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

**　　【Caixin Global】** Middle East conflict layered with energy price fluctuations has sparked discussions in the market about the outlook for renewable energy demand.

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

The expansion of photovoltaic demand itself faces multiple constraints. Tan Youru, a photovoltaic industry analyst at BloombergNEF, pointed out that even if the market is currently worried about future energy shortages, it is still difficult to substantially release photovoltaic demand in the short term. “Photovoltaic installations depend not only on demand expectations, but also on grid-connection conditions, land resources, power-absorption capacity, as well as factors such as construction and the supply chain.” He believes that even under relatively ideal circumstances—if global newly added installation scale further increases on top of its already high level—it is still hard to fundamentally reverse the current oversupply situation in the photovoltaic industry.