Europe is stockpiling gas and Chinese photovoltaic modules
The energy crisis triggered by the war in Ukraine has prompted a strong response from European countries. Gas reserves are being built up at a record pace. Additionally, European warehouses are increasingly stocked with photovoltaic modules imported from China.
Record gas supplies
StanChart reported that European gas stocks continue to grow despite the current heat wave and increased electricity demand. According to Gas Infrastructure data, gas reserves in the EU amounted to 94.52 billion cubic meters on July 16, which is 21.73 billion cubic meters more than last year and 18.46 billion cubic meters above the five-year average.
The average daily value of accumulated reserves in the second half of August is 330 million cubic meters, almost 100% higher than the five-year average for the same period. If the current rate of gas accumulation continues, we will have 120 billion cubic meters of gas stored just before the heating season, over 10 billion cubic meters above record levels.
Chinese photovoltaic modules are lying in warehouses
European countries have adopted a similar strategy for importing photovoltaic modules. An analysis by Rystad Energy shows that Chinese photovoltaic modules worth approximately EUR 7 billion, or 40 GWdc of power, are stored in European warehouses. It is predicted that these stocks will increase to 100 GWdc by the end of 2023.
China is currently the world leader in clean energy investment, accounting for nearly half of the $1.1 trillion invested in the sector last year. Additionally, China has invested over $50 billion in PV module production lines—ten times more than Europe—and controls approximately 95% of the world’s polysilicon resources.
The International Energy Agency warns
Last year, the International Energy Agency issued a statement indicating that by 2025, the world’s reliance on China for supplying crucial components for producing PV modules will be nearly absolute. Specialists highlight the similarity of this situation to Europe’s longstanding dependence on Russian gas.
China vs. USA
China intends to prohibit the export of various critical technologies utilized in manufacturing PV modules, including those used in wafer production, which will be added to the export control list.
The Wall Street Journal cautions that restricting the export of these essential technologies will disrupt US plans and aspirations. According to the Taipei-based research firm TrendForce, only Chinese companies have the capability to produce 182 and 210 mm wafers, which enable the production of more affordable and efficient solar modules.
Source: oilprice.com