China recently announced the easing of restrictions on solar and wind installations in an effort to reduce reliance on fossil fuels and promote renewable energy. This move is seen as a positive development for the renewable energy sector in China, which has been grappling with oversupply issues.
The State Council released an action plan to improve energy conservation and reduce carbon dioxide emissions over the next two years. This plan includes allowing more renewable energy installations, albeit with a lower rate of utilization.
Investors reacted positively to this news, with solar company JinkoSolar Holding and Tongwei seeing an increase in their stock prices. China aims to focus on solar panels, electric vehicles, and lithium batteries as key pillars of economic growth.
With China’s commitment to clean energy and carbon reduction goals, the country is expected to see a shift towards more sustainable energy sources like wind, solar, biomass, and hydrogen energy in the coming years.