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The potential of China’s renewable energy rise in the solar energy industry to foster win-win China-Africa relations

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Abstract

Africa and China have become ever closer related politically and economically in the last decade, with China stressing the “historic” aspect of the relationship. Increasingly though there are African voices asking whether the China-Africa relationship is beneficial to Africa in light of unequal trade patterns in which China imports resource from Africa and exports manufactured products to Africa. The question thus emerges as to whether there can really be “mutual benefit” in the China-Africa partnership? This paper looks at the potential of renewable energy as one way of bringing more equality to the China-Africa engagement. The paper asks what African states (and other developing countries) can learn from China’s renewable energy industry rise, making use of solar as a case study; and secondly, how African countries can attract Chinese solar energy investment? The paper finds that both the rise of renewable energy in China and Chinese solar energy companies are profit driven. The paper identifies five aspects that are replicable and crucial in the development of a renewable energy industry as based on the Chinese example, these are: break energy monopolies, allow independent power producers, draft a national energy law, create market security and make use of turnkey.

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... Such projects benefit both Chinese companies, by helping them move up the value chain, and African countries which then have access to affordable equipment. Chinese solar power technology has gained more attention in recent years thanks to higher quality and low prices (Esterhuyse, 2013(Esterhuyse, , 2014. South Africa has been China's entry point into the sub-Saharan solar power market; in 2010, Yingli Solar was a sponsor of the World Cup in South Africa. ...
Technical Report
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Lack of energy access and frequent electricity shortages are major impediments to economic growth in sub-Saharan Africa. The region needs increased investment in the power sector. Chinese-built power projects and financial support from China are contributing to power sector development, extending energy access and facilitating economic growth. This report analyses China’s engagement in the sub-Saharan Africa power sector, including the key drivers underlying Chinese investments. An overview of Chinese projects (generation, transmission and distribution) during the 2010-20 period is provided in this first-ever consolidated effort to map them. The report identifies the key Chinese stakeholders and assesses their impact on policies affecting energy access, economic development and financing modalities. Two case studies examine Chinese investment at the country level in Ghana and Ethiopia.
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