New boom in Chinese climate investments

Date: 14 August 2013

Extra investments in energy saving is good news for Danish clean tech companies. In a dedicated attempt to establish a greener energy sector, China now puts an extra DKK 2 trillion into green investment. The Danish companies are already doing great in the Chinese marked, and can look forward to massive orders.

One of these is the Danish producer of energy metering solutions for district heating, Kamstrup. Especially in the Chinese sector for district heating, there is a huge waste of energy, due to the way of payment. The consumer does not pay for individual but instead for collective consumption. Therefore, there is little incentive to save energy. This is something the Chinese authorities want to change.
Huge pressure

“We definitely feel a huge political pressure on the energy companies to obtain a more effective use of their energy. This has resulted in an increasing demand for district heating metering solutions, and we now have an annual growth rate of 30 %. With the latest government statement, we expect to maintain the current growth rate for the next years”, says Per Asmussen, CEO of Kamstrup.

All Kamstrup technology is produced in Denmark and the company has an annual export to China of more than DKK 50 million. The collective instead of individual energy payment solution is the core of the problem. It is unfair and nor does it motivate reduction in consumption.

Per Asmussen continues: “The Chinese energy companies are aware that they have to move in a new direction – a direction towards individual energy metering, where every single consumer takes the responsibility for his own use. This is simply the key to energy efficiency”. The new green investments of the government come out of economic necessity, but it is also a way of reducing the massive air pollution, which has led to huge public protests – especially in Beijing. Apparently, the government is finally stepping up to the task and is doing something about the problem.

(Source: Børsen, Thursday 13.08.13, p. 22-23)