China’s energy endeavours offer a sliver of hope for the planet

In terms of solar panels, China this year may not equal last year’s record of 278GW installed (thus more than three times the UK’s national grid) but it may not be too far off that level, according to the China Photovoltaic Industry Association.

For the rest of the world, China’s extraordinary prowess in renewable energy represents a double-edged sword. Governments in the west mostly welcome China’s progress in generating clean energy (bar the current US administration, and Donald Trump recently described wind power as “tremendously expensive” and “very ugly”). But on the other hand, the competitiveness of China’s solar and wind-power industries poses tricky questions in terms of economic dependency and data security.

Wind power provides the most critical example of this dilemma. Currently, up to about 90% of wind projects in Europe use European-made wind turbines. But with Europe planning to install some 425GW of wind power by 2030, the question of cost is foremost in the minds not only of power company executives but also of government officials.

And the stark truth is this: Chinese-made wind turbines are much cheaper than their European and US peers, according to a report by Rabobank, a Dutch bank. Between 2019 and 2024, the median price of Chinese onshore turbines sold outside the country was almost 30% lower than their European and US counterparts. And, what’s more, the price of Chinese-made turbines is continuing to fall, while that of those made outside of China has been rising.

This price differential is generating headaches for policymakers in the UK and throughout Europe.

If cost alone was the key criterion, then opting for Chinese wind-turbine suppliers would make perfect sense. But security considerations point in the opposite direction.

Wind farms are highly strategic. They supply power directly into the national grid, meaning that if Chinese-owned wind farms were to proliferate, then dependency issues would start to arise.

In addition, wind turbines collect data that could be of national security significance in the hands of a strategic rival such as China, or its partner, Russia.

William Matthews, senior research fellow at Chatham House, a UK thinktank, says that the UK has been tardy in adapting to the speed and scale of China’s rise. But it must now act to shore up its security.

Matthews recommends that the UK government set up a dedicated body to assess the safety of Chinese digital components and software used in UK products and systems, including wind power. This would allow London to form informed decisions on which sort of data collecting technologies are safe and which are not.

Separately, Matthews says, the UK should aim to onshore as much production as possible to reduce supply chain dependence. It would be better for the UK to attract and screen Chinese investment in UK-based production involving technology transfer and employment of UK workers than it would to rely on a flood of Chinese-made imports, he adds.

Photograph by Kevin Frayer/Getty