Energy Insider: Beijing to Limit ‘Low-End’ Solar Manufacturing; Beijing Says EU’s EV Probe Breaks Rules

This week’s Caixin energy wrap delves into significant climate, energy, and industrial developments in China, covering policy shifts, industry trends, and innovative projects focused on the country’s renewable energy transformation and global energy dynamics. [para. 1]

**Beijing to Slow Solar Market Expansion:** The National Energy Administration (NEA) of China aims to control the rapid expansion of "low-end" solar manufacturing capacity. According to Li Chuangjun, the director of the department of new energy and renewable energy sources at the NEA, the administration will guide the construction of projects in the solar industry's upstream segments to avoid repetitive developments. This move is essential because the solar sector in China faces issues of overcapacity due to excessive investments and local government projects which have surpassed domestic demand, resulting in price drops and reduced profits for manufacturers. [para. 4][para. 5][para. 6]

**Commerce Minister Criticizes EU EV Probe:** China’s Commerce Minister Wang Wentao criticized the European Union's probe into Chinese electric vehicles (EVs), claiming it violates World Trade Organization (WTO) rules. This measure, referred to as a "typical protectionist measure," is seen as a reaction to the EU's decision to impose provisional tariffs that could raise the total levies to as much as 48% on Chinese battery-electric vehicles, potentially affecting Europe’s green transition objectives. Both the EU and China have agreed to engage in consultations about the matter. [para. 8][para. 9][para. 10]

**China as a Leading "Electro-State":** The Rocky Mountain Institute, a U.S.-based nonprofit, highlights China's rapid adoption of electrification, making it the world’s first major "electro-state." Over the past decade, China’s electrification efforts—which include transitioning from fossil fuels to electrically powered technologies—have progressed nine times faster than the global average. The country is leading in acquiring clean-tech patents, expanding battery-making capacity, and implementing wind and solar power plants, underpinning its strategic aim to increase the electrification level to "around 30%" in its end-use energy consumption by 2025 to support decarbonization and reduce carbon emissions. [para. 12][para. 13][para. 14]

**Green Hydrogen Production at Sea:** Chinese scientists, led by Xie Heping of the Chinese Academy of Sciences, have tested a technology that produces hydrogen from seawater using wind power. The experiment, conducted on a floating platform in Fujian province’s Xinhua Bay, demonstrated successful high-purity hydrogen production through direct electrolysis for over 240 hours, without desalinating the seawater. This breakthrough is pivotal for the industrialization of green hydrogen, particularly for heavy industries and vehicles where emission reductions are challenging. [para. 16][para. 17][para. 18]

**CATL’s Energy-Storage Expansion in Europe:** Contemporary Amperex Technology Co. Ltd. (CATL) has partnered with Rolls Royce to introduce a new energy-storage system called TENER in the U.K. and the European Union. This system, which can store up to 6.25 megawatt-hours of electricity in a 20-foot container, is aimed at the large-scale energy storage market. CATL's move aligns with a strategic interest in the European market, which is attractive to Chinese manufacturers due to its high potential, lack of a significant domestic supply chain, and favorable trade policies. [para. 20][para. 21][para. 22]