A report has found that China has nearly double the amount of wind and solar power under construction compared to the rest of the world combined. According to research from Global Energy Monitor (GEM), China is building 180 gigawatts (GW) of utility-scale solar power and 159GW of wind power, totaling 339GW, far surpassing the 40GW under construction in the US. The study only included solar farms with capacities of 20MW or more, indicating that China’s total solar capacity could be significantly higher, as small-scale solar farms make up about 40% of its capacity.
These findings highlight China’s leading role in global renewable energy production, at a time when the US is increasingly concerned about Chinese overcapacity and market dominance, especially in the solar industry. China’s renewable energy sector has boomed in recent years, driven by substantial government support. President Xi Jinping has emphasized the need for “new quality productive forces,” which includes bolstering green manufacturing and technology.
Between March 2023 and March 2024, China installed more solar capacity than it had in the previous three years combined, and more than the rest of the world combined for 2023, according to GEM analysts. China is expected to achieve 1,200GW of installed wind and solar capacity by the end of 2024, six years ahead of its target.
“The continuous wave of construction ensures that China will remain the leader in wind and solar installations for the foreseeable future, far outpacing the rest of the world,” the report stated. However, analysts caution that more renewable capacity is needed for China to meet its goal of reducing the carbon intensity of its economy by 18%, which is crucial for lowering emissions. Carbon intensity measures the grams of CO2 released per kilowatt hour of electricity produced.
Earlier studies suggest China must install between 1,600GW and 1,800GW of wind and solar energy by 2030 to achieve its goal of generating 25% of its energy from non-fossil sources. From 2020 to 2023, only 30% of energy consumption growth was met by renewables, falling short of the 50% target.
“It is crucial for China to continue expanding its renewable energy capacity to meet its targets,” said Li Shuo, director of the China Climate Hub at the Asia Policy Institute in Washington DC. “However, it’s not as simple as just building more capacity… there is no indication that the country is moving away from coal consumption.”
Previous research by GEM and the Centre for Research on Energy and Clean Air found that approvals for new coal power plants increased fourfold between 2022-2023, compared to the previous five-year period, despite a 2021 pledge to “strictly control” new coal power. Total coal consumption growth also rose from an average of 0.5% annually to 3.8% annually between the two periods.
Geopolitical tensions, such as the war in Ukraine and significant power outages in parts of China, have heightened Chinese officials’ concerns about energy security. China’s power grid remains heavily reliant on coal to offset the intermittency of renewable energy. Officials also see the coal industry as a reliable means to boost local GDP, though clean energy sectors have become the main driver of China’s economic growth, accounting for 40% of GDP expansion in 2023.
Analysts suggest that better storage solutions and grid flexibility are necessary to efficiently utilize the growing amount of clean energy from China’s wind and solar farms. The Chinese government recognizes this challenge, identifying lithium-ion batteries as one of the “new three” crucial technologies for high-quality growth, alongside electric vehicles and solar panels. In 2023, $11 billion was invested in grid-connected batteries, a 364% increase from 2022.
The GEM report also noted China’s leading role in building planned renewable energy infrastructure. The 339GW of wind and solar under construction represents one-third of proposed projects, significantly outpacing the global construction rate of 7%.
“China’s renewable energy pipeline is twice as large as the rest of the world’s,” said Li. “But we should increasingly ask ourselves why the rest of the world is so slow.”
