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

**　　【Caixin.com】** The Middle East conflict layered on top of energy price volatility has sparked discussions in the market about the outlook for renewable energy demand.

“From a long-term perspective on the energy transition, geopolitical conflicts do indeed reinforce the importance of renewable energy, but in the short term it is difficult to improve China’s existing situation of excess photovoltaic production capacity.” A photovoltaic industry insider recently told Caixin.

The expansion of photovoltaic demand itself is constrained by multiple factors. Tan Youru, a photovoltaic industry analyst at BloombergNEF, pointed out that even if the market is currently concerned about future energy shortages, it is still difficult to significantly advance the release of photovoltaic demand in the short term. “Photovoltaic installations not only depend on demand expectations, but are also constrained by grid-connection conditions, land resources, power-absorption capacity, and factors such as construction and the supply chain.” He believes that even in a relatively ideal scenario, even if the scale of global newly added installations further increases on top of the current high levels, it is still hard to fundamentally reverse the existing pattern of excess capacity in the photovoltaic industry.