Nestled amidst durian and pine trees, the vast solar energy farm gleaming under a clear blue sky in Kulim reflects Malaysia’s promise as a green energy hub.Walking through rows of photovoltaic panels, however, one can see a logo stamped on the more than 130 inverters: the flower-like mark of Chinese technology company Huawei.Inverters are critical in converting direct current power generated by solar panels into alternating current electricity that can be used by households and factories. And like nearly all major components in the solar energy supply chain, their production is dominated by Chinese manufacturers.Demand for renewable energy is growing in Southeast Asia, spurred by a boom in tech manufacturing and new data centers. A local manager at Solarvest, the nation’s largest renewable energy provider which built the solar energy farm in Kulim, says her company is keen to seize this opportunity—and that means buying more from China.“We aim to invest more in the next couple of years,” the manager told Nikkei Asia. “Buying equipment and components from Chinese suppliers, who have mastered the supply chain and solar tech, gives us the best opportunity to generate green energy with a price that is low enough to compete against fossil fuels.”That cost competitiveness has made China a lynchpin of many countries’ green energy roadmaps, both in Southeast Asia and beyond. Beijing has even leveraged its technological expertise in solar energy infrastructure as part of its Belt and Road Initiative to expand its influence over critical power infrastructure in nations such as Malaysia, Laos, Thailand, Pakistan, and Saudi Arabia.This dominance has not gone down well with the US, which has accused China of unfairly subsidizing its manufacturers and flooding global markets with underpriced goods.Washington has slapped tariffs and other trade barriers on Chinese solar products, but whether that will continue under the incoming Trump administration is an open question—the president-elect is no fan of renewable energy but a big fan of slapping tariffs on China. But for now, at least, China has economies of scale and climate urgency on its side.Solar energy is widely seen as the most accessible and rapidly deployable source of renewable energy, attracting USD 500 billion in investment in 2024, surpassing all other types of energy generation sources, according to the International Energy Agency.Offshore wind projects can take eight years or longer to plan and build, while solar energy plants can be deployed in less than two years. This makes solar an attractive option for companies hoping to rapidly shift to renewable energy, industry executives told Nikkei Asia.Pressure to go adopt renewables is growing, particularly for emerging Asian economies hoping to attract investment from foreign tech giants. Companies like Apple, Google, and Microsoft have all joined the RE100 initiative, which commits to using 100% renewable energy. But many countries,
Mer. Dic 25th, 2024
