This Way Forward
This Way Forward
In Fact: China's global solar revolution
To avoid a global climate catastrophe we need to triple the amount of global renewable energy by 2030. About half of this is expected to come from solar. And, since 2006, the solar panels China has produced account for 70-80 percent of the total, global GW of the installed capacity today. But China is also getting the most pushback from the U.S. and Europe. What's happening here? Why is China leading and why, given the crisis we are in, do some see that as a problem?
In Fact with Kyle Obermann, a groundbreaking series from CGTN, delves into one of the world's most debated environmental topics: China's environmental record and its global impact.
About the host:
Kyle Obermann is an environmental photographer, filmmaker, writer, and athlete who focuses on Asia's high mountain regions. Fluent in Mandarin, with seven years of experience living and working in China, Kyle has received numerous honors, including becoming a two-time winner of China's Wildlife Image and Video Competition. He has spoken at TEDx, served as a jury member for China's annual Outdoor Environmental Awards, and been recognized as a National Geographic Expert. Kyle is a member of the International League of Conservation Photographers, the Explorers Club, ICIMOD's Save Our Snow Campaign, and the National Committee on U.S.-China Relations.
My name is Kyle Oberman and I'm an environmental writer, researcher and photographer. Welcome to In Fact, where we use peer-reviewed sources, official data and expert interviews to untangle the misconceptions and myths from the realities of China's environmental record and find out what it means for the world. Third episode China's solar revolution. To avoid a global climate catastrophe, we need to triple the amount of global renewable energy by 2030. About half of this is expected to come from solar and since 2006, the solar panels China has produced account for 70 to 80 percent of the total global gigawatts of installed capacity today. But China is also getting the most pushback from the US and Europe. So what is happening here? Why is China leading and why, given the crisis that we are in, do some see that as a problem?
Speaker 1:China leads the global solar supply chain. The top 10 suppliers of solar manufacturing equipment are also Chinese companies. Almost all of the world's silicon wafers the most important part of solar panels come from China. This means that China has a vast superiority when manufacturing solar at scale than cost. So Chinese panels are 35 to 50% cheaper than those made in Europe and the quality is comparable, sometimes even better.
Speaker 1:This has its roots in the 90s and early 2000s, with China's privatization of industry and WTO admittance. These events triggered Chinese exports to become more cost competitive and European nations like Germany to invest by bringing entire production lines into the country. And in 2005, china passed its Renewable Energy Act, which mandated the purchase of renewable energy and connection to the grid. Five years later, the government elevated solar to the status of strategic necessity and began to channel subsidies, as its western neighbors had, into the industry. Fast forward to today and in the first half of 2023 alone, china's solar exports surpassed the total installed capacity of the US. Half of these exports went to Europe and almost all of Europe's newly installed solar came from China. And last year, the EU installed record levels of solar capacity, 40% more than in 2022.
Speaker 2:It would have been very difficult to get to this level today without China, that is for sure. Even the drop in manufacturing costs that we are seeing outside of China, be it in the US or Europe, is also largely driven by China and Chinese sort of developments within different PV technology.
Speaker 1:So the supply from China has been a boon for households and other power users looking to turn away from fossil fuels at a low cost. It's also increased jobs. European solar employment rose by 24% last year, mainly due to installation demand. But the supply and cost of Chinese solar in Europe has also led to pushback from some European governments and businesses who feel like they can't keep up.
Speaker 2:For European manufacturers, it's impossible to compete with the cost of production.
Speaker 1:As for their Chinese counterparts, there's just no way but the EU hopes to change this, aiming to raise the percentage of solar manufactured in Europe from the 3% it is today to 40% by 2030. And the price difference between China and European panels have reached its peak. But the 12 billion euros in funding provided by the EU's Net Zero Industry Act still lags behind the amounts provided by the US and China. This also has many in the EU worried for one big reason energy security. It's an issue that worried Europe in the last half century and pushed the continent to adopt solar earlier than anyone else, and the war in Ukraine has reminded Europe just how vulnerable it is to global shifts or conflict. So while many households get cheaper clean energy and the solar jobs market continues to grow, the current market concerns leaders and industry experts in Europe.
Speaker 3:And there's a severe competition between the Chinese manufacturers. So and all of them need to sell something to have cash, even if they sell with losses. But in the long run an industry need to be sustainably and make money, otherwise we will have these kind of bubbles and they burst and everything is delayed, etc.
Speaker 1:Dr Lindahl and Marius agree we are entering a consolidation phase in the solar industry, which will see global manufacturers out of business, but on the flip side, the fierce competition that got us here has also accelerated innovation. Chinese companies lead the world in solar technology patents, holding over twice the amount of any other country. And when it comes to overcapacity, a peer-reviewed study released a few years ago even argued that, given the intermittency of sunshine, overcapacity by a factor of three was critical for making solar actually work. But limited grid capacity in Europe, combined with high interest rates that discourage investment, are leading to a surplus of Chinese solar panels stockpiled around the world, especially in Europe.
Speaker 2:Getting connected to the grid if you're a utility scale developer, now is difficult. So if you're now in Europe, you might have to wait years to get your project approved through permitting until it's actually connected to the grid. So Europe is in a bind.
Speaker 1:Nations desperately need to cut emissions, but they aren't able to install and connect solar to the grid fast enough. It's a problem that is marred in economics, geopolitics, energy security, human rights, protectionism and, quite simply, a lack of time. But the world would not have installed so much solar today without China, and this vital role that Chinese panels play for climate goals probably isn't going away. But with the right policies and investment, european solar can play a greater role than we desperately need to accomplish, pushing renewable capacity to triple before 2030.