Chinese Solar Giants Fuel More of the World Than Oil Majors
China's Photovoltaic Industry: A Rollercoaster Journey to Global Prominence
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The world is witnessing a watershed moment since the dawn of industrial age. We may soon find ourselves relying more heavily on solar power than on fossil fuels for our energy needs. According to Bloomberg, seven Chinese solar power companies will provide more energy to fuel the world economy than the Seven Sisters of Western Big Oil that dominated the 20th century.
The dominance of China’s solar power giants has long been the target of scrutiny from the west. For example, on the face of fierce competition, the United States has employed protectionist policies, such as the Inflation Reduction Act, to support domestic solar manufacturing and reduce dependence on Chinese imports.
Key Takeaways:
China has become the dominant global leader in solar photovoltaic (PV) manufacturing and installations.
China's PV industry growth has been extremely rapid, with record new installations in 2023 and manufacturing capacity exceeding 80% global market share across polysilicon, wafers, cells and modules.
The origins of China's PV industry date back to the 1950s with early space applications, followed by a major push in the late 1990s with the "China Brightness Program" to provide electricity to rural western regions using solar power.
The industry faced major challenges in the late 2000s, including a polysilicon shortage crisis, the 2008 financial crisis, and protectionist "double remedy" tariffs imposed by the U.S. and Europe that nearly decimated China's PV companies.
However, through major government support initiatives like the "Golden Sun" project, domestic market expansion, and technological advances, China's PV industry rebounded and achieved self-sufficiency across the entire supply chain.
Today, despite continued tensions with the West over trade practices, China has established itself as the cost leader, innovator and dominant exporter that the U.S. and Europe have become highly dependent on for PV products and components.
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