The volume of installed solar energy capacity in China lags behind plans. The country will have to hurry with the installation of new solar panels in order to fulfill the goals set for the year, Bloomberg reports.
According to the National Energy Administration, China has installed a capacity of approximately 29.3 gigawatts of solar energy in the first 10 months of 2021, with a forecast of 55 to 65 gigawatts. Growth has slowed due to increased costs: prices for solar panels have risen for the first time in eight years. This caused delays in the implementation of projects, despite the promise of Chinese leader Xi Jinping to achieve carbon neutrality by 2060, which is necessary to save the planet. "The construction of some projects did not start on time and maybe postponed until next year due to the high cost of equipment and low profitability," said Lin Wang, a Bloomberg analyst from Beijing.
Chinese renewable energy developers usually increase the volume of installations at the end of the year in order to meet their goals and close deadlines for projects for which subsidies have been allocated. According to the Chinese Electricity Council, in 2020, 22.3 gigawatts of capacity were installed in the country in December, which is almost half of the total volume for the year. But this year it may not work out that way: the government no longer allocates subsidies to most solar power plants.
The cost of solar modules in 2021 increased by about 28 percent due to a sharp increase in prices for polysilicon, from which they are made. At the same time, market participants expect that in 2022 prices for solar equipment will decrease, and the number of installed capacities in the world will grow from 150 gigawatts in 2021 to 220 gigawatts in 2022.
According to scientists, the fight against global warming largely depends on increasing the capacity of renewable energy, in particular, installing more solar panels and wind turbines. The world needs to generate two thousand gigawatts more wind energy to avoid a climate catastrophe.