German Companies Discuss Green Power Procurement Strategies

On September 8^th, the Sino-German Energy Partnership and the German Chamber of Commerce Greater China jointly organized this year’s German Local Business Advisory Council Session in the German General Consulate in Shanghai. Participants included representatives from the BMWK, the German Embassy in China, the German General Consulate in Shanghai, and thirteen German companies.

Challenges & policy developments

Committed to decarbonize their global operations, foreign companies in China struggle to ensure reliable access to renewable energy sources. Challenges include - among others - insufficient supply of green power, the need for long-term power purchase agreements, and underdeveloped inter-provincial green power trading.

During the event, two industry experts delivered keynotes on the central issues regarding green power procurement in China. Dr. Ms. Constanze Wang, Head of Government Affairs & Advocacy at AHK Greater China, introduced the key policy developments of the past years in the field of green power procurement. Ms. Irene Zhu, Regional Category Manager Asia Pacific at BASF, shared BASF's challenges and best practices of procuring green energy in China.

Discussion & follow-up

Following the keynotes, a lively discussion emerged about Power Purchasing Agreements (PPA), Green Energy Certificates (GEC) and International Renewable Energy Certificates (I-REC). The central challenges expressed by the participating companies include staying afloat the fast-paced policy environment, missing opportunities to trade green energy between provinces, and missing expertise in evaluating and negotiating PPA conditions. The Energy Partnership will take these issues into consideration in its activity planning and, in consequence, offer support to German companies in addressing their problems.

About the Local Business Advisory Council

The Local Business Advisory Council is a closed-door event for the German industry and government to discuss and exchange views on market development. The meetings address market challenges to identify actionable recommendations that help improve the business environment for German companies in China. For more information on private sector cooperation under the Sino-German Energy Partnership, please contact Mr. Vincent Fremery (vincent.fremery(at)giz.de).