China’s transformation into a global energy powerhouse is reshaping both regional and international energy landscapes. Through strategic policy frameworks, substantial investments in renewable infrastructure and advancements in clean energy technologies, the country has undergone a significant transition—from a coal-dependent economy to a leader in renewable energy development.

Projections indicate that by 2030, China will account for over 50% of the world’s renewable energy capacity. This trajectory is not only redefining domestic energy markets but also influencing global energy policies and climate strategies.

Renewable Energy Expansion: Wind, Solar, and Beyond

China’s 14th Five-Year Plan targets renewables to supply 33% of its electricity by 2025. By 2030, the nation aims to have at least 1,200 gigawatts (GW) of installed wind and solar power capacity. Remarkably, this milestone was reached by the end of 2024—six years ahead of schedule. Newly installed renewable energy capacity reached 373 million kilowatts in 2024, accounting for 86% of total new power capacity. The cumulative installed capacity of renewable energy climbed to a record 1.889 billion kilowatts, a 25% increase from 2023.

Solar power saw a 45.2% rise, adding 277 GW and reaching a total of 887 GW, while wind power grew by 18%, adding 80 GW to reach nearly 521 GW. Projections suggest that by 2026, solar capacity could surpass coal as China’s primary energy source, reaching an estimated 1.38 terawatts (TW).

Beyond energy generation, China leads the renewable supply chain. The country dominates global solar panel manufacturing, accounting for over 80% of production across all key stages. Furthermore, as of 2024, Chinese firms hold the top four positions among the world’s largest wind turbine manufacturers: Goldwind, Envision, Windey and MingYang. This solidifies China’s pivotal role in shaping global renewable energy markets.

Strategic Policy Frameworks: Driving the Transition

China’s renewable energy growth is underpinned by coordinated policy planning. Government initiatives, such as the Five-Year Plans, set clear renewable energy targets while implementing regulatory reforms to drive technological innovation.

Key policies include its 14th Five-Year Plan (2021–2025), which prioritises ‘clean, low-carbon, safe, and efficient’ energy systems, and the Dual Carbon Goals—aiming to peak emissions by 2030 and achieve carbon neutrality by 2060. Additionally, the ‘Guiding Opinions on Vigorously Implementing the Renewable Energy Substitution Initiative,’ introduced in October 2024, aims to increase renewable energy consumption significantly by 2025 and 2030. These policies have created an environment conducive to rapid infrastructure development and technological advancements in the energy sector.

Investments in Renewable Technologies

China’s large-scale investment strategy has played a critical role in accelerating its energy transition. In 2024, the country accounted for two-thirds of the USD2.1 trillion spent globally on energy transition investments, outpacing the combined total of the US, European Union and UK, according to Bloomberg NEF.

The ‘new three’ industries—electric vehicles, lithium batteries, and solar power—are now significant contributors to China’s gross domestic product (GDP), with clean energy technologies accounting for over 10% of economic growth in 2024.

These investments, combined with economies of scale in manufacturing, have helped drive down global costs and paved the way for a more economically viable renewable future.

Investments in energy storage and smart grid systems highlight China’s commitment to ensuring efficiency and stability in its renewable energy supply. These technologies are key to addressing intermittency issues in wind and solar power, optimising energy distribution and enhancing grid resilience.

International Initiatives: The Belt and Road Initiative

China’s renewable energy strategy extends beyond its borders through the Belt and Road Initiative (BRI), which has become a significant platform for financing renewable energy projects worldwide. Since 2015, China has invested over USD50 billion in renewable projects across Asia, strengthening its role in sustainable infrastructure development.

In 2024, energy-related projects remained the dominant focus of BRI, with total engagement nearing USD40 billion—the highest level since 2017. Of this, USD11.8 billion was directed toward green energy projects, including solar, wind and waste-to-energy initiatives, marking a 60% increase from 2023. By financing clean energy projects in partner countries, China is facilitating technology transfer, reducing fossil fuel dependency and strengthening regional energy security.

The Changing Global Energy Dynamics

China’s coordinated energy transition is having a profound impact on global energy markets. By integrating policy innovation with large-scale infrastructure development, the country is influencing energy costs, technology adoption and sustainability standards worldwide.

On a regional level, China’s leadership in renewable energy is prompting neighbouring countries to align their policies with its successful models, fostering a broader shift toward sustainability across Asia. Globally, China’s investments in renewable energy are driving down costs through economies of scale and accelerating technological innovation, further supporting the clean energy transition.

With the US retreating from international climate agreements under recent policies, China’s proactive climate actions and renewable energy initiatives are considered beneficial for global sustainability. Its significant contribution to climate solutions and ability to provide impactful answers to global challenges is increasingly seen as a leader in the field, especially as the US scales back its climate efforts.

Looking Ahead: The Road to 2030 and Beyond

China’s journey—from coal dependency to renewable innovation—offers a compelling blueprint for a sustainable future. As the world edges closer to 2030, China’s example illuminates a path where technological prowess meets strategic policymaking, yielding substantial benefits not only for its own economy but for the global community as well. Its investments in clean technology, infrastructure and policy-driven initiatives position it as a key player in the transition to sustainable energy.

For policymakers, industry leaders and stakeholders worldwide, China’s energy transformation serves as both a model and a catalyst for a more sustainable future. Energy Asia aspires to be the platform for exploring these evolving dynamics, fostering meaningful dialogue and collaboration to navigate the complexities of the global energy transition.

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