The nation sets an example of green transformation

Industry experts say that for the first time in history, China’s installed capacity of wind and solar power plants has surpassed that of coal-fired power plants, further cementing the country’s position as a leader in the global renewable energy sector.

Deng Simeng, a senior analyst for renewables and energy research at global consulting firm Rystad Energy, said the fact that wind and solar power capacity surpassed coal-fired capacity by the end of June is a key indicator of the country’s rapid transformation toward a greener, lower-emission economy, an important strategic initiative highlighted at the third plenary session of the 20th Central Committee of the Communist Party of China.

Maximizing renewable energy is key to realizing the vision of a green, low-carbon economy outlined in the plenary resolution, Deng said. “In the power sector, China has installed 1,180 gigawatts of wind and solar capacity as of the end of June 2024 — just 20 gigawatts short of its target of 1,200 gigawatts by 2030. There is no doubt that this target can be achieved this year, six years ahead of schedule,” she added.

Han Wenxiu, deputy executive director of the Office of the Central Committee for Finance and Economic Affairs, said in an earlier report that China will continue to deepen the reform of the ecological civilization system and promote green, low-carbon and circular development.

Combined wind and solar power capacity reached 1.18 billion kilowatts at the end of last month, up 37.2 percent year-on-year, according to the China Electricity Council, as the country pushes ahead with efforts to accelerate renewable energy development.

For the first time, this was more than coal-fired power capacity, which reached 1.17 billion kilowatts and accounted for 38.1 percent of total installed generating capacity, down 4.3 percentage points from a year earlier, the council said.

As of the end of June, China’s total installed electricity generating capacity reached about 3.07 billion kilowatts, an increase of 14.1 percent compared with a year earlier.

Wang Lining, director of the oil market department at the Economic and Technological Research Institute of China National Petroleum Corporation, said the achievement is the result of joint efforts of industrial policy and market-driven innovation.

“With its huge potential for economic development, renewable energy sources, as well as new technologies such as new energy storage and carbon capture, utilization and storage… will continue to grow rapidly in China,” he said. “This growth will further drive the construction of a new energy system and the country’s circular development, as well as achieving the goals of peak carbon emissions and carbon neutrality.”

As China is the world’s largest producer and user of new energy equipment, its renewable energy development path will also be an example to other countries, contributing to the global transition to a low-carbon economy, Wang added.

Strong foundations

China’s large manufacturing capacity and the government’s continued support for the development of clean technologies have created a solid foundation for the country’s green transformation, according to a new report by the International Energy Agency and the Institute of Energy at Peking University.

China’s investment in the energy sector has maintained strong momentum in recent years, accounting for a third of global clean energy investment, which in turn has played a key role in driving the country’s overall GDP growth, according to a report titled “World Energy Investment 2024.”

Haneul Kim, a policy analyst at the IEA, said the country’s leadership in global energy investment was underscored by its installed photovoltaic capacity last year, which was equal to the global total in the previous year.

China’s wind power capacity has increased by about 66 percent year-on-year, Kim added, and the country has also been the world’s largest nuclear power producer for five consecutive years.

Three major high-tech green products — new energy vehicles, photovoltaic products and lithium batteries, known as the “new three” — saw exports increase by 30 percent in 2023 from a year earlier, making them an important factor in China’s trade, according to the World Energy Investment report.

China has seen continued rapid growth in renewable energy installations, according to Rystad Energy, a global consulting firm. The country’s newly installed wind and solar power capacity will reach 293 GW in 2023, a record high, Rystad Energy said, adding that 128 GW of new installations were installed in the first half of this year.

“Many gigawatt-scale renewable energy baseline projects, classified as the second and third group projects of the National Energy Administration, have been completed and connected to the grid six months ahead of schedule,” said Rystad Energy’s Deng.

“By comparison, coal-fired power added about 40 GW in 2023 and less than 10 GW in the first half of this year,” she added.

According to Deng, in contrast to its policies supporting wind and solar power, China has been cautious about developing coal-fired power due to the country’s ambitions to control carbon dioxide emissions.

“While the government has stepped up efforts to phase out aging and polluting coal-fired power plants and encouraged the modernization of existing coal-fired power plants to reduce carbon dioxide emissions, local governments are also applying high-efficiency and cleanliness standards when approving new coal-fired power plants,” Deng said.

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