Sustainable practices cut prices, fuel market

The synergistic strengths of China and Brazil in renewable energy promise extensive opportunities for enhanced collaboration, poised to significantly propel the worldwide shift toward sustainable energy sources, said experts.

Nestled within a tropical climate rich in sunlight, Brazil emerges as a leading force in Latin America's burgeoning photovoltaic sector. Bolstered by governmental backing, the nation emerged as the world's third-largest market for solar additions in 2023, after China and the US, according to research provider BloombergNEF.

Meanwhile, China flaunts a formidable industrial infrastructure, wielding technical prowess and cost efficiencies in the production of photovoltaic equipment. A growing number of Chinese solar firms are also exploring varied avenues for international cooperation, be it through offshore manufacturing facilities or technology licensing agreements. This may echo Brazil's drive to nurture domestic solar equipment manufacturing, fostering a mutually beneficial ecosystem, experts said.

"China and Brazil complement each other in renewable energy development, with Brazil rich in new energy resources and China leading globally in wind, solar and electric vehicle production. Cooperation between China and Brazil in renewable energy will create a win-win situation, offering significant room for future collaboration," said Lin Boqiang, head of the China Institute for Studies in Energy Policy at Xiamen University.

"Enhanced cooperation between the two countries in renewable energy will help break barriers to capital and technology flow, making a remarkable contribution to global energy transition," he added.

Global cooperation is paramount in achieving shared climate goals. Francesco La Camera, director-general of the International Renewable Energy Agency, said in a recent interview with China Daily that the world is not on track to achieve the goal of tripling the installed capacity of renewable energy by 2030, a goal set at the 2023 COP28 United Nations Climate Change Conference in Dubai, while tripling renewables is essential to cut emissions and keep the Paris Agreement goal of limiting global warming to 1.5 C within reach.

He said China is spearheading the global transition toward sustainable practices by providing affordable solar panels and wind turbines, promoting electric vehicles and charging infrastructure.

According to China's National Energy Administration, over the past decade, average power costs per kilowatt-hour of wind and solar power projects in China have fallen by over 60 percent and 80 percent, respectively. Globally, the country has to date contributed over 80 percent of photovoltaic modules and 70 percent of wind power equipment. Its products have been exported to over 200 countries and regions.

In the first half, Brazil became the third-largest market for Chinese photovoltaic module exports, accounting for 8.8 percent of total exports, closely following Pakistan at 8.9 percent, according to the China Photovoltaic Industry Association.

Many Chinese companies have invested in Brazil, establishing factories and fostering mutually beneficial partnerships. In June this year, a solar power station, invested and constructed by China's State Power Investment Corp's Brazil branch, commenced operation with an installed capacity of 446 kilowatts, capable of providing electricity for nearly 550,000 households annually.