Taxpayers backing solar company chaired by CCP official

A solar giant chaired by a serving Chinese Communist Party official has received taxpayer-funded support under Chris Bowen’s flagship Capacity Investment Scheme.

Chris Bowen’s flagship Capacity Investment Scheme has been dubbed by opponents the “CCP Investment Scheme” after the government provided taxpayer-funded support to a solar company chaired by a serving Chinese Communist Party official.

The $200m Derby Solar Project near Bendigo in Victoria – run by Chinese solar giant Sungrow – was awarded CIS backing in October. The CIS underwrites investment in clean energy by providing long-term “floor and ceiling” revenue support contracts to renewable energy projects.

According to Chinese state media, Cao Renxian is serving as a deputy in National People’s Congress, described as “the supreme organ of state power in China”. Mr Renxian was also identified as having previously served in the 13th National People’s Congress.

Sungrow, a leading manufacturer of solar panels, operates locally via its subsidiary Sungrow Australia, which established a Sydney office in 2012. All foreign investors in Australia’s energy infrastructure – including CIS projects – are subject to scrutiny via the government’s foreign investment framework.

Professor Ian Langford says Sungrow’s project “undermines Australia’s long-term sovereignty and resilience”.

Security & Defence PLuS executive director Professor Ian Langford said backing Sungrow’s Derby project near Bendigo “undermines Australia’s long term sovereignty and resilience”. “The question is not whether renewable energy investment is essential, it is whether Australia can afford to ignore PRC state-security precedents for the sake of expediency”, Professor Langford, a former senior ADF officer, said. “Allowing a CCP-connected official to exert influence over critical infrastructure programs runs counter to everything governments in Can-berra and the states have learned over the past decade.”

There are no allegations of wrongdoing against Mr Renxian or a suggestion that he has attempted to influence the company in a manner contrary to Australia’s interests.

Sungrow is the third CIS-backed developer with CCP links identified by The Sunday Telegraph. Pacific Blue, which runs the Clements Gap battery in South Australia, is wholly owned by China’s State Power Investment Corporation, while the largest shareholder in EDP Global – which runs two CIS-backed projects – is China Three Gorges, a state-owned enterprise.

Senator Matt Canavan has dubbed the Capacity Investment Scheme the “CCP Investment Scheme”.

Nationals senator Matt Canavan told The Sunday Telegraph “it’s starting to feel like the CIS stands for the CCP Investment Scheme”.

“Are there actually any Australian businesses that benefit from these multibillion(-dollar) subsidies?” he asked.

In response to questions put to Climate Change and Energy Minister Mr Bowen, a government spokesman said: “When coal breaks down, your bills go up – that’s why we’re backing the experts’ plan for more reliable renewables.”

Sungrow did not respond to The Sunday Telegraph’s inquiries

Originally published as Taxpayers backing solar company chaired by CCP official