Australia’s renewable energy sector has drawn fresh scrutiny after it emerged that two major Australian battery projects have engaged a Chinese state-owned company linked to President Xi Jinping’s controversial Belt and Road Initiative (BRI).
The projects, one of which has been declared a “priority” by the Albanese government and approved for access to the taxpayer-funded Capacity Investment Scheme, involve Zen Energy and Genaspi Energy, both of which have contracted China Energy Engineering Corporation (CEEC) for various services. CEEC is owned by the Chinese government and operates under direct supervision of the Chinese Communist Party.
The Belt and Road Initiative has funded over $1 trillion in infrastructure projects worldwide, including roads, ports, airports, and energy facilities. While former Victorian Premier Daniel Andrews attempted to sign Victoria up to the BRI in 2021, the federal Coalition government rejected it, citing inconsistencies with Australia’s foreign policy and potential risks to international relations.
Strategic Analysis Australia director Peter Jennings expressed alarm over CEEC’s involvement, describing it as a “major red flag.” He warned that state-owned Chinese enterprises are “playthings of the Chinese Communist Party” and can potentially grant intelligence services access to critical infrastructure. “In the case of key energy projects, this creates risks of sabotage or manipulation,” he said.
Investigations reveal that Zen Energy’s Templers Battery project in South Australia and Genaspi Energy’s Bundey battery and solar farm have both engaged CEEC. Zen Energy has downplayed CEEC’s role, stating that the Chinese company was limited to providing “commercial risk wrap and logistics coordination.”
Genaspi Energy, a relatively new company established two years ago with only one active project, signed a major agreement with CEEC last year to assist with its battery and solar farm in Bundey. Despite its priority status and government backing, attempts to contact Genaspi Energy’s owners were unsuccessful, with the Sydney office appearing abandoned and unstaffed.
The involvement of CEEC in Australian renewable infrastructure has sparked criticism from Nationals MP Barnaby Joyce, who suggested that the industry may eventually require a “royal commission.” He stated, “You don’t need to be Inspector Clouseau to see serious concerns about where taxpayer money is going in these schemes.”
Climate Change and Energy Minister Chris Bowen has not responded directly to questions about the BRI-linked company, though a government spokesperson emphasized that foreign investments are reviewed on a risk-based, case-by-case basis to protect national security and the national interest.
The revelations raise broader questions about the balance between Australia’s net-zero ambitions and geopolitical and security considerations, highlighting the risks inherent when strategic foreign state-owned entities participate in critical infrastructure projects.
