A latest report from think tank EMBER said that the China’s spare solar’ can propel the growth of renewable energy in developing countries and empower them to fulfil their climate net-zero targets. The report delved into the issue of over production of solar modules in the country and lack of export market for the country in the light of trade barriers by several countries.
“With the vast majority (80-85%) of solar manufacturing plants located in China, supporting deployment of ‘spare’ solar capacity in the developing world presents a significant opportunity for China to deliver national gains, in addition to helping deliver global goals on development and climate change,” the EMBER report said.
It also said that during the 11th Five-Year Plan (2006-2010), Chinese companies expanded and modernised solar manufacturing facilities in order to compete on the world stage. However, after the 2008 financial crisis, major Western markets such as Germany cut back deployment rates and slowed imports from China, partly in an attempt to shore up domestic manufacturing, it said.
“To support its industry through this economically difficult period rather than allowing factories to shut down, the Chinese government invested in building a substantial domestic market, introducing a range of support policies to stimulate deployment within China. The benefits of that response can clearly be seen today, both in the scale of China’s growing annual solar deployment and in Chinese companies’ dominance of the global market,” the report said.
‘Spare’ solar offers an opportunity for China to step into the breach, the report said.
“It is after all allied with all but one country in our analysis through common membership of the G77/China group, the 134-strong bloc which exists to ‘…provide the means for the countries of the [Global] South to articulate and promote their collective economic interests… and promote South-South cooperation for development.’ Given the severe climate impacts already affecting small island developing states and other climate-vulnerable nations, there could hardly be a more significant example of beneficial South-South cooperation than supporting the rollout of affordable solar energy in countries that need it the most,” it added.
