China’s new renewable energy plan aims to significantly boost the country''s renewable energy consumption, setting ambitious targets for 2025 and 2030. Unlike previous plans focused primarily on capacity installation, the new strategy emphasizes maximizing renewable energy utilization through infrastructure upgrades and sectoral integration across industries, including transportation, agriculture, and manufacturing. This shift is expected to create substantial business opportunities in green technologies, grid modernization, and clean energy sectors.
China is reshaping the global energy landscape, setting its sights on an ambitious transformation driven by renewable energy. In its latest move, on October 30, 2024, the Chinese government unveiled the Guiding Opinions on Vigorously Implementing the Renewable Energy Substitution Initiative (hereinafter the "new renewable energy plan") to accelerate renewable energy consumption.
The new renewable energy plan marks a strategic shift from merely expanding renewable energy capacity to fostering systemic demand. By focusing on upgrading infrastructure, electrifying key industries, and promoting green technologies, China is laying the groundwork for its next phase of economic transformation.
For businesses and investors, the implications are profound. Opportunities abound in grid modernization, industrial electrification, green hydrogen production, and the burgeoning electric vehicle (EV) and sustainable aviation sectors. As China doubles down on its renewable energy ambitions, those ready to align with this vision stand to benefit significantly in a rapidly evolving market.
China is actively working to enhance the consumption of renewable energy through a multifaceted approach, combining supply enhancement, infrastructure development, demand management, and system regulation. This strategy not only aims to increase the share of renewables in the energy mix but also seeks to create a more integrated and efficient energy system overall.
First of all, the country plans to significantly increase its renewable energy supply by developing large-scale wind and solar power bases, particularly in desert and arid regions, while also focusing on offshore wind farms and integrating hydropower with wind and solar energy. Additionally, China aims to promote distributed renewable energy development and scale up biomass and solar thermal power generation. To support these initiatives, advanced technologies for resource assessment, power forecasting, and smart control will be implemented.
Infrastructure development is another key aspect of China’s strategy. The construction of advanced power infrastructure, including flexible DC transmission and smart grids, is prioritized to facilitate better integration of renewable energy sources. Upgrading the main power grid and enhancing cross-regional transmission channels will optimize energy distribution, while improvements to distribution networks will increase flexibility and capacity, supporting the rapid growth of distributed renewable energy.
On the demand side, China plans to expand the range of participants in demand response programs, encouraging them to engage in the electricity market. Strategies such as peak pricing and market adjustments will guide consumer behavior towards more efficient energy use, particularly in key sectors like industry, buildings, and transportation.
Finally, improving system regulation is crucial for enhancing overall energy stability. This includes upgrading coal power plants for flexibility, optimizing their scheduling, and investing in pumped storage hydropower and new energy storage technologies. Biomass projects will also be encouraged to provide ancillary services, contributing to a more resilient energy system. Through this comprehensive approach, China aims to create a more integrated and efficient renewable energy landscape.
Sectoral integration of renewable energy is a core component of China’s new renewable energy plan, emphasizing the need for a holistic approach across multiple critical industries. In general, China plans to ccelerate the adoption of renewable energy in below aspects:
The new renewable energy plan also details China''s strategy and measures to support renewable energy consumption through innovative pilots, enhanced legal and regulatory framwork, and interanational collaborations:
The renewable energy sector emerged as a transformative force in China''s economy, significantly shaping its investment landscape and growth trajectory. In 2023, the clean energy contributed an estimated RMB 11.4 trillion (US$1.6 trillion) to the economy, accounting for approximately 40 percent of GDP expansion. This underscores the sector’s central role in driving China''s economic performance amid challenges in traditional industries like real estate.
In 2023, there was a drastic surge in investment, with spending in clean energy rising by 40 percent year-on-year to reach RMB 6.3 trillion (US$890 billion), according to Carbon Brief''s analysis. This represented the entirety of China’s overall investment growth in 2023, compensating for declines in other areas.
Clean energy also accounted for a growing share of China’s GDP, rising from 7.2 percent in 2022 to 9.0 percent in 2023. Without this contribution, China''s GDP growth would have fallen significantly below the government''s target.
This resilience positions the renewable energy sector as not only a cornerstone of China''s energy transition but also a safeguard for its broader economic stability during periods of industrial adjustment.
These industries were pivotal in driving clean-energy investments, reflecting China’s focus on decarbonizing its economy through innovative policies and substantial infrastructure upgrades.
Solar energy stood out as the largest contributor to China’s clean-energy growth in 2023, with its total value increasing by 63 percent year-on-year, from RMB 1.5 trillion (US$207.01 billion) in 2022 to RMB 2.5 trillion (US$345.03) in 2023. This remarkable expansion was fueled by a combination of central government initiatives such as the "whole-county distributed solar" program and the "clean energy base" strategy, which prioritized scaling up installations nationwide.
In response to a slowdown in the real estate sector, new policies were introduced in early 2023 to promote solar industry development on unused and existing construction land. By the end of the year, China added an estimated 200 gigawatts (GW) of solar capacity, more than doubling its 2022 record of 87GW. Meanwhile, 15 provinces included solar expansion in their annual government agendas, further bolstering growth.
China''s solar manufacturing sector also experienced robust growth, with 340GW of polysilicon production capacity and 300GW of wafer, cell, and module capacity added in 2023, according to the International Energy Agency (IEA). Solar exports were another key area of growth, particularly to regions like Southeast Asia, Africa, and countries involved in the Belt and Road Initiative. While export volumes surged, falling production costs meant export values saw only modest increases.
China is rapidly advancing its energy storage capabilities as part of its broader push to decarbonize its energy system and reduce reliance on fossil fuels. The country is scaling up electricity storage capacity to enhance grid stability, especially as it integrates increasing amounts of renewable energy sources like wind and solar. Energy storage is seen as a crucial solution for managing fluctuations in electricity supply and demand, enabling a transition from coal and gas-fired power plants to cleaner, more sustainable energy sources.
For 2023, it is estimated that investment in pumped hydro storage reached RMB 300 billion (US$41.40 billion), with spending assumed to be proportional to the construction of new capacity. This level of investment reflects the large-scale infrastructure required for such storage projects, which are integral to China''s strategy of transitioning to a cleaner and more resilient energy grid.
China''s EV sector experienced remarkable expansion in 2023, with 9.6 million EVs produced, marking a 36 percent increase from the previous year. This surge reflects the growing share of new energy vehicles (NEVs)—which include battery-electric vehicles and plug-in hybrids—accounting for 32 percent of all vehicles produced in the country.
The bulk of these vehicles were sold domestically, with 9.5 million EVs sold in China, representing a 38 percent year-on-year growth. Notably, 8.3 million units were purchased by Chinese consumers, making up one-third of total vehicle sales in the country. Meanwhile, 1.2 million EVs were exported, a substantial 78 percent increase from 2022, further highlighting China’s growing influence in the global EV market.
Despite the end of government subsidies for EV purchases in 2022 (although, tax reduction exemption policies have been extended throughout 2023)—after over a decade of support—the market has remained resilient, driven by increasing consumer demand and industry competition. The shift from policy-driven incentives to market-driven demand suggests that China''s EV growth is becoming more sustainable, with a stronger focus on long-term market dynamics.
China''s EV market remains highly competitive, with at least 94 domestic brands offering over 300 different models. Local manufacturers dominate the market, with BYD, Wuling, Chery, Changan, and GAC leading the way. These companies collectively account for 81 percent of total EV sales in the country, reinforcing the strong domestic production base.
To sustain this growth, China has significantly invested in EV manufacturing. In 2023, estimated investments in EV production capacity reached RMB 1.2 trillion (US$165.59 billion), a considerable increase from RMB 700 billion yuan (US$96.60 billion) in 2021. This surge in investment is reflective of the country’s strategic shift toward electrification and away from traditional internal combustion engine vehicles.
The investment also extends to the expansion of battery manufacturing capacity, which supports the growing demand for EVs. These investments are crucial for meeting the needs of the burgeoning electric vehicle market and are reflected in the broader push toward infrastructure development.
Meanwhile, the rapid expansion of EV infrastructure has been essential for maintaining growth in this sector. In 2023, over 3 million new charging points were installed, contributing to a total of 8.6 million charging points by November 2023. This includes both public and private charging stations, with the largest concentration in China''s first-tier cities like Beijing, Shanghai, and Guangzhou, where more than 80 percent of urban areas were equipped with charging stations.
This infrastructure expansion has been critical in making EVs more accessible and practical for Chinese consumers. The continued development of charging networks is seen as vital to sustaining the sector''s growth and ensuring that EV adoption remains strong moving forward.
About Energy storage for renewable energy republic of china
As the photovoltaic (PV) industry continues to evolve, advancements in Energy storage for renewable energy republic of china have become critical to optimizing the utilization of renewable energy sources. From innovative battery technologies to intelligent energy management systems, these solutions are transforming the way we store and distribute solar-generated electricity.
When you're looking for the latest and most efficient Energy storage for renewable energy republic of china for your PV project, our website offers a comprehensive selection of cutting-edge products designed to meet your specific requirements. Whether you're a renewable energy developer, utility company, or commercial enterprise looking to reduce your carbon footprint, we have the solutions to help you harness the full potential of solar energy.
By interacting with our online customer service, you'll gain a deep understanding of the various Energy storage for renewable energy republic of china featured in our extensive catalog, such as high-efficiency storage batteries and intelligent energy management systems, and how they work together to provide a stable and reliable power supply for your PV projects.
Related Contents
