New energy Opportunities in China - Is It All in the Grid?

In the wake of the problems in Japan, there's been an great estimate of media attentiveness given to the Chinese solar industry. With China's government announcing a short-term switch of 5 Mega Watts of production from nuclear to solar. This news has brought investors running to the world's largest producer of clean and green vigor technology. But are there other great less risky opportunities?

Why not Solar?

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In the short-term solar is obviously going to get a boost from this unhappy set of circumstances, but in the medium-term solar's real future is still undecided. The question is that solar is more expensive than nuclear; takes up more space than nuclear, and has the awkward further factor of only being available while daylight hours.

Without proper storage options which may be other 10 - 20 years away, solar may never be a practical alternative to nuclear power.

Why not Nuclear?

Well apart from the dirty looks nearby the dinner table when you announce you've put your money into nuclear power, there's the certain fact that the whole business is on hold and there's no defined path for advent back on line. So if you don't mind investing for the long-term you'll be Ok as ultimately things will go back to normal, but in the interim you'd be great off seeing elsewhere for profits.

So what's this about the Grid?

There's a merge of factors that are not in dispute when it comes to China's vigor policy; the country needs more and when that capacity comes on line they'll need the potential of delivering that vigor to the consumer.

This means investment in a national grid, and while interconnection with that grid varies by type of power generation once the power's online the grid functionality is the same.

China is going to invest billions of dollars in construction up a extremely functional "green" (well as green as it's inherent to be anyway) grid to ensure sensible power transmission nearby the country.

This means that investors seeing to take reasonable short-term positions in China's clean technology business ought to be taking a very serious look at putting their money into grid infrastructure companies.

As the Chinese urbanisation schedule continues unabated (it's worth noting that urbanisation rates in the country are far, far lower than those in the West) power consumption in the country is going to rise and rise.

Instead of trying to predict which form of clean vigor will be the eventual long-term winner, you may well be great off focusing on the fact that all vigor is delivered to consumers in the same way.

New energy Opportunities in China - Is It All in the Grid?

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