East Asian Countries Accelerate Renewable Shift as Hormuz, Bab-al-Mandab Disruptions Expose 2 Chokepoint Risks
Updated
Updated · thenews.pk · Jul 31
East Asian Countries Accelerate Renewable Shift as Hormuz, Bab-al-Mandab Disruptions Expose 2 Chokepoint Risks
2 articles · Updated · thenews.pk · Jul 31
Summary
East Asian economies are speeding up renewable energy investment after disruptions in the Strait of Hormuz and Bab-al-Mandab exposed their reliance on imported oil.
Those shipping shocks have lifted energy and fuel prices, transportation costs, marine insurance premiums and rerouting expenses, turning the energy transition into an economic security response.
The pressure is especially acute for trade-dependent Asian economies, where vulnerable sea lanes can quickly transmit supply disruptions into broader inflation and energy-security risks.
China already illustrates the regional shift: its solar capacity reached 1,274 GW in June, nearly matching 1,275 GW of coal and set to overtake it this quarter.
If solar now matches coal in China’s installed capacity, why does coal still supply nearly half of its electricity?
Is China’s clean-energy milestone a real coal turning point, or just a capacity record that masks continued dependence on fossil power?
China’s Solar Capacity Surpasses Coal in 2026: Historic Shift, Policy Upheaval, and Global Supply Chain Shockwaves
Overview
China’s energy sector is undergoing a dramatic shift as rapid clean energy expansion and strong demand from advanced industries drive solar power capacity to surpass coal for the first time in 2026. This transformation was accelerated by policy reforms that ended fixed-rate incentives, triggering a record solar installation rush before a new competitive pricing system cooled the market. Despite solar’s capacity milestone, coal remains dominant in actual electricity generation due to its higher capacity factor, but its role is shifting toward flexible grid support. Meanwhile, intense domestic competition and new efficiency standards are forcing consolidation in China’s solar industry, while global trade barriers push Chinese manufacturers to build factories abroad and seek new export routes. Over the past decade, China’s relentless scaling has helped cut global solar costs by 90%, reshaping both domestic and international energy landscapes.