China Solar Energy Market Slated to Grow at a CAGR of 12% until 2028
Published | 15 February 2022
China solar energy market is growing at a rapid rate owing to increasing investments from both government and private companies, coupled with favorable government policy environment. Additionally, rising energy demand and growing sales of electric vehicles are driving the China solar energy market…
A study, recently conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that China solar energy market is flourishing and is projected to grow at a CAGR of 12% during the forecast period 2022-2028. In terms of the total capacity added to the solar energy sector, China leads the way. As of 2020, China had the largest installed solar energy capacity in the world, estimated at 253 GW.
The market for solar energy in China is growing at a fast pace due to increasing investment from both government and private companies, government initiatives to support renewable energy, rising energy demand in the country, and a growing market for electric vehicles. Additionally, China has set the target of carbon neutrality by 2060, therefore, it is looking to reduce its dependency on fossil fuels and invest in renewable energy sources, such as solar energy, further promoting the growth of China solar energy market.
Growing energy demand of the country are supporting the growth of China solar energy market
China is the world’s most populated country and is the largest producer and consumer of energy in the world. According to the U.S. Energy Information Administration, China consumed 152 quadrillion Btu (British thermal units) of primary energy in 2019 and 6,875 billion kilowatt-hours of electricity. The demand for energy in the country has gone up by 208.69% since 1990, according to the data from the International Energy Agency (IEA). The largest energy company in the world, BP p.l.c., projects that China will account for almost 20% of total global primary energy consumption by 2050. BP plc. has also projected that primary energy consumption will peak in China around the first half of 2030. Moreover, the IEA has projected that between 2019 - 2024, China alone will account for around 40% of total global renewable expansions. The growing need for energy in China is promoting heavy investment in solar energy. According to the IEA, China will account for half of global distributed PV growth, overtaking the EU to become the world leader in installed capacity and enabling China to become the number one market for solar energy.
Photovoltaic systems segment holds the largest share in China solar energy market
Based on technology, China solar energy market is segmented into solar photovoltaic systems and concentrated solar power systems. The solar photovoltaic (PV) systems held the largest share of the solar energy market in China in 2021 due to the lower price of PV systems compared to surging gas prices. According to a combined study from Tsinghua University and Harvard School of Engineering and Applied Science, subsidy-free solar power has become cheaper than coal power in most parts of China and this cost-competitive advantage is creating a growing demand for PV-systems in the country, further supporting the dominant share of the segment in China solar energy market.
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Impact of COVID-19 on the China Solar Energy Market
The ongoing COVID-19-pandemic has had a positive impact on the growth of China solar energy market. Businesses, such as renewables, are also susceptible to COVID-19 hazards. China's lockdown measures did not affect investments in renewable energy, which rose by nearly 60% from 2019 levels in 2020. According to China's National Energy Administration (NEA), the country added 48.2 GW of solar energy in 2020, significantly surpassing the 30.1 GW added in 2019 and 44.3 GW in 2018. Moreover, in 2021, the country added a total of 25.9 GW of solar energy from January to the end of November. Moreover, in December 2021 alone, the country added a remarkable figure of 23.3 GW of solar energy. Due to the increasing energy demand and sales of electric vehicles in the country, it is expected that the investment in renewable energy will grow further over the coming years.
China Solar Energy Market- Competitive Landscape
Some of the dominant players operating in China solar energy market are Zhejiang Chint Electrics Co. Ltd., State Power Investment Corporation, and China Datang Corporation. Other major players in China solar energy market are JA Solar Holdings Co., Ltd., Hanwha SolarOne, Ltd., Trina Solar Ltd., Yingli Green Energy Holding Co Ltd., China Three Gorges Corporation, GCL-Poly Energy Holdings Limited, ShunFeng International Clean Energy Limited, and other prominent players.
The increasing government initiatives to install solar energy plants across the region and achieve net-zero emission by 2060 have boosted the market's competition. Additionally, the Chinese government is also collaboratively commissioning and installing new projects with foreign companies, which has increased competition in the market.
Recent Developments
In January 2022, Asia Clean Capital Investment Holdings Ltd. (ACC) announced that it has signed a deal with China’s Xianju Lanwan Medical Industry Town Development Co. Ltd. to install 20 MW of solar power generating capacity. As part of the agreement, ACC will install photovoltaic (PV) arrays on the roofs and idle lands of both foreign and local enterprises in the Xianju Economic Development Area. ACC further announced that first 10MW of this project will be launched after the Chinese New Year on February 1, 2022.
In January 2022, Huaneng Power International (HPI) announced that it has completed the world's largest floating PV project – a 320 MW facility in Dezhou, in China's Shandong province. The floating array has been deployed on a reservoir near Huaneng Power's 2.65 GW Dezhou thermal power station. The power plant was built in two phases with capacities of 200 MW and 120 MW, respectively.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of China solar energy market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in China solar energy market, along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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