The World Is Vulnerable To Chinese Solar Dominance

China currently controls more than 80% of the world’s PV production capacity

The global solar panel supply chain is too concentrated in China, the International Energy Agency ( IEA) has warned in a new report. The report, titled Solar PV Global Supply Chains, notes that China has been instrumental in bringing down solar PV production costs.

However, it has also built its solar supply chain much faster than other countries, and this “level of geographical concentration in global supply chains also creates potential challenges that governments need to address.” Addressing the issue may be difficult, however. As the IEA itself writes, China has invested some $50 billion in new solar PV capacity over the last ten years, which is ten times what Europe has invested in the same capacity.

As a result, to date, more than 80 percent of the world’s PV production capacity across the supply chain is in China, the agency noted. This has been made possible by strong government support for solar power, the report notes. This support has been essential for reducing solar PV costs over the last decade by more than 80 percent. This has also turned China into a huge exporter of solar modules.

The US economy shrank 1.6% in the first quarter

First quarter of 2022 marked the start of Russia’s invasion of Ukraine

The US economy shrank at a slightly faster rate than previously estimated during the first quarter, the Bureau of Economic Analysis said Wednesday.With one quarter of negative economic growth in the books, the data adds to fears that a recession may be looming. Real gross domestic product declined at an annualized rate of 1.6% from January to March, according to the BEA’s third and final revisions for the quarter.

Previously, the advance estimate released in April showed a contraction of 1.4%. Last month, that was revised to a decrease of 1.5%.

The first quarter GDP performance, which the BEA noted includes some unquantified effects from the pandemic and the Omicron variant surge, stood in contrast to the fourth quarter of 2021, when the economy grew at a rate of 6.9% from the prior quarter.

The first quarter of 2022, however, marked the start of Russia’s invasion of Ukraine, which sent economic shockwaves throughout the global supply chain, as well as the food, finance and energy markets.Domestically, US inflation has soared to levels not seen in decades amid ongoing supply chain challenges, rising costs for commodities and labor and spiking oil prices.