China suspends publication of data highlighting solar energy limits

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(Bloomberg) — China has apparently stopped publishing data that shows how much energy generated by solar and wind farms is wasted, as the rapid expansion of renewable energy encounters constraints on grid capacity.

The National Energy Administration typically publishes a monthly capacity report that includes a section detailing average utilization for each power-producing source. For much of this year, data showed reduced use of solar panels as overloaded grids forced them to shut down during peak hours.

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But the latest release, published Friday and covering the period through May, included only average use of all sources. The NEA did not respond to faxed questions about missing data.

China has a history of quietly withholding data that could indicate economic troubles, including last year’s halt in releasing youth unemployment data after soaring numbers made headlines around the world.

When it comes to clean energy, Beijing usually has nothing to hide. China is a world leader in renewable energy deployment and has built supply chains for solar panels, batteries and electric vehicles that have driven down the prices of key transition technologies around the world.

But as that success has embroiled those industries in international trade disputes, Chinese leaders have stepped in to protect what they see as key engines of economic growth. That includes creating strong demand for panels and turbines — even after record installations last year left power grids in some areas struggling with excess generation during peak daytime hours that then disappears at night.

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NEA’s usage figures this year have highlighted these problems. The average panel generated electricity for about 373 hours in the first four months of the year, a tenth less than in the same period in 2023, meaning that congested grids are forcing some panels to go offline during peak daytime hours, a process known as curtailment.

A sharp increase in restrictions during the earlier, more modest solar boom in the mid-2010s led to restrictions on new construction, causing installations to collapse after 2017. The government is trying to allay fears of a repeat, pledging continued support for both rooftop and solar projects. large scale and promising to build more power lines and energy storage plants.

Beijing has already changed its rules to allow renewable power plants to cut production by as much as 10% from the previous 5% cap, meaning more wind and solar power will still be able to be used even in places where the grid would normally be deemed congested.

On the wire

China has tightened governance of its rare earths industry by approving the first comprehensive regulation regulating the mining, smelting and trading of these minerals.

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Manufacturing activity in China fell for a second straight month in June, pointing to weakness in a sector that Beijing sees as a driving force for the economy.

The recession in China’s housing market slowed further in June as government actions aimed at curbing demand for properties in some of the country’s largest cities occurred.

This week’s diary

(All times are in Beijing unless otherwise noted.)

Monday, July 1

• Caixin factory PMI index in China for June, 09:45

Tuesday, July 2:

Wednesday, July 3:

• Caixin China services & composite PMI for June, 09:45
• CNIA Shanghai Forum on Expanding Aluminum Applications, 1:30 p.m.
• CCTD’s Weekly Online Briefing on China Coal, 3:00 p.m.

Thursday, July 4:

Friday, July 5:

• Weekly iron ore stocks in China’s ports
• Weekly commodity stocks at the Shanghai Stock Exchange, ~3:30 p.m

Saturday, July 6:

Sunday, July 7:

• China’s foreign exchange reserves as of June, including gold

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