State-owned Power Construction Corporation of China (PowerChina) has announced its intention to significantly expand its presence in the renewable energy sector in Africa. The company plans to extend its hydroelectric, solar and gas projects across the continent as part of a strategy to diversify its energy portfolio and reinforce its international revenues.
Regional growth target by 2030
According to statements from a PowerChina representative at an economic summit in Johannesburg, African revenues currently account for around 30% of the company’s international operations. The group aims to increase this figure to between 40 and 45% by 2030. PowerChina is targeting commercial presence in nearly all African markets over the next five years, relying on a mix of ongoing developments and completed infrastructure.
Project deployment across multiple markets
In South Africa, PowerChina is developing several photovoltaic projects and participating in the construction of the Redstone concentrated solar power plant. The company has also contributed to the development of the Adama wind farm in Ethiopia and designed the hybrid Oya project to stabilise electricity production from intermittent sources. This project is considered a pilot that could be replicated in other markets.
Focus on industrial and mining projects
In Zambia, PowerChina delivered a 100MW solar plant in June intended to supply the operations of First Quantum Minerals, a major copper producer. This installation is part of a series of projects designed to meet the growing energy demand of extractive industries on the continent.
An investment strategy despite an evolving financial context
The decline in Chinese loans to African governments since 2016 has not hindered PowerChina’s engagement on the continent. The company is now prioritising targeted partnerships, taking into account regulatory requirements and the economic viability of its projects. The group states that its African expansion will rely on cooperation with local authorities and the private sector to ensure long-term profitability of renewable energy operations.
