ISLAMABAD (PEN) : In a remarkable shift in the energy landscape, Pakistan has become Asia’s largest single market for Chinese solar modules, securing 10,450 MW in the first half of 2024. This achievement underscores Pakistan’s growing commitment to renewable energy and its strategic partnership with China.
China’s approach to dominating the solar market involved aggressive pricing strategies, allowing the country to export a record 120,427 MW of solar module capacity in the first half of 2024. This figure represents a 6.3% increase year-on-year, surpassing the previous record set in the first half of 2023 by approximately 7,150 MW. Since the beginning of 2020, China has exported nearly 720,000 MW of solar module capacity, according to data from think tank Ember.
Key to this export boom was a significant reduction in module prices, which averaged 13.7 cents per megawatt in the first half of 2024, compared to 18 cents/MW in 2023. These prices have nearly halved from their 2022 average, making Chinese modules the most affordable option globally for solar generation capacity.
Europe emerged as the primary destination for Chinese solar modules, accounting for 43% of the total exports, or 52,158 MW. However, this figure was 20% lower than the same period in 2023 due to high interest rates, economic growth concerns, and trade tensions with China, which dampened solar installation demand across the continent. Despite the decline, Europe’s purchase total was the second-highest ever for a half-year period, following the first half of 2023.
The Netherlands led the European market, importing 23,421 MW of capacity in the first half of the year, although this was 25% less than in the same period in 2023. Despite the drop, Dutch imports were more than double those of any other nation during this period. Spain, Germany, and Italy also made significant purchases, but each showed considerable year-on-year reductions in volumes, as reported by Ember.
Brazil ranked as China’s second-largest market, acquiring 10,511 MW of capacity in the first half of the year. This was a 10% increase from the same period in 2023, contrasting with a slight decline in imports by Latin America as a whole during the first half of the year.
Pakistan’s rise as a major market for Chinese solar modules highlights a significant shift towards renewable energy in the region, driven by competitive pricing and strategic partnerships. This development not only enhances Pakistan’s energy security but also contributes to global efforts in combating climate change.
