A spike in electricity prices calls for a faster transition to renewable energy sources. In an effort to diversify their energy generation, businesses (and with them, households) have pushed up the demand for solar energy.
The global market has naturally responded by increasing the supply of PV panels. China’s exports to Europe from January to July totaled $14.2 billion (about 54 GW; +252% y/y). This is enough to supply more than 16 million German households with electricity, for example.
The export dynamics could have been even higher if it were not for logistical problems and a shortage of manpower to install the modules in time. And while the continent struggles with the energy crisis, tens of thousands of solar panels lie unused in warehouses across Europe, in ports of discharge, and at Chinese suppliers themselves.
Nevertheless, this is not a bad way for Europe to achieve its climate goals. As logistical problems are resolved, the process will accelerate. And China, as always, successfully takes advantage of space and time.