Home Facts china

Not funds, but eligible green projects are the key

Not funds, but eligible green projects are the key

Write: Atara [2011-05-20]

While there is enthusiasm from private equity funds, venture capital and even individuals to invest in China's new energy sector, there are not enough qualified projects, Bruce Lee, general manager of the China Clean Energy Network, told chinadaily.com.cn on Wednesday.

Many companies in this sector are small and family-based; these characteristics may hinder them from expanding, Lee said.

What attracts investors most is the profitability of the company, their management team and their ability to scale up, said Peter Du Pont, who leads the Private Financing Advisory Network (CTI PFAN) in Asia.

"Entrepreneurs' ability to talk to investors is also important, so we will coach them to speak the investors' language," said Du Pont, Chief of Party, ECO-Asia Clean Development and Climate Program.

The CTI PFAN, managed in Asia by USAID ECO-Asia Clean Development and Climate Program (Eco-Asia), is a multilateral, public-private partnership that nurtures clean energy projects by bridging the gap between investors and businesses.

CTI PFAN has mentored 22 Chinese clean energy companies since it was set up in the middle of last year and five of these companies have gained funds of $14 million, said Nick Keyes, senior communication strategist of Eco-Asia Clean Development and Climate Program.

The CTI PFAN Asia organizes a number of Clean Energy Financing Forums in the region on a regular basis, with one just held from Sept 7 to Sept 9.

In the Wednesday forum, 12 Chinese companies, specializing in biomass power, solar power, wind power and other clean energy areas, presented their business proposals to investors.

Not funds, but eligible green projects are the keyChina moves up global ladder>