China is faced with a paradoxical situation: too much solar energy. Storage and transmission capacity is not enough to handle all the energy produced by solar panels. There growing production of solar panels exceeded domestic demand, creating a surplus that led the government to reduce economic support for the sector. This it has slowed new installations and pushed Chinese manufacturers to seek international markets to export excess product.
In the United States, President Joe Biden doubled tariffs on Chinese solar panels from 25% to 50% in a bid to protect the domestic industry and counter dumping. In Germany, however, the surplus of solar energy has led to prices so low that they were even negative in some production peaks.
Not only China, but also other developed nations such as the United States and Germany are facing similar problems related to solar energy
Faced with this situation, the China Photovoltaic Industry Association he is suggesting mergers and acquisitions, as well as calling for limitations on internal competition, to stabilize the market and manage excess production capacity. This points to the need to improve energy storage and transmission infrastructure, especially in nations with high levels of renewable generation.
Industry experts, such as David Fishman of The Lantau Group, suggest that the solution may lie in the use of artificial intelligence and advanced economic models to optimize energy distribution and use.
The consolidation of the solar panel market could represent a new direction for the global economy, which sees solar as one of the main components of transition towards a more sustainable future. Howeverthe ascending one politicization of solar trade highlights the difficulty of balancing national economic needs with global environmental goals.
As solar energy production and related technology continue to develop and become more efficient, manage production capacity and maintain the balance between supply and demand remain crucial challenges. The ability to efficiently manage renewable energy will be crucial to the success of the global energy transition towards cleaner and more sustainable sources.
And you, what do you think needs to be done to better manage excess solar energy?
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