China Resources Power Accelerates Renewables Push as Thermal Sales Slide

China Resources Power (CRP) (HKG: 0846), one of China’s major independent power producers, is accelerating its shift towards renewable energy amid muted growth in its traditional coal and gas segments. Driven by the government’s 14th Five-Year Plan, analysts expect renewable energy to account for 25% of CRP’s total revenue in 2024, up from 23% in 2023, with projections for this share to nearly double to 47% by 2030.

CRP has allocated HK$44.6 billion for wind and solar projects, while significantly scaling back investment in fossil fuels, budgeting only HK$7.9 billion for coal and gas. Visible Alpha consensus forecasts a CAGR of +15% in renewable revenues between 2024 and 2030, from an estimated HK$26.3 billion in 2024 to HK$61 billion by 2030. By contrast, revenue from CRP’s non-renewables segment is set to shrink, with thermal electricity sales expected to decline by -4% year-over-year in 2024 to HK$69.4 billion and heat sales by -2% to HK$7.8 billion.

Following nearly flat revenue growth in 2023, analysts expect only modest revenue gains of +1.2% year-over-year in 2024, reaching HK$105 billion. This outlook reflects the headwinds from the declining coal and gas segments, tempered by a projected +13% year-over-year surge in renewables. As CRP doubles down on renewables to support China’s climate goals, the company’s pivot illustrates both the promise and the challenge of transitioning to a more sustainable power generation model.