China Races to Finish Molten-Salt Solar Plant as Stocks Whipsaw
China has driven the world’s solar energy deployment, adding capacity at such a blistering rate that the nation’s existing and planned wind and solar generation nearly doubles the rest of the world put together. However, China’s deployment of supportive infrastructure for all that new solar has not kept pace, leading to curtailment during peak hours and increased quantities of wasted clean…
China is pushing to complete its latest molten-salt solar plant in southwest China's Xizang Autonomous Region, addressing the issue of insufficient infrastructure for new solar power generation. The 100-megawatt, 8.6 million square-foot facility reached a key milestone by installing 15,927 heliostats to track the sun and beam its rays to a central tower, heating molten salt for energy storage.
This thermal energy can be converted into electricity, providing a solution to energy wastage during peak production times when solar power is abundant. Located in harsh, high-elevation Amdo County, the region receives over 2,800 hours of sunshine annually, making it an ideal location for this solar megaproject. China aims to address challenges similar to those faced by the United States' Crescent Dunes solar plant, which faced issues with maintenance and obsolescence due to cheaper solar panel technology.
However, China's new project is being built faster and is expected to connect to the grid by October 2026. Furthermore, China is piloting several next-generation solar-plus-storage models, including a 1 GW plant in the Gobi Desert that combines solar panels with a molten salt thermal battery capable of storing energy up to eight hours overnight.
Despite China's solar bonanza continuing, experts expect production to slow down due to transmission and storage investment issues, with domestic solar stocks experiencing extreme volatility due to domestic policy changes and foreign tariffs.
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