Wednesday, February 12, 2025
Last Sunday, my young relative’s girlfriend visited my sister's place. My two sisters' apartments are next to my mother’s—one on the fourth floor, two on the third. She also came to our apartment to wish us a Happy Spring Festival and brought a red packet for my mother. She had just returned from a vacation with her parents, which made her visit especially thoughtful. In fact, she was the only one to come over for the festival this year, making her visit feel even more special.
On another positive note, the global clean energy market is seeing a continued decline in costs, accelerating the transition to clean energy.
According to a recent report by research provider BloombergNEF (BNEF), new wind and solar farms are already outcompeting new coal and gas plants in production costs in nearly every global market.
1. Falling Costs of Clean Technologies The cost of clean power technologies—wind, solar, and battery storage—is expected to drop another 2-11% in 2025, further strengthening their economic advantage. Lower costs are key to accelerating the shift away from fossil fuels and addressing climate change.
2. China’s Leadership in Clean Energy China remains the dominant force in clean technology manufacturing, particularly in solar panels and batteries. While import tariffs could temporarily slow cost declines, China’s continued leadership and large-scale production capacity ensure it will remain a key player in shaping the future of renewable energy.
3. The Impact of Rising Protectionism Trade barriers, a trend that intensified during the Trump administration, could temporarily stall price reductions. However, in the long run, clean technologies are expected to keep getting cheaper.
4. Declining Battery Storage Costs Battery storage costs have fallen significantly, with the benchmark cost for storage projects dropping to $104/MWh in 2024. This decline is crucial for addressing the intermittency of solar and wind power, making renewable energy systems more efficient and scalable.
5. Solar vs. U.S. Gas Plants Solar power, even without subsidies, is nearing price parity with new gas plants in the U.S., despite the country's relatively low natural gas prices. If the U.S. starts exporting liquefied natural gas, exposing its market to global price competition, solar will become even more competitive.
You can see a clear picture ahead: renewable energy is becoming increasingly viable as a mainstream power source. As the costs of wind, solar, and battery storage continue to fall, adoption will accelerate, leading to a broader transition toward cleaner, more sustainable energy. China remains at the forefront of this industry, driving the global shift toward renewables.
I'd like to end with a Chinese saying, 青山遮不住，毕竟东流去 (Qīng shān zhē bù zhù, bìjìng dōng liú qù), which translates to "The green mountains cannot block it; the river will ultimately flow eastward." This saying symbolizes unstoppable progress and inevitability of a larger trend —the global shift toward clean energy. Despite temporary setbacks like Trump's protectionism, the momentum toward renewable energy and falling costs is unstoppable, much like a powerful river that will ultimately flow its natural course.