Energy Security Drives Demand for Chinese Clean-Energy Exports

According to Lianhe Zaobao citing Bloomberg, energy security is emerging as a new driver of the global shift to clean energy as the Russia-Ukraine war and fighting in Iran have disrupted oil and gas markets and highlighted the risks of relying on imported fuels. BloombergNEF data showed China's household lithium-ion battery exports rose 45% year on year in March-May, with shipments to Australia and India up 103% and 77%, respectively. Chinese solar cell exports also rose 80% and 60% year on year in March and April, though some of the increase was attributed to front-loading before China canceled export tax rebates on solar products in April; exports then fell 11% in May. The Philippines imported more than twice as many solar panels from China in the first five months of the year and has overtaken Pakistan to become China's second-largest buyer after the Netherlands. China's electric vehicle exports rose 57% in the first three months after the fighting began, with shipments to the Philippines, Thailand and Vietnam up 95%, 70% and 64%, respectively. China plans to raise the share of wind and solar in total installed capacity to more than half by 2030 from 47% now, and to expand pumped-storage capacity to 160 gigawatts from 66 gigawatts. Some governments have also cut fuel taxes or lifted coal output quotas, while China could benefit most because it produces about 92% of the world's solar cells, 83% of battery cells and 66% of electric vehicles.