China dominates the global solar panel market. According to a report published Thursday by the International Energy Agency (IEA), the People’s Republic’s share of all stages of production is now more than 80 percent. Huge investments in China have cut the cost of solar energy worldwide by 80 percent, but at the same time have created a high degree of dependency.
According to the IEA, China has invested more than 50 billion dollars (about 48.6 billion euros) in photovoltaic production capacity over the past ten years. That was ten times as much as in Europe. The ten leading PV production system suppliers are now located in China. That creates dependencies.
“The level of geographic concentration in global supply chains creates potential challenges that governments must address,” said IEA Secretary General Fatih Birol. Based on current investments, it can be assumed that China will soon reach 95 percent market share for key elements of solar cells, especially polysilicon, the raw material that is currently in short supply.
Production capacity should have doubled by 2030
The IEA calculates that the production capacity for solar panels would have to double by 2030 to meet the targets for switching from fossil fuels to renewable energy sources. This presents opportunities as other regions of the world invest massively and thus broaden supply chains. The Energy Agency estimates that up to $120 billion in investment could flow into the photovoltaic supply chain by 2030, and the number of jobs could double to one million.
With a view to the environmental balance, the IEA gives the PV modules from China positive testimonials. Electricity-intensive production is still largely based on coal power. Still, the panels should only be in operation for four to eight months to save emissions again during production. They are typically 25 to 30 years in business.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
