Global alternative asset manager GLP Capital Partners (GCP) successfully established its inaugural commingled clean energy strategy in China. This endeavor secured about USD 2.77 billion (RMB 20 billion) in total capital commitments from domestic institutions, including the National Green Development Fund and feeder funds affiliated with CHN Energy Investment Group; the latter is a prominent state-owned enterprise and one of China's largest electricity providers.
The capital infusion is seen to serve as a catalyst for accelerating investments in crucial energy sectors such as solar, wind, energy storage infrastructure and related energy management solutions. GCP said that investment will be mainly arranged for greenfield projects and acquisitions.
"This is a significant fundraise for GCP and we are pleased to raise third-party capital from partners who share the same vision for strengthening renewable energy investment," said Teresa Zhuge, Executive Vice Chairman and President, China at GLP Capital Partners.
Statistics reveal that China has about 393 GW of solar capacity installed as of 2022. However, the country still has significant room to increase solar's share in the overall energy mix. This year, it plans to add 95-120 GW of new solar capacity, representing an approximate 30% increase from last year.
Alongside the nationwide acceleration in energy transition, GCP is developing a multi-gigawatt renewables portfolio in China, spanning from distributed and ground-mounted solar to wind and battery storage solutions.
Backed by dedicated teams, GCP is well-equipped to oversee the entire spectrum of the energy transition value chain, from land sourcing to project planning, development, operations and maintenance. The clean energy generated by these projects will be sold to the power grid or supplied to enterprises through power purchase agreements.
"We believe we can further accelerate market leadership in this space, to support partners and clients in pursuing their carbon neutrality goals."
As the company expands its footprint in China, GCP said the overall investment of the fund is expected to reach approximately USD 2.77 billion (RMB 20 billion).