Summary:

Kleiner Perkins’s $250 million China fund represents the logical next step in a migration of cleantech investment toward China, points out GigaOM Green IT analyst Adam Lesser. Here’s three reasons cleantech VC dollars are heading east.

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The news last week that leading cleantech venture capital firm Kleiner Perkins Caufield and Byers was raising a $250 million fund to invest in Chinese companies represents the logical next step in a migration of cleantech investment toward China, points out GigaOM Green IT analyst Adam Lesser. While the Chinese government has always been the most aggressive global investor in renewable energy and technology, there are early signs that make the country a promising place for overall cleantech VC, from solar to electric vehicle technology. Here are three reasons why:

  • It’s the exit, Stupid.
  • A government can venture invest.
  • The yuan is powerful.

To read the entire article check out GigaOM Pro, (subscription required).

Other things Adam is reading about this week:

  • The price of polysilicon just keeps dropping (it’s now $35/kg as of Oct. 31st, down from $475/kg in 2008), which has the double effect of lowering the price of solar PV panels and destroying any solar company that invested in a tech that would compete with polysilicon panels. A study is now emerging from the China Nonferrous Metals Industrial Association indicating that 90 percent of polysilicon plants in China risk closing due to the price drops.
  • Perry’s Plan to Halt Energy Breaks Favors Oil, Gas Producers: Could it be true that a Republican candidate for president is considering not just axing subsidies for renewables but also for the oil and natural gas industries? I’m skeptical, given all the oil money Perry has taken over the past decade.

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