-- S&P Global Ratings sees China's longstanding investment in low-carbon energy yielding results, especially given current oil price shocks, according to a Monday release.
Nonfossils have a 40% share of the country's current power generation, S&P said.
Following an initial period of overinvestment and focus on scale, the sector is shifting to better cost discipline and profitability goals, the rating agency said.
Balancing capacity with uptake will be a main concern for the sector's next phase, given that grid buildout lags renewable capacity additions, S&P credit analyst Christopher Yip said.
Meanwhile, regions with renewable output surpassing demand face curtailment risks, the analyst said.
Producers who are able to optimize their trading strategy or distribute through better grid systems should survive this more demanding phase, S&P said.
A full supply chain anchoring solar and wind generation and grid infrastructure should support lower costs for local players compared to global peers, S&P said.