In April 2026, the International Institute of Green Finance (IIGF) at Central University of Finance and Economics and the Institute of Development Studies jointly released The Landscape of Chinese Renewable Energy Investment Overseas — Q1 2026. The report represents the first quarterly tracking study based on the Database of Chinese Overseas Renewable Energy Investment (D-CORE) and covers 129 Chinese overseas renewable energy project activities recorded during the first quarter of 2026, with a combined installed capacity of 36.3 GW.

Compared with the same period in 2025, when 93 projects totaling 27.5 GW were recorded, project numbers increased by 39% while total capacity rose by 32%. This growth not only reflects the strong momentum of China’s overseas renewable energy investment, but also aligns closely with the policy orientation of China’s 15th Five-Year Plan, which identifies international clean energy cooperation as a strategic priority.

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I. Technology Composition: Solar PV as the Foundation, Integrated Energy Systems on the Rise, and Rapid Expansion of Energy Storage

Solar photovoltaic (PV) remained the most active technology category in Q1 2026, recording 50 projects with a total capacity of 14.8 GW, representing year-on-year increases of 16% in project count and 43% in capacity compared with Q1 2025 (43 projects and 10.4 GW). The expansion of PV procurement extended beyond traditional Belt and Road markets to emerging destinations such as Romania, Angola, and South Korea.

Integrated energy systems (generation plus storage integration) accounted for 29 projects with a combined capacity of 10.3 GW. While the number of projects increased by 61% year-on-year, total capacity remained broadly stable. This suggests that a growing number of medium- and small-scale integrated energy systems are being deployed across a wider range of host countries, while the ultra-large hybrid complexes previously concentrated in the Middle East and North Africa declined during the quarter. The average capacity of integrated energy projects reached 354 MW—the highest among all technology categories—underscoring the continued commercialization of integrated “generation + storage” solutions in mature markets.

The energy storage sector experienced particularly strong growth, with project numbers increasing from 12 in Q1 2025 to 21 in Q1 2026, a rise of 75%. Deployment was concentrated primarily in South Africa, Zambia, and Southeast Asia. Wind power projects increased from 11 to 15, while total capacity surged from 4.2 GW to 7.6 GW, driven largely by large-scale tenders in Kazakhstan, Saudi Arabia, and Vietnam. Hydropower recorded moderate growth, increasing from 6 to 7 projects and from 2.3 GW to 3.4 GW in capacity, primarily concentrated in Laos and Pakistan. Biomass projects increased from 2 to 6, while geothermal and waste heat projects remained marginal.

Overall, solar PV and integrated energy systems have consolidated their position as the “dual pillars” of China’s overseas renewable energy portfolio, while wind power emerged as an increasingly important third pillar during the quarter.

Figure 1. Comparison of Project Numbers and Installed Capacity by Technology Category in Q1 2026 and Q1 2025

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II. Geographic Distribution: Southeast Asia Leads in Project Count, West Asia Dominates Capacity, and Africa Expands Rapidly

Among subregions, Southeast Asia remained the primary destination for China’s overseas renewable energy investment in Q1 2026, ranking first in project count with 30 projects, although its total installed capacity (5.1 GW) remained below that of West Asia. Vietnam (6 projects), Indonesia (5), Thailand (5), and Malaysia (4) collectively drove diversified regional growth. Laos maintained its role as a hydropower hub, recording 2.5 GW across five projects.

West Asia continued to lead all regions in installed capacity, reaching 17.5 GW. Saudi Arabia (6.6 GW across 7 projects) and the United Arab Emirates (5.6 GW across 3 projects) accounted for most of the region’s capacity, while Kuwait entered the rankings through a single large-scale 2.7 GW project. The high-capacity profile of Gulf projects reflects the continued deployment of utility-scale solar and hybrid energy parks supported by sovereign offtakers and long-term power purchase agreements (PPAs).

Central Asia recorded 13 projects totaling 3.9 GW, led by Uzbekistan (5 projects, 1.0 GW) and Kazakhstan (3 projects, 2.3 GW).

Africa’s expansion was particularly notable. East Africa increased from only one project in Q1 2025 to nine projects in Q1 2026, with Zambia (3 projects) and Tanzania standing out. This suggests that Chinese firms are deepening their presence in Sub-Saharan Africa through medium-scale solar and storage projects. Angola’s 2.2 GW project represented a major outlier in terms of scale.

At the country level, Saudi Arabia (6.6 GW), the United Arab Emirates (5.6 GW), and Kuwait (2.7 GW) ranked highest by contracted capacity. By project count, Saudi Arabia (7 projects) and Vietnam (6 projects) led the rankings.

Figure 2. Total Installed Capacity (GW) and Project Numbers by Subregion in Q1 2026

Figure 3. Top 10 Countries by Installed Capacity and Energy Category in Q1 2026

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III. Development Stages: Expanding Participation from Least Developed Countries

Among the 129 projects recorded, 23 were located in least developed countries (LDCs), nearly double the 11 projects recorded during the same period in 2025. This increase suggests that Chinese firms are accelerating their entry into lower-income markets, although the majority of contracted capacity remains concentrated in middle- and high-income countries.

Within LDC markets, solar PV accounted for 9 projects (39%), followed by integrated energy systems with 7 projects (30%). Wind and hydropower each accounted for 3 projects (13%). The relatively high share of integrated energy systems reflects the growing adoption of “solar + storage” solutions in markets with weaker grid infrastructure, such as Zambia, Tanzania, and Cambodia.

In non-LDC markets, solar PV also remained dominant, accounting for 41 projects (39%), while standalone energy storage projects represented a larger share (20 projects, 19%), reflecting more mature grid environments and commercial offtake structures. Biomass activities were entirely concentrated in non-LDC markets.

This differentiated technology pattern is broadly consistent with trends identified in previous full-cycle reports (2022–2025): Chinese firms adjust their technology offerings according to the maturity of host-country grids and financing environments. Notably, compared with earlier patterns in which hydropower dominated LDC markets, the significantly higher share of integrated energy systems during this quarter may indicate the gradual maturation of “solar + storage” mini-grid procurement frameworks in Eastern and Southern Africa.

Figure 4. Project Numbers by Energy Category in Least Developed Countries and Other Countries, Q1 2026

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IV. Financing Models: Blended Finance Dominates While Equity Investment Remains Cautious

Financing data were available for only 60 out of 596 project records in the full dataset (approximately 10%) and should therefore be interpreted as indicative trends rather than a comprehensive representation. Financing information is often unavailable during the early stages of project development, reflecting a broader challenge in tracking the financial structures of Chinese overseas energy investment transactions.

Three major financing types were identified: blended finance, export credit financing, and equity financing.

Blended finance was the most common model, involving 24 projects totaling 12.9 GW. These projects typically combined financing from Chinese policy banks or development finance institutions with multilateral or regional development banks, particularly in markets with sovereign credit concerns or foreign exchange risks requiring additional hedging arrangements.

Export credit financing covered 19 projects totaling 5.7 GW and generally involved sovereign lending from Chinese policy banks to host-country governments or state-owned utilities, with Chinese EPC contractors receiving engineering payments through the loan structure.

Equity financing accounted for 17 projects totaling 2.0 GW. Average project sizes were smaller than under the other two models and were concentrated in markets with more mature regulatory frameworks, such as South Africa, Romania, and Australia. This aligns with previous findings that Chinese firms are more willing to undertake equity investment in markets with transparent legal frameworks and bankable PPAs.

Figure 5. Distribution of Project Numbers and Contracted Capacity by Financing Model and Energy Category (Full Dataset, 2025–Q1 2026)

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V. Key Actors and Project Stages: EPC Remains Central, but Role Boundaries Are Blurring

By project stage, signed contracts represented the most common status in Q1 2026, accounting for 57 projects (44%), followed by operational projects (26 projects, 20%) and awarded tenders (24 projects, 19%). The high share of signed and awarded projects suggests that Chinese overseas renewable energy activity may currently be more active than in previous years. At the same time, a growing number of projects are moving from tendering into execution, with the share of operational projects increasing from approximately 15% in Q1 2025 to 20% in Q1 2026. This indicates that projects contracted during the expansion period between 2022 and 2024 are gradually entering operation.

Among participating firms, China Energy Engineering Corporation (CEEC) ranked first with involvement in 87 projects, consolidating its leading role in overseas renewable energy delivery, particularly in Southeast Asia and Africa. Power Construction Corporation of China (PowerChina) followed with participation in 23 projects.

Among private firms, HyperStrong ranked highest in the energy storage sector with 8 projects, reflecting the rapid expansion of Chinese battery storage solutions in markets such as Oman and South Africa. CHINT Group (7 projects) and SANY Group (3 projects) strengthened the presence of private firms in solar and wind equipment supply chains.

Although central state-owned enterprises continue to dominate structurally, the expanding footprint of specialized private firms in energy storage, PV modules, and wind equipment indicates a gradual diversification of market participants in China’s overseas renewable energy sector.

From the perspective of participation roles, EPC contracts accounted for 49% of all participation records in Q1 2026, broadly consistent with the 60% share identified in previous full-cycle reports, although the proportion has declined. The most significant change was the emergence of “EPC + equity/debt” hybrid participation models, which increased from 2 records (0.9%) in Q1 2025 to 20 records (7.8%) in Q1 2026. This suggests that some Chinese firms are increasingly combining construction roles with financial participation rather than relying solely on traditional “build-and-exit” contracting models, especially in markets with bankable PPAs and stable regulatory frameworks.

Pure equity/debt participation remained stable at approximately 10% (25 records), while BOT/BOOT arrangements remained limited in scale (9 records), concentrated mainly in hydropower and large-scale solar concession projects in South and Southeast Asia.

Figure 6. Comparison of Project Stage Distribution in Q1 2025 and Q1 2026

Figure 7. Ranking of Chinese Companies by Number of Project Participations in Q1 2026

Figure 8. Comparison of Chinese Company Participation Types in Q1 2025 and Q1 2026

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VI. Case Studies: Two Distinct Pathways in Uzbekistan and Ethiopia

The quarterly report also examines two representative projects that illustrate sharply contrasting pathways for China’s overseas renewable energy investment under different development conditions.

The 500 MW Jizzakh solar PV project in Uzbekistan represents a typical “investment-construction-operation integration” model. The project was jointly invested in by China Huadian Corporation and China Electrical Equipment Group, while EPC construction was undertaken by China State Construction Engineering Corporation. Total investment amounted to approximately RMB 2.08 billion (around USD 290 million). Supported by a 25-year PPA, the project achieved full grid connection in only around 8.5 months from foundation piling to completion, demonstrating the standardization advantages and exceptional execution efficiency of China’s solar supply chain.

This case illustrates that in middle-income countries with bankable offtakers, standardized PPP frameworks, and sovereign credit support, Chinese firms are increasingly capable of transitioning from contractors into long-term investors and operators capable of securing stable cash flows.

In sharp contrast stands the 120 MW Aysha-II wind power project in Ethiopia. Constructed by Dongfang Electric Corporation, the project took nearly nine years from launch in 2015 to full operation in January 2026. During this period, it faced overlapping systemic shocks including the COVID-19 pandemic, the Tigray conflict, sovereign credit crises, and foreign exchange shortages. Following the withdrawal of external financing, the Ethiopian Electric Power Corporation ultimately completed the project using its own revenues.

The project illustrates how political risk, exchange-rate volatility, and sovereign credit pressures can transform a conventional EPC project into a prolonged and uncertain undertaking. At the same time, it reflects both the long-term commitment of Chinese firms to local markets and the profound infrastructure delivery challenges faced by least developed countries.

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VII. Conclusions and Outlook

The Q1 2026 data reveal three structural signals.

First, the sharp year-on-year increase in project numbers suggests that China’s overseas renewable energy activities may be entering a new phase of scale expansion. Active host countries span Sub-Saharan Africa, Southeast Asia, Central Asia, and Europe, indicating that this trend is not geographically isolated.

Second, participation by least developed countries is evolving. While project numbers nearly doubled, the rising share of integrated energy systems marks a departure from the previous dominance of hydropower in LDC markets, potentially reflecting the maturation of “solar + storage” mini-grid procurement frameworks in Eastern and Southern Africa.

Third, although financing data remain limited, they point toward an important trend: blended finance has emerged as the most common identifiable financing model. This aligns with the growing role of multilateral co-financing in facilitating Chinese participation overseas and corresponds with the policy orientation of promoting “high-quality Belt and Road cooperation” through greater engagement with multilateral financing platforms.

More importantly, beneath the aggregate figures lies a clear divergence in project delivery models. On one hand, Chinese firms are pursuing IPP-style investment models in bankable middle-income markets such as Uzbekistan. On the other hand, they continue to undertake traditional high-risk EPC contracting in least developed countries such as Ethiopia.

The former aligns closely with the strategic direction of “high-quality Belt and Road cooperation.” The latter, however, continues to face cascading risks including armed conflict, currency collapse, and sovereign default. Yet for the world’s most vulnerable economies, such projects retain irreplaceable regional value amid overlapping global crises. A withdrawal from least developed countries at this stage would neither serve geopolitical interests nor align with principles of development justice.

Looking ahead, two key questions warrant continued observation. First, can the strong growth in project signings ultimately translate into equivalent levels of actual project delivery? Given that many projects remain at early stages, long-term tracking will be essential. Second, geopolitical developments in the Middle East deserve close attention. As Gulf countries represent both the largest overseas market and one of the most important strategic partners for Chinese renewable energy investment, any escalation of regional conflict could trigger cascading impacts on global energy prices, shipping routes, cross-border payments, and infrastructure security, extending far beyond the Middle East itself into Central Asia and East Africa.

Whether China’s overseas renewable energy investment can maintain its growth trajectory amid geopolitical turbulence will constitute a critical test of the resilience of this development model.

(All data cited in this article are sourced from the Database of Chinese Overseas Renewable Energy Investment: D-CORE Database.)

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References

Liu, B., Zhou, Z., and Shen, W. (2026). The Landscape of Chinese Renewable Energy Investment Overseas — Q1 2026. International Institute of Green Finance & Institute of Development Studies.

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Authors

Bingcai Liu
Research Fellow, Center for International Cooperation and Development, International Institute of Green Finance, Central University of Finance and Economics

Wei Shen
Senior Research Fellow, Center for International Cooperation and Development, International Institute of Green Finance, Central University of Finance and Economics