A dynamic institutional analysis of China's engagement with Africa's renewable energy market

Renewable energy activities have increasingly become the central component of China's proposed green Belt and Road Initiative. Yet, scaling up these activities requires significant institutional changes of the current Chinese state and financial-industrial complex. Informed by a conceptual framework that builds on multi-level institutional analysis, we assess the institutional challenges constraining the scalability of Chinese renewable energy projects in South Africa and Ethiopia. Our study reveals that the institutional fragmentation and vacuum in China have led to the lack of a clear engagement strategy with African markets. In addition, the development of wind and solar energy projects in Africa is often taking place amid the ongoing and fast-changing energy sector governance, which is not yet appreciated by the key Chinese actors. We argue that promoting Chinese-backed renewable energy projects in Africa requires new institutional arrangements that can adapt to competitive and divergent local market conditions and regulatory changes.