China's energy transition struggles with solar oversupply, low prices

China's shift to green energy is facing major challenges. The country has invested over $800 billion in renewable energy, which is a significant portion of its economy. However, there is a surplus of solar power, falling electricity prices, and ongoing reliance on fossil fuels. Experts attending a conference in Beijing highlighted these issues as threats to China's climate goals. Yong Zhao, from a major electricity supplier, expressed concerns about whether the current energy infrastructure can handle the rapid increase in solar and wind energy. The clean energy sector is struggling, with slowdowns in solar equipment production. Analyst Youru Tan predicted a prolonged dip in prices instead of a quick recovery, as many small factories remain in operation. Despite these problems, China is expected to continue adding renewable energy at a rapid pace, aiming for around 300 gigawatts each year for the next decade. By 2060, China hopes to achieve over 9,000 gigawatts of renewable energy. However, achieving this will require large investments in energy storage and transmission systems. Meanwhile, coal and gas are still seen as the best options for stabilizing the grid. Regional electricity prices have fallen so low that they have gone negative in some areas, complicating new investments in solar projects. For example, in Shandong province, the top producer of solar energy in China, restrictions on projects have increased due to grid limitations. Overall, while China is committed to expanding its green energy capacity, it faces significant hurdles in balancing cost, infrastructure, and reliability.