NewBase 18 September 2023 Energy News issue - 1657 by Khaled Al Awadi_compressed (1).pdf

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NewBase Energy News 18 September 2023 No. 1657 Senior Editor Eng. Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Saudi Aramco to enter South American retail market with
Esmax acquisition
NewBase + PR Newswire
Aramco, one of the world's leading integrated energy and chemicals companies, has agreed to
purchase a 100% equity stake in Esmax Distribusción SpA ("Esmax") from Southern Cross Group,
a Latin America-focused private equity company. The transaction is subject to certain customary
conditions, including regulatory approvals.
Esmax is a leading diversified downstream fuels and lubricants retailer in Chile. Its national
presence includes retail fuel stations, airport operations, fuel distribution terminals and a lubricant
blending plant.
Aramco's planned acquisition of Esmax would be its first Downstream retail investment in South
America, recognizing the potential and attractiveness of these markets while advancing Aramco's
strategy of strengthening its downstream value chain.
This transaction would enable Aramco to secure outlets for its refined products and help expand its
retail business internationally. The acquisition would also further unlock new market opportunities
for Valvoline branded lubricants, following Aramco's acquisition of the Valvoline Inc. global products
business in February 2023.
ww.linkedin.com/in/khaled-al-awadi-80201019/

Mohammed Y. Al Qahtani, Aramco Downstream President, said: "This agreement is yet another
milestone in our strategy to grow Aramco's downstream presence globally and expand our retail,
lubricants and trading businesses. We are excited by the opportunities it presents, creating
synergies with our extensive trading and manufacturing systems.
Moreover, it creates a platform to launch the Aramco brand both in Chile and South America more
broadly, unlocking significant potential to capitalize on new markets for our products. Esmax is a
well-run business in Chile with more than 100 years of experience with quality assets and growth
potential. We are excited to have the outstanding people of Esmax join the Aramco family as we
continue to execute on our downstream strategy."
About Aramco
Aramco is a global integrated energy and chemicals company. We are driven by our core belief that
energy is opportunity. From producing approximately one in every eight barrels of the world's oil
supply to developing new energy technologies, our global team is dedicated to creating impact in
all that we do. We focus on making our resources more dependable, more sustainable and more
useful. This helps promote stability and long-term growth around the world. www.aramco.com

Oman's Green Hydrogen Target: 8 million tons by 2050
By: Times News Service
Muscat: Gulf Leaders Circle, Muscat Media Group’s GCC-wide business networking platform,
recently met with Dr. Firas Al-Abduwani, Director General of Renewable Energy and Hydrogen at
the Ministry of Energy and Minerals.
Dr. Firas is responsible for shaping and implementing the
public policies that support Oman’s transition to a low-carbon
economy. He speaks to GLC about short-term and long-term
goals for Oman, as a green-hydrogen hub, as the world looks
to transition to cleaner energy.
Q. Can you please share how your industry experience,
including Hydrom, informs your current vision?
Firas Al-Abduwani: Hydrogen is an important decarbonization
vector for Oman. We view it as a key element addressing
energy security and furthering economic diversification in
Oman. Our goal is to transform Oman into a new, green, and
low-carbon industrialization hub, benefiting society as a whole.
This includes focusing on capability development, research and development (R&D), and
innovation.
The industry has categorised hydrogen in different “colors” to differentiate between the different
methods of hydrogen and associated emissions (if any). There are three colors that Oman is
currently pursuing or assessing; green hydrogen which is produced through electrolysis of water
using renewable energy and has no associated operational emissions; Blue hydrogen which is
produced typically through steam methane reformation, and has the associated emissions captured
and sequestered; and White hydrogen or geologic hydrogen that is produced from the subsurface.
Oman is one of the top nations in the world when it comes to renewable energy resources given the
complementarity of its solar and wind profiles. It also has favorable proximity to shorelines, and
robust infrastructure, including ports and facilities. This presents an excellent opportunity for us to
harness green hydrogen, export it globally, and attract industries to Oman. As for blue and white

hydrogen, we are still in the early stages of assessing and studying the applicability of these forms
of hydrogen to Oman’s toolkit of energy security, decarbonisation, and economic diversification.
Q. Transportation and logistics are major
consumers of oil and gas industry products, while
also being significant contributors to CO2
emissions in the atmosphere. Could you provide
insights on the transportation and logistics
infrastructure for green hydrogen projects in
Oman? What measures will be taken to ensure
efficient tra nsportation and distribution of green
hydrogen within Oman and the international
market?

KSA: DT & Essar to develop renewable energy solutions in KSA
Trade Arabia + NewBase
Desert Technologies (DT) an independent solar PV and smart infrastructure holding company, said
it has entered into a long-term partnership with the multinational conglomerate Essar Group to
develop renewable energy solutions for its green steel project in Saudi Arabia.
Both parties signed a MoU to develop renewable energy solutions for Essar Group’s Green Steel
Arabia (GSA) project in the Kingdom of Saudi Arabia (KSA) as well as potential future projects which
will put Saudi Arabia on the map, as a pioneering country in Green Steel production and green
energy generation.
The MoU was executed between Desert Technologies and Essar Group in the G20 summit at New
Delhi, India. Through this partnership, DT and Essar will develop solutions for renewable energy
generation and storage for Essar’s Flat Steel Complex in the KSA which is the first green steel
project in the GCC region and will also explore opportunities for other potential projects.
Based in Saudi Arabia, and operating in more than 25 countries, Desert Technologies has a proven
track record as a PV developer, investor, EPC and O&M contractor, PV solar panel manufacturer,
and energy storage systems integrator.
On the deal, DT Investments CEO Khaled Sharbatly said: "Desert Technologies's deal with Essar
signifies our long-term commitment to meet the growing demand for renewable energy solutions;
especially in the KSA. Its solutions in renewable energy sector, price competitivity and low Carbon
footprint solutions will further."
Naushad Ansari, Country Head for Essar Group in KSA, said: "Essar is currently looking at investing
about $4.5 billion in setting up an integrated steel plant in Ras Al Khair, Saudi Arabia. This
partnership with Desert Technologies will help us to access green energy and carbon free energy
storage solutions; thereby strengthening our commitment towards low carbon footprint."
"We are committed to continue to enhance KSA’s local content and help local businesses to grow
with us. This MoU also reconfirms Essar’s commitment to long-term investments in the KSA and
development of green and sustainable strategy," stated Ansari.
The Essar project is set to be the region’s first Green Steel project aiming to set the global
benchmark in reduction of CO2. The project will have a direct reduced iron (DRI) capacity of 5.0
mtpa, comprising of two modules of 2.50 mtpa each, and 4.0 mtpa hot strip capacity, as well as 1.0
million tonnes of cold rolling capacity along with galvanizing and tin plate lines.

U.S: Energy use for transportation increased from pre-
pandemic levels,,,,U.S. Energy Information Administration, State Energy Data System
Use of energy for transportation remained low in the United States during 2021 compared with pre-
pandemic levels and only increased in 12 states. Average U.S. transportation energy use
decreased by 5% from 2019 to 2021, according to our State Energy Data System (SEDS). Although
transportation energy use did increase in every state in 2021 compared with 2020, transportation in
the majority of states still remained below 2019 pre-pandemic levels in 2021.
Our transportation sector
estimates encompass energy used
by vehicles to transport people and
goods from one place to another,
such as cars, trucks, trains, planes,
and boats.
Transportation energy use
increased 15% in Alaska, the
largest percentage increase of any
state from 2019 to 2021, mostly
because of increased jet fuel use
for air travel. Alaska is a major
fueling stop for military, cargo, and commercial flights between North America and Asia. In 2021, jet
fuel use in Alaska increased by 36% compared with 2019, the largest state-level increase,
as passenger and cargo traffic exceeded pre-pandemic levels.
In Louisiana, increased use of petroleum for large marine vessels drove the second-largest increase
in transportation energy use (13%), largely because of changes in shipping technology to meet
international regulations. In 2021, residual fuel oil use in Louisiana, a major shipping hub along the
Gulf of Mexico, more than doubled compared with 2019.
Residual fuel oil is a petroleum product commonly used by international vessels. U.S. demand for
residual fuel oil rose in 2021, increasing by 16% compared with 2019, in part because vessels
added scrubber technology to reduce sulfur emissions and meet international standards.
Transportation energy use increased by 11% in Alabama in 2021 compared with 2019, largely
because of more motor gasoline used for car travel. Although motor gasoline use in most states
remained about 6% lower on average nationwide in 2021 than in 2019, motor gasoline use
increased in Alabama, South Dakota, Montana, Idaho, Maine, New Mexico, Indiana, and Missouri.
The largest drop in energy use for transportation was in the District of Columbia (DC), where
transportation energy use decreased by 21% in 2021 compared with 2019 because of less
petroleum used by vehicles and less electricity use by its subway system.
In 2021, DC’s use of diesel for trucks was down 35%, and motor gasoline for cars was down 14%
compared with 2019. Electricity use for transportation in DC was down 22% over the same period
in part because ridership on Metrorail (the third-largest subway system in the United States)
remained 75% lower than pre-pandemic levels.
Energy use for transportation decreased by 18% in Hawaii in 2021 compared with 2019, mostly
because less jet fuel was used for planes. Jet fuel accounts for more total petroleum use in Hawaii
than any other state except Alaska because of its large commercial and military air travel economy.
Jet fuel use in Hawaii was 24% lower in 2021 than in 2019.

Global renewable energy funding gap is more acute in emerging markets,
S&P Global + The National + NewBase
The global renewable energy funding gap is highly concentrated in emerging markets because of
higher risk and lower appetite from investors, according to S&P Global Ratings.
Money inflows are particularly pronounced in the US, China and the EU. However, they still fall short
of what is needed to meet net-zero greenhouse gas emissions goals as laid out in the Paris
Agreement, the agency said in a new report.
The market’s funding response is heavily tilted toward investments in generating assets,
particularly solar photovoltaic assets, according to S&P Global. Getty
“Governments are turning to capital markets because of the immense scale of investment expected
to be needed in the coming decades,” S&P said.
“It is estimated that current targets agreed to by the world’s major economies under the Paris
Agreement would require at least tripling of global energy transition investment to more than $5
trillion each year between 2023 and 2050, well beyond what government balance sheets can handle
alone.”
Current clean energy efforts are falling short of meeting global climate goals because of insufficient
investment and deployment, a report by the International Energy Agency, the International
Renewable Energy Agency and the UN Climate Change High-Level Champions has shown.
The report called on governments to strengthen collaboration in key areas such as standards and
regulation, financial and technical assistance, and market creation to “turbocharge” the energy
transition.

Annual renewable power capacity must add an average of 1,000 gigawatts annually by 2030 to
meet Paris Agreement goals, according to Irena.
Investment in renewable generating assets is a key part of the energy transition, with estimated
annual investment of $1.4 trillion through 2050, according to the S&P report.
The market’s funding response is heavily tilted towards investments in generating assets,
particularly solar photovoltaic assets, the agency said.
“We see capital flows currently strongly favouring renewable power generating assets, namely wind
and solar, with less focus on, for example, transmission and storage.
“This dislocation between policy intent and current investment is likely to result in integration
bottlenecks and dysfunctional energy markets unless market design evolves quickly.”
China’s energy transition will require a substantial increase in investment over the next few decades,
even though it already accounted for nearly half of the global energy transition sectoral spending in
2022, the research showed.
The country’s power sector is taking the lead in this transition through accelerated investments,
mainly in renewables generation capacity, power grids and energy storage, S&P said.
Expo City to host Cop28 –
Mariam Al Mheiri, Minister of Climate Change and Environment, Minister of State for Food Security
in July launched Cop28's Food Systems and Agriculture Agenda. Ms Al Mheiri called on
governments to demonstrate leadership by signing the first-ever Leaders Declaration on Food
Systems, Agriculture and Climate Action during the... Food Systemmmit in Rome.
“Its central and key local state-owned enterprises dominate investments in the power sector,”
according to the report’s findings.

“Greater contribution from the private sector would be necessary to achieve China’s ambitious
carbon neutrality goal. Policymakers have been trying to promote private investment, yet incentives
for private capital and appropriate regulatory frameworks would need to be expanded through
deepening market reform.”
In the US, the federal structure limits the degree to which central government mandates can directly
shape energy investment, the report noted.
“It is the Inflation Reduction Act of 2022 that most clearly unleashes the private sector to freely direct
investment that can qualify for incentives,” S&P said.
“In the 10 months since the passage of the IRA, private equity firms have committed more than
$100 billion to new renewable energy investments that would qualify for tax credits in the next six
years.”
The wave of new investment in renewable power assets is accelerating faster than the broader
capital market funding of investment in energy storage, the research found.
Meanwhile, the European energy crisis has accelerated the impetus for the development of
renewables, with ever-higher goals of achieving 1,200 GW of installed renewables capacity (wind
and solar) by 2030 compared with 513 GW in 2021, according to the report.
Environmental considerations are no longer the only motivation for renewables
development; keeping power costs down for consumers and ensuring security of
supply for the EU are now vital priorities, it said.
The EU assumes that renewables will need to deliver approximately 70 per cent of the
power to meet the overall renewable energy target by 2040. “Accelerating renewables
growth will require more than goals and subsidies, and a series of non-financial
complexities and hurdles must be overcome,” S&P recommended.
 “Non-financial challenges stem from the lengthy permitting process in the EU, a
growing shortage of grid capacity and bottlenecks in the global supply chain.”
 “Across Europe, it typically takes between three and six years to get a project fully
permitted, as well as the grid connection, and the timeline is often longer in the case
of wind power. This protracted process materially limits the market’s ability to deploy
new renewables at scale and at pace over the short to medium term.”

NewBase September 18 -2023 Khaled Al Awadi
NewBase for discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
Oil inches higher on supply concerns, China demand recovery
Reuters +NewBase
Oil prices inched higher on Monday, buoyed by forecasts of a widening supply deficit in the fourth
quarter after Saudi Arabia and Russia extended cuts and on optimism of a demand recovery in
China, the world's top crude importer.
Brent crude futures rose 34 cents, or 0.361%, to $94.27 a barrel by 0427 GMT while U.S. West
Texas Intermediate crude was at $91.23 a barrel, up 46 cents, or 0.52%.
"China's stimulus policy, resilient U.S. economic data, and OPEC+’s ongoing output cuts are the
bullish factors that support the oil market's upside movement," CMC Markets analyst Tina Teng
said, referring to a reserve ratio cut by China's central bank last week to boost liquidity and support
its economy.
Brent and WTI have climbed for three consecutive weeks to touch their highest levels since
November after Saudi Arabia and Russia extended supply cuts to the end of the year as part of the
OPEC+ group's plans and as Chinese refineries ramped up output, driven by strong export margins.
Oil price special
coverage

Both contracts are also on track for their biggest quarterly increase since Russia's invasion of
Ukraine in the first quarter of 2022.
"Production cuts, led by Saudi Arabia, stabilised the market in July but are now likely to push the
market into a 2 million bpd (barrels per day) deficit in Q4," ANZ analysts said in a note.
Global oil demand growth, on the other hand, is on track to hit 2.1 million bpd, they added, in line
with forecasts from the International Energy Agency and the Organization of the Petroleum
Exporting Countries (OPEC).
"The subsequent drawdown in inventories in Q4 leaves the market exposed to further price spikes
in 2024," ANZ said.
Traders will be watching decisions by central banks, including the Federal Reserve, this week on
interest rate policies.
"The Fed is expected to pause rate hikes this time but is likely to stay hawkish," CMC's Teng said.
A pause in U.S. rate hikes could weaken the greenback which makes dollar-denominated
commodities such as oil more affordable for holders of other currencies. FRX

Oil just hit its highest level of the year — and some analysts
expect a return to $100 before 2024
CNBC - Sam Meredith@SMEREDITH19
Oil prices climbed to their highest level of the year this week, extending a rally that has put a return
to $100 a barrel sharply into focus. Indeed, some analysts believe crude prices could hit this
milestone before year-end.
International benchmark Brent crude futures traded 0.3% lower at $93.46 a barrel on Friday
afternoon in London, while U.S. West Texas Intermediate futures stood little changed at $90.09.
Both Brent and WTI settled at their highest respective levels of the year on Thursday. The oil
contracts are sharply higher month to date and remain firmly on track to notch their third consecutive
positive week.
The price rally comes amid growing expectations of tighter supply after Saudi Arabia and Russia
moved to draw down global inventories and extend their oil output cuts through to the end of the
year.
OPEC kingpin Saudi Arabia said Sept. 5 that it would extend its 1 million barrel per day production
cut through to year-end, with non-OPEC leader Russia pledging to reduce oil exports by 300,000
barrels per day until the end of the year. Both countries have said they will review their voluntary
cuts on a monthly basis.
Analysts at Bank of America have indicated they now believe oil prices could soon rally above $100.
 Oil prices climbed to their highest level of the year this week, extending a rally that has put a return
to $100 a barrel sharply into focus.
 Analysts at Bank of America said they believe crude prices could spike beyond triple digits before
year-end.
 Christyan Malek, global head of energy strategy and head of EMEA oil and gas equity research at
JPMorgan, said he believes the price of oil is likely to trade in a range of $80 to $100 in the short
term — and at around $80 over the long term.

“Should OPEC+ maintain the ongoing supply cuts through year-end against Asia’s positive demand
backdrop, we now believe Brent prices could spike past $100/bbl before 2024,” analysts led by
Francisco Blanch said Tuesday in a research note.
Concerns about China’s demand for oil have almost become a cliche: Strategist
Tamas Varga of oil broker PVM said a jump toward the $100 milestone was “plausible,” citing
production constraints from Saudi Arabia and Russia, upcoming refinery maintenance, the structural
shortage of diesel in Europe, and a growing consensus that the current cycle of tightening will soon
come to an end.
“Nonetheless, such a rally also entails renewed inflationary pressure,” Varga told CNBC on Friday.
This was reflected, he said, in this week’s U.S. inflation data and the rise in consumer spending,
which indicated that interest rates may stay higher for longer and could have a negative impact on
both economic and oil demand growth.
“For this reason, I believe that any spike towards $100 will be short-lived,” he added.
‘A significant supply shortfall’
The International Energy Agency warned Wednesday that Saudi Arabia and Russia’s production
constraints would likely result in a “substantial market deficit” through the fourth quarter.
The world’s leading energy authority said in its monthly oil report that output curbs by OPEC and
non-OPEC members of more than 2.5 million barrels per day since the start of the year had so far
been offset by members outside the OPEC+ alliance — such as the U.S. and Brazil.
“From September onwards, the loss of OPEC+ production, led by Saudi Arabia, will drive a
significant supply shortfall through the fourth quarter,” the IEA said.
Christyan Malek, global head of energy strategy and head of EMEA oil and gas equity research at
JPMorgan, said he believes the price of oil is likely to trade in a range of $80 to $100 in the short
term — and at around $80 over the long term.

“As we go into next year, it will be very dependent on how we see China evolve … what does the
U.S. do? And how does shale respond?” Malek said Monday, noting the U.S. appears to have
limited options if it is to try to drive oil and gasoline prices lower ahead of next year’s pivotal
presidential election.
“I think for us one of the important data points for this year as a whole is that we tested $70. You
have to test the marginal costs, we can all predict it, and we got there. We got to $70, and it bounced
off so with that marginal cost, we’re looking at a much higher long-term price,” he added.
Not everyone believes oil prices are destined for an imminent return to $100, however. Ole Hansen,
head of commodity strategy at Saxo Bank, says the crude sector looks increasingly overbought in
the near term and appears in need of a pullback.
“We do not join the $100 per barrel camp but will not rule out a relatively short period where Brent
could trade above $90,” Hansen said in a research note published Sept. 8.
“From a technical perspective, Brent has been in a bullish uptrend since July and needs to hold
support at $89 as a break may trigger long liquidation towards $87.5 from traders who bought the
production cut extension news,” he added.
“However, the medium-term uptrend is still firm with trendline support near $85, potentially being
the bottom of a new higher range supported by OPEC’s active management of supply.”

The World oil refiners Is Struggling to Make Enough Diesel
(Bloomberg
The world’s oil refiners are proving powerless to make enough diesel, opening a new inflationary
front and depriving economies of a fuel that powers industry and transport alike.
While oil futures are rocketing — on Friday they were just below $95 a barrel in London — the rally
pales in comparison with the surge in diesel. US prices jumped above $140 to the highest ever for
this time of year on Thursday. Europe’s equivalent soared 60% since summer.
And it could get worse. Saudi Arabia and Russia have turned down the taps on production of crudes
that are richer in diesel. On Sept. 5, both nations — leaders in the OPEC+ alliance — announced
they would prolong those curbs through year-end, a period in which demand for the fuel usually
picks up.
“We’re at risk of seeing continued tightness in the market, especially for distillates, coming into the
winter months,” said Toril Bosoni, head of the oil market division at the International Energy Agency,
referring to the category of fuel that includes diesel. “Refineries are struggling to keep up.”
The situation is challenging for a global refining fleet that’s been dogged by lackluster production
for months. Searing Northern-Hemisphere heat this summer forced many plants to run at a slower
pace than normal, leaving stockpiles stunted.
There’s also been pressure on them to make other products instead like jet fuel and gasoline, where
demand has rebounded hard, according to Callum Bruce, an analyst at Goldman Sachs Group Inc.
Other Fuels
All this comes on top of a global refining system that shuttered less-efficient plants when Covid-19
trashed demand. Now consumption is rebounding but many refineries are gone.

There’s still hope that the diesel crunch can ease. With cooler winter months approaching, the
weather-related constraints on the refineries overall decrease — even if some of them will undergo
routine seasonal maintenance.
“We think margins have overshot for now,” Bruce said, adding that stretched market positioning and
the temporary nature of some refinery disruptions could spark a reversal.
Still Concerns
Even so, there are still worries about supply from some key diesel-exporter nations.
Russia — still a major supplier to the world despite Western sanctions — has indicated that it’s
looking to limit the volume of the fuel it sends to global markets.
China — another potential supply-relief valve — recently issued a new fuel export quota, but traders
and analysts in Asia said the volume currently planned won’t be enough to prevent a tight market
through the end of the year. The country’s shipments have been stuck near five-year seasonal lows
for much of 2023.
Those lower flows are showing up at key storage hubs. Observable stockpiles in the US and
Singapore are all currently below seasonally normal levels. Inventories in OECD nations are lower
than they were half a decade ago.
The restricted supply has economic consequences. The surge in US futures has been driven in part
by truckers snapping up the fuel.

“Diesel is the fuel of the 18-wheeler truck that moves products from factory to market, so when
prices spike, those higher transportation costs get passed on to businesses and consumers,” said
Clay Seigle, director of global oil service at Rapidan Energy Group.
While there has been growing hope that the US economy can avoid recession, “an energy price
spike - whether in gasoline or diesel fuel prices - could undermine much of that progress,” he added.
“This risk is not lost on anyone in Washington as election campaign season approaches.”
Soaring diesel prices may also push refineries to prioritize the fuel at the expense of making
gasoline, he said.
Weak Demand
The situation for diesel could have been worse because consumption growth hasn’t been as robust
as other parts of the barrel.
The IEA’s monthly report last week anticipated consumption growing by about 100,000 barrels a
day this year. That compares with almost 500,000 barrels a day for gasoline and more than 1 million
barrels a day for jet fuel and kerosene.
“It’s a supply issue at heart,” said Eugene Lindell, head of refined products at consultant FGE.
“European refineries were also unable to build up supplies over the summer because of widespread
unplanned outages which has left inventories tight ahead of winter.”

NewBase Specual Coverage
The Energy world –September 18 -2023
CLEAN ENERGY
China’s solar capacity surges; expected to top 1 TW by 2026
Source: Rystad Energy
China’s solar sector is set to break records in the coming years . When installed capacity crosses
the 500 gigawatts (GW) mark by the end of 2023, it will have taken 13 years to reach that milestone.
That total, however, will be doubled to 1 terawatt (TW) in just three additional years. Rystad
Energy modeling shows total installed solar photovoltaic (PV) capacity in China will cross the 1,000
GW mark by the end of 2026.
New capacity in 2023 is expected to top 150 GW, almost doubling the 87 GW installed in 2022. Our
projections show that the significant acceleration is not going to slow anytime soon. About 165 GW
is expected to be added in 2024 and 170 GW in 2025. This growth will see China’s cumulative solar
PV capacity reach over 700 GW by 2024 and increase to close to 900 GW by the end of 2025,
before topping 1 TW in 2026.
Today, China’s 500 GW represents approximately 40% of global capacity, with the US in second
place, accounting for about 12% with 145 GW. Installations in the US are also expected to grow,
helped by the incentives offered through the Inflation Reduction Act, but total capacity will be about
209 GW in 2026, or around 11% of the global total.
According to the National Energy Administration (NEA), 134.9 billion CNY (~$15.8 billion) has been
invested in solar PV construction during the first half of 2023. This is 3.4 times the investment put
into thermal power during the same period and the highest among all power generation sources. As
China continues to invest in renewable energy, proactive measures to address the challenges of
solar intermittency have been taken by encouraging new utility-scale renewable projects to build

associated storage. Pumped hydro, for example, is developing fast in China to meet seasonal
changes in energy demand. By June 2023, China had 49 GW of pumped hydro, which is expected
to reach 64 GW by 2025 and over 120 GW by 2030.
Yicong Zhu, senior renewables and power analyst, Rystad Energy, said: 'China’s national program
to build out solar capacity, launched in June 2021, has led to a significant boost in large-scale
projects. Although most distributed PV systems are installed on rooftops, not all of them are used
for residential purposes. Around two-thirds of the distributed PV capacity in China is utilized by the
commercial and industrial sectors and these projects can vary from tens to more than 100 MW.'
The growth of distributed solar – typically sited on rooftops – during recent years has not been a
surprise for the Chinese market. Utility-scale solar PV development - if it produces 10 megawatts
(MW) or more of energy – has been concentrated in the northwest region of China where solar and
land resources are abundant.
Power demand centers are in the south and eastern regions, along the densely populated coast
and where most of the industries are located. The nation has made efforts to construct and expand
its high-voltage transmission networks to move renewable power from areas rich in resources to
demand centers. However, there is limited land availability and costs are high in coastal regions, so
large-scale utility solar PV developments are not feasible.
Therefore, distributed solar energy has become a more viable alternative and the more populous
provinces of China have experienced a notable increase in the advancement of such projects this
year. Particularly, the provinces of Henan, Shandong, Hubei, Jiangsu and Zhejiang have all
observed a surge in installations.
Among these provinces, Henan takes the lead, with 7.6 GW of new solar PV installations, of which
98% were distributed solar PV. Following closely is Shandong, with 6.8 GW of new installations. It,

however, currently holds the highest installed solar PV capacity among the provinces, boasting a
total of 49.5 GW, including 35.7 GW of distributed solar and 13.7 GW of utility-scale solar.
The province of Hebei takes second place in terms of installed solar PV capacity, with a cumulative
of 41.7 GW, evenly divided between utility-scale and distributed solar PV installations.
China has set provincial-specific solar PV installation targets under its renewable energy plans
across 26 provinces as part of its 14th five-year planning period. The goal is to install 443 GW of
new capacity by the end of 2025. As of 30 June, a total of 206 GW was already installed, achieving
a completion rate of 46.5% at the halfway mark of the five-year plan.
As of now, Henan and Fujian provinces have surpassed their targets for the planning period, while
some other provinces are less than 20% away from their five-year target, with 2.5 years remaining.
Even so, almost half of the 26 provinces have fallen behind, which is why less than half of the overall
expected new capacity has been installed by the midpoint of the five-year plan.
Of the top 10 provinces that have the highest new solar PV capacity installation targets, only three
have managed to complete more than 50% as of the end of June. Provinces like Shanxi, Inner
Mongolia, Gansu and Qinghai, which still have to install more than 20 GW of new capacity, will need
to speed up their project development in the coming years if they want to meet their targets.
Overall, all provinces will need to bring at least 250 GW of solar PV capacity online by the end of
2025 to achieve their respective targets.

For more analysis, insights and reports, clients and non-clients can apply for access to Rystad
Energy’s Free Solutions and get a taste of our data and analytics universe.

NewBase Energy News 18-September - Issue No. 1657 call on +971504822502, UAE
The Editor:” Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced Twice a week and sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscriptions, please email us.
About: Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with over 30 years of experience in the Oil & Gas
sector. Has Mechanical Engineering BSc. & MSc. Degrees from leading U.S.
Universities. Currently working as self leading external Energy consultant for the
GCC area via many leading Energy Services companies. Khaled is the Founder of
the NewBase Energy news articles issues, Khaled is an international consultant,
advisor, ecopreneur and journalist with expertise in Gas & Oil pipeline Networks,
waste management, waste-to-energy, renewable energy, environment protection
and sustainable development. His geographical areas of focus include Middle East,
Africa and Asia. Khaled has successfully accomplished a wide range of projects in
the areas of Gas & Oil with extensive works on Gas Pipeline Network Facilities & gas
compressor stations. Executed projects in the designing & constructing of gas pipelines, gas metering &
regulating stations and in the engineering of gas/oil supply routes.
Has drafted & finalized many contracts/agreements in products sale, transportation, operation &
maintenance agreements. Along with many MOUs & JVs for organizations & governments authorities.
Currently dealing for biomass energy, biogas, waste-to-energy, recycling and waste management. He has
participated in numerous conferences and workshops as chairman, session chair, keynote speaker and
panelist.
Khaled is the Editor-in-Chief of NewBase Energy News and is a professional environmental writer with over
1400 popular articles to his credit. He is proactively engaged in creating mass awareness on renewable
energy, waste management, plant Automation IA and environmental sustainability in different parts of the
world. Khaled has become a reference for many of the Oil & Gas Conferences and for many Energy program
broadcasted internationally, via GCC leading satellite Channels. Khaled can be reached at any time, see
contact details above.

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