China's renewables development surges ahead, twice as fast as world
China is currently constructing nearly twice as much wind and solar power as the rest of the world combined, according to a report by Global Energy Monitor (GEM). The research reveals that China has 180 gigawatts (GW) of utility-scale solar power and 15GW of wind power under construction. This brings China's total renewable energy construction to 339GW, significantly surpassing the US's 40GW.
China's surge fueled by government support
China's renewable energy sector has seen a significant boost in recent years, largely due to strong government support. President Xi Jinping has emphasized the need for "new quality productive forces," indicating a shift toward technology and innovation, including green manufacturing. Between March 2023 and March 2024, China installed more solar power than it had in the previous three years combined, according to GEM analysts.
Renewable energy targets require more capacity
Analysts warn that China still needs to increase its renewable capacity to meet its target of reducing the carbon intensity of the economy by 18%, a crucial factor in reducing emissions. To achieve its goal of generating 25% of all energy from non-fossil sources by 2030, China will need to install between 1,600GW and 1,800GW of wind and solar energy. From 2020 to 2023, renewable sources met only 30% of growth in energy consumption, falling short of the 50% target.
Coal consumption challenges China's ambitions
Despite a 2021 pledge to "strictly control" new coal power, approvals for new coal power plants in China increased fourfold in 2022-2023 compared to the previous five-year period. Total coal consumption also saw an increase, rising from an average of 0.5% a year to 3.8% a year between these two time periods. The country's power grid remains heavily reliant on coal, which officials view as necessary to balance the intermittency of renewable energy.
Grid flexibility and storage key to renewable goals
Analysts suggest that improved storage and grid flexibility are crucial for efficiently utilizing the increasing volume of clean energy generated by China's wind and solar farms. The Chinese government has recognized this challenge, identifying lithium-ion batteries as one of the "new three" technologies important for high-quality growth. In response, last year saw an investment of $11 billion in grid-connected batteries, marking a 364% increase from 2022.
