Construction Scale Hits Record High, Solar and Wind Power Lead Globally
A recent report by Global Energy Monitor (GEM) reveals that as of June this year, China has 262 GW of utility-scale solar power installations and 251 GW of wind power installations under construction, both reaching historic highs. China’s solar power construction scale has surpassed the combined total of 220 GW from all other countries, while its wind power capacity is 2.5 times the combined total of 102 GW from other nations, securing its global leadership position.
Despite a recent slowdown in China’s officially reported new installation capacity, analysts attribute this primarily to adjustments in the renewable energy pricing system implemented in June 2025. Developers rushed to complete and connect projects before the new policy took effect, leading to a concentration of completions last year and affecting this year’s statistical data. BloombergNEF (BNEF) estimates that China’s new solar power installation capacity for the entire year could still reach 255 GW, indicating that the momentum of renewable energy construction remains strong.
Wind and Solar Curtailment Persists, Particularly Severe in Western Regions
The rapid expansion of renewable energy has also brought challenges to grid absorption capacity. The GEM report highlights that wind and solar curtailment across China continues to increase. When wind and solar power generation exceed the grid’s absorption capacity, power plants must reduce output or even shut down. Western regions, which host large-scale wind and solar bases but have relatively low local electricity demand, face particularly severe curtailment issues.
Aiqun Yu, Senior East Asia Strategy Analyst at GEM, notes that without effectively addressing grid dispatch issues, the actual utilization rate of renewable energy will be significantly compromised. She points out that curtailment rates in western China remain high, with some provinces experiencing solar curtailment rates exceeding 10%, severely impacting the efficiency of green energy investments.
Dual-Track Strategy Implemented, Coal Power Still Dominates Transmission
To improve green power absorption, China is implementing a “dual-track strategy.” On one hand, it continues to build cross-regional ultra-high-voltage (UHV) transmission lines to deliver abundant renewable energy from the west to eastern power demand centers. On the other hand, it guides high-energy-consuming industries to relocate to the west to utilize local green power resources directly.
However, Aiqun Yu highlights that in China’s existing cross-regional transmission systems, the scale of coal power transmission is still approximately twice that of renewable energy. This means that without policies prioritizing renewable energy use, coal power continues to play a dominant role in electricity transmission, limiting the actual efficiency of green energy utilization.
Effectiveness of Green Hydrogen Projects Questioned, Experts Call for Stronger Policy Support
China is also actively developing green hydrogen projects using excess green electricity to enhance renewable energy utilization. However, the GEM report warns that some green hydrogen projects may merely serve as formal measures for companies to comply with policy requirements, with limited actual decarbonization effects on high-emission industries like coal chemicals. The report emphasizes that while China continues to expand renewable energy construction, it must simultaneously enhance grid dispatch capabilities and green power absorption mechanisms to truly realize the benefits of green energy.
Industry insiders note that while China’s renewable energy construction scale far outpaces the rest of the world, lagging grid infrastructure and policy support have become key bottlenecks constraining green energy development. As installation capacity continues to rise, balancing power supply and demand and improving renewable energy utilization will be the next critical focus of China’s energy transition. Whether China can effectively resolve wind and solar curtailment issues will directly impact its progress toward carbon neutrality goals.
