As China's Renewable Capacity Soars, Utilization Lags, Data Shows

A general view of the solar panels pictured during an organized media tour at the Dunhuang Photovoltaic Industrial Park, in Gansu province, China October 16, 2024. (Reuters)
A general view of the solar panels pictured during an organized media tour at the Dunhuang Photovoltaic Industrial Park, in Gansu province, China October 16, 2024. (Reuters)
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As China's Renewable Capacity Soars, Utilization Lags, Data Shows

A general view of the solar panels pictured during an organized media tour at the Dunhuang Photovoltaic Industrial Park, in Gansu province, China October 16, 2024. (Reuters)
A general view of the solar panels pictured during an organized media tour at the Dunhuang Photovoltaic Industrial Park, in Gansu province, China October 16, 2024. (Reuters)

China's renewable power potential in far-flung provinces is increasingly going unused, official statistics showed on Monday, as the country rushes to build more long-distance transmission and energy storage to bridge the gap.

The curtailment rate for solar power rose to 6.6% in the first half of 2025 from 3.9% in the same period a year earlier, while the rate for wind rose to 5.7% from 3%, according to the National New Energy Consumption Monitoring and Early Warning Center.

Curtailment refers to how much grid managers have to limit the amount of power coming into the grid to maintain a balance with demand or due to grid infrastructure constraints.

China has a national-level limit of 10% curtailment for renewables, a figure it relaxed last year from 5% previously as it became harder to incorporate rising amounts of renewable energy into the grid.

China added 268GW of new solar and wind power in January-June, according to the energy administrator - nearly equal to all of the wind and solar the United States has ever built.

On the curtailment front, China's national-level figures masked a larger increase in some renewable-heavy provinces.

Tibet curtailed 30.2% of its wind power in the first half of 2025 compared with 2.3% a year earlier. It curtailed 33.9% of its solar power, up from 5.1%.

Qinghai in the northwest curtailed 15.2% of its solar power, up from 8.8%.

Regions with higher electricity demand continued to report low curtailment rates, including none in the megacities of Shanghai and Chongqing as well as in Fujian province.

Underutilization of renewables is spurring China to switch its focus from rapidly building renewable plants to making sure more of their power gets into the grid, analysts say.

“China will still push for decarbonization, but not necessarily on renewable installation. China might switch its policy focus or target focus from installation volume” to utilization, Natixis economist Haoxin Mu said.

More energy storage is needed, Mu said, which could help increase renewable utilization by storing excess power when supply outpaces demand.

Rising curtailment is also one reason China is investing in projects like the world’s largest hydropower dam in Tibet, analysts at BMI said in a July note.

Unlike wind and solar, hydropower is dispatchable, meaning output can be adjusted based on demand.

China is also responding to increasing curtailment of non-hydro renewables over the past two years by building more high-voltage power transmission, the BMI analysts said, to move electricity from huge power plants in the west to electricity-hungry cities in the east.



Gold Slips as Focus Remains on Middle East, Rate Outlook

Gold bars, each weighing 1000 grams, displayed at a gold and silver refinery in Vienna (AFP)
Gold bars, each weighing 1000 grams, displayed at a gold and silver refinery in Vienna (AFP)
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Gold Slips as Focus Remains on Middle East, Rate Outlook

Gold bars, each weighing 1000 grams, displayed at a gold and silver refinery in Vienna (AFP)
Gold bars, each weighing 1000 grams, displayed at a gold and silver refinery in Vienna (AFP)

Gold prices slipped on Monday as market participants assessed developments in the Middle East and their implications for inflation and interest rates.

Spot gold fell 0.3% to $4,362.60 per ounce by 0417 GMT after hitting a one-week high on Friday. US gold futures were down 0.6% at $4,400.20, Reuters reported.

Iran and the United States exchanged new threats, with President ‌Donald Trump ‌warning Iran would fail economically or face its ‌leadership ⁠being wiped out ⁠if it didn't make a deal, and the Iranian military saying it would retaliate harshly to any fresh attack.

"The focus remains on geopolitics, oil and the reaction in bond yields. For gold to gain meaningful upside traction, a clear move lower in oil and/or bond yields is likely required," said Tim Waterer, chief market ⁠analyst at KCM Trade.

"Gold may trade in a ‌roughly $4,200 to $4,580 range in the near ‌term."

Oil prices fell on hopes diplomacy in the Iran war will ‌get a chance this week amid a UN meet.

The prospect of a new global rate-tightening cycle has come into focus as some of the world's top central banks ‌raise rates and signal more may be needed to tame inflation fueled by the Iran war.

The Bank ⁠of Japan ⁠became the latest big central bank to tighten on Friday, following rate increases by the Federal Reserve earlier that week and the European Central Bank the week before.

Though gold is often seen as an inflation hedge, rising rates tend to curb its demand by making interest-bearing assets more attractive.

Analysts at Standard Chartered said in a note that gold remains volatile but continues to find firm downside support from official-sector demand. They said structural drivers remain in place to lift prices, albeit at a slower pace.

Among other metals, spot silver rose 0.2% to $66.37, platinum fell 0.1% to $1,798.31 and palladium added 0.6% at $1,309.65.


Qatar Launches Wealth Fund Division for Domestic Investments

Qatari flag flutters in Doha - AAWSAT/File
Qatari flag flutters in Doha - AAWSAT/File
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Qatar Launches Wealth Fund Division for Domestic Investments

Qatari flag flutters in Doha - AAWSAT/File
Qatari flag flutters in Doha - AAWSAT/File

Qatar's prime minister announced on Sunday the creation of a new division of the Qatar Investment Authority dedicated to developing domestic investments.

"We aim to expand the role of the private sector in driving Qatar's economic growth," Sheikh Mohammed bin Abdulrahman Al Thani said as he announced the new division, Doha Investment, at a special edition of the Qatar Economic Forum in New York.

The annual gathering was cancelled in May, following weeks of Iranian missile and drone attacks on Gulf states, including Qatar, according to Reuters.

"It will support our strongest companies, help emerging businesses grow, deepen capital markets and attract international capital and expertise to contribute to this effort," he added.

The new division will operate as the dedicated manager of QIA's local portfolio, initially overseeing 45 state-owned enterprises that represent roughly one-third of the wealth fund's total assets, according to Sheikh Faisal bin Thani Al Thani, Qatar's minister of commerce and industry. He will serve as managing director and vice-chairman of Doha Investment.

Sheikh Faisal described the division not as a new creation but a consolidation, adding that the step has been under consideration for more than a decade.


PIF Launches Tawrid to Provide Supply-Chain Financing Products in Saudi Arabia

PIF Tower at the King Abdullah Financial District in Saudi Arabia’s capital, Riyadh (Asharq Al-Awsat)
PIF Tower at the King Abdullah Financial District in Saudi Arabia’s capital, Riyadh (Asharq Al-Awsat)
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PIF Launches Tawrid to Provide Supply-Chain Financing Products in Saudi Arabia

PIF Tower at the King Abdullah Financial District in Saudi Arabia’s capital, Riyadh (Asharq Al-Awsat)
PIF Tower at the King Abdullah Financial District in Saudi Arabia’s capital, Riyadh (Asharq Al-Awsat)

The Public Investment Fund (PIF) on Sunday announced the launch of Tawrid Company for Financing Solutions, an innovative digital platform providing supply-chain financing products to companies in the Saudi Arabian market. Tawrid has obtained the Saudi Central Bank (SAMA) permit to operate under the regulatory Sandbox environment.

The financial services industry is a strategic enabler of the six ecosystems that PIF announced recently as part of its 2026-2030 strategy.

Supply-chain financing products help companies to fund their broader activities. Tawrid’s digital offering will further strengthen the Saudi private sector, particularly small and medium-sized enterprises, SPA reported.

Tawrid will play a significant role in connecting buyers, suppliers, and funders through its digital platform. It will offer products such as early settlement options against approved invoices, enabling businesses to expand their operations, enhance their working capital efficiency, and improve their liquidity management.

The launch of Tawrid is in line with PIF’s strategy to increase the Saudi private sector’s contribution to PIF’s projects and portfolio companies and to grow the private sector’s share of the local economy. Its platform will enable local banks registered on its network to engage with registered suppliers, strengthening supply chains and further supporting the diversification of financial services and the digitalization of trade in Saudi Arabia.

PIF’s investment in supply-chain financing is a natural evolution that builds on its efforts to advance the growth, resilience, and robustness of supply chains in the Saudi market. PIF has expanded opportunities for local suppliers and stimulated them to develop their capabilities in line with PIF’s strategic objectives to engage the private sector and enable it to contribute to a more diversified economy with deep, local, tech-enabled supply chains.

Head of Financial Institutions in MENA Investments at PIF Sultan Alsheikh said: “Tawrid will make Saudi supply chains stronger and more resilient by further enabling companies to access financing and improve their liquidity management. Its supply-chain financing products will enable businesses to operate with greater agility and efficiency, creating opportunities for the Saudi private sector in particular.”

Tawrid has started operations and has already signed binding agreements with local banks and companies, including Gulf International Bank (GIB), Saudi National Bank (SNB), Banque Saudi Fransi (BSF), ROSHN Group and Nesma & Partners.
PIF is one of the world’s most impactful investors, with a long-term investment strategy to further drive the economic transformation of Saudi Arabia and deliver sustainable financial returns.