China is expected to grow its solar power capacity by a record 30% in 2023, a solar manufacturing association said on Thursday.
The world’s biggest solar products maker and solar power generator will likely add 95 to 120 gigawatts (GW) of solar power through the year.
Official data showed China brought 87.41 GW of new solar power into operation in 2022. With that its total installed capacity rose to 392.61 GW.
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Concern on energy storage, land & water needs
Despite the record growth outlook, the country is likely to face several challenges in costs and trade of solar power equipment, the association said.
“The development of solar power stations in China continues to face several problems despite a slight decrease in investment costs,” Wang Bohua, honorary chairman of the China Photovoltaic Industry Association (CPIA) said at a conference.
The obstacles include a mandatory requirement from some local governments to install energy storage alongside solar farms.
The industry also faces restrictions on land and water usage amid Beijing’s growing effort to protect farmland.
Trade trouble, rising competition
And while China’s solar capacity is growing rapidly, its solar-product exporters are facing more trade disputes.
The United States in December banned imports, including solar products, from China’s Xinjiang region over concerns about forced labour.
US customs have seized some 3 GW of solar modules exported from China due to suspicion they could have come from slave labour camps.
Chinese exporters also face tougher competition offshore, in destinations such as the United States, the European Union and India.
“The trade barriers are bringing increasing difficulties for Chinese solar firms seeking to expand in overseas markets, and the rapid development of local manufacturers in those countries will hit China’s solar manufacturing industry,” Wang said.
“Chinese solar firms should pay greater attention to the competition, as the US, EU and other countries are putting in place policies and making actual moves to support their local industry,” Wang added.
China exported about 36.3 GW of solar wafers and 23.8 GW of solar cells in 2022, up 61% and 131% year-on-year, respectively, CPIA data showed.
Meanwhile, exports of solar modules grew at a slower pace of 56% last year as more module plants have been built overseas.
- Reuters, with additional editing by Vishakha Saxena
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