China’s State Firms Dump Renewable Energy Assets as Industry Overcapacity Deepens

Dozens of state-owned enterprises are selling stakes in solar and energy projects amid mounting losses, bankruptcies, and oversupply.

The police learned about the operation of the plant from the safety staff of the photovoltaic energy enterprise and jointly inspected the safety production of the power plant. Changji, Xinjiang, China, Jan. 24, 2021. Costfoto/ Future Publishing via Getty Images

As China’s renewable energy boom enters a phase of severe overproduction, dozens of state-owned enterprises are rushing to sell stakes in solar, wind, and energy storage projects, highlighting the growing costs of years of state-driven expansion.

The sell-off reflects a trend in China’s economic planning—state-backed companies pour into government-favored sectors, rapidly expand capacity, and eventually leave behind oversupply, collapsing prices, and mounting financial losses.