Hormuz woes, climate change boost China’s green energy sales

The ongoing Canton Fair showcased China's push into the global green energy market, with exhibitors capitalizing on concerns over oil shipments through the Strait of Hormuz and climate change trends. Chinese manufacturers believed this could boost overseas demand for reliable power generation solutions.

At the fair, Zhejiang Era Solar Technology, led by Xu Leiping, introduced a lightweight solar panel designed for balcony use. This panel weighs only 2kg compared to the traditional 14kg, potentially reducing installation and hardware costs by 15-20%. One client from Ghana placed a $200 trial order for 200 units upon seeing the design proposal alone.

Guangzhou-based Felicity Solar, managed by Lin Yanbang, showcased an industrial battery cabinet and inverter system for energy generation and storage. One such customer, a South African hotel operator, reported an 80% reduction in power bills after installation.

The demand surge was not limited to the Middle East, but also extended to Africa and Latin America, according to Lin. The planned removal of China's 6% export tax rebate on batteries by early next year has encouraged manufacturers to accelerate shipments before then.

In the second quarter of 2023, there were 21 overseas energy storage engineering and deployment projects from Chinese companies, a 75% year-on-year increase, according to Jiangsu Photovoltaic Industry Association data. Over 93% of contracts for ready-to-install storage systems were signed with Chinese suppliers in the third quarter of 2023, with the majority coming from Europe and the Middle East.

Li Jianjun, the general manager of Shandong Allgrand New Energy Technology, reported a more than 40% year-on-year sales increase in customised high-voltage storage products designed for Africa and Southeast Asia. Allgrand had also completed the second phase of its factory with a 300 million yuan investment. Li emphasized that while Europe viewed energy storage more like a consumer product, African and Southeast Asian markets prioritized it due to weak power grids, high oil prices, and frequent extreme weather events.