China's Dominance in Global Energy Transition: A Double-Edged Sword
The Economic Survey 2024-25 highlights China's pivotal role in the global energy transition due to its vast manufacturing capacity for renewable energy equipment. While this dominance helps lower costs, it also risks supply chain disruptions. China leads in solar, wind, and battery production, essential for the green energy shift.
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- Country:
- India
China's significant role in the global energy transition has been underscored in the Economic Survey 2024-25, presented to the Parliament on Friday. The survey points to China's unparalleled capacity in manufacturing renewable energy equipment as crucial to the world's move toward green energy.
China's dominance in solar photovoltaic (PV) manufacturing has shifted the landscape from previous leaders in Europe, Japan, and the United States over the past decade, according to the document. This shift has allowed for reduced costs of solar PV equipment worldwide, although it also presents risks related to the concentration of the global supply chain.
Furthermore, the document highlights that China's investment in renewable sectors outpaces that of the US and EU significantly. These investments are pivotal for the projected substantial increase in renewable energy's share in installed capacity by 2030 compared to 2020. The survey warns that trade conflicts among major economies could endanger this transition, with serious economic implications.
(With inputs from agencies.)