As the annual United Nations Climate Change Conference approaches, humanity prepares for another focused dialogue on climate issues, where energy transition is unavoidable. When carbon neutrality emerges as a shared goal of the world, large-scale energy conservation and carbon reduction can effectively advance the vision, garnering increased attention.

Recently, the second Asia New Vision Forum, launched by Caixin Global with support from the Singapore government, was held in Singapore. Li Wenxuan, Chairman of PCG Power, was invited to give a keynote speech and was interviewed by Caixin. He shared perspectives on topics such as Asia's carbon reduction paths, implementation of ESG principles, and global renewable energy expansion.

Pursuing Carbon Reduction Through Long-Term Partnership

According to the report Renewables 2024, published by the International Energy Agency (IEA), the global power demand would increase by about 4% in 2024, with renewables-based electricity generation rapidly growing to overtake coal-fired in 2025 for the first time.

According to projections, renewables will account for almost half of global electricity generation by 2030, with the share of wind and solar PV doubling to 30%. New solar capacity added will account for 80% of the growth in renewable power globally. This new capacity includes not only newly built large-scale solar power plants but also rooftop solar power generation facilities of enterprises and households.

In his interview with Caixin, Li Wenxuan pointed out that PCG Power is a company specializing in distributed renewable energy for business and commerce. With a diverse client base including Geely Automobile, Midea, and Youran Dairy, PCG Power launched hundreds of projects last year across over 200 cities in China. The company had developed renewable energy power station assets exceeding 1.3GW and planned to expand this figure to 10GW within three years.

Geely Automobile's 21MW Distributed Solar Photovoltaic Power Generation Project in Guanshanhu District, Guiyang City, Guizhou Province

"We continuously increase the proportion of green electricity consumption," Li explained, "When our energy management system is applied, green electricity consumption can reach 70%, 80%, or even 100%. This raises the proportion of green electricity consumed for corporate operations, which is our key business in China."

PCG Power's stations operate on a 25-year cycle. Throughout this contractual period, PCG Power and cooperative enterprises jointly navigate long-term opportunities and challenges. "Customers often wonder why they should sign such a long-term contract with PCG Power and whether we can provide sustained, stable services," Li noted. "This is our greatest challenge, but we view it as a long-term cause. We believe that this work offers significant value, economic viability, and scale."

Chinese Capabilities Underpin our Annual 1.3GW+ Capacity.

"We are committed to enhancing Chinese capabilities as China leads the world in carbon reduction scale. This enables us to achieve clear economies of scale in China," Li explained when talking about the driving force behind their 1.3GW+ capacity. Chinese capabilities are at the core: strong renewable energy industry chain, leading-edge and efficient infrastructure expertise, and "Energy + X" model under continuous upgrading.

The 8.68MW Distributed Solar Photovoltaic Power Generation Project at Midea Kitchen & Bath Appliances Mfg. Co., Ltd in Anhui Province

According to the Renewables 2024, 2030 forecast has two main drivers: China and solar PV. China is set to cement its position as the global renewables leader, accounting for 60% of the expansion in global capacity by 2030.

"Whether it's investment, fossil fuel demand, electricity consumption, deployment of renewables, the market for EVs, or clean technology manufacturing, we are now in a world where almost every energy story is essentially a China story," stated Dr. Fatih Birol, Executive Director of the IEA, when releasing this report.

Li believes this context provides a strong foundation for PCG Power's global expansion. "We will scale up our development and investment, while also expanding our international footprint, mainly in several markets with high electricity demand or energy consumption in the future."

Effective Corporate Participation in ESG Requires Both Economy and Scale

As Li planned, PCG Power extends beyond renewable energy development, with its asset-liability matching capability repeatedly validated. Beyond securing equity capital partnerships, in June 2023, PCG Power collaborated with GLP Capital Partners, GLP's investment and asset management arm, to launch LOK Capital, a renewable energy asset management platform. Pooling the strengths of all parties to develop investment funds for renewable energy assets with different strategies, such an initiative drives progressive development, long-term holding, and effective activation of renewable energy assets.

"Asset management encompasses various types, such as real estate, IDCs, and logistics. Now we can add another excellent type: renewable energy power stations. We are making more investors agree on this idea to drive asset management growth, then we can attract more funds into this industry. This creates a virtuous cycle: everyone profits, the supply of green electricity is increased, and carbon reduction unfolds faster," said Li.

As ESG becomes a popular topic, Li believes that effective corporate participation in ESG requires both economy and scale. It's why LOK Capital was established. "Through our development and construction, renewable energy power stations exceeding 1.3GW have been transformed into assets with stable cash flow returns. That is, we have used our financial capabilities to turn them into a type of asset management. Responding to ESG is an essential process of globalization. Engaging individuals and enterprises more effectively lies in economy and scale. When the business model proves sustainable, we gain both the ability and motivation to turn it into an opportunity for long-term development", said Li.