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China Eases Rules That Could Slow World-Beating Solar Boom .
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#China's #SolarBoom Expands with New #PolicyShift Key Takeaways:
- China raises curtailment cap for renewables, encouraging more installations.
- Grid congestion concerns addressed, potentially boosting solar hardware market.
- New standards for polysilicon and lithium battery manufacturing set.
Further Insights
Curtailment Cap: China has increased the allowable curtailment rate for new solar and wind projects from 5% to 10% in optimal regions, aiming to accommodate more renewable installations despite grid constraints.
Renewable Surge: Following record-breaking increases in solar and wind capacity in 2023, the adjustment in policy is designed to sustain the growth momentum in the renewable sector, even amid higher curtailment rates.
Profit Pressure: The adjustment may pressure renewable power plant profits due to potentially higher generation curtailment, despite facilitating larger deployments of solar and wind power.
Regulatory Action: The State Council's energy saving and carbon reduction plan for 2024 and 2025 emphasizes more efficient deployment of resources, including setting higher manufacturing standards for critical materials like polysilicon and lithium batteries.
Closing Thoughts: As China pushes forward with its ambition to lead in global renewable energy, how might the balance between aggressive installation targets and grid capacity constraints shape the future of the solar boom?