China's leadership in the renewable energy sector is now absolute. With its capacity for transformation and speed of implementation, this country has surpassed all historical records, positioning itself not only as the largest clean energy market but also as a global leader in the energy transition. The figures provided by international organizations leave no room for doubt: both in terms of investment volume and technological deployment and innovation, what happens in the Asian giant has a direct impact on global energy trends.
In recent years, progress has been such that China has already met its 2030 targets ahead of schedule, multiplying its installed capacity of solar and wind energy and modernizing its electricity grid to accommodate this unprecedented growth. This article provides a detailed and rigorous review of all the most relevant data and trends currently affecting renewable energy in China, explaining how and why it has become the epicenter of global energy change.
China, the undisputed leader in renewable energy: impressive figures
China currently boasts the largest installed capacity of solar and wind power on the planet, breaking record after record year after year. According to data provided by the International Renewable Energy Agency (IRENA) and the National Energy Administration of China, in 2024 alone the country added nearly 887 GW of solar energy and around 460 GW of wind energy (including onshore and offshore wind), figures that triple or quadruple any of the other major powers. Learn more about how China is taking the lead in renewable energy..
For comparison, the United States has less than 140 GW of solar energy, while Germany, the most advanced European country, has around 90 GW. A similar situation exists in wind energy: China accounts for approximately 60% of new wind capacity installations worldwide and 58% of solar capacity, figures that consolidate this country as a global driver of the renewable energy industry.
Particularly striking was the growth in 2023, the year in which they were installed 216,9 GW of solar energy, more than many countries have achieved in their entire combined history. The pace of clean energy deployment is such that China It already exceeded its 2024 target in July 2030. (reach 1.200 GW of renewables), demonstrating an unprecedented acceleration.
Hydropower remains key, with more than 390 GW installed. However, the dominant trend is the growth of solar and wind power, which already represent approximately 37% of the country's total electrical capacity, with prospects of surpassing coal before 2030 if current growth continues.
A distinctive feature of China's renewable energy deployment is its commitment to distributed systems: much of the new solar capacity comes from small installations on residential and commercial rooftops, especially in central and southern provinces, which is transforming the territorial distribution of electricity generation and diversifying supply sources.
Factors that explain the renewable energy boom in China
The overwhelming success of the renewable transition in China It is not a result of chanceThere are several structural and strategic factors that explain the phenomenon:
- Ambitious state energy policySince its 13th Five-Year Plan, the Chinese government has prioritized the development of clean energy to ensure energy security, reduce dependence on coal, and meet its climate plans.
- Industrial capacity and economies of scale: China has achieved manufacturing prices, especially in solar photovoltaics and batteries, well below the world average, thanks to its manufacturing leadership and an optimized supply chain.
- Financial support and local incentivesThe policy of subsidies, soft loans, and the promotion of industrial clusters has enabled the rapid development of projects, both large-scale and distributed.
- Technological and infrastructure modernizationThe massive deployment of ultra-high voltage (UHV) grids has facilitated the efficient transport of electricity from remote generating regions to large urban centers and industrial centres.
- Systematic cost reductionAdvances in manufacturing and a commitment to technological innovation have meant that both the levelized cost of solar and wind electricity are currently lower in China than in any other major global market.
All of this, combined with international pressure to reduce greenhouse gas emissions and the desire to avoid dependence on foreign markets for key components, has made renewables not only an environmental issue, but also a strategic and economic development issue.
Grid modernization: the key role of ultra-high voltage lines
One of the major challenges of any energy transition is how to deliver renewable energy, which is often generated in remote regions (deserts, rural areas, or marine areas), to major consumption hubs. China has decided to lead the world in this regard as well, thanks to an ultra-high voltage (UHV) transmission network that is unique in scale and technology.
This type of infrastructure allows electricity to be transported over thousands of kilometers with minimal losses and unparalleled efficiency. Examples such as the connection between the Xiangjiaba hydroelectric plant and Shanghai, over 1.900 km apart, illustrate how electricity can travel almost at the speed of light and supply megacities with clean energy from very remote locations.
The commitment to UHV has intensified in recent years. By mid-2024, the country had already launched at least 38 major UHV lines, totaling more than 48.000 km, enough to circle the planet around the equator. These "Energy Shinkansen" – as they are known – have been instrumental in bringing new wind and solar energy from regions in the northwest, Inner Mongolia, Xinjiang and the southwest to major consumption centers on the east and south coasts..
However, the construction of UHV lines is very expensive and depends on the investment of two state-owned giants. To capitalize on these investments, electricity transmission from fossil fuels (coal, gas) is often resorted to when renewable sources are insufficient, posing a challenge to achieving 100% clean penetration. Furthermore, the proportion of wind and solar energy transported by UHV is even lower, at around 27%, with hydroelectric power being the dominant source.
Laws, regulations, and the institutional future of renewable energy in China
The great legal leap of 2025 has been the approval of the China's first Energy Law, a comprehensive regulation that gives legal status to the basic objectives and principles of the energy transition. After years of revisions, the law establishes priority for the development of renewable energies—hydroelectric, wind, solar, biomass, geothermal, marine, and hydrogen—and the promotion of rational use of fossil fuels.
The new regulatory framework is designed to ensure that the transition from a coal-based economy to one based on non-fossil fuels is safe, orderly, and progressive, promoting a sustained increase in the share of clean energy in the national mix..
It also innovates by establishing a green electricity certification system, encouraging both consumers and public institutions to prioritize the purchase and use of renewable energy. It also accelerates the adaptation of the electricity grid to manage distributed generation and the variability of renewable supply.
China maintains its commitment to achieve carbon neutrality by 2060 and, according to forecasts, could reach peak emissions well before the self-imposed deadline of 2030, thanks to the growth of renewables and a slower pace of coal-fired power plant construction.
Technological evolution and price trends: the China factor in the global cost decline
China's impact on the global renewable energy sector extends far beyond its borders, as cost competition and production overcapacity have led to a historic drop in clean technology prices globally.
The levelized cost of electricity (LCOE) for solar PV, onshore wind, and battery storage has fallen by 11% to 64% in China compared to other markets, according to BloombergNEF. By 2024, the global cost of battery storage projects fell by 33%, approaching $100/MWh, a key psychological barrier to accelerating renewable energy integration and grid stability across the globe.
BNEF's latest report predicts that prices will continue to fall until at least 2035: 31% less for solar PV, 26% less for onshore wind, and 49% less for battery storage. Renewable energy overtakes fossil fuels in Europe, thanks in part to technological advances and cost reductions in China.
However, the rapid price decline and the export of Chinese technology are generating trade tensions with Europe and the United States, where authorities have reacted with tariffs and barriers to protect their industries from Chinese competition. Despite protectionism, the long-term trend appears unstoppable and is redefining the global market, with renewables gaining increasing importance in the energy mix.
New challenges and obstacles to the renewable transition in China
Not everything is a bed of roses in China's renewable energy race. Although the expansion of solar and wind energy has been rapid, the country still faces significant challenges in harnessing all of this capacity:
- Network limitations and integration problemsThere are bottlenecks in transmission and distribution, especially in regions with more renewable generation compared to large consuming cities. Despite investments in UHV, part of the energy produced sometimes has to be discarded (curtailment) due to its inability to be absorbed, reaching rates of 10% in some provinces by 2024.
- Persistent dependence on coalAlthough its share in the mix is declining, coal still provides nearly 59% of China's electricity. New thermal power plants, in many cases, are justified as a backup for intermittent renewable energy.
- End of the subsidy model and risk of overcapacityThe government plans to gradually eliminate subsidies and aid for solar photovoltaic energy, forcing many projects to remain in business only if they are competitive in their own right, which could slow growth in the distributed segment.
- Institutional and trade barriersObstacles to foreign companies, interference by local governments in electricity trade, slow payments of previous subsidies, and the prioritization of large state-owned companies can slow innovation and efficiency in renewable energy deployment.
The most imminent challenge is probably the modernization and digitalization of the grid to flexibly absorb variable energy, allowing surplus energy to be stored in batteries or transferred to where it is most needed. The development of large solar and wind "megabases" in desert areas goes hand in hand with the need to expedite the construction of new transmission lines and storage centers.
Regional breakdown: key provinces and major renewable projects
China's renewable energy landscape is constantly changing, but some regions stand out for their dynamism:
- Northwest and northern provinces Inner Mongolia, Xinjiang, Hebei, Shanxi, Shandong, and Gansu lead the way in large-scale wind power installation, accounting for 43% of the national total. They are also key in large-scale solar power.
- Provinces such as Henan, Jiangsu and Zhejiang have climbed positions thanks to the rise of distributed solar on urban and rural rooftops.
- The development of offshore wind power It is a leader in Jiangsu, Fujian, Guangdong, and Hainan, and these regions are expected to overtake Jiangsu as the leader in the coming years. Projects such as the Pingtan offshore wind farm, with 16 MW turbines, are setting global benchmarks.
- In the hydroelectric segmentSichuan is a leading player, with high-capacity power plants geared both to local consumption and to exporting electricity to other provinces.
The first wave of solar and wind mega-bases, launched in 2021 and expanded to 19 provinces, added 97 GW of operational capacity by 2023; the second and third waves will add approximately 500 GW more between 2025 and 2030, consolidating China's absolute leadership in large-scale renewable projects.
Projection of the Chinese renewable market towards 2035 and 2050
The most recent forecasts agree that China's renewable energy market will grow at rates close to or greater than 8,7% annually over the next decade, with the goal of reaching 58% of the electricity mix by 2050.The renewable mix will then be dominated by solar, wind, and hydroelectric power, although biomass, geothermal, and wave energy will gradually gain ground.
The growth of battery storage and technologies associated with grid flexibility will be essential to harnessing the full renewable potential. The dramatic drop in battery prices and the emergence of new market models (flexible tariffs, green electricity certification, etc.) will allow consumers and businesses to actively participate in the transition. Discover how China is leading the way in renewable energy worldwide..
Likewise, in the coming years, China plans to build the world's largest wind farm, with 44,3 GW of capacity off the coast of the Taiwan Strait, and advance global interconnection that will solidify its leadership in clean energy generation and export.