China is one of the world's most polluted countries, but in recent years it has made enormous strides in the development of renewable energy. In 2016, renewable energy experienced 50% growth , positioning the country as a leader in this area.
Most of this growth has been driven by solar photovoltaic energy, which has shown even greater development than coal, historically the most widely used fuel. In this context, the question arises: Will China continue to expand its use of renewable energy?
Global expansion of renewables
According to a report by the International Energy Agency (IEA), renewable energy sources accounted for almost two-thirds of new energy capacity installed globally in recent years. In 2016, this figure was equivalent to 165 gigawatts (GW) of new energy capacity.
The clean energy boom continues, and it is projected that by 2022, global renewable electricity capacity will increase by a remarkable 43% , equivalent to adding approximately 1.000 GW to the grid. This amount represents roughly half the energy potential of coal, which took eight decades to develop.
China plays a central role in this expansion, but it is not alone. Other emerging countries such as India are also investing heavily in renewables, which is generating a global energy transition at an unprecedented pace.
China and India as leaders
The growth of renewable energy in China has been exceptional. In 2017, the country reached a renewable capacity exceeding 360 GW , consolidating its position as a global leader in clean energy. This progress has not gone unnoticed and is expected to continue with impressive figures year after year.
In comparative terms, China's renewable energy capacity is larger than that of any other country in the world. India, meanwhile, has doubled its renewable capacity in recent years, outpacing the European Union in terms of growth. Together, China and India, along with the United States, account for more than two-thirds of global renewable energy expansion through 2022.
A crucial aspect of this expansion is the role of solar photovoltaic and wind power, which account for 90% of renewable energy growth. This means that both solar and wind power are at the heart of the energy transition in these two Asian giants.
Subsidies and support policies
The impressive growth of clean energy in China cannot be understood without its strong government support. From feed -in tariffs , which provided preferential rates for renewable projects, to direct subsidies, the Chinese government has incentivized companies for over a decade.
In 2022, China removed preferential feed-in tariffs as renewable energy production and installation costs fell significantly. However, the country offset this withdrawal with massive infrastructure investments, particularly in long-distance transmission networks , which have unlocked over 100 GW of renewable capacity inland.
These actions were accompanied by investments in energy storage , a crucial aspect for managing the intermittency of renewable energy sources. Between 2020 and 2023, China doubled its storage capacity to 67 GW , and plans to increase this figure to 300 GW by 2030.
Global impact and exports
China is not only investing in renewable energy domestically, but has also become the world's leading exporter of solar and wind power technology. Through initiatives such as the Belt and Road Initiative , China is driving infrastructure projects in dozens of developing countries, providing access to affordable and competitive renewable energy technology.
Furthermore, intense competition in the solar market has driven down the cost of photovoltaic energy by more than 80% since 2010, making this technology accessible to many countries. Chinese companies like JinkoSolar and Trina Solar are currently the world's largest producers of solar panels, reinforcing China's position as the undisputed leader in this sector.
This leadership also extends to the area of technological innovation, with Chinese companies developing new types of solar panels, such as bifacial panels, which capture light from both sides, substantially improving efficiency.
Energy challenges and dependence on coal
Despite impressive progress in renewable energy, China remains the world's largest consumer of coal. Currently, around 55% of its electricity still relies on coal, and while this figure is expected to gradually decrease, the transition to a fully renewable energy mix presents significant challenges.
One of the biggest problems is integrating new energy sources into an electricity grid that is not adapted to handle large amounts of solar and wind energy in a stable manner. Fluctuations in the production of these intermittent energies, as well as difficulties in storing large amounts of electricity, are challenges that the government is trying to solve.
However, the Chinese government has taken steps to reduce this dependence on coal. By 2025, coal consumption is expected to begin to decline and renewable energy will take up a larger share of the country's energy mix.
With initiatives such as grid modernization and expanding energy storage, China is laying the groundwork for a faster and more efficient transition.
China has demonstrated its ability to lead the way in renewable energy production and expansion, and while challenges related to its reliance on coal remain, strategic investments in clean technologies and infrastructure will support its path to carbon neutrality by 2060.