China’s Wasting Too Much Renewable Power as Curtailments Rise

China is wasting an increasing share of solar and wind generation and is approaching grid curtailment limits that were relaxed two years ago to accelerate renewables. Rising curtailment lowers effective utilization and returns for renewable assets and could prompt policy or grid responses that materially affect Chinese wind/solar developers, project economics, and equipment suppliers.

Analysis

China is wasting an increasing share of solar and wind generation and is approaching grid curtailment limits that were relaxed two years ago to accelerate renewables. Rising curtailment lowers effective utilization and returns for renewable assets and could prompt policy or grid responses that materially affect Chinese wind/solar developers, project economics, and equipment suppliers.