China dominates global wind, solar power projects Outpacing rest of the world

A recent report by Global Energy Monitor (GEM) reveals that China is constructing nearly twice as much wind and solar power as the rest of the world combined.

Currently, China has 180 gigawatts (GW) of utility-scale solar power and 159GW of wind power under construction, totaling 339GW, significantly surpassing the 40GW under construction in the US, Caliber.Az reports per foreign media.

The study only considered solar farms with a capacity of 20MW or more, meaning the actual volume of solar power in China could be higher, as smaller farms account for around 40% of China's solar capacity. These findings highlight China's leading role in global renewable energy at a time when the U.S. is concerned about Chinese overcapacity and dumping, especially in the solar sector.

China's renewable energy boom has been driven by strong government support. President Xi Jinping has emphasized the need for "new quality productive forces," including green manufacturing. From March 2023 to March 2024, China installed more solar power than in the previous three years combined, and more than the rest of the world combined in 2023.

China is on track to achieve 1,200GW of installed wind and solar capacity by the end of 2024, six years ahead of its target.

Despite this rapid growth, analysts warn that China will need even more renewable capacity to meet its goal of reducing the carbon intensity of its economy by 18 per cent. China must install between 1,600GW and 1,800GW of wind and solar energy by 2030 to meet its target of producing 25 per cent of energy from non-fossil sources.

However, only 30 per cent of energy consumption growth was met by renewables between 2020 and 2023, below the 50 per cent target.

Li Shuo, director of the China Climate Hub at the Asia Policy Institute, emphasizes the importance of continued renewable energy expansion but notes the challenge posed by ongoing coal consumption.

 Despite a pledge to control new coal power, approvals for new coal plants increased fourfold between 2022 and 2023 compared to the previous five years. Coal consumption growth also rose from 0.5 per cent to 3.8 per cent annually between these periods.

Geopolitical tensions and energy security concerns, exacerbated by events like the war in Ukraine and power cuts in China, have led officials to continue relying on coal. The coal industry is seen as a reliable way to boost local GDP, although clean energy sectors now drive much of China's economic growth, contributing 40% of GDP expansion in 2023.

To maximize the use of clean energy, better storage and grid flexibility are needed. The Chinese government recognizes this and has identified lithium-ion batteries as crucial for high-quality growth, alongside electric vehicles and solar panels. In 2023, $11 billion was invested in grid-connected batteries, a 364 per cent increase from 2022.

The GEM report also highlighted China's efficiency in building planned renewable infrastructure. The 339GW of wind and solar projects under construction represents one-third of proposed projects, far exceeding the global construction rate of 7 per cent. Li Shuo questions why the rest of the world lags so far behind China's rapid progress.