China’s Energy Firms See Gains as Europe Faces Blackout, Analysts Contend
China leads in supplying energy storage and grid-forming technologies that play a vital role in averting significant power failures.
Last week’s widespread blackouts in Spain, Portugal, and certain areas of southern France may serve as a “pivot” moment for European energy policies. As governments realize the critical necessity to enhance grid infrastructure to accommodate the increasing contribution of renewable sources to their power generation, experts have commented.
This might also open up possibilities for Chinese firms participating in Europe’s energy infrastructure sector, they noted.
Electrical power across Spain and Portugal
suddenly cut off
Around midday on April 28, significant portions of both nations were left without electricity, internet access, and mobile phone signals for several hours.
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Although the precise reasons for the blackouts remain unclear, specialists have emphasized that the situation exposed the vulnerability of Iberia’s electrical networks as reliance on solar and wind energy continues to grow in modern power supply systems.
“At present, we are unclear about the reasons,” stated Ismael Morales, who works as the climate policy manager at the Madrid-based research organization Fundación Renovables. “The only thing we understand is that we must draw insights from this experience moving forward.”
He mentioned, ‘We require all the technological advancements from China to enhance the power grid.’ He continued, ‘Currently, what we truly need from Chinese companies… is energy storage. Improving our storage capabilities within Spain is essential.’
Currently, Spain boasts an energy storage capacity of 10 gigawatts, primarily sourced from hydropower storage facilities, as stated by Morales. However, the country has progressed slowly in expanding this capacity through investments in innovative technologies like battery storage systems.
Energy storage is vital for assisting electrical grids manage abrupt changes in power supply; notably, Spain’s hydropower storage installations were instrumental in preventing blackouts last week.
Other countries have
invested far more heavily
In terms of storage technology, Germany possessed 19 gigawatts of battery storage capacity in 2024, as stated in a report by the German Solar Industry Association. The China Energy Storage Alliance noted that China had 137.9 gigawatts of storage capacity in the previous year, with 78.3 gigawatts originating from non-hydroelectric sources.
Given Spain’s rapidly expanding renewable energy sector, with a significant focus on solar power installations, there is an acute necessity to increase its battery storage capabilities, Morales stated. Additionally, this urgency is compounded by Spain’s intention to close all its nuclear power plants by 2035.
Chinese companies offer highly competitive products — there are certain sectors where they lead the market.
The European battery energy storage market is projected to expand from 17.2 gigawatts in 2023 to 78.1 gigawatts by 2028 under a moderate growth forecast, as stated in a report released last year by SolarPower Europe, an industry group.
Sungrow, the foremost supplier of battery storage solutions in China, experienced substantial expansion within the industry over the past year. The company reported that their systems were extensively utilized across various markets such as Europe, as stated in Sungrow’s 2024 annual report.
The revenue generated by the company’s battery energy storage segment skyrocketed by over 40 percent compared to the previous year, totaling 24.96 billion yuan (approximately US$3.43 billion). This significant increase helped compensate for a 5.25 percent drop in earnings from Sungrow’s photovoltaic solar panel sector.
Grid-forming technologies, which allow renewable energy power plants and battery energy storage sites to inject electricity into the network independently, shielded from any anomalies in the grid, is another potential area of growth for China’s renewable energy giants.
Huawei Technologies and Sungrow have been dominant players in the European solar power inverter market, accounting for 48 percent of photovoltaic inverters delivered to the EU between 2015 and 2023, as reported by Solar Power Europe. China continues to be at the forefront of developing grid-forming technologies.
“[Chinese brands] offer highly competitive products — there are certain sectors where they lead the market,” stated Milan Prodanovic, who heads the Electrical Systems Unit at IMDEA Energy, a government research center based in Madrid.
Surely, they will feature in numerous solutions that will be showcased in Spain.
It remains uncertain just how receptive Brussels will be toward Chinese participation in the sector. Following the Russian invasion of Ukraine, the European Union has:
has remained on high alert
concerning its energy facilities.
On Wednesday, the European Solar Manufacturing Council (ESMC) raised concerns about potential security threats related to inverters supplied by “manufacturers outside Europe—especially those based in China,” noting that these devices may allow maker companies remote access.
Christoph Podewils, the secretary general of the ESMC, stated, “It is crucial for Europe to take action immediately to avoid a potential energy crisis as severe as its current dependence on Russian natural gas.”
We back the forthcoming evaluation from the European Commission regarding cybersecurity threats within the solar supply chain and stand prepared to offer our specialized knowledge.
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