Guinness Sustainable Energy Fund on China Longyuan Power Group
Thesis
The fund owns China Longyuan as a pure-play Chinese wind power producer. The managers expect renewables to account for the vast majority of future power-capacity additions and note China's targets for higher non-fossil generation and greater electrification. China Longyuan therefore offers direct exposure to growing renewable generation in one of the world's largest power markets.
“China Longyuan is a pure-play Chinese wind power producer”
Key risks
- Renewable policy and power-market rules can change
- Grid integration and curtailment can constrain renewable generation