{"id":641136,"date":"2024-10-10T11:40:01","date_gmt":"2024-10-10T08:40:01","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/chinas-solar-goes-from-supremacy-to-oversupply\/"},"modified":"2024-10-10T11:40:01","modified_gmt":"2024-10-10T08:40:01","slug":"chinas-solar-goes-from-supremacy-to-oversupply","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/chinas-solar-goes-from-supremacy-to-oversupply\/","title":{"rendered":"#China&#8217;s solar goes from supremacy to oversupply"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a27c1744de33\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a27c1744de33\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/chinas-solar-goes-from-supremacy-to-oversupply\/#%E2%80%98Overcapacity\" >&#8216;Overcapacity&#8217;-<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/chinas-solar-goes-from-supremacy-to-oversupply\/#%E2%80%98Lots_of_companies_will_fail\" >&#8216;Lots of companies will fail&#8217;<\/a><\/li><\/ul><\/nav><\/div>\n<div>\n<div class=\"article-gallery lightGallery\">\n<div data-thumb=\"https:\/\/scx1.b-cdn.net\/csz\/news\/tmb\/2024\/chinas-massive-solar-i.jpg\" data-src=\"https:\/\/scx2.b-cdn.net\/gfx\/news\/2024\/chinas-massive-solar-i.jpg\" data-sub-html=\"China's massive solar industry, which enjoys strong support from the state, makes eight of every 10 solar panels in the world.\">\n<figure class=\"article-img\">\n            <img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/scx1.b-cdn.net\/csz\/news\/800a\/2024\/chinas-massive-solar-i.jpg\" alt=\"China's massive solar industry, which enjoys strong support from the state, makes eight of every 10 solar panels in the world\" title=\"China's massive solar industry, which enjoys strong support from the state, makes eight of every 10 solar panels in the world.\" width=\"800\" height=\"530\"\/><figcaption class=\"text-darken text-low-up text-truncate-js text-truncate mt-3\">\n                China&#8217;s massive solar industry, which enjoys strong support from the state, makes eight of every 10 solar panels in the world.<br \/>\n            <\/figcaption><\/figure>\n<\/p><\/div>\n<\/div>\n<p>Strong state support and huge private investment have made China&#8217;s solar industry a global powerhouse, but it faces new headwinds, from punitive tariffs abroad to a brutal price war at home.<\/p>\n<p>                                                                                                                                    Officials meeting in Baku next month for the COP29 summit hope to agree on new finance targets to help developing countries respond to climate change, including ditching fossil fuels.<\/p>\n<p>Last year, countries agreed to <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">trip<\/a>le global installed renewable energy capacity by 2030.<\/p>\n<p>China is installing almost twice as much solar and wind power as every other country combined.<\/p>\n<p>And it dominates the market.<\/p>\n<p>It makes eight out of every 10 solar panels and controls 80 percent of every stage of the manufacturing process.<\/p>\n<p>It is also home to the world&#8217;s top 10 suppliers of solar panel manufacturing equipment, and its related exports hit a record $49 billion last year, according to Wood Mackenzie.<\/p>\n<p>That supremacy is not accidental: Chinese state support has been key, analysts say.<\/p>\n<p>Beijing invested over $50 billion in new solar supply capacity from 2011 to 2022, according to the International Energy Agency.<\/p>\n<p>The industry has also benefited from access to cheap raw materials, readily available capital from state-owned banks, and huge engineering manpower.<\/p>\n<div class=\"article-gallery lightGallery\">\n<div data-thumb=\"https:\/\/scx1.b-cdn.net\/csz\/news\/tmb\/2024\/a-vast-array-of-solar.jpg\" data-src=\"https:\/\/scx2.b-cdn.net\/gfx\/news\/2024\/a-vast-array-of-solar.jpg\" data-sub-html=\"A vast array of solar panels on a hillside in China's northern Hebei province.\">\n<figure class=\"article-img text-center\">\n            <img decoding=\"async\" src=\"https:\/\/scx1.b-cdn.net\/csz\/news\/800a\/2024\/a-vast-array-of-solar.jpg\" alt=\"A vast array of solar panels on a hillside in China's northern Hebei province\" title=\"A vast array of solar panels on a hillside in China's northern Hebei province.\"\/><figcaption class=\"text-left text-darken text-truncate text-low-up mt-3\">\n                A vast array of solar panels on a hillside in China&#8217;s northern Hebei province.<br \/>\n            <\/figcaption><\/figure>\n<\/p><\/div>\n<\/div>\n<p>&#8220;Chinese producers were ahead of everyone else on cost,&#8221; said Lauri Myllyvirta, co-founder of the Centre for Research on Energy and Clean Air, a climate think tank.<\/p>\n<p>&#8220;That meant new investment takes place in China, because that&#8217;s where it&#8217;s most competitive,&#8221; he told AFP.<\/p>\n<p>The focus has driven a &#8220;steep learning curve&#8230; both in solar cell <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> and manufacturing know-how&#8221;, added Johannes Bernreuter, a longtime solar industry analyst.<\/p>\n<p>That in turn has created &#8220;an efficient industry ecosystem&#8221;, he said.<\/p>\n<p>                                                                                                        <!-- TechX - News - In-article --><\/p>\n<h2><span class=\"ez-toc-section\" id=\"%E2%80%98Overcapacity\"><\/span>&#8216;Overcapacity&#8217;-<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As countries around the world race to convert their power systems, China&#8217;s solar supremacy has become a growing concern.<\/p>\n<p>The United States and other Western countries have accused Beijing of deliberate &#8220;overcapacity&#8221; and flooding global markets with cut-price solar exports intended to undercut competition.<\/p>\n<p>Washington has doubled tariffs on Chinese panels to 50 percent, part of a broader package targeting $18 billion worth of Chinese imports in strategic sectors including electric vehicles, batteries, critical minerals and medical products.<\/p>\n<p>The European Union is also probing Chinese-owned solar panel manufacturers for allegedly receiving unfair subsidies.<\/p>\n<p>Most US solar panel imports now come from Southeast Asia, but Washington says Chinese manufacturers have relocated operations there to circumvent barriers.<\/p>\n<div class=\"article-gallery lightGallery\">\n<div data-thumb=\"https:\/\/scx1.b-cdn.net\/csz\/news\/tmb\/2024\/the-united-states-and-1.jpg\" data-src=\"https:\/\/scx2.b-cdn.net\/gfx\/news\/2024\/the-united-states-and-1.jpg\" data-sub-html=\"The United States and other Western countries accuse Beijing of deliberately flooding global markets with cut-price solar exports.\">\n<figure class=\"article-img text-center\">\n            <img decoding=\"async\" src=\"https:\/\/scx1.b-cdn.net\/csz\/news\/800a\/2024\/the-united-states-and-1.jpg\" alt=\"The United States and other Western countries accuse Beijing of deliberately flooding global markets with cut-price solar exports\" title=\"The United States and other Western countries accuse Beijing of deliberately flooding global markets with cut-price solar exports.\"\/><figcaption class=\"text-left text-darken text-truncate text-low-up mt-3\">\n                The United States and other Western countries accuse Beijing of deliberately flooding global markets with cut-price solar exports.<br \/>\n            <\/figcaption><\/figure>\n<\/p><\/div>\n<\/div>\n<p>China also accounts for almost all of Europe&#8217;s imports of solar panels from outside the bloc.<\/p>\n<p>That means many markets will struggle to catch up &#8220;with two decades of very forceful and very successful industrial policy in China&#8221;, said Myllyvirta.<\/p>\n<p>China&#8217;s solar industry faces its own struggles though, beyond trade barriers in the West.<\/p>\n<p>The sector&#8217;s supersonic expansion has overleveraged the domestic industry, overloaded China&#8217;s grid and sparked a brutal price war, experts say.<\/p>\n<p>Industry leaders have reportedly warned of an &#8220;ice age&#8221; and urged government intervention to stem slumping prices, but there has been little sign of relief.<\/p>\n<p>This year saw a wave of bankruptcies, and new solar projects fell by over 75 percent in the first half of 2024, an industry group said in July.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"%E2%80%98Lots_of_companies_will_fail\"><\/span>&#8216;Lots of companies will fail&#8217;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The price wars, which are so fierce that solar export earnings fell last year despite volumes hitting a new high, are like a &#8220;snake eating its own tail&#8221;, warned analyst David Fishman.<\/p>\n<p>Companies get stuck &#8220;in this circle of competition where whoever is able to endure the pain for longest comes out as the victor,&#8221; said Fishman, a senior manager at the Lantau Group specializing in China&#8217;s power sector.<\/p>\n<p>&#8220;Lots of companies will fail along the way.&#8221;<\/p>\n<div class=\"article-gallery lightGallery\">\n<div data-thumb=\"https:\/\/scx1.b-cdn.net\/csz\/news\/tmb\/2024\/experts-say-the-supers.jpg\" data-src=\"https:\/\/scx2.b-cdn.net\/gfx\/news\/2024\/experts-say-the-supers.jpg\" data-sub-html=\"Experts say the supersonic expansion of China's solar sector has overleveraged the domestic industry, leading to a wave of bankruptcies.\">\n<figure class=\"article-img text-center\">\n            <img decoding=\"async\" src=\"https:\/\/scx1.b-cdn.net\/csz\/news\/800a\/2024\/experts-say-the-supers.jpg\" alt=\"Experts say the supersonic expansion of China's solar sector has overleveraged the domestic industry, leading to a wave of bankruptcies\" title=\"Experts say the supersonic expansion of China's solar sector has overleveraged the domestic industry, leading to a wave of bankruptcies.\"\/><figcaption class=\"text-left text-darken text-truncate text-low-up mt-3\">\n                Experts say the supersonic expansion of China&#8217;s solar sector has overleveraged the domestic industry, leading to a wave of bankruptcies.<br \/>\n            <\/figcaption><\/figure>\n<\/p><\/div>\n<\/div>\n<p>And while the manufacturing glut has helped China hit a wind and solar installation target nearly six years ahead of schedule, the country&#8217;s grid is struggling to keep up.<\/p>\n<p>Increasingly, renewable supply is being blocked to prevent the grid from becoming overwhelmed, a process known as curtailment.<\/p>\n<p>Solar curtailment rose four percent in the first quarter of 2024 from a year earlier, according to Fitch Ratings.<\/p>\n<p>Authorities will soon be forced to &#8220;stop <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roving new projects or allowing projects to connect to the grid if it means curtailment rates are at risk of going higher&#8221;, Fishman said.<\/p>\n<p>&#8220;They&#8217;ve got to build,&#8221; he added. &#8220;They have to catch up.&#8221;<\/p>\n<p>Blocked in the West and running out of track at home, China&#8217;s solar is seeking new markets, and this year, Europe was overtaken by Asia as the biggest export market for solar products, according to an industry body.<\/p>\n<p>Exports to Africa also soared 187 percent year-on-year in 2023, though the continent still buys a small fraction compared to Europe, according to energy think tank Ember.<\/p>\n<p>The industry is now in a &#8220;restructuring and shakeout phase&#8221;, said Bernreuter.<\/p>\n<p>After that, &#8220;the Chinese solar industry will march on with unperturbed pace and a more global manufacturing footprint&#8221;.<\/p>\n<p class=\"article-main__note mt-4\">\n                                                \u00a9 2024 AFP\n                                            <\/p>\n<p>                                        <!-- print only --><\/p>\n<div class=\"d-none d-print-block\">\n<p>                                                <strong>Citation<\/strong>:<br \/>\n                                                China&#8217;s solar goes from supremacy to oversupply (2024, October 10)<br \/>\n                                                retrieved 10 October 2024<br \/>\n                                                from https:\/\/techxplore.com\/<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>\/2024-10-china-solar-supremacy-oversupply.html<\/p>\n<p>                                            This document is subject to copyright. 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Strong state support and huge private investment have made China&#8217;s solar industry a global powerhouse, but it faces new headwinds, from punitive tariffs abroad to a brutal price war at home. Officials meeting in&#8230;<\/p>\n","protected":false},"author":1,"featured_media":641137,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/scx2.b-cdn.net\/gfx\/news\/2024\/chinas-massive-solar-i.jpg","fifu_image_alt":"","footnotes":""},"categories":[16],"tags":[],"class_list":["post-641136","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sciencee"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/641136","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=641136"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/641136\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/641137"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=641136"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=641136"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=641136"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}