Renewables end 2024 on high note

China's renewable energy sector experienced a stellar year in 2024, with the total installed capacity of wind and solar power surpassing 1.4 billion kilowatts, further reinforcing the country's role as a global leader in renewable energy development.

China's total installed power generation capacity reached 3.35 billion kilowatts as of December, a remarkable 14.6 percent year-on-year growth, according to data released by the National Energy Administration on Tuesday.

The installed capacity of solar power touched 890 million kilowatts, a 45.2 percent increase compared to the previous year, while wind power capacity climbed to 520 million kilowatts, up 18 percent year-on-year, it said.

Industry experts believe the record combined capacity of wind and solar energy is a milestone that underscores China's rapid progress in clean energy adoption.

This growth reflects the country's prioritization of renewables in its energy strategy to meet rising power demand and reduce carbon emissions, said Zhu Yicong, vice-president of renewables and power research at global consultancy Rystad Energy.

Installation of renewable capacity in China, the world leader in electricity production from such energy sources, has surged in recent years and the momentum has not been slowing, said Zhu.

China has shown clear leadership in global solar PV installations, and a large part of such installations are expected to be generated from the country this year, she said.

The global consultancy expects China's solar sector to continue breaking records in the coming years, with total installed solar PV capacity expected to cross the 1,000 GW mark by the end of 2026.

Lu Ruquan, head of the China National Petroleum Corp Economics and Technology Research Institute, said the nation's energy consumption was optimized throughout last year as the country sought to ramp up renewable energy use and upgrade its power system.

China has both the capability and the ambition to become a central force in driving the global energy transition, he said during the release of a report on the international and domestic oil and gas industry in Beijing on Tuesday.

"The country is committed to further promoting the growth of renewable energy and actively advancing the transformation of its energy mix from a reliance on coal to a more balanced structure, with coal, oil and natural gas, as well as non-fossil fuels sharing equal footing."

China's energy transformation in 2024 was bolstered by substantial investments. Major power generation enterprises invested almost 1.17 trillion yuan ($159.7 billion) in power generation projects, a 12.1 percent increase from the previous year.

Investments in power grid infrastructure also surged, with 608.3 billion yuan allocated, representing a 15.3 percent year-on-year increase, it said.

These investments facilitated the construction of large-scale renewable energy projects, the modernization of grid systems to handle the variability of renewable sources, and the deployment of advanced storage technologies. The expanded grid infrastructure played a critical role in connecting remote renewable energy hubs to urban demand centers.

Lin Boqiang, head of the China Institute for Studies in Energy Policy at Xiamen University, said the Chinese government's long-term policies, including subsidies, renewable energy quotas, and tax incentives have incentivized clean energy investment, while the push to achieve peak carbon emissions before 2030 and carbon neutrality before 2060 has added urgency with these efforts.

Technological advancements, including innovations in solar panel efficiency and wind turbine design, have also lowered costs and improved the reliability of renewable energy systems, leading domestic manufacturers to further drive down production costs, Lin said.

China's renewable energy sector is poised for continued growth, he said.

The development of large-scale energy storage systems and the integration of artificial intelligence in grid management will play a pivotal role in maximizing renewable energy utilization, Lin added.

Wang Hongzhi, head of the NEA, said China continued to speed up efforts to boost renewable power and the administration believes the nation will accelerate the planning and construction of a new energy system in 2025.