China’s Solar Power Set to Surpass Coal in Three Years: TongweiChairman
BEIJING, Sept. 3, 2024 – China’s solar power industry is poised to overtake coal as the country’s largest power source within the next three years, according to Liu Hanyuan, chairman of Tongwei Group, one of China’s leading solar energy companies.
Speaking at the 2024 Yabuli Entrepreneurs Forum, Liu stated that by the end of 2023, China’s installed solar power capacity had already surpassed hydropower, making it the second largest power source after coal. He predicted that solar power will surpass coal within the next threeyears.
The industry and its development have created the conditions for energy economic transformation, Liu said. China, once facing the greatest pressure for energy transformation, has the potential to become a global leader in this transition.
China’s dominance in the global solar industry is undeniable. It currently accounts for over 80% of the global market share, with the country’s rapid technological advancements driving down the cost of solar energy. This has led to the development of the world’s largest and most competitive solar industry in China.
In2023, China added a record 216 million kilowatts of new solar power capacity, making it the world’s largest contributor to new solar installations. This achievement further solidifies China’s position as a global leader in renewable energy.
Tongwei Group, a vertically integrated solar company,plays a significant role in China’s solar power success. The company encompasses the entire solar energy value chain, from upstream polysilicon production to midstream solar cell and module manufacturing, and downstream solar power plant construction and operation.
However, despite the industry’s impressive growth, Tongwei Group recently reported a significant declinein its financial performance. The company’s half-year report for 2024 revealed a 40.87% year-on-year drop in revenue and a net loss of 31.29 billion yuan attributed to intensified competition and a decline in solar product prices.
The rapidgrowth of the renewable energy industry has attracted substantial investment, leading to a surge in production capacity. This has resulted in increased competition and a price drop for solar products. While Tongwei Group has expanded its solar operations, it has been unable to offset the impact of declining prices, leading to the reported financial pressure.
Despitethe challenges, China’s commitment to renewable energy remains strong. The National Energy Administration reported that as of June 2024, China’s installed renewable energy capacity reached 1.653 billion kilowatts, representing a 25% year-on-year increase and accounting for 53.8% of the country’s total installed power capacity.
The combined installed capacity of wind and solar power (1.18 billion kilowatts) has already surpassed coal-fired power (1.17 billion kilowatts). These figures highlight China’s significant progress in transitioning towards a cleanerenergy future.
Liu’s prediction of solar power overtaking coal as the largest power source in China within three years is a bold statement. However, considering China’s commitment to renewable energy, its dominant position in the global solar industry, and the continued decline in solar energy costs, his prediction seems plausible.
Thefuture of energy in China, and potentially the world, appears to be increasingly solar-powered. As China continues to invest in and develop its solar industry, it is likely to play a pivotal role in shaping the global energy landscape.
Views: 0