China’s energy sector, which includes wind and solar energy, is transforming as it overtakes coal in installation capacity for the very first time. Recently, the National Energy Administration (NEA) released data about renewable energy sources, showing a significant change in China’s future renewable energy industry.
According to Rystad Energy, an analysis by Norwegian research consultancy, it is predicted that by 2026 solar power alone will surpass coal as a primary energy source in China with a margin of 1.38 TW, 150 GW more than coal.
In the first six months China has already installed 100 GW of new solar and as per data by Rystad Energy 8 GW of coal was only added in 2024. China is considered the world’s largest consumer of coal with more than 50% consumption globally.
However, to reduce coal, the coal government is restricting new coal projects in the country. They are now paying attention to eliminating small coal plants, upgrading existing ones for better efficiency, and making strict standards for upcoming projects.
Senior Analyst, Rystad Energy Simeng Deng said, “We’re at a pivotal moment for both China and the global energy transition. With strong renewable energy project pipelines in place, the country is on track to shed its reputation as the world’s largest greenhouse gas emitter and power consumer. Solar energy will be central to this transformation, with advancements in supply chains, infrastructure, and capacity additions set to surpass coal in future energy production. This shift could be a landmark achievement, potentially transforming China from a coal-dependent giant into a leader in clean energy”.
From the beginning of the 2000s, China has been expanding its wind power capacity. The major growth was seen after 2011 when some projects were launched and installed 17.6 GW of new onshore wind capacity. Last year, wind energy saw a great rebound with 75 GW of new installations which is helping to meet its 2025 targets. This year it is 25 GW in the first six months and expects to install 50 GW in the second half.
Solar power capacity has had an impact since 2013 with 16 GW of capacity. Further, the installation reached between 30 GW to 50 GW annually from 2016 to 2021. Major growth took in last year from 87 GW in 2022 to 216 GW of installation capacity in 2023. It is predicted to exceed the target of 230 GW in total new solar capacity this year.
According to researchers, as China is expanding its clean energy capacity they have to face challenges further which include low power utilization and intermittent power supply from renewables. Although the development of grid infrastructure and increasing battery storage can resolve the issues.
While in India, the world’s second-largest consumer of coal has reduced the power capacity by coal to 50 % earlier this year which is for the first time since the 1960s.
Source:
https://www.pv-magazine.com/2024/08/01/solar-wind-capacity-surpasses-coal-in-china/
