China is experiencing a significant transformation in its energy sector, as wind and solar energy have collectively surpassed coal in capacity for the first time as of June this year.
This milestone was reported by China’s National Energy Administration (NEA) and analysed by Rystad Energy, which predicts that by 2026, solar power alone will exceed coal as China’s primary energy source, with a cumulative capacity of over 1.38 terawatts (TW), surpassing coal by 150 gigawatts (GW).
This shift is driven by China’s increasing focus on cleaner energy sources and a strategic move away from fossil fuels.
Historically, coal dominated China’s energy landscape, with around 50 GW of annual installations before 2016.
However, since 2020, China has consistently added over 100 GW annually in wind and solar capacity, significantly outpacing coal additions.
In 2023, China set a record with 293 GW of wind and solar installations, supported by large-scale renewable projects connected to the grid.
In contrast, coal power expansion is declining. Last year, China added approximately 40 GW of coal power, but this figure dropped to just 8 GW in the first half of 2024.
The government has imposed stricter restrictions on new coal projects to align with carbon reduction goals, focusing on phasing out smaller coal plants and upgrading existing ones to reduce emissions.
This has resulted in a significant gap between coal and renewable energy capacity additions, with clean energy additions outpacing coal by 16 times in the first half of 2024.
Wind and solar power have been rapidly scaling up in China.
Wind power, introduced in the early 2000s, saw substantial growth with 75 GW of new additions last year and 25 GW in the first half of this year.
Solar photovoltaic (PV) has also made a significant impact, with a record 216 GW of new capacity last year and an expected total of over 230 GW for this year.
Despite these advancements, challenges remain, such as low utilisation and intermittency of renewable energy sources.
To address these, China needs to upgrade its grid infrastructure to enhance transmission flexibility and storage capabilities.
Battery storage will be crucial for maintaining grid reliability as clean energy continues to expand to meet the demands of a growing population and national targets.
Simeng Deng, a Senior Analyst at Rystad Energy, highlights the significance of this transition, stating: “We’re at a pivotal moment for both China and the global energy transition. With strong renewable energy project pipelines in place, the country is on track to shed its reputation as the world’s largest greenhouse gas emitter and power consumer.
“Solar energy will be central to this transformation, potentially transforming China from a coal-dependent giant into a leader in clean energy.”
