Successful IPOs Such as Suntech Power Holdings Ltd and SunPower Corp, Suggest an Increased Investor Interest in Renewable Energy Industry
POINT ROBERTS, WA--(MARKET WIRE)--Feb 28, 2006 -- www.RenewableEnergyStocks.com (RES), an investor and industry news portal for the renewable energy sector, reviews the Chinese IPO market and the growth of the region's alternative energy demands in "Global Renewable Energy Insights," a weekly column by InvestorIdea's Catherine Lacoursière, who has covered the energy and environment markets for Investor's Business Daily, Energy Risk magazine, and writes blogs for the CleanTech Venture Network.
The success of Suntech Power Holdings Ltd and SunPower Corp's IPOs, suggests an increased investor interest in the renewable energy industry and bodes well for future Chinese public offerings in this sector. According to Julie Blunden, Vice President of External Affairs for SunPower Corp. (NasdaqNM:SPWR - News), "The drivers in China are a combination of how fast the demand is growing and their limited conventional energy resources. The demand is going up, and limited domestic supply cannot keep up with the demand, which is clearly the key driver of the move to renewable energy in China and around the world."
As Michael Liebreich, Co-Founder and CEO of New Energy Finance, a London based informational clean-energy index explains, "The drivers for the acceptance by China of renewable energy technology are twofold; they have an almost insatiable requirement for energy and therefore they will need not only fossil fuels but also renewable and clean energy in order to avoid a bottleneck to their economic development. The other side to it is that China sees renewable energy as a growth industry with considerable potential, one that they want to have a very strong position in."
As a growing world economy competes for the same oil and gas reserves, the benefits of investing in clean and self sustaining energy supplies has become evident to China. Tom Djokovich, CEO of XsunX, Inc. (OTC BB:XSNX.OB - News) explains, "Investments in renewable technologies allows the Chinese to hedge energy costs and reduce dependency on fossil fuels in a competitive marketplace, while leveraging the growth potential of solar in the world marketplace. For XsunX, China's mandates to increase the use of BIPV technologies as part of an effort to make all buildings 'Green' represents a tremendous opportunity for our Power Glass® film technology in one of the largest and fastest growing commercial construction marketplaces."
In addition, Wieland Koonstra, CEO of GiraSolar, Legend Investment Holding's (Other OTC:LVCP.PK - News) solar division describes, "The main driver for solar growth in China in my opinion is not only environmental or energy concerns; but also their well strategized market entrée now that the market is ripe." GiraSolar is a beneficiary of China's activity in renewable energy as a recipient of Chinese exports in this area.
Column Excerpt: Clean Energy: Peering Down China's IPO Pipeline
By Catherine Lacoursiere