China is a country that represents a clear balance of contradictory forces in the energy field. While many of its major cities remain mired in high pollution due to their dependence on coal and other fossil fuels, the country has emerged as an unstoppable leader in renewable energy investment and adoption.
For years, China has made remarkable progress in its energy transition, breaking records in renewable energy capacity. The country annually sets New figures and objectives related to solar, wind and hydroelectric energy.
China and its dependence on coal: a current challenge
Despite advances in clean energy, China remains the world's largest consumer of coal. The country's economic growth, infrastructure development and overall energy demand have led the Asian giant to continue using this fossil fuel to meet its needs, especially in times of high energy consumption.
In 2023, while more than 53% of the country's electricity will still come from coal, the figure represents a decrease from 60% the previous year. This steady decline highlights the effort to reduce dependence on fossil fuels as more renewable projects come online.
In the long term, the country has set a plan to further reduce its coal consumption, with the aim of starting to decline steadily by 2025. However, the main challenge lies in modernising the electricity grids and infrastructure to efficiently integrate renewable energy. The regions most dependent on coal, such as Inner Mongolia or Xinjiang, still present major challenges in this regard.
Records in renewable energy investment and capacity
Despite challenges related to coal use, China continues to set milestones in generating electricity through renewable energy. By 2023, the country will have installed a total of XNUMX 216,9 gigawatts of solar energy, breaking previous records. China not only leads the global solar energy market, but also reaches new milestones in the field of wind energy.
The pace of installation is impressive, with three football fields of solar power reportedly being added per hour in 2023, a figure that underscores the country’s aggressive approach to clean energy. Moreover, the initial solar capacity target for 2020 is almost within reach, much earlier than initially anticipated.
Another notable fact is the record wind power generation achieved in 2024. China's wind turbines produced more than 100 TWh of electricity in March alone, equivalent to the combined production of Europe and North America.
Modernizing the power grid: a necessary step
One of the biggest challenges for China is integrating all the clean electricity it produces into its grid. Many regions lack the infrastructure to absorb more renewable energy, which has forced restrictions on new projects in some areas.
In response, the government has earmarked an investment of $455.000 billion by 2025 to modernize the grid and install long-distance transmission lines. This plan has unlocked more than 100 GW of renewable energy in less-connected areas of the country.
New policies to continue moving forward
In recent years, China has taken steps to make its energy system more flexible. The country has gradually removed preferential tariffs to boost renewable energy, saving the government hundreds of billions of dollars.
In addition, demand-side focused policies, such as the creation of virtual exchanges and demand-side management (DSM) plans are allowing for greater adaptability to the intermittency of renewable energy.
China's future in the energy transition
Although China remains one of the largest emitters of CO2, the effects of its heavy investments in clean energy are starting to become evident. The country has managed to keep its carbon dioxide emissions flat in recent years, and the trend towards a decline seems inevitable as the share of renewable energy continues to grow.
China aims to achieve carbon neutrality by 2060, and all current indicators suggest it is on track to achieve this. According to estimates by the International Energy Agency (IEA), China could reach peak greenhouse gas emissions in 2024, well ahead of the initial 2030 target.
Record deployment of clean energy in 2023 and expectations of continued growth in 2024 point to China continuing to dominate the global renewable energy sector. With more than 58% of global solar installations and around 60% of global wind installations in 2023, the Asian giant will continue to play a key role in the global energy transition.
The international impact is also significant. Many nations rely on solar panels produced in China, and the country's share of the renewable energy supply chain continues to grow.
China has demonstrated unstoppable progress towards reducing its dependence on coal. With massive investments in solar, wind and hydropower, it is leading an era of global transformation that affects not only its territory, but also the global renewable energy market. While the world continues to focus on China's energy decisions, this giant continues to set record after record in its race towards a more sustainable future.