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

**　　【Caixin Media】** Middle East conflicts layered with energy price fluctuations have sparked discussions in the market about the outlook for demand for renewable energy.

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

The expansion of photovoltaic demand itself faces multiple constraints. Tan Youru, a photovoltaic industry analyst at BloombergNEF, noted that even though the market currently has concerns about future energy shortages, it is still difficult to release photovoltaic demand significantly in the near term. “The deployment of photovoltaic installations depends not only on demand expectations, but also on factors such as grid-connection conditions, land resources, power-absorption capacity, and construction and the supply chain.” He believes that even under relatively ideal circumstances, if the scale of global incremental installed capacity were to rise further from its current high levels, it would still be difficult to fundamentally reverse the existing oversupply situation in the photovoltaic industry.