China has surpassed its 2030 renewable energy target six years ahead of schedule and now leads the world in clean energy investment, innovation, and deployment, transforming itself into a global powerhouse in the transition to a sustainable energy future.
China’s transition to clean energy is driven by its "dual carbon" goals, reaching peak carbon emissions by 2030 and achieving carbon neutrality by 2060. These targets are not merely aspirational; they are embedded into national planning, policy, and industrial strategy.
The newly enacted Energy Law 2025 reflects China’s commitment to a unified and coordinated energy future. It prioritises renewables, including solar, wind, hydro, and hydrogen, while enhancing energy security. For the first time, hydrogen is recognised officially as an energy source rather than a hazardous chemical, reflecting a forward-looking approach to regulating emerging technologies.
Governmental Five-Year Plans, including the 14th Five-Year Plan (2021–2025), have been instrumental in setting stable, long-term roadmaps. These plans call for a 50% increase in renewable energy generation and establish clear targets for solar and wind development, backed by robust public R&D funding and green finance mechanisms.
Solar power: The crown jewel of China’s energy transition
China’s dominance in solar energy is unmatched. With 990 GW of installed capacity by April 2025, representing more than half the world’s total, China continues to scale up at unprecedented speed. It added nearly 105 GW of solar power in just the first four months of 2025.
The government’s shift from fixed feed-in tariffs to market-oriented mechanisms such as Contracts for Difference (CfDs), starting in mid-2025, marks a transition to a more mature and competitive renewable market. Despite short-term slowdowns expected due to this shift, China remains on track to maintain its global leadership in photovoltaics.
Chinese firms lead the global solar supply chain, and their economies of scale have driven down costs globally, making solar the cheapest energy option in many countries. Chinese solar exports now bring electricity to remote communities from Africa to Southeast Asia.
Wind power: Scaling innovation from land to sea
China installed 79.8 GW of new wind capacity in 2024, bringing its total to 522 GW, nearly half of the world’s total. Offshore wind is also gaining momentum, with capacity expected to more than double by 2030.
Technological advances continue at a rapid pace. In 2025, China unveiled “Qihang,” the world’s largest floating wind turbine, which can operate in deep-sea environments and withstand typhoon conditions. This engineering feat symbolises China’s drive to overcome the intermittency of renewables through innovation and system integration.
Chinese wind companies dominate global markets, taking the top four spots in capacity added in 2024, and leveraging their massive domestic market to refine and scale their technologies.
Hydropower: The enduring giant
Hydropower remains China’s largest source of renewable electricity, with 426 GW installed as of 2024. The country operates four of the six largest dams in the world, including the Three Gorges and Baihetan projects.
Pumped storage, such as the 3.6 GW Fengning project, plays a key role in ensuring grid stability and supporting the integration of intermittent renewables like wind and solar.
Yet large-scale hydro projects also raise environmental and geopolitical concerns. The proposed Yarlung Tsangpo dam in Tibet, for instance, could disrupt downstream water flow to India, raising tensions in an already sensitive region.
Geothermal energy: Unlocking underground heat
China has doubled its geothermal heating coverage since 2020, now supplying clean heat to 1.2 million households in over 70 cities. Its underground heat reserves are vast, and development is expanding rapidly, particularly in urban heating applications.
Sinopec is leading efforts in geothermal research and is collaborating internationally to scale this low-carbon resource. The country aims to double its geothermal capacity again by 2035.
By expanding geothermal heating, China is addressing emissions from the heating sector, often overlooked but is a major contributor to urban pollution and greenhouse gas emissions.
Nuclear fusion: The long-term bet on limitless energy
China is investing heavily in the future of energy through nuclear fusion research. In 2025, the Experimental Advanced Superconducting Tokamak (EAST), dubbed the "artificial Sun," set a global record by sustaining plasma for 1,066 seconds at 100 million degrees Celsius.
These breakthroughs mark significant progress towards commercial fusion. The China Fusion Engineering Test Reactor (CFETR) is planned to begin construction in the late 2020s, with electricity generation targeted for the 2040s.
Fusion research in China is not only aimed at clean energy but also linked to national security and technological leadership. The dual-use nature of some facilities highlights the geopolitical dimensions of this next-generation energy source.
Grid and storage: The next frontier
Despite its massive renewable build-out, China faces constraints in grid infrastructure and energy storage. Solar and wind generation outpace the grid’s ability to absorb and distribute power, particularly during peak hours.
To address this, China is investing in advanced energy storage, battery systems, and smart grids. The integration of AI, digitalisation, and flexible grid operations will be essential to stabilising supply and scaling clean power further.
Balancing coal reliance with clean power growth
While China is a clean energy leader, it remains the world’s largest consumer of coal. In 2024, coal still supplied over 60% of electricity, and the country began construction on 94.5 GW of new coal plants.
This dual approach, often described as the "Panda–Dragon" strategy, reflects China’s balancing act between energy security and climate ambition. However, signs of a turning point have emerged: in early 2025, clean power growth exceeded electricity demand growth, causing power-sector emissions to fall.
Economic engine of the clean energy boom
Clean energy technologies contributed over 10% to China’s GDP growth in 2024. The sector generated nearly 14 trillion yuan (US$1.9 trillion) in economic activity, surpassing real estate in value.
Electric vehicles, solar panels, and batteries, China’s so-called "new three" industries, dominate the market, drawing over half of all investment in clean energy. This robust growth has made clean energy a pillar of national economic development.
China’s global footprint: Exporting the green transition
China’s role in global decarbonisation goes beyond domestic progress. It accounts for more than 80% of global solar manufacturing and 60% of EV battery production. Export growth is particularly strong in Latin America, Africa, and Southeast Asia.
Through the Belt and Road Initiative, China has pledged to halt overseas coal financing and is investing in green energy projects across 149 partner countries. In 2024, these investments exceeded US$11.8 billion, aligning international development with climate goals.
As the world races toward net-zero goals, China’s evolving clean energy model, marked by scale, speed, and strategic depth, continues to shape the future of global sustainability.
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