A new cadre of entrepreneurs are making their presence felt in China and attaining magnificent riches of approximately $9.13 billion in this year already. They can be nicknamed the solar age wildcatters.
These clean energy entrepreneurs are riding the waves of equity markets in China. Since January there has been approximately an increase of 40% in the Shanghai Stock Exchange Composite Index as compared to the only 3% in the Standard and Poor’s 500 Incex.
There has been a crucial shift in the energy policies of China. Last year China was the largest investor in renewable energy globally with $89.5 billion and U.S. was second with $51.8 billion according to Bloomberg New Energy Finance publication of January.
According to Jenny Chase a top solar analyst for BNEF this is a significant time and a major turning point as China is now a domestic market and not simply an exporter.
The world’s most populated nation has huge aspirations for green energy and in November reached an agreement of historic status to control greenhouse gas emissions and participate in clean energy programs.
China wants to get solar power capacity of approximately 18 gigawatts that is equal to entire U.S. generating volume of 2014. In the global market cheaper solar panels will generate about $3.7 trillion investment over the next 25 years according to a report by BNEF in London published on Tuesday.
In NYSE Bloomberg Global Solar Energy Index the first ten performing stocks are Chinese. Among these Jiangsu Zongyi Co., a company that makes solar power plants in Jiangsu province leads. The company leads and its shares have risen by 235% by June 15. An analyst from Northeast Securities Co. feels that the surge in stocks can be attributed to the photovoltaic industry basics being good.