Europe is accumulating gas and Chinese photovoltaic modules
The energy crisis triggered by the conflict in Ukraine has evoked a robust response from European nations. Gas reserves are being stockpiled at an unprecedented rate. Concurrently, there’s a noticeable buildup of imported photovoltaic modules from China in warehouses across Europe.
Record gas reserves
Standard Chartered (StanChart) has reported that European gas reserves are continuing to increase, despite the ongoing heatwave and heightened electricity demand. Data from Gas Infrastructure indicates that as of July 16, gas stocks within the European Union totaled 94.52 billion cubic meters (bcm), marking an increase of 21.73 bcm compared to the previous year and a surplus of 18.46 billion cubic meters above the five-year average.
During the second half of August, the average daily inventory value stands at 330 million cubic meters. This represents an almost 100% rise compared to the five-year average for the same period. If the current rate of gas accumulation persists, it is projected that just prior to the heating season, the gas reserves will reach 120 billion cubic meters—surpassing the record level by over 10 billion cubic meters.
Chinese photovoltaic modules are piling up in warehouses
European countries are employing a similar strategy when it comes to the import of photovoltaic modules. Based on an analysis by Rystad Energy, warehouses across Europe are now holding Chinese solar modules valued at approximately €7 billion, translating to a capacity of 40 GWdc. Forecasts indicate that these inventories could further expand to 100 GWdc by the conclusion of 2023.
China has taken the lead as the global frontrunner in clean energy investments, contributing nearly half of the $1.1 trillion invested in this sector during the previous year. Furthermore, they have allocated more than $50 billion to PV module production lines, a figure ten times greater than Europe’s investments in the same domain. Impressively, China also controls approximately 95% of the world’s polysilicon resources.
The International Energy Agency warns
In a communication released last year, the International Energy Agency highlighted a crucial point: by the year 2025, the global reliance on China for vital components necessary for the production of photovoltaic (PV) modules will become nearly absolute.
Experts are underlining the similarity between this scenario and Europe’s historical reliance on Russian gas over the long term.
China vs. USA
China has outlined its intention to prohibit the export of several critical technologies essential for the manufacturing of photovoltaic (PV) modules. Specifically, the technologies used in tile production are slated to be added to the export control list.
This move has raised concerns, with The Wall Street Journal cautioning that such restrictions on key technology exports could disrupt the United States’ objectives and aspirations. According to TrendForce, a research company based in Taipei, Chinese firms exclusively possess the capability to manufacture 182 and 210 mm tiles. These tiles enable the production of more cost-effective and efficient solar modules.
Source: oilprice.com