Wind and solar to make up 40% of China’s power capacity by year-end

Wind and solar power accounted for 38.4% of China's overall installed capacity in the first half of the year, surpassing coal-fired capacity, which fell to 38.1%, according to a report by the China Electricity Council (CEC). This marks the first time that renewable energy sources have overtaken coal in terms of installed capacity in the country.

As reported by bne IntelliNews, China has become the global green energy champion and is producing more green power than any other country in the world. It is also on course to reach peak emissions in the next few years, well ahead of any other country, despite being the biggest emitter of CO₂ in the world.

Now it is projected to add approximately 300 GW of solar and wind capacity this year, slightly more than the 293 GW added in the previous year. The CEC report anticipates that by the end of the year, the total grid-connected wind and solar capacity will reach 1,350 GW, making up more than 40% of the nation's total installed capacity, which is expected to be around 3,300 GW, S&P Global reports.

This growth in renewable energy capacity is expected to drive the total installed capacity of non-fossil fuel energy sources – including nuclear and hydropower – to 1,900 GW by the end of 2024, representing 57.5% of the overall energy mix, up from 53.9% in 2023.

China, the world's largest emitter of greenhouse gases (GHGs) and power consumer, is striving to derive 80% of its energy mix from non-fossil fuel sources by 2060, in line with its goal to become carbon neutral. As of mid-year, China had 1,180 GW of wind and solar capacity, representing 38.4% of its total 3,070-GW capacity.

Meanwhile, coal-fired power capacity decreased to 1,170 GW, accounting for 38.1% of the total power capacity as of June's end. The share of coal, the dirtiest fossil fuel, in China's energy mix is expected to fall below 37% by year-end, the CEC noted.

Despite the significant expansion in renewable energy, the CEC report warned of "mounting pressure in absorbing renewable energy" and a significant drop in utilisation rates for these clean energy sources in some regions. The report highlights the need for further upgrades to China's grid infrastructure to enhance its flexibility in transmission and storage, critical for managing intermittent wind and solar power supplies.

The utilisation of solar and wind power, measured in operational hours, was less than half that of coal in the first six months of the year, resulting in a much lower actual power generation volume from these renewable sources. In 2023, coal accounted for nearly two-thirds of China's electricity supply, underscoring the ongoing dominance of coal in the country's energy mix despite the growth in renewable energy capacity.

President Xi Jinping stated in 2021 that China would "strictly control coal consumption" until 2025 and begin to "phase down coal consumption" from 2026, signalling the country's long-term commitment to reducing its reliance on fossil fuels.