China, the world’s biggest clean-energy investor, lowered its solar and wind power targets for 2020, a reflection of how record installations of panels and turbines have simply overwhelmed the ability of the nation’s existing electrical grid to absorb the new electricity.
This is more bad news for the burgeoning renewable energy infrastructure market and it’s not like the metals that go into panels (steel, silicon and copper wire) were setting the world on fire before this news. Our Renewables MMI has been flat as a board, stuck at 52, for the last three months and only held at one point higher for the previous two months. Along with Rare Earths, Renewables have been habitually flat for much of the year.
The problem, for China, is two-fold. It must upgrade its grid to accept available solar and wind power directly into local grids and also set up energy storage that can save generated power when for when the sun doesn’t shine or the wind doesn’t blow.
China is now aiming for 110 gigawatts of solar power by 2020, a 27% reduction from an earlier target, according to a webcast posted on the website of the National Energy Administration that cited the agency’s chief engineer, Han Shui. The nation reduced its goal for wind power by 16% to 210 gw.
While China has poured billions of dollars into clean energy in recent years, the ability to deliver the newly-generated electricity from where it’s produced to where it’s needed has lagged, a common problem with wind and solar. The mismatch has left solar and wind capacity sitting idle in some parts of the country, hurting companies such as China Longyuan Power Group Corp. and China Datang Corp. Renewable Power Co.
The government earlier expected to have 150 gw of solar power and 250 gw of wind by 2020. Those goals have already been cut back once and now they’ve been cut back again.
Actual Renewables Prices
Korean steel plate fell to $419.46 per metric ton from $435.19/mt in October, a fall of 3.6%. Chinese silicon fell to $1,785.47 per mt from $1,822.59/mt in October, a fall of 2%.