Assessment: Examining China's Renewable Energy Capabilities to Cover Electrical Needs

In the year 2024, China made significant strides in its renewable energy sector. However, the companies that installed more than 30 gigawatts (GW) of wind and solar power capacity during this period remain unnamed in the available search results. Key players in China's renewable energy sector include Dongfang Electric, a leader in offshore wind, and Longi, the world's largest solar module manufacturer.

The year began with Tsingshan Holding Group, a stainless steel firm, installing the first wind turbine at Weda Bay Industrial Park in Indonesia. This marked a significant step towards the integration of renewable energy in industrial operations.

In March, the Chinese government took a decisive action by requiring some businesses, particularly those in energy-intensive sectors, to use green electricity for the first time. This move was a step towards reducing the country's reliance on fossil fuels.

From 2020 to 2024, the output of EV, PV module, and battery manufacturing rose nine-fold, four-fold, and 12-fold respectively, while industrial output as a whole rose 24%. This surge in renewable energy manufacturing was a clear indicator of China's commitment to a greener future.

Despite the growth in renewables, coal-fired power still supports a large portion of China's electricity supply. From 2021 to 2024, coal's percentage of total generation ranged between 55% to 61%. However, China has more coal power under construction than at any point since 2015, and approved 66.7 GW of coal power projects in 2024.

Reviewing government documents on 2024 targets for provincial-level jurisdictions, the average target for renewable-electricity consumption was found to be about 35%. This target is expected to be a benchmark for Chinese companies by 2030.

State-owned energy companies, such as China Energy Investment Group and the State Power Investment Corporation, often purchase Green Electricity Certificates to offset carbon emissions. This practice shows a conscious effort by these companies to reduce their carbon footprint.

The International Energy Agency found that more than half of global electricity demand growth in the last year came from China, with industry accounting for about 60% of China's electricity demand. This highlights the immense potential and challenge in transitioning China's industrial sector towards renewable energy.

Tsingshan is planning 7 GW of wind and solar power generation across Weda Bay and Morowali industrial zones. This renewable energy capacity is enough to power local production of raw materials used in cathodes for lithium batteries with renewable electricity.

The Ordos Zero-Carbon Industrial Zone in Inner Mongolia has built a 385-megawatt wind-solar-storage facility. Companies in this zone get almost 70% of their power from green sources, demonstrating the feasibility of a zero-carbon industrial zone.

In 2024, China installed 356 GW of wind and solar capacity, which is 4.5 times as much as were added in the EU and roughly equivalent to the total installed wind and solar capacity in the US. This shows China's commitment to leading the global renewable energy transition.

One-third of China's industrial demand growth came from producing solar photovoltaic (PV) panels, batteries, and electric vehicles (EVs). This growth indicates the increasing importance of these sectors in China's industrial landscape.

The IEA predicts that coal's share in China's total generation will fall from almost 60% in 2024 to 50% in 2027 as renewable and nuclear energy sources increase. This forecast suggests a promising future for China's renewable energy sector.

Between 2020 and 2023, power use in traditional energy-intensive sectors grew faster than the value they added to the economy. This trend underscores the need for a more efficient and sustainable energy use in these sectors.

Chinese firms are already working on supplying electricity locally and directly to businesses, such as the Ordos Zero-Carbon Industrial Zone in Inner Mongolia. This development could pave the way for a more decentralised and efficient energy system in the future.

In addition, the electricity consumption of new types of infrastructure, such as AI data centres, is developing rapidly. This trend presents both opportunities and challenges in the transition towards a more sustainable energy system.

Lastly, in 2024, the electricity consumed by internet data services such as big data, cloud storage, cloud computing, and AI increased by 31%, and the EV charging and switching service industry saw 51% year-on-year growth. These trends highlight the increasing importance of energy-efficient solutions in the digital and transportation sectors.

In conclusion, 2024 was a significant year for China's renewable energy sector. While coal still plays a significant role in China's electricity supply, the country's commitment to renewable energy is evident in its rapid installation of wind and solar capacity. The future of China's energy sector looks promising as the country continues to invest in and develop its renewable energy infrastructure.