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Purpose

Entrepreneurial ventures in the emerging renewable energy sector in China represent a variety of dynamic growth strategies that are stimulated by the domestic energy policy and the evolution of the value chain driven by technological advancements. This paper aims to examine the underlying real options among these first movers to proceed with their further strategic development and finance means.

Design/methodology/approach

A literature review is launched to look into the emerging renewable energy sector unveiling challenges in the growth and development of renewable energy ventures (REVs) in China. Three main types of REVs are differentiated based on their technology intensity.

Findings

The prospect of international technology transfer through mergers and acquisitions (M&As) in the next phase of evolution within the sector is articulated. A theoretical framework on complementary developments in the value chain is revealed with four propositions.

Practical implications

This paper enables the stakeholders in the renewable energy sector to critically reexamine the pathways of strategic development and finance of REVs over an evolving technological landscape.

Originality/value

This study integrates the theoretical real options into technology management issues pertinent to REVs under the contemporary tactics via cross‐border M&As.

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