Chinese investment in the EU renewable energy sector: Motives, synergies and policy implications

This paper addresses three questions: how have trade and investment in wind and solar sectors evolved between the EU and China in recent years? Is there a link between rising trade conflicts and trade and investment trends? And what wider motivations and synergies can be identified in Chinese invest...

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Bibliographic Details
Published in:Energy policy 2017-02, Vol.101, p.670-682
Main Authors: Curran, Louise, Lv, Ping, Spigarelli, Francesca
Format: Article
Language:English
Subjects:
Alternative energy
China
Energy policy
Energy sector
EU-China relations
Europe
FDI
Foreign direct investment
Foreign investment
Investments
Mass media
Motivation
Qualitative analysis
Qualitative research
Quantitative analysis
Renewable energy
Studies
Supply chains
Trade
Wind
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Summary:This paper addresses three questions: how have trade and investment in wind and solar sectors evolved between the EU and China in recent years? Is there a link between rising trade conflicts and trade and investment trends? And what wider motivations and synergies can be identified in Chinese investments in the EU's RE sector? To address these questions we analyze trade and investment data, as well as qualitative data, including information from media and company reports. Large increases in trade and investment were followed by rapid falls since 2012–13. Trade tensions have not led to increases in investment, rather the inverse. We find that Chinese investment in these two sectors is very concentrated in Germany. The key motivation for investment is market seeking, although R+D is also important, especially for wind. Most investments are greenfield, a preference that has persisted over time. Our qualitative analysis of several key acquisitions indicates that technology integration and the consolidation of capacities across the supply chain were key motivations in most of the cases studied. We conclude with some policy orientations. •Chinese investments in solar and wind in Europe are concentrated in Germany.•Large increases in trade and investment were followed by rapid falls since 2012–13.•These falls seem to be related to market difficulties.•Key investment entry mode is greenfield and motivation is market seeking.•In acquisitions, technology seeking plays a key role.
ISSN:0301-4215
1873-6777
DOI:10.1016/j.enpol.2016.09.018