China now supplying two thirds of global green energy kit amid rising trade tensions
Research group flags 'integrated supply chains, rapidly declining prices and a high standard of performance' as Chinese wind, solar and batteries flourish
Amid growing trade tensions between China and the West over renewable energy manufacturing, new Wood MacKenzie analysis has revealed China is now producing almost two thirds of global supply for wind turbines, solar panels and batteries.
“Integrated supply chains, rapidly declining prices, and a high standard of performance have enabled China-based renewable manufacturers to supply more than 65% of the total global demand,” said WoodMac in its report.
The energy consultancy added that it “expects this trend to continue.”
In its new analysis, WoodMac said Chinese renewables exports grew 35% from 2019 to 2023, driven by “competitive prices and production capacity domination.”
Batteries have meanwhile surpassed solar modules to become China’s primary renewable energy commodity export.
“Renewable energy is favoured by Chinese developers in near-term overseas investment compared to other conventional power generating technologies,” said Xiaoyang Li, director of APAC power and renewables research at WoodMac.
“More than a hundred wind and solar projects have been developed in the Belt and Road market in the past decade,” he added.
Low manufacturing costs have supported China-based renewable manufacturers in offering attractive prices, said WoodMac, with prices for non-Chinese products “double those of comparable China-made equipment.”
Markets with high power demand, stable business environments and predictable revenue streams are favoured by Chinese investors, said WoodMac – although “geopolitical issues are also encountered in these markets.”
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