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.



IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.


Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.


Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.