China Dominates Global Renewable Energy Growth
On track to achieve the 2030 target six years early, with plans to add 1.2 TW of solar and wind capacity.
Image for illustration purposes.
China is spearheading the global renewable energy expansion, set to contribute 60% of new capacity by 2030.
This remarkable growth is partly attributed to China’s shift from feed-in tariffs to more market-driven mechanisms. The feed-in tariff programme, which provided subsidised electricity prices for renewable projects, was phased out in 2019. Since then, China has transitioned to auctions, local grid parity terms, and quotas to drive renewable development.
The impact of this policy change has been significant. Solar additions have nearly tripled to 261 GW last year, while cumulative solar capacity has almost quadrupled and wind capacity has doubled since the end of feed-in tariffs.
By 2030, China is projected to install 3.2 TW of renewable capacity, tripling its growth from the 2017-2023 period. This ambitious expansion is driven by the national goal to achieve net-zero emissions by 2060, supported by government incentives, domestically manufactured equipment, and affordable financing.
China’s dominance in the renewable sector has doubled its share of global renewable output. However, Europe and the United States are still expected to contribute nearly 30% of global capacity by 2030. Notably, China’s solar and wind costs are now approaching or even falling below coal generation costs.
Recent growth has been further accelerated by a “supply glut” in 2023, which led to a 50% reduction in solar module prices. The Chinese government has also implemented policies supporting large-scale solar construction in deserts and remote areas.
Despite these advancements, grid integration remains a significant challenge. To address this, China’s energy regulator has increased the provincial curtailment threshold from 5% to 10%, allowing for more solar PV capacity connections.
As China continues to lead the global renewable energy transition, its policies and innovations will likely shape the future of sustainable power generation worldwide.
Source: EE Power
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