What’s new: China’s cumulative installed capacity of wind and solar energy is expected to surpass coal for the first time this year, according to the China Electricity Council (CEC).
The country will have around 1,300 gigawatts (GW) of wind and solar capacity connected to the grid by the end of 2024, the CEC projected in a report published Tuesday.
Solar is expected to contribute about 780 GW of capacity and wind 530 GW, together accounting for about 40% of total installed capacity by the end of the year, according to the CEC. By comparison, coal power is estimated to fall to 37% of the total from 39.9% in 2023, the report said.
The renewable capacity growth indicates that China is on track to far exceed its official target of 1,200 GW of combined wind and solar capacity by 2030.
The background: China saw exponential growth in installation and production capacity for renewables in 2023, especially in the solar industry.
However, this accelerated expansion is causing severe overcapacity. Chinese firms are now capable of producing more than twice the amount of solar power equipment the world can consume.
Domestically, overcapacity has sent prices plunging in all sections along the solar value chain, from sourcing raw ingredient silicon upstream down to the finished solar cells and panels.
At the same time, growth in actual power generated by renewable energy has trailed the increase in installed capacity, which experts attribute to technical difficulties facing the industry in areas including large-scale energy storage and smart grid development.
Related: Year in Review: Renewables Start to Power China’s Economy
Contact reporter Kelsey Cheng (kelseycheng@caixin.com) and editor Jonathan Breen (jonathanbreen@caixin.com)
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