The forerunner in renewable energies, the European Union, has been overtaken by China over the past year. It is clear that renewable energy development is advancing worldwide, and China has taken a leading role in the global transition to cleaner energy sources.
If we take a quick look, we can see that, of these energies, solar and wind energy are the ones experiencing a marked boom and are currently in excellent condition to compete with fossil fuels. The International Renewable Energy Agency (IRENA) provides relevant data indicating that It remains a promising investment and its costs will continue to fall. in the coming years, further driving its global adoption.
adnan amin, Director-General of IRENA, said: “This new dynamic signals a significant shift in the global energy system. Photovoltaic energy costs could fall by up to around 50% on average globally over the next 3 years.” This reflects the path towards more affordable energy. He added that “the decision in favour of renewable energy is not only an ecological choice, but a smart economic decision, recognized by governments around the world."
China assumes Europe's leadership in renewable energy
China has made great strides in future technologies and is developing more solar and wind power than any other country. China's installed solar power capacity has exceeded 660 GW in 2023, an impressive figure considering that until a few years ago it was a country highly dependent on fossil fuels.
In terms of wind energy, China is not far behind either. By 2023, it already has around XNUMX wind farms under construction. 159 GW of wind capacity, which, together with its solar capacity, positions the Asian giant as unbeatable in this field. These figures far exceed those of countries such as the USA, where the projected wind capacity is 40 GW.
Professor Claudia Kemfert, an energy economist at the German Institute for Economic Research, says that "China is taking this lead because it has recognized the enormous market potential and economic advantages offered by the development of renewable energy."
Additionally, in 2023, China installed more solar power in a single year than most countries in their entire history, with additional 216,9 GW in solar capacity. This shows how determined China is to not only lead, but completely dominate the clean energy market.
China's investment in renewable energy
China not only leads in installed capacity, but also in Your Strategic in renewable energy. According to Bloomberg New Energy Finance, In 2023, more than 140 billion dollars were invested in wind and solar projects in China, figures vastly higher than in any other country.
The country’s strategy includes a combination of government subsidies and public financing that has allowed China to build energy capacities at a record pace. Although direct subsidies decreased during the pandemic, provinces have continued to support with additional incentives.
China has removed preferential tariffs for renewable energy projects in 2022, but continues to inject funds into the improvement of its energy infrastructure. These funds have enabled the construction of more than 100 GW in long-distance transmission lines, thus improving the country's ability to transport clean energy generated in remote areas.
Can Europe regain ground?
The President of the European Commission, Jean-Claude Juncker, declared its intention for “Europe to become the leader in the fight against climate change.” However, Europe has lost ground not only to China, but also to other economies that are moving faster in the implementation and development of renewable energy.
Stefan Gsänger, Secretary General of the World Wind Energy Association (WWEA), highlighted structural problems in Europe, noting that “markets are stagnating, and even retreating.” In 2022 and 2023, investments in renewable energy in the EU reached their lowest level in more than a decade.
In addition, the EU faces internal competition from other energy sectors, such as nuclear and coal. While China is building new infrastructure, European countries are faced with the challenge of replacing fossil fuels.
However, there is hope. The European Commission proposes that by 2030, the share of renewable energies reach 50% of total energy consumption, an ambitious goal that, although difficult, could give Europe back a leading role in the energy transition.
China's energy dominance
For China, expanding renewable energy is not just a matter of environmental efficiency, but also of international economic advantage. With its energy demand growing steadily, China has managed to implement renewable energy without having to remove large volumes of fossil or nuclear capacity from the grid.
julian schorp, from the German Chamber of Industry and Commerce in Brussels, argues that "investment in new capacities in China is constant, as consumption continues to grow at extraordinary levels." This is an advantage compared to Europe, where energy consumption is stagnating in many countries.
In addition, China continues to invest in critical technologies such as energy storage and smart grids. The country has doubled its storage capacity since 2020, reaching XNUMX 67 GW in 2023. This capacity is expected to continue to grow exponentially, with a target of 300 GW in 2030 to support the expansion of intermittent renewables.
If Europe does not find a way to accelerate its energy transition, China will continue to lead and expand its technological and economic advantage in the coming decades.
China's policy has been key to its success, along with its ability to offer cheap and high-performance technological solutions, such as solar panels and wind turbines. This approach has allowed it to position itself globally as a benchmark in renewable energy.
Shaping a sustainable global energy future lies in the hands of those who can adapt and lead on cost, innovation and infrastructure capacity. In the case of China, it is already showing the world what is possible when there is coherent public policy and strong industrial commitment.