China's rapid shift toward clean energy is accelerating, with wind and solar power generation surpassing coal for the first time, research firm Rystad Energy said, citing data from the National Energy Administration.
“Despite coal’s early advantage, with annual installations of around 50 GW before 2016, China has invested heavily in expanding its renewable energy infrastructure. Since 2020, annual wind and solar installations have consistently exceeded 100 GW, three to four times the rate of new coal capacity additions,” Rystad said.
The report pointed out that driven by the grid connection of the first and second batches of GW-level renewable energy hub projects of the National Energy Administration, China's new wind power and solar power installed capacity reached 293GW last year.
By the first half of 2024, China had added only 8GW of coal-fired power capacity, lagging behind wind power's 25GW and solar PV's 105GW.
The current focus is on phasing out small coal plants, upgrading existing coal plants to reduce emissions, and imposing stricter standards on new projects. As a result, the gap in annual capacity addition between coal and clean energy has widened dramatically, reaching 16 times by the first half of 2024.
Rystad senior analyst Simeng Deng said solar power (PV) will be at the heart of China's transformation. It is expected to surpass coal as the country's main energy source by 2026, with a cumulative capacity of more than 1.38TW, 150GW more than coal.
Rystad noted that as China's clean energy capacity grows, it will face challenges such as low utilization and intermittency.
“Addressing these issues will require large-scale upgrades to grid infrastructure to enhance transmission flexibility and storage capabilities. Battery storage will also be critical to maintaining grid reliability, ensuring it remains stable as clean energy expands to meet the needs of a growing population and broader national goals.”
(Source: Rystad Energy New Energy Network)
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