🇨🇳🌞 China Turns Clean Energy Manufacturing Into Energy Security

China is building the equipment that can reduce its exposure to imported oil and gas while supplying other countries seeking the same protection. Disruption in the Strait of Hormuz is strengthening that push, according to DNV’s Energy Transition Outlook.

Over the past five years, non-fossil energy’s share of the primary energy mix rose by 2.2 percentage points across China, India and Europe, compared with 0.7 points across the Middle East, North America and Russia. The threefold gap measures the change in energy share across these groups, rather than China’s individual growth in installed capacity.

For importers, replacing fuel purchases with domestic electricity generation reduces exposure to tanker disruptions and price shocks. Solar panels and wind turbines produce power without recurring deliveries of oil or gas; electrifying vehicles and industrial processes extends that protection to more of the economy.

China can support this shift with its own factories. DNV says it produces more than 80% of the world’s solar modules and 95% of solar wafers, the thin slices of material used to make solar cells. Manufacturing at this scale gives Beijing the means to expand domestic generation while selling equipment to countries trying to cut their fuel bills.

Electricity already supplies 27% of China’s final energy demand, meaning the energy consumed by households, transport and industry. DNV forecasts that share will exceed 50% by 2060. Reaching it will require more transmission lines, storage and flexible demand to keep power available when wind and solar output falls.

The pressure on fuel exporters could outlast the present disruption. In a separate scenario where the Middle East conflict continues until 2030, DNV estimates global oil and gas demand would remain 2–5% below its main forecast afterward, as buyers retain the alternatives they adopted during the crisis.

Each part of Chinese economy that can run on domestically generated clean power becomes less exposed to overseas fuel supply. Its manufacturing base also allows Beijing to help other importers make that transition, strengthening China’s commercial position as energy security increasingly depends on factories, grids and batteries.

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