The Week In Green Energy: Mr. Hu Comes to America

In remarks published on the Huffington Post, Energy Secretary Steven Chu bluntly stated that when it comes to green energy, the U.S. has one goal: Beat China. “The United Sates is competing for leadership in energy innovation,” Chu wrote.

The U.S. might have ambitious goals in developing its renewable and cleantech industries, but right now , Beijing is is well ahead of Washington.

China’s renewable sector enjoys huge government subsidies, a seemingly endless demand for wind turbines and solar panels, and, most importantly, the ability to produce these turbines and panels at bargain basement prices. The numbers back up China’s position; last year renewable energy and cleantech investments into China topped to more than $51.1 billion, up 30 percent from 2009 levels. In fact, China accounted for 21 percent of all global green investments last year.

The U.S. only managed to attract $18 billion in investments to its own green energy sector in 2009. And largely because of lingering regulatory uncertainty and cheap natural gas, 2010 proved to be little better. According to the American Wind Energy Associations the third quarter was the slowest for the U.S. wind industry since 2007.

The investments flowing into China have helped create game-changing companies like solar panel makers (and World Cup sponsor) Yingli Solar and Suntech, which recently said it expected its panel shipments to jump by 50 percent this year. With a host of well capitalized Chinese companies looking to grow their market share both at home and abroad, U.S. companies are rightfully worried about potential competition from China.

Some Chinese companies are already moving in on U.S. companies’ turf. For example, GoldWind, a subsidiary of Urumqi, China-based Xinjiang Goldwind Science & Technology Co,recently hired First Wind CFO Tim Rosenzweig to oversee its U.S. expansion, including the development of the 104 megawatts Shady Oaks farm in Illinois.

GoldWind is serious about growing its U.S. revenues and is scouting for major office space in Chicago to house its North American subsidiary. Coincidentally, Chicago was also the only stop President Hu made outside Washington during his American sojourn.