Nation sets exam8k8 betple for green transition

China's installed wind and solar power capacity has overtaken coal for the first time, further cementing the country's leading position in the global renewable energy sector, said industry experts.

Deng Simeng, a senior analyst of renewables and power research at global consultancy Rystad Energy, said the fact that wind and solar capacity surpassed that of coal by the end of June is a crucial indicator of the nation's rapid transition to a greener and low-carbon economy, which is an important strategic initiative that was emphasized at the third plenary session of the 20th Central Committee of the Communist Party of China.

Maximizing the deployment of renewable energy is key to realizing the vision of a green and low-carbon economy addressed in the resolution of the plenary session, Deng said. "In the power sector, China has installed 1,180 gigawatts of wind and solar capacity as of the end of June 2024 — only 20 gigawatts behind the target of 1,200 gigawatts capacity by 2030. There's no doubt that this target can be accomplished later this year, six years ahead of schedule," she added.

Han Wenxiu, executive deputy director of the Office of the Central Committee for Financial and Economic Affairs, said in an earlier report that China will continuously deepen the reform of the ecological civilization system and enhance green, low-carbon and circular development.

According to the China Electricity Council, the combined power generation capacity of wind and solar power hit 1.18 billion kilowatts at the end of last month, up 37.2 percent year-on-year, amid the country's efforts to accelerate renewable energy development.

For the first time, that was more than the capacity of coal power, which reached 1.17 billion kilowatts and accounted for 38.1 percent of total installed power generation capacity, a decrease of 4.3 percentage points compared with the previous year, the council said.

As of the end of June, China's total installed power generation capacity reached around 3.07 billion kilowatts, up 14.1 percent from a year earlier.

Wang Lining, director of the oil market department of the China National Petroleum Corp's Economics and Technology Research Institute, said the achievement is a result of the combined efforts of industrial policies and market-driven innovations.

"With vast economic development potential, renewable energy sources, as well as emerging technologies such as new energy storage and carbon capture, utilization and storage... will continue to grow rapidly in China," he said. "This growth will further drive the construction of a new energy system and circular development of the country, as well as the achievement of carbon peak and carbon neutrality goals."

As China is the world's largest manufacturer and user of new energy equipment, its path of renewable energy development will also set a transformative example for other countries, contributing to the global low-carbon transition, Wang added.

Solid foundation

According to a recent report by the International Energy Agency and Peking University's Institute of Energy, China's robust production capacity and the government's ongoing support for clean technology development have laid a solid foundation for the nation's green transition.

China's investment in the energy sector has continued to maintain strong momentum in recent years and accounts for one-third of global clean energy investment, which has in turn played a crucial role in driving the overall growth of the nation's GDP, according to the report, titled "World Energy Investment 2024".

Haneul Kim, a policy analyst at the IEA, said that the country's leadership in the global energy investment sector was highlighted by its installed capacity last year for solar photovoltaic power, which equaled the total global capacity of the previous year.

Meanwhile, China's wind power capacity saw a year-on-year increase of around 66 percent, and the country has also been the largest contributor to global nuclear power growth for five consecutive years, Kim added.

The three major tech-intensive green products — new energy vehicles, photovoltaic products and lithium batteries, dubbed the "new three" — experienced a 30 percent jump in exports in 2023 from a year earlier, making them a major factor in Chinese trade, according to the "World Energy Investment" report.

China has witnessed continued skyrocketing growth in renewable power installation, according to Rystad Energy, the global consultancy. In 2023, the capacity of newly installed wind and solar power in the country reached 293 GW, a record high, Rystad Energy said, adding that the first half of this year has seen 128 GW of new installation.

"Many of the gigawatt-scale renewable bases, listed as the National Energy Administration's second and third group of projects, have completed construction and connected to the grid six months earlier than scheduled," said Deng from Rystad Energy.

"By contrast, coal power added around 40 GW in 2023 and less than 10 GW during the first half of this year," she said.

According to Deng, unlike the supportive policies for wind and solar power, China has been cautious about coal power development due to the country's carbon control ambitions.

"While the government has been stepping up efforts to phase out aging and polluting coal power generators and encouraging the upgrading of operating coal plants to reduce carbon emissions, local governments are also applying high-efficiency and clean standards when approving new coal power plants," Deng said.

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