for wind power shown by state-owned enterprises after the 2007 release of the government’s long-range alternative energy plan.

Indeed, the vehicle charging industry appears to be growing fast. State Grid Corp., another distribution monopoly, recently announced that a total 75 electric-vehicle charging stations would open in 27 cities by year’s end.

Meanwhile, investment funds are preparing to join state-owned players in the new energy industry.

China Life Insurance Group Co. President Yang Chao presented a plan at meetings of the National People’s Congress and the Chinese People’s Political Consultative Conference suggesting insurance companies take the lead in establishing investment funds for strategic industries, especially new energy.

“New energy, conservation and environmental protection industries need a lot of time between investment and realization,” Yang said. “They also need heavy funding; short-term social capital cannot support them.

“We need that medium- and long-term line of funding that insurance funds can offer.”
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Source: marketwatch.com