The conflict in the Middle East continues, and the shipping crisis in the Hormuz Strait has continuously elevated global energy costs. However, it has unexpectedly become a promotional opportunity for China's new energy industry.
On November 1, the Hong Kong-based newspaper The South China Morning Post reported that at the 140th Guangzhou International Fair held in Guangzhou, Chinese photovoltaic and energy storage products were highly sought after by overseas buyers. During the first session of the exhibition from October 15 to 19 alone, the solar energy and energy storage exhibition area attracted thousands of visitors every day.
A noteworthy change is that more and more foreign customers are purchasing Chinese new energy products, not just for environmental reasons, but also to reduce energy costs and even ensure basic power supply.
Some of the orders at the Canton Fair are quite representative.
A solar energy company in Zhejiang launched a new type of lightweight balcony photovoltaic panel in July this year. Each panel has an area of about 1.5 square meters and weighs only 2 kilograms, which is much less than the 14 kilograms of traditional products. As a result, the installation cost is reduced by 15% to 20%.
The vice general manager in charge of sales of this company revealed that a Ghanaian customer even placed an order for 200 photovoltaic panels at the exhibition site, based solely on design documents, without even seeing any physical samples.
Guangzhou Felicity Solar Company has demonstrated energy storage systems for factories, farms, and shops. The company's product manager said that after installing its energy storage devices in a South African hotel, the electricity bill was reduced by 80%.
Another leader of a Shandong energy storage company said that the company’s sales volume increased by more than 40% this year. Demand from Africa and Southeast Asia is particularly strong, with orders already scheduled for January next year.
These orders are underpinned by profound changes taking place in the global energy market.
After the military strikes against Iran by the United States and Israel at the end of February this year, the transportation of oil and natural gas through the Strait of Hormuz has continued to be restricted. Although some transportation has resumed, the incidents with ships, insurance costs, and transportation expenses remain high.
For countries that rely on imported energy, this means that electricity prices may increase, the cost of fuel for power generation may rise, and energy supply will become more unpredictable.
In the past, buying solar energy equipment was aimed at reducing carbon emissions; now, for some countries, it is done to avoid the impact of energy crises on daily life.
This change is particularly evident in developing countries.
Unlike developed countries with mature electrical grids, parts of Africa and Southeast Asia have long faced problems of weak grids and unstable power supply. Some businesses and households still rely on diesel generators to cope with power outages.
Once international oil prices rise, these regions suffer more direct impacts.
The combination of solar energy and energy storage systems provides another option: during the day, electricity is generated using sunlight, and any excess power is stored in batteries. This energy can be used at night or during power outages when the grid is unavailable.
Although the initial investment is not low, long-term use can reduce dependence on external energy supplies.
The person in charge of the energy storage company from Shandong, as reported by The South China Morning Post, stated that in Europe, energy storage devices are seen more as a optional consumer good. However, in Africa and Southeast Asia, due to unstable power grids, high oil prices, and frequent extreme weather conditions, energy storage has become a necessity for maintaining life and business operations.
Data also confirms this trend.
According to data from the Jiangsu Province Photovoltaic Industry Association, Pakistan's imports of battery energy storage increased by 220% in 2025, reaching 4.6 GWh. The monthly import volume in April this year was 15 times that of the same period in 2024.
According to data from the Energy and Clean Air Research Center, cited by The Associated Press on October 29, in the first three quarters of this year, Chinese battery exports increased by 39%, solar equipment exports increased by 22%, and wind power equipment exports increased by 45%.
For a long time, the growth of the global new energy industry has been highly dependent on countries' carbon reduction targets, government subsidies, and environmental protection policies.
The Strait of Helmertz Crisis is strengthening another demand: energy security.
This means that even if the Middle East wars end in the future, the demand for new energy sources may not decline. Because wars have made many countries realize that relying too heavily on imported fossil fuels is a risk to both economy and security.
Meanwhile, extreme high temperatures, droughts, and other climate disasters are also increasing the pressure on the power system, further reinforcing the need for distributed generation and energy storage systems.
Chinese enterprises have the industrial chain advantages necessary to meet such demands. From photovoltaic components and energy storage batteries to inverters and control systems, they can provide products on a large scale at relatively low costs.
Of course, an increase in exports does not mean that corporate profits will increase simultaneously. The domestic photovoltaic and energy storage industries still face issues such as overcapacity and fierce price competition. There may also be new trade barriers in overseas markets.
But in the long run, it’s not just about how many photovoltaic panels and batteries China can sell. What matters is a lot more.
What is truly important is that the driving forces of the global new energy market are changing: in the past, it was governments who drove the green transformation, but now it is increasingly the businesses and consumers who make choices based on their own economic interests.
The Strait of Hormuz crisis will not last forever, but it could permanently change the perception of energy security among some countries.
For China's new energy industry, this may be more important than a round of short-term order growth.
