TheChek News Flow

European blackout presents opportunities for China’s energy companies, analysts say

China is a leading provider of energy storage and grid-forming technologies that are crucial to preventing major power outages

The massive blackouts across Spain, Portugal and parts of southern France last week are likely to become a “turning point” for energy policy across Europe as governments wake up to an “urgent need” to upgrade grids to account for the growing role of renewables in their power supply mix, analysts said.

And that could present opportunities for Chinese companies involved in the European energy infrastructure market, they added.

Electricity supplies across Spain and Portugal suddenly cut off at around noon on April 28, leaving large parts of both countries without power, internet and mobile phone signal for hours.

Though the exact causes of the blackouts have yet to be determined, experts have stressed that the crisis highlighted the brittleness of Iberia’s power grids in an era when power supplies are increasingly provided by solar and wind energy.

“Right now, we don’t know the causes,” said Ismael Morales, climate policy manager at the Spain-based think tank Fundación Renovables. “What we know is we have lessons to learn for the future.”

“We will need all the Chinese technologies to improve the grid,” he added. “I think right now what we really need from Chinese brands ... is storage. We need to improve our storage capacity in Spain.”

Spain currently has 10 gigawatts of energy storage capacity, which mostly comes from hydropower storage plants, according to Morales. But it has been slow to boost its capacity by investing in new technologies such as battery storage solutions.

Energy storage is crucial to helping grids cope with sudden fluctuations in power supplies, with Spain’s hydro storage facilities playing a key role in ending the blackouts last week.

Other countries have invested far more heavily in storage technology. Germany had 19 gigawatts of battery storage capacity in 2024, according to a report by the German Solar Industry Association. China had 137.9 gigawatts of storage capacity last year, of which 78.3 gigawatts came from non-hydro sources, the China Energy Storage Alliance reported.

Spain has a particularly urgent need to expand its battery storage capacity given its fast-growing renewable energy sector – led by a rapid build-up of solar power generation facilities – and its plans to shut down all its nuclear power plants by 2035, Morales said.

Chinese firms have very competitive products – there are some areas where they are the best in the market

Milan Prodanovic, electricity market analyst

Europe’s battery energy storage market is expected to grow from 17.2 gigawatts in 2023 to 78.1 gigawatts by 2028 in a medium scenario, according to a report by industry association Solar Power Europe last year.

Sungrow, China’s leading battery storage solutions provider, recorded significant growth in the sector last year, with its systems being “widely applied” in markets including Europe, according to the company’s 2024 annual report.

Income from the company’s battery energy storage business surged by more than 40 per cent year on year, reaching 24.96 billion yuan (US$3.43 billion), which helped offset a 5.25 per cent decline in sales from Sungrow’s photovoltaic solar panel division.

Grid-forming technologies, which allow renewable energy power plants and battery energy storage sites to inject electricity into the network independently, shielded from any anomalies in the grid, is another potential area of growth for China’s renewable energy giants.

China is a leading force in grid-forming solutions, with Huawei Technologies and Sungrow traditionally dominating the European solar power inverter market. Between 2015 and 2023, the two companies supplied 48 per cent of the photovoltaic inverters shipped to the European Union, according to Solar Power Europe.

“[Chinese brands] have very competitive products – there are some areas where they are the best in the market,” said Milan Prodanovic, head of the Electrical Systems Unit at Madrid-based government research centre IMDEA Energy.

“Certainly they will be present in many solutions that will be presented in Spain.”

However, it remains to be seen how open Brussels will be towards Chinese involvement in the industry. Since the Russian invasion of Ukraine, the EU has been on high alert with regards to its energy infrastructure.

On Wednesday, the European Solar Manufacturing Council (ESMC) warned of the security risks posed by inverters provided by “non-European manufacturers – most notably from China”, as the devices can be accessed remotely by their makers.

“Europe must act now to prevent a future energy crisis that would rival the gas dependency on Russia,” said Christoph Podewils, secretary general of the ESMC, in a statement.

“We support the European Commission’s upcoming assessment of cybersecurity risks in the solar value chain and are ready to contribute our expertise.”

China is building the world’s tallest dam. It’s just started storing water

First unit of the Shuangjiangkou power station in Sichuan province is expected to be generating electricity by the end of this year

The massive blackouts across Spain, Portugal and parts of southern France last week are likely to become a “turning point” for energy policy across Europe as governments wake up to an “urgent need” to upgrade grids to account for the growing role of renewables in their power supply mix, analysts said.

And that could present opportunities for Chinese companies involved in the European energy infrastructure market, they added.

Electricity supplies across Spain and Portugal suddenly cut off at around noon on April 28, leaving large parts of both countries without power, internet and mobile phone signal for hours.

Though the exact causes of the blackouts have yet to be determined, experts have stressed that the crisis highlighted the brittleness of Iberia’s power grids in an era when power supplies are increasingly provided by solar and wind energy.

“Right now, we don’t know the causes,” said Ismael Morales, climate policy manager at the Spain-based think tank Fundación Renovables. “What we know is we have lessons to learn for the future.”

“We will need all the Chinese technologies to improve the grid,” he added. “I think right now what we really need from Chinese brands ... is storage. We need to improve our storage capacity in Spain.”

Spain currently has 10 gigawatts of energy storage capacity, which mostly comes from hydropower storage plants, according to Morales. But it has been slow to boost its capacity by investing in new technologies such as battery storage solutions.

Energy storage is crucial to helping grids cope with sudden fluctuations in power supplies, with Spain’s hydro storage facilities playing a key role in ending the blackouts last week.

Other countries have invested far more heavily in storage technology. Germany had 19 gigawatts of battery storage capacity in 2024, according to a report by the German Solar Industry Association. China had 137.9 gigawatts of storage capacity last year, of which 78.3 gigawatts came from non-hydro sources, the China Energy Storage Alliance reported.

Spain has a particularly urgent need to expand its battery storage capacity given its fast-growing renewable energy sector – led by a rapid build-up of solar power generation facilities – and its plans to shut down all its nuclear power plants by 2035, Morales said.

Chinese firms have very competitive products – there are some areas where they are the best in the market

Milan Prodanovic, electricity market analyst

Europe’s battery energy storage market is expected to grow from 17.2 gigawatts in 2023 to 78.1 gigawatts by 2028 in a medium scenario, according to a report by industry association Solar Power Europe last year.

Sungrow, China’s leading battery storage solutions provider, recorded significant growth in the sector last year, with its systems being “widely applied” in markets including Europe, according to the company’s 2024 annual report.

Income from the company’s battery energy storage business surged by more than 40 per cent year on year, reaching 24.96 billion yuan (US$3.43 billion), which helped offset a 5.25 per cent decline in sales from Sungrow’s photovoltaic solar panel division.

Grid-forming technologies, which allow renewable energy power plants and battery energy storage sites to inject electricity into the network independently, shielded from any anomalies in the grid, is another potential area of growth for China’s renewable energy giants.

China is a leading force in grid-forming solutions, with Huawei Technologies and Sungrow traditionally dominating the European solar power inverter market. Between 2015 and 2023, the two companies supplied 48 per cent of the photovoltaic inverters shipped to the European Union, according to Solar Power Europe.

“[Chinese brands] have very competitive products – there are some areas where they are the best in the market,” said Milan Prodanovic, head of the Electrical Systems Unit at Madrid-based government research centre IMDEA Energy.

“Certainly they will be present in many solutions that will be presented in Spain.”

However, it remains to be seen how open Brussels will be towards Chinese involvement in the industry. Since the Russian invasion of Ukraine, the EU has been on high alert with regards to its energy infrastructure.

On Wednesday, the European Solar Manufacturing Council (ESMC) warned of the security risks posed by inverters provided by “non-European manufacturers – most notably from China”, as the devices can be accessed remotely by their makers.

“Europe must act now to prevent a future energy crisis that would rival the gas dependency on Russia,” said Christoph Podewils, secretary general of the ESMC, in a statement.

“We support the European Commission’s upcoming assessment of cybersecurity risks in the solar value chain and are ready to contribute our expertise.”

China is building the world’s tallest dam. It’s just started storing water

First unit of the Shuangjiangkou power station in Sichuan province is expected to be generating electricity by the end of this year

The Shuangjiangkou hydropower project in southwest China – which will be the world’s tallest dam when completed – began storing water on May 1, its developer said, taking it a step closer to getting up and running.

The 36 billion yuan (US$4.9 billion) project in the Aba Tibetan and Qiang autonomous prefecture, in Sichuan province, has been under construction for nearly a decade and will be used for power generation and flood control.

It is situated upstream of the Dadu River, which flows from the eastern Tibetan Plateau into the Sichuan Basin.

State-owned Power Construction Corporation of China (PowerChina) is building the project – the dam, a diversion and power generation system, as well as flood discharge structures.

When finished the dam will be 315 metres (1,033 feet) high – about the same height as a skyscraper with more than 100 storeys and 10 metres taller than the current record holder, the Jinping-I dam, also in Sichuan.

PowerChina said in a statement on Tuesday that the water level was at 2,344 metres after the first phase of water storage was completed – about 80 metres higher than the original river level.

The dam’s water storage capacity was said to be at 110 million cubic metres – equivalent to nearly eight times that of West Lake in Hangzhou province.

The company said the progress “laid a solid foundation for the commissioning of the power station”.

Its first unit is expected to be generating electricity by the end of this year.

When it is fully operational, it will have an installed capacity of 2,000 megawatts and the dam will be able to generate more than 7 billion kilowatt-hours of electricity a year. That is projected to meet the annual power needs of more than 3 million families.

According to PowerChina, the clean energy generated by the plant could replace 2.96 million tonnes of the nation’s coal consumption and reduce carbon dioxide emissions by 7.18 million tonnes.

The hydropower station was approved by the central government in April 2015 and construction started in July that year.

There have been huge engineering hurdles to overcome given the project’s location at an altitude of more than 2,400 metres in an area with complex geological conditions, as well as its technical requirements.

Two senior engineers working on the project detailed “acute technical challenges” such as controlling seepage and drainage, seismic resistance and the construction of the dam itself, in a 2016 paper published in Engineering, a journal of the Chinese Academy of Engineering.

Cutting-edge tech such as robotics and new 5G communication technology have been used to tackle these challenges. That includes robotic rollers linked to sensors placed around the site that gather data to help improve performance, and the use of drones to detect potential environmental hazards.

Many of the world’s tallest dams are in China. Since the 1950s, the country has built more than 22,000 dams over 15 metres high – about half the world’s total – for flood control, irrigation and, most importantly, hydroelectric power.

Most of China’s highest dams are in the southwest of the country, spanning rivers such as the Lancang, Yangtze and Jinsha.

But while some tout the clean energy credentials of China’s hydropower dams, critics say they have caused immeasurable damage to biodiversity, land erosion, loss of cultural and archaeological sites, and the forced relocation of more than a million people.

There have been some efforts to address environmental concerns on the Shuangjiangkou project, including establishing botanical gardens to transplant and cultivate protected plants displaced in the building of the dam, according to the Engineering paper.

Six million jobs are at risk from US tariffs alone if duties stay at current levels, says one economist

China’s efforts to keep its urban unemployment rate at around 5.5 per cent face growing headwinds from external and internal pressures, as analysts warn of strains caused by the US trade war, weak global demand and lethargy in the property sector.

The number of jobs that could be lost as a direct consequence of US tariffs if duties remain at current levels is close to six million – around 1.3 per cent of China’s urban workforce, said Julian Evans-Pritchard, head of China economics at Capital Economics, in a report published Wednesday.

Net urban job losses of four million could push China’s urban jobless rate to above 6 per cent, from 5.2 per cent in March, he added.

As China grapples with sluggish economic growth, unemployment has been a persistent headache as policymakers work to stabilise the economy and restore public confidence.

The shock of US tariffs has almost certainly derailed the nascent recovery that China’s labour market began to see ahead of “Liberation Day”, said Evans-Pritchard, referring to US President Donald Trump’s sweeping tariff announcement on April 2.

“Chinese policymakers will probably find ways to keep the published unemployment rate close to their target for this year, but this may mask broader weakness in the labour market as a downturn in exports reduces new hiring, increases underemployment and weighs on wage growth.”

In March, youth unemployment in China, excluding enrolled students, edged down to 16.5 per cent after rising for two consecutive months. But a record 12.22 million fresh graduates this year and the fragile global economy are expected to compound a labour market already weighed down by struggling industries, including a weakened real estate sector where job losses are mounting.

Income growth could subsequently slow by more than one percentage point this year, undermining official efforts to boost consumption, while the wave of automation sweeping China’s manufacturing sector will also widen unemployment, Evans-Pritchard added.

Last year, China’s surveyed urban unemployment rate stood at 5.1 per cent, and it set this year’s goal at “around 5.5 per cent” while acknowledging that certain groups are still under tremendous pressure in the job market.

Peng Peng, executive chairman of the Guangdong Society of Reform, a think tank connected to the provincial government, said mass lay-offs have yet to materialise – partly thanks to exporters front-loading shipments ahead of hefty US levies as well as domestic policy remedies.

“In the early stages of the trade war, many companies rushed to ship orders ahead of schedule, which actually boosted labour demand. Meanwhile, information from trade hubs like the Canton Fair and Yiwu suggests that alternative markets still exist.”

The effect of US tariffs has been partially contained by shifting exports to the domestic market, Peng said. More importantly, “there remains the possibility of a negotiated easing between China and the US, so the full impact may not become clear until the second half of the year”.

But companies had already been struggling before the trade war, he warned, and the employment environment had not been hopeful largely due to China’s slow economic recovery and the widening application of digitisation and AI.

The Italian Arav Group is expanding its portfolio with the Roberto Cavalli and Just Cavalli Junior lines.

Roberto Cavalli has inked a childrenswear licensing deal for six seasons.

The brand has signed a partnership with the Italian fashion group Arav for the production and distribution of the Roberto Cavalli Junior and Just Cavalli Junior collections. The deal is intended to enhance the brand’s presence in the childrenswear market and the first produced and distributed by Arav will be for the spring 2026 season.

Most recently, the brands were licensed to Italian manufacturer Gimel, a deal which was signed in 2017.

Both lines will remain under the creative direction of the brand, while Arav will manage production and distribution through the Cavalli flagships and a selective network of premium retailers such as Harrods in London, Galeries Lafayette in Doha and e-commerce platforms such as LuisaViaRoma, Mytheresa and Farfetch.

The Roberto Cavalli Junior line — which includes newborn, baby and junior segments — features floral and animalier prints, including the signature Cavalli cheetah print, embroideries, and light fabrics. Also, there are mixed silk chiffon dresses and rhinestone-embellished denim for girls and tuxedos, oversized bombers and nylon cargo pants for boys.

Styles of the Just Cavalli Junior collection, which is designed for boys and girls ages 4 to 14, include animalier motifs, bold graphics, vivid colors, and statement logos.

The Arav Group portfolio comprises brands that include apparel and accessories for men, women, and children including John Richmond, Silvian Heach, Marco Bologna, as well as licenses for Trussardi Junior.

Over $10 billion — that’s how much revenue Apple’s U.S. App Store raked in last year, according to a new analysis by app intelligence provider Appfigures.

The firm’s estimates indicate that U.S. App Store revenue from commissions more than doubled between 2020 and 2024. In 2020, Apple’s share of App Store commissions was approximately $4.76 billion, growing to over $10.1 billion by 2024.

Based on Appfigures’ data, U.S. App Store developers generated $33.68 billion in gross revenue from their apps and games using Apple’s payments system in 2024, and took home $23.57 billion after Apple’s cut.

Though Apple doesn’t typically break out its App Store revenue during earnings, it did publish a report in May 2023 where it said the App Store globally generated $104 billion in estimated billings for digital goods and services in 2022.

However, Appfigures’ analysis found the App Store made $61.5 billion globally in 2022, which grew to $91.3 billion in 2024. From this, Apple made more than $27.39 billion in commissions globally last year, Appfigures also said.

That leads to a discrepancy between Appfigures’ analysis and Apple’s own.

This can be explained by an important caveat found in Apple’s report. Under Apple’s chart, it states that its “billings and sales” figures are “not the same as App Store billings.” That’s important here.

When Apple wrote its report, the company was trying to show how big the App Store is and how key it is to the overall economy, so it merged App Store revenue with revenue generated outside the App Store to generate its total for the “Billings and Sales” category.

In the report, Apple calculated the portion of an app’s total revenue that is facilitated by the App Store, even if the purchase was made elsewhere. For instance, if a user buys a subscription to Hulu on the web, but then spends 60% of their time streaming Hulu on Apple devices, Apple credits itself with facilitating 60% of that user’s spend. (To determine usage, the report relied on third-party sources, like market research firms, to estimate how much usage occurred on smartphones versus tablets, desktops, or TVs.)

Apple also allows enterprises to distribute apps with in-app purchases, but these aren’t visible in the App Store.

“Grave Irreparable Harm?”

Examining the numbers around U.S. Apple App Store revenue is more relevant than ever in the wake of the recent court ruling that now prevents Apple from charging a 27% commission on transactions that take place outside the App Store.

Apple initially attempted to comply with the court’s injunction resulting from its antitrust battle with Fortnite maker Epic Games by making changes that wouldn’t harm App Store profits.

To do so, Apple last year gave developers a way to apply for an exception to its App Store rules so they could add web links inside their apps that directed customers to external purchases. However, Apple continued to charge a 27% commission on those purchases and dictated how the website links should appear. (This even included the use of “scare screens” to warn consumers of the dangers of making purchases outside the App Store.)

Last week, a judge ruled that Apple was in “willful violation” of the 2021 injunction by continuing to collect fees on purchases made outside apps and by creating new anticompetitive barriers.

This decision forced Apple to update its U.S. App Store rules, which now allow developers to link out to other ways for consumers to make purchases, without obstacles or commissions. Since then, several apps have taken advantage of the ability to introduce web payments, including Spotify, Amazon Kindle, and Patreon. One small game emulator called Delta is now supporting itself via Patreon memberships, too.

Apple is appealing the decision, arguing in its most recent filing that the ruling causes Apple “grave irreparable harm.”

“These restrictions, which will cost Apple substantial sums annually, are based on conduct that has never been adjudicated to be (and is not) unlawful,” Apple’s filing stated. “Rather, they were imposed to punish Apple for purported non-compliance with an earlier state-law injunction that is itself invalid.”

This argument won’t likely go over well with developers, as many believe Apple should have lowered commissions for everyone years ago, not just for small business developers.

Appfigures’ analysis also broke down U.S. App Store revenue by apps and games, which generated Apple approximately $6.28 billion and $3.83 billion, respectively, in 2024.

Together, these figures highlight how critical App Store revenue remains to Apple’s bottom line, and why it’s fighting so hard to retain control.