Infrastructure investment as a solution to China's clean-energy overcapacity challenge
By
Alicia García-Herrero and Bertin Martens
Summary
This working paper examines China's clean-energy overcapacity problem, where rapid green industrial expansion has outstripped domestic demand, putting renewable energy firms under financial strain. The key issue identified is grid infrastructure expansion, which is presented as the critical test for market rebalancing. The paper analyzes whether infrastructure investment, particularly in grid capacity, can effectively absorb the excess supply and stabilize the clean-energy sector.
Source
bskyInfrastructure investment as a solution to China's clean-energy overcapacity challengebruegel.orgKey quotes
· 3 pulledChina's green industrial strategy has outpaced demand, leaving renewables firms under strain
Grid expansion as the key test of market rebalancing
Infrastructure investment may mitigate China's clean-energy overcapacity
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