China's solar growth slows as grid can't keep up

According to Bloomberg , the China National Energy Administration reported that the country installed 45.7 gigawatts of solar panels in the first three months of 2024, up more than a third from a year earlier. While impressive compared to other countries, the growth rate still lags behind the 154% increase in the same quarter of 2023.

Solar power farm in Pingdingshan city, Henan province, China. (Photo: Reuters)

China, which still relies on coal for its main source of electricity, installed a record 217 gigawatts of solar panels last year—more than the total ever built in the US. Installations are expected to reach 220 gigawatts this year.

That expansion will likely be driven by utility-scale projects, particularly large-scale renewable energy programs concentrated in the country’s interior deserts. But the country will also need to ensure that new capacity has the infrastructure needed to transport clean electricity from sparsely populated interior areas to consumer centers.

Rooftop solar, which tends to be used in more urban areas and has accounted for about half of capacity growth in recent years, is also facing grid challenges.

Local grids have struggled with large amounts of intermittent power and have been forced to cut output or push prices negative during periods of low demand.

That has had a knock-on effect on solar usage, with the average solar panel producing about 8% less electricity in the first quarter of 2024 than it did in the same period last year, data shows.

The Chinese government is stepping up efforts to strengthen its power grid to further expand clean energy and meet its carbon emission reduction targets.

China's National Energy Administration and the National Development and Reform Commission announced plans earlier this year to enable 500 gigawatts of small-scale renewable energy to be connected to the grid by 2025, while grid companies have also pledged to build more long-distance high-voltage power lines.

China also added 15.5 gigawatts of wind power, 6.4 gigawatts of thermal power and 1.8 gigawatts of hydropower capacity in the first three months of the year, the country's energy authority said.

Hoa Vu (Source: Bloomberg)

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