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China Solidifies its Position as Leader in Renewable Energy

China Solidifies its Position as Leader in Renewable Energy

Anela DoksoBy Anela Dokso18/07/20243 Mins Read
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China has solidified its position as a global leader in renewable energy development. With 180 GW of utility-scale solar and 159 GW of wind power currently under construction, the country’s efforts are unparalleled.

These projects represent nearly twice the combined capacity of the rest of the world, according to the Global Energy Monitor (GEM). This article critically examines China’s achievements in the hydrogen energy sector, contextualizing its progress within global benchmarks and industry standards.

China’s utility-scale solar and wind power capacity under construction totals 339 GW, accounting for one-third of all proposed capacity in the country. This stark contrast to the global construction rate of just 7% highlights China’s aggressive commitment to expanding its renewable energy infrastructure. In 2023 alone, China added more utility-scale solar and wind power than in any previous year, with solar capacity now significantly surpassing wind.

Distributed solar has seen a remarkable surge, particularly in residential installations driven by China’s “whole county solar” model. In 2023, nearly half of the distributed solar capacity was installed on residential rooftops. Distributed solar now accounts for 41% of China’s total solar capacity and has grown faster than centralized solar since 2021 due to lower investment costs, easier installation, and strong policy support.

Transmission Bottlenecks

Transmission of electricity from utility-scale solar and wind installations in the north and northwest to demand centers in central, southern, and eastern China is another critical challenge. Ultra High Voltage (UHV) transmission lines are essential for this task, yet the current construction pace is insufficient. The lag in transmission infrastructure development has led to significant curtailment rates, with solar power curtailment exceeding 5% nationwide in March 2024. This bottleneck could hinder future renewable energy growth if not addressed promptly.

The distribution of renewable energy capacity across China’s provinces reveals significant disparities. Northwest and north provinces continue to dominate in large-scale solar and wind installations, while distributed solar is transforming the energy landscape in central and southern provinces. Offshore wind capacity is also growing rapidly, with provinces like Jiangsu and Fujian leading the way. However, these regional dynamics could shift as more offshore projects come online.

If all proposed utility-scale solar and wind projects come online as planned, China could reach 1,200 GW of installed capacity by the end of 2024, six years ahead of President Xi Jinping’s pledge. This rapid growth trajectory suggests that China is on track to triple its renewable energy capacity by 2030, based on 2020 levels, even without additional hydropower contributions. However, achieving these ambitious targets will require overcoming the current grid and transmission challenges.

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