China, solar energy and the logic of oversizing

Enrique Dans
Enrique Dans
Published in
3 min readJul 21, 2024

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IMAGE: The Gansu Dunhuang Solar Park is a 50-megawatt (MW) photovoltaic power station located in the Gansu Province, in China
IMAGE: 李大毛 没有猫 — Unsplash

There are few better illustrations of China’s ambitious renewable energy strategy than the 50MW Gansu Dunhuang solar farm in China’s Gansu province, which began construction in 2009, and continues to expand progressively in the vast Gobi desert.

A recent Global Energy Monitor report reveals that China is constructing an astounding two-thirds of all global solar and wind generation capacity. The nation is not only leading in installation but also in manufacturing, causing consternation among European companies such as Siemens Gamesa. These firms are demanding protection as Chinese companies, with their highly competitive costs obtained via governmental subsidies, secure contracts for some of Europe’s most significant offshore wind farms.

Currently, China has commercial-scale solar installations under construction with a projected capacity of 180GW, complemented by 15GW of wind power. This brings the total wind and solar capacity under construction to an impressive 339GW, far outpacing the United States’ 40GW. Notably, the report only includes solar farms with a capacity of 20MW or more that feed directly into the grid. Consequently, China’s total solar power volume could be substantially higher, given that small-scale solar farms account for approximately 40% of its solar generation capacity.

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Enrique Dans
Enrique Dans

Professor of Innovation at IE Business School and blogger (in English here and in Spanish at enriquedans.com)