Amid Energy Crisis, Chinese Solar Exports Double

As the war in Iran squeezes the global supply of oil and gas, countries are looking to source more solar power. China, the world’s biggest producer of solar equipment, saw its exports double in March, reaching a new record high.

Since the war began in February, Iran has repeatedly halted ship traffic through the Strait of Hormuz, a key bottleneck through which roughly a fifth of the world’s oil flows. Fatih Birol, the head of the International Energy Agency, called the supply shock “the biggest energy security threat in history,” a view echoed by other experts. 

The response in many parts of the world has been to ramp up purchases of solar equipment, analysts say. In March, China exported 68 gigawatts of panels, cells, and wafers, an amount roughly equal to the solar capacity of Spain, according to data from Chinese customs officials. Also prompting the spike in sales was an effective rise in export taxes at the start of this month.

“Fossil shocks are boosting the solar surge,” said Euan Graham, an analyst at energy think tank Ember. “Countries are importing solar panels at record levels.”

Asia and Africa, which have been particularly hard hit by the energy shocks, drove the surge in exports. Exports to India, Laos, and Malaysia more than doubled from the previous month, while exports to Kenya, Ethiopia, and Nigeria more than tripled.

The recent upswing comes after record growth in solar generation last year. New solar power met most of the new power demand globally, according to data from Ember. And for the first time, renewables supplied more power than coal worldwide.

But even as countries increase imports of solar from China, they are also buying up more oil and gas from the U.S. Last week, exports of U.S. oil and gas reached close to 12.9 million barrels a day, a new record, The Wall Street Journal reported.

Cover photo:  Pexels