Patrick Stone, P.E.’s Post

Chinese authorities warned solar-panel firms to curb their brutal price war. Beijing is fearful of both undermining the domestic sector with relentless expansion, and of stoking geopolitical tensions with countries that have complained of cut-price Chinese manufacturing. Officials urged companies to limit projects designed simply to increase capacity, and instead called on them to focus on technological innovation and product quality, the South China Morning Post reported. They also tightened financing regulations in order to ensure new solar manufacturing projects were viable. China’s solar boom has slashed the cost of deploying renewable power at enormous scale, but drawn the ire of countries elsewhere who argue China has used state subsidies to corner an industry necessary for the world’s green energy transition.

Investment in #cleantechnologies such as #solar #photovoltaics (PV), #batteries, #windpower, #electrolysers and #heatpumps soared by 70% last year with #China accounting for three-quarters of global investments, according to a report published today (May 6) by the International Energy Agency (IEA) assessing the pace of clean tech manufacturing. China houses more than 80% of global solar #PV module #manufacturing capacity and battery production and is the world’s largest exporter of EV batteries, accounting for about 70% of total exports in 2023. The Asian giant currently controls nearly 90% of global capacity for cathode active materials and over 97% of capacity for anode active materials - key battery components for the production of high-quality lithium-ion batteries needed for the production of electric vehicles or energy storage systems. While the #EU and the #US account each for 5% of battery production, the IEA expects the capacity accumulated by these three regions, including China, to remain above 90% through 2030. #GlobalEconomy #GlobalRivalry #Globalism #Globalisation #Protectionism #Geopolitics #Diplomacy #Geostrategy #CorporateStrategy #Strategy #Politics #WorldTrade #WorldPolitics #ForeignRelations #ForeignAffairs #ForeignPolicy #InternationalRelations #TradePolicy #EconomicPolicy #IndustrialPolicy #EconomicWar #TradeWar #TechWar #AsianEconomies https://lnkd.in/g9_x-72G

We must learn from our mistakes to secure a sustainable future. My reflection is:- China holds significant control over key renewable energy supply chains, producing a large majority of solar panels, electric vehicles, batteries, and rare earth minerals globally. This dominance highlights the importance of global collaboration in the clean energy sector to ensure affordability and accessibility. Despite China's infrastructure saturation leading to economic slowdown, the country remains a leader in wind energy, surpassing the United States in wind turbine capacity. The growth rates in wind turbine installations underline the expanding global presence of Chinese energy companies in this sector. It is crucial for the world to incentivize and collaborate on low-cost manufacturing in the clean energy industry to combat climate change effectively. With global temperatures already exceeding pre-industrial levels, collective action is essential to prevent irreversible damage. Let's unite to address the climate crisis before it's too late. We cannot negotiate temperature, can we? what do you think? ------------------------------------------------------------------ Research done: Saikat references: Voronoi App Yahoo News Energy Institute International Energy Agency (IEA) Wood Mackenzie #RenewableEnergy #ClimateAction #GlobalCollaboration #CleanEnergy #Sustainability

China clean energy sector eyes US$100 billion in overseas spending Summary: China's clean energy sector is rapidly increasing its global investments, with plans to spend an estimated US$100 billion on overseas projects in the past two years. This shift comes as domestic competition heats up and international trade tensions, particularly with the US and Europe, intensify. As China continues to dominate the global clean energy market with its leadership in solar panels, batteries, and electric vehicles, many of its firms are now expanding beyond national borders. The country's energy transition, which saw US$676 billion in spending last year alone, far outpaces that of any other nation. However, fierce domestic competition and falling profit margins are prompting Chinese companies to seek growth overseas. By building clean energy infrastructure such as solar farms, battery factories, hydroelectric dams, and transmission lines, these companies aim to bypass trade restrictions and capitalize on new market opportunities. This international expansion is also part of China's broader evolution, transitioning from a technology importer to a key exporter of clean energy solutions. The overseas investments bring not just financial capital, but also Chinese expertise and technology, which can stimulate local labor markets and accelerate other countries' energy transitions. Noteworthy examples include a €7.3 billion Contemporary Amperex Technology battery factory in Hungary, signaling China's intent to cement its global clean energy influence. Although some projects may face financial hurdles, the ongoing investments highlight China's ambition to turn its overcapacity into a globally distributed deployment of clean energy technology, aiming to reshape the international energy landscape. #CleanEnergy #ChinaEnergyTransition #GlobalInvestments #Sustainability #Solar #Batteries #ElectricVehicles #EnergyPolicy #RenewableEnergy #ClimateAction https://lnkd.in/ghWqcjqn

China is main beneficiary of West's futile energy transition push Consumption of fossil fuels is as strong as ever as they remain irreplaceable Brenda Shaffer June 6, 2024 17:05 JST U.S. President Joe Biden, U.N. Secretary-General Antonio Guterres, European Commission President Ursula von der Leyen, the heads of the World Bank, International Monetary Fund and World Economic Forum, and almost all mainstream media agree that the world is in the midst of an energy transition from fossil fuels to renewable energy. China is the main benefactor of the West's energy transition policies. It is set to retain a huge competitive advantage in manufacturing from cheap and reliable electricity, while the West moves to more expensive, unreliable power sources. Most transition policies are centered on Western efforts to reduce emissions, with little reciprocal behavior demanded from China. It is time to face facts about the prospects for an energy transition and to take a U-turn on policies that are mostly benefiting China. Energy and manufacturing policies should instead be based on reality.

China's inexorable march towards renewable energy creates a demand for deeper reform to establish a more flexible power market, capable of accommodating the significant variations introduced by this transition. In this piece, I delve into China's quest for deeper power market reform, arguing that: The reform is not merely to find the optimal market design but to strike the "right" balance between market competition and state intervention. As trails on more flexible spot trading progress, it is crucial to rethink and reform China's governance strategies, ensuring that evolving market dynamics are met with effective governance and support. I would like to thank editor Hongqiao L. for her valuable contributions and insights. The mistakes are, of course, mine. I’d love to hear your thoughts and engage in a discussion on this critical topic. Let’s explore how these reforms can pave the way for a more sustainable and efficient energy future!

I would add that looking at the issue from a whole #valuechain viewpoint (#breakingsilos) and project lifetime can provide a strong answer to the cost issue (#LCOE with made in EU modules is around 8-10% higher). This can come as a combination of various measures concerning all stakeholders including: - voluntary local content offtake by EU PV project developers/asset managers/EPCs (results: create market for made in EU PV modules, diversify portfolio, reduce future geopolitical risks) - very limited reduction in WACC (investors lending at lower interest rate or accepting small impact on IRR) (#etippv presentation at #eupvsec showed that the reduction is within 0.3-0.5% for the residential sector, 1-1.5% for the utility scale sector to have #LCOEparity) - mix of EU / national / local support in manufacturing investments (return in terms of extra jobs, VAT, increase in energy security with an expected #leverage effect of at least 1:3) - policies (see #NZIA) already applied at national level (for e.g. transizione5.0 in Italy) PS: price of 2024 made in EU PV modules would be in line with the price of made in China PV modules just a couple of years back and already at that time PV investments were generating high IRR and deemed as bankable...

Summary: Xi Jinping, while presiding over the 12th group study session of the Communist Party of China (CPC) Central Committee, stressed the importance of high-quality development of new energy in China in order to ensure energy security and contribute to building a clean and beautiful world. He emphasized the need to respond to global climate change and seize opportunities to promote the development of new energy resources, such as wind power and photovoltaics. Xi also urged the importance of technological innovation, building infrastructure for new energy, and deepening international cooperation in new energy technology. Lastly, he highlighted the importance of self-reliance and strength in science and technology, emphasizing the need to prioritize China's own imperatives in scientific and technological innovation. # #China Follow us for daily updates on risk and operations in Asia! https://lnkd.in/gt72dZVP

Coming from an oil and gas background, I see plenty of similarities between batteries being the new "oil". Price spikes as with commodities, monopolies on certain materials and components driving dependencies and geopolitical tensions seem to be history repeating itself... difference being that battery tech can remove dependencies from certain materials and politicians in the West are actively securing local supply chains where possible. Read the article below. 👇