China-Australia Solar Deal Falls Through Over Delays

An $800 million-plus agreement for a Chinese-linked company to acquire five large Australian solar farms has collapsed, aiming to boost renewable energy capacity but running into regulatory roadblocks. The stalled approval process from Australia’s Foreign Investment Review Board (FIRB) ultimately triggered the deal's termination, underscoring challenges in cross-border infrastructure investment.

The now-defunct deal involved Beijing Energy International, a group backed by the Chinese government, which had planned to acquire roughly 1 gigawatt of solar energy infrastructure from Lightsource bp, a renewables division of a major British energy company. Despite extended deadlines and attempts to secure clearance, the lack of firmer timelines from the FIRB led both parties to walk away.

In practical terms, Beijing Energy stood to gain significant renewable capacity, but after months of uncertainty and resubmissions, the approval process showed no signs of progressing. While discussions with FIRB reportedly continued behind the scenes, confidence in a timely outcome eroded. Lightsource bp, meanwhile, said it was actively looking for new strategic partners who align with its long-term investment vision.

This breakdown highlights growing tensions between foreign investment oversight and the rapid growth of renewables, especially when Chinese state-backed entities are involved. The outcome could signal slower pathways for similar deals in the future, even as Australia pushes toward cleaner energy targets.

Source: Australian Financial Review, PV Magazine, RenewEconomy