Chinese companies have built 199 renewable projects under the nation’s Belt & Road overseas investment scheme since 2022 despite cost challenges, according to new Wood Mackenzie analysis.
Wind, solar and hydro accounted for 68% of over 300 completed power projects and 37% of the 128GW of installed capacity.
Renewables made up a growing share of all new capacity built over the past decade, rising from 19% 10 years ago to 47% in 2022.
Analysts said that cost inflation and over-optimistic financial assumptions were the main factors leading to cancellation or shelving of 33 renewable projects, of which 70% were solar.
Cancellation or shelving impacted 12GW of hydro, 2GW of solar, and 400MW of wind power projects.
Pressure to decrease carbon emissions also led to cancellation of coal projects.
Renewables comprise up 57% of the 80GW pipeline with solar and wind set to see “large potential upside”.
Asia and Africa will remain the top two Belt & Road Initiative power markets, according to the analysis.
Alex Whitworth, vice president, head of Asia Pacific power and renewables research at Wood Mackenzie said: “The Belt & Road Initiative influence on power markets is set to grow, with a further 80GW already under construction or at the planning stage.
“China is changing its overall strategy, so we expect to see more focus on renewables and more direct investment than the bilateral lending that was more common in the early years of the Belt & Road Initiative.”