For years, sourcing renewable electricity in China felt complex for companies globally. Today, the landscape has changed dramatically. Thanks to the nationwide Green Power Trading (GPT) scheme, the process is now simpler, more transparent and accessible across almost all provinces. Crucially, China’s Green Electricity Certificates (GECs) have earned international recognition from programmes like RE100, removing old concerns about credibility and double counting.
For sustainability and procurement managers, this opens up a major opportunity to meet climate targets, reduce your carbon footprint and decarbonise supply chains in one of the world's most critical markets.
The biggest barrier to corporate renewable energy sourcing in China used to be trust. The old system made it difficult to prove that the green energy you bought was yours alone. There was a risk of "double counting," where both the company and the grid operator could claim the same environmental benefits. This uncertainty made it hard for global initiatives like RE100 to endorse the system.
Recent reforms have fixed this. Here’s what changed:
This means that when your company buys renewable energy backed by a GEC in China, you can be confident that your claim is robust, verifiable and will count towards your global sustainability goals, such as RE100 or net zero targets.
There are two main routes for sourcing clean energy in China for your facilities.
Installing solar panels on the roof of your factory or office is a popular and direct way to get started. Leading companies like Apple, BMW Group and Danone have already invested in on-site solar projects across China. This can be done through an upfront investment or by partnering with a developer who owns and operates the system.
However, on-site projects typically only cover a small fraction (often 3-10%) of a large facility's total electricity needs. To reach ambitious targets like 100% renewable electricity, you will need to look at off-site solutions.
A Power Purchase Agreement (PPA) is a long-term contract to buy electricity directly from a renewable energy project, like a large-scale solar or wind farm. In China, this is managed through the Green Power Trading (GPT) system, which offers two main models.
For companies that require the project-specificity of a direct PPA for RE100 reporting but want to avoid the financial risk, a hybrid "sleeved trading" model exists. Here, you sign a contract with a generator but use a PSC as an intermediary to manage the electricity flow and absorb the deviation risks.
Navigating China's renewable energy market requires awareness of a few key challenges:
China's renewable energy market has matured. It is now a credible and accessible arena for global companies to achieve their climate ambitions. By understanding the options and leveraging the new, internationally recognised framework, you can secure clean energy, strengthen your supply chain, and gain a competitive edge. Taking strategic action now will not only support your company's decarbonisation goals but also contribute meaningfully to the global energy transition.
Contact us today to develop a tailored sourcing strategy that navigates the complexities and secures your green energy supply.
