Jiangxi government invests $9M in renewables fund

The Nanchang government started its first renewable energy investment company, with a focus to fund seed-stage enterprises.

Jiangxi-based Nanchang New Century Investment received RMB 60 million ($8.8 million) out of RMB 300 million ($44.1 million) registered capital from the Nanchang government for its first term.

Multicrystalline silicon wafer manufacturer LDK Solar is just 160 kilometers southwest of the Nanchang capital city in Xinyu City. LDK Solar has supplied Taiwan solar developers in multi-million dollar deals (see LDK Solar to supply Taiwan's Chuan-Yi). Solar power material costs are rising but China is looking to other options (see China solar market in late 2009 spells glut).

The Chinese government has also identified wind energy as a key economic growth area. China has the world’s fastest-growing wind-energy market and is expected to become the biggest manufacturer of wind energy equipment by the end of 2009, according to Global Wind Energy Council (see China drives global market, supply for wind).

The Chinese Renewable Energy Industry Association forecasts that China could again double installed wind capacity in 2009. The boom may help economic stresses in the solar industry as oversupply is expected, according to a study by Thomas Weisel Partners.