For the first time, solar power is surpassing oil in terms of energy production capacity. According to Bloomberg, the seven largest solar companies now have the capability to generate more energy than the seven biggest oil companies, marking a shift which also suggests a potential change in control of the global energy sector, moving from Western nations to Eastern ones.
Despite solar power’s growing capacity, Big Oil still maintains an edge in terms of annual useful power output. However, when considering the potential long-term energy generation of solar and oil firms, clean energy starts to take the lead. The current solar infrastructure will produce more electricity over time compared to active oil wells, even before significant reinvestments are needed. By the time new solar panels are required and additional oil reserves need to be located, solar energy is expected to be firmly in the lead.
The year 2023 saw record investments in solar power, surpassing those made in the oil sector. Nearly $400 billion was spent on solar energy last year, reflecting a significant shift towards renewable power.
However, while the world’s environment is set to benefit from this increased proliferation of green energy, one nation in particular has the most to gain.
The seven leading solar providers — projected to produce substantial power in the coming years — are all Chinese companies.
This dominance is supported by Beijing’s control of 80% of the world’s solar technology supply chain. In contrast, the top seven oil firms are all based in Western countries, pointing to a potential change in where most of the world’s energy will come from in the future.
In response to China’s growing dominance in the solar sector, Western nations have taken measures to limit this influence. Last month, the U.S. government increased tariffs on Chinese solar panels. Earlier this year, the majority of EU member nations committed to sourcing their solar infrastructure from European manufacturers.