Experts emphasize that China’s significant advancements in solar power, coupled with ongoing innovation and a comprehensive industrial chain, are driving down production costs and making new energy products more accessible worldwide.
This trend is particularly crucial for the global community, which still faces a shortfall in solar capacity needed to achieve decarbonization goals. Developing nations, in particular, require more advanced solar capacity to enhance electricity accessibility and affordability for local populations and economic activities.
These observations follow recent claims by some Western politicians and media outlets, alleging that China’s absorption of excess capacity within the new energy sector is causing market distortions abroad by dumping products at low prices, consequently harming other economies.
Liu Yiyang, deputy secretary-general of the China Photovoltaic Industry Association, highlights the pivotal role of China’s solar industry in ensuring a stable supply of solar products globally to combat climate change. He notes that the current solar industry capacity remains insufficient to meet global market demands, especially given the significant power demand in many developing nations.
In Uzbekistan, China’s solar panels are poised to provide affordable clean energy for refugees across Asia, in collaboration with the UN Refugee Agency and Chinese solar firm LONGi. This initiative underscores the potential for Chinese energy firms to address climate issues and achieve energy equity for vulnerable populations worldwide, according to Raouf Mazou, the agency’s assistant high commissioner for operations.
Global efforts to triple renewable energy capacity by 2030 were underscored at the COP28 climate change conference last year, with a target of over 11,000 gigawatts, including approximately 5,457 GW of cumulative PV capacity. However, according to analysis company Statista, global cumulative solar PV capacity in 2022 amounted to 1,177 GW, falling short of the stated goal.
Lin Boqiang, head of the China Institute for Studies in Energy Policy at Xiamen University, dismisses criticisms of China’s excess solar capacity affecting global industrial competition. He argues that China’s development, supply chain construction, and technological advancements have led to significant cost reductions, benefiting countries worldwide, particularly developing ones.
The International Energy Agency’s report on Europe highlights the substantial cost savings resulting from new installations of photovoltaic and wind power. New installations from 2021 to 2023 are estimated to have saved approximately €100 billion ($107 million) for EU electricity consumers and reduced reliance on coal and natural gas power generation.
Zhu Gongshan, chairman of Golden Concord Holdings Ltd, acknowledges the cyclical nature of the PV industry, influenced by market demand, technological advancements, policy adjustments, and industry competition. He underscores that current industry adjustments are inherent to market dynamics.
In summary, China’s advancements in the PV industry hold significant implications for global energy transition, offering cost-effective solutions to energy shortages and reducing reliance on fossil fuels, while also stimulating economic growth and employment opportunities worldwide.