Maguire: The global energy transition is shifting from generation to integration.

The global electric grid is entering a new stage. Investment spending by utilities has shifted from solar panels and?farms to the infrastructure required to make renewable-heavy energy systems work.

In Europe, Asia and Africa, as well as Oceania, Latin America and Oceania, the demand for grid equipment and batteries is still on the rise, even though solar system purchases are declining from their previous peaks. This indicates a shift from building renewable energy capacity to strengthening infrastructure that supports it.

This shift is a reflection of the increasing complexity of operating power systems that use large amounts of renewable energy.

Solar 'capacity' is now available in many markets, allowing them to produce significant electricity surpluses, especially during sunny periods. This puts a greater value on battery storage, transmission assets, and grid upgrades, which can balance, redistribute, and store that power.

In order to maximize the use of renewable electricity, rather than focusing on how much energy can be produced, more investment is being directed towards infrastructure.

SOLAR IN REST?

Solar panels, one of the most important components of the global energy transition, have seen a dramatic slowdown in global imports.

Data from Ember show that after peaking in March 2023 at $5.8 billion, the global imports of photovoltaic systems made in China have dropped to less than half this amount. In 2026, they have averaged $2.7 million a month.

The slower adoption of solar arrays in China may not be an indication of a permanent decline, but rather that the solar panels are a victim to their own success.

Since the beginning of 2018, forty different countries, from Australia to Pakistan to Nigeria, have spent more than $1 billion on Chinese solar systems. Twelve of these nations have spent more than $5 billion.

This kind of money can buy a lot solar panels and this has led to a boom in the?solar production capacity. Utility companies that run these power systems need to be able to handle the changes in clean energy production brought on by large solar footprints.

TOOLS OF THE (UTILITY) TRADE

Battery storage systems and real time grid management components are being used in record numbers by utilities around the world to make the most of the solar power that is flowing through their grids.

China is also the top manufacturer and exporter of grid equipment, batteries and renewable energy assets in the world.

The value of China's battery and grid equipment exports has risen to record levels in 2026 despite the fact that total solar system sales are still at about half their peak.

Ember data show that during the first seven month of 2026, importers from around the world paid about $75 billion in Chinese energy storage battery and grid equipment.

This is a significant increase of around $20 billion compared to the same period in 2025. The solar imports in 2026 are currently at $19.4 billion.

Europe spent the most on battery and grid components. The region spent $31.1 billion, followed by Asia with $22 billion.

Latin America and Africa have also pushed battery and grid imports up to record levels this year, with around $3.9 billion in each region. Oceania has also seen imports reach a new high of $3.6 billion.

Imports from the Middle East fell?slightly' to $3.1 billion. This was mainly due to the disruptions in regional economic activity and logistical flows caused by the war with Iran.

Imports of batteries and grids to North America have also declined by around $7 billion in the past year, largely due to high tariffs on products made in China.

USE FULLY

These purchases of grid components and battery systems allow utilities to store excess solar production during sunny periods and release it during peak consumption spells.

This ability of utilities to store excess power for later use reduces system-wide curtailment?of renewable energy assets. It also smoothes out power price volatility and reduces curtailment?of renewable assets within the power networks.

The use of greater battery capacity, and improved grid capabilities can also help to cap the generation from fossil fuel plants. These power plants require constant and expensive fuel replacement -- often through complex international trade routes impacted by geopolitical turmoil.

These benefits are likely to keep China's grid and battery equipment in high demand in the near future. They should also ensure that China’s clean technology sector enjoys robust?export revenues even when solar sales reach saturation in many markets.

In this sense, the slowdown of solar imports is not a sign that momentum has waned but rather a maturing of transition. The renewable energy capacity of many power systems is now substantial, and investment attention is shifting to the assets required to fully utilize that capacity.

The countries that will make the greatest progress in the next decade will be differentiated less by the number of solar panels installed than by their ability to build the tools necessary to use every kilowatt hour of electricity.

These are the opinions of a columnist who writes for.

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(source: Reuters)