China Courts Private Capital for Energy Revolution

China is increasing efforts to attract private capital investment in the energy sector, focusing on infrastructure projects and the low-altitude economy. The government will encourage private investment in nuclear power, hydropower, and power transmission channels, potentially allowing private shareholdings to exceed 10% in certain projects.

China is stepping up its efforts to lure private investors into its energy sector by offering more policy support, according to a government official on Tuesday. This move marks the latest attempt to bolster private investment which has been lackluster in recent times.

On Monday, China's cabinet announced fresh policy frameworks aimed at promoting private capital investments in infrastructure projects and the burgeoning low-altitude economy, which encompasses manned and unmanned aviation operations at low elevations. Xu Xin, the deputy head of legal affairs at the National Energy Administration, stated that enhanced policy support will soon target the energy sector to attract private capital.

Efforts will focus on drawing private investment into substantial projects involving nuclear power, hydropower, and cross-regional power transmission channels. Government authorities will also examine suitable shareholding ratios. The cabinet further emphasized the necessity of a special assessment for the feasibility of private investment in state-regulated projects like railways, oil and gas pipelines, and water supplies, allowing for private shareholdings that could exceed 10% in qualified projects.

(With inputs from agencies.)