巴黎人娱乐城

China’s solar power capacity additions may ease in 2025 after a robust 2024, as some generators (gencos) have met their 2025 targets together with the pressure on utilisation and tariffs from grid bottlenecks that have dented returns. Installations of distributed solar projects may also drop on tighter regulations, although offset partly by the potential to ramp up more windfarms - as implied by the recent pick-up in wind equipment auctions. China added 200GW of wind and solar capacity in 9M24, pushing up their fuel mix share to 39.6%, 2.3% higher than coal. China has indicated it will add another 130GW in 4Q24, on a par with 4Q23, bringing up full-year additions by roughly 13%. This led to a 7.2% yoy growth in generation capex in 9M24 despite cuts in equipment prices. Massive new renewable installations are challenging grid connections, and have driven up volume and price risks. Wind and solar utilisation hours fell by 5.9% and 5.7%, respectively, in 9M24. Tariffs were also affected by more supply, a higher share of market trading, and intra-day pricing. Many gencos have turned increasingly cautious on new installations, with some optimising their portfolios to sell less favourable ones and build new ones at lower unit costs. Headwinds on renewables may be eased by rising investments in power grids, by 21.1% yoy in 9M24. China is constructing more inter-provincial transmission lines to raise the utilisation of utility-scale projects in the west, and upgrading distribution networks to connect with more distributed projects. More storage facilities are also being built to address renewables’ intermittency, and reduce intra-day price volatilities from solar outputs. Nevertheless, progress in 2025 may be limited as ramping up grid facilities generally takes longer.