The China New Energy Chamber of Commerce (CNECC) has vowed to
establish a renewable energy industry fund worth 10 billion yuan
(about US$1.283 billion).
"Although it is at a fledgling stage, the chamber has the
resolve and competence to fulfill this ambitious target," said Li
Hejun, chairman of the chamber and president of China's leading
private power enterprise, the Farsighted Group.
Created a year ago with 100 members, the chamber will ramp up
its efforts to raise funds and inject them into small- and
medium-sized enterprises (SMEs) related to China's booming
renewable energy industry.
"The fund will focus not just on the chamber's large members the
industry's market leaders," said Li, adding that the fund will be a
medium- to long-term investment to finance SME public listings in
particular.
Li said the fund-raising plan included several phases, and the
CNECC planned to raise a total of 1.2 billion yuan in the initial
one to two years.
The chamber said it would boost the fund's capital management
and supervision given the China Business Chamber for the Petroleum
Industry's recent capital management scandal.
Some experts doubted whether the massive industry fund could be
set up under such constrained time delays.
But Zhang Xi, vice-chairman of the CNECC, said the fund was of
"great necessity" and came at "the right time".
The nation's start-up investment enterprise management measures
enacted last year as well as the revised partnership enterprise law
to be enacted this July will create an ideal policy climate for the
industry fund, Zhang said.
Private enterprises currently play an important role in the
renewable energy sector in China. Some have become internationally
competitive forces, including the Wuxi Suntech Power Holding Co and
Himing Solar Energy Group.
Rapid development has created growing demand for funds in the
renewable energy industry.
According to Li Junfeng, deputy director of the National
Development and Reform Commission's Energy Research Institute, by
the end of October 2006, the total installed capacity of wind and
solar power in China was 2.3 million kilowatts and 300 megawatts
respectively, a surge of 85 and 100 percent over 2005.
Total investment in the thriving wind power industry from 2007
to 2010 will be 45.6 billion yuan, he said. Reversely though, fund
shortages have hindered technological innovation in China's
bio-fuel sector, with a power generation growth of only 10 percent
in 2006.
To tackles these issues, the chamber also plans to set up a
renewable energy industry base and a product exchange market.
(China Daily January 16, 2007)