The Middle East conflict continues. Can China's photovoltaic and energy storage industries benefit? | Overseas Expansion · Energy

**　　【Caixin Global】** Geopolitical conflicts in the Middle East combined with fluctuations in energy prices have sparked discussions in the market about the outlook for renewable energy demand.

“From the perspective of long-term energy transition, geopolitical conflict does strengthen the importance of renewables, but in the short term it’s difficult to improve China’s situation of excess photovoltaic production capacity.” A photovoltaic industry insider told Caixin recently.

The expansion of photovoltaic demand itself faces multiple constraints. Tan Youru, a photovoltaic industry analyst at BloombergNEF, pointed out that even if the market is currently worried about future energy shortages, it is still difficult to bring forward photovoltaic demand significantly in the near term. “Photovoltaic installations not only depend on demand expectations, but are also constrained by grid-connection conditions, land resources, power-absorbing capacity, and factors such as construction and the supply chain.” He believes that even in more ideal circumstances, if the scale of global newly added installations further rises on top of the current high level, it would still be difficult to fundamentally change the existing pattern of excess capacity in the photovoltaic industry.