- By March 2025, China’s wind and solar power capacity reached 1,482 gigawatts, surpassing fossil fuel-based thermal power for the first time.
- Despite rapid renewable energy growth, grid infrastructure struggles to accommodate the surge, leading to wasted energy.
- China continues to invest heavily in coal power, raising concerns about meeting its climate targets and reducing carbon emissions.
By the end of March 2025, China’s wind and solar power capacity reached 1,482 gigawatts. According to the National Energy Administration, this marks the first time renewable energy has surpassed fossil fuel-based thermal power in the country’s history. The rapid growth of China’s renewable energy sector highlights its significant shift toward cleaner power.
China has aggressively expanded its renewable energy capacity in recent years. It set a goal to reach 1,200 gigawatts of wind and solar capacity by 2030. However, the country met this target six years ahead of schedule in 2024. Environmental advocates now call for China to double its renewable energy target.
Despite the growth in renewable capacity, China still faces significant challenges with grid access. Wind and solar account for over half of the country’s installed power capacity. However, in the first quarter of 2025, they contributed just 22.5% of the electricity delivered to consumers. Grid companies continue to prioritise power from fossil fuel plants, limiting the full utilisation of renewables.
One factor contributing to this issue is the limited capacity of China’s grid infrastructure. While China’s renewable energy capacity has increased, the grid cannot fully accommodate the surge in power. As a result, China wastes a large amount of wind and solar energy. Reduced overseas demand for Chinese-made wind turbines and solar panels, driven partly by rising protectionism, worsens the situation.
In response, China has focused on expanding its renewable energy capacity domestically. The country is front-loading new renewable energy projects even though the grid cannot fully accommodate the influx of power. This strategy has led to inefficiency in China’s renewable energy expansion.
China continues to invest heavily in coal power despite its push for renewables. In 2024, the country began building 99.5 gigawatts of new coal-fired power capacity. Officials argue that coal plants provide “baseload” support for the intermittent nature of renewable energy sources. However, this continued investment in coal raises concerns about China’s ability to meet its climate goals.
China is the world’s largest emitter of carbon dioxide and operates the largest fleet of coal-burning power plants. The country has committed to peaking carbon emissions before 2030 and reducing coal consumption between 2026 and 2030. However, experts warn that the ongoing construction of coal plants could undermine these efforts.
Lauri Myllyvirta, senior fellow at the Asia Society Policy Institute, warns that China’s climate targets are at risk. The continued reliance on coal power could crowd out clean energy and make it harder for China to fulfil its commitments under the Paris Agreement.
China has pledged to reduce carbon intensity by 65% by 2030, compared to 2005 levels. However, experts argue that the country is “badly off track” to meet this goal. The continued construction of coal plants could make it harder for China to achieve its climate commitments and transition to a low-carbon future.