China's fast adoption of renewable energy is bad news for natural gas producers specified as Russia, Turkmenistan and Kazakhstan. However, this may have affirmative consequences for the Uzbekistan Green Energy Programme.
According to a late published study by BloombergNEF entitled Energy transition supply chains 2025, China controls more than 70% of global production capacity in each main clean energy production category, but hydrogen electrolyzers. The study states that " Continental China is besides dominant in attracting fresh capital to clean-tech factories specified as batteries, solar modules and wind turbines, with 76% of specified investments in 2024 covering plants". In addition to enjoying the monopoly on production capacity, China has seen a crucial increase in the production of clean energy, especially electricity produced from the sun. Renewable energy sources can now meet 80% of China's increasing request for energy and electricity. According to an analysis by Ember, an analytical centre on the creation of targeted data and political insights that accelerate the transition to a clean energy future, China is on track to install at least 2461 GW of renewable energy by 2030, doubling the number from 2022 and solar power is almost triple. Fossil fuels proceed to account for about 62% of the energy consumption in China. However, this share is set to decline in the coming years due to the slowdown of the Chinese economy, the growth of renewable energy sources and Xi Jinping's plan to accomplish carbon neutrality by 2060.
All these factors aid explain fresh energy developments in Central Asia related to natural gas. China has long been seen as the main driver of expanding global gas demand, but now their energy bill is moving towards renewable energy sources. These changing circumstances most likely prompted Chinese leaders to argue the Russian plan of early 2025 to send additional gas to China through Kazakhstan. This besides explains why the Siberia 2 Power pipeline task remains suspended. China's decreasing request for gas could besides have played a function in Turkmenistan's fresh decision to start shipping westwards through a swap agreement with Turkey. Ashchabad could sense that China would not request specified large amounts of Turkmen gas in the future. The increasing trade war is likely to leave China with a large supply of solar panels and another goods needed to produce clean energy. This puts Uzbekistan, which itself makes large efforts to introduce renewable energy sources, in a situation where it can benefit from possibly reduced prices of Chinese goods. "As many developed economies put protectionism on tariffs, developing markets receive an expanding share of imports from mainland China" — stated in the BloombergNEF study.
Source: Eurasianet
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