Beijing Cramps Foreign Offshore Wind Developers, Giving Boost to Domestic Firms
As reported last week by Environmental Finance magazine in its
online edition, Beijing has effectively shut out international
operators with new regulations requiring any foreign offshore developer
to enter into a joint venture with a Chinese company under which the
foreign firm must be a minority partner. “In reality, most of the
international developers cannot, or are not willing to, do a joint
venture with (a) Chinese partner,” Environmental Finance quoted the
policy director of the Global Wind Energy Council as saying.
The wind council official called the new regulations “shocking,” but for investors they may be inviting.
With China expected to rapidly ramp up offshore wind generation, certain Chinese wind power companies could see their underlying valuations rise the more Beijing’s new offshore policy becomes apparent.
One in particular is China Longyuan (Symbol CGYG.OB), which just went public in December. Another possible beneficiary is Xinjiang Goldwind, which trades locally under the symbol 002202. Goldwind has announced plans to ramp up production of offshore turbine machines.
DISCLOSURE: No position.
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Bill Paul is Managing Editor of EnergyTechStocks.com.