As of H1 2024, the installed capacity of wind and solar generators in China reached a historic 1,150 GW, surpassing the 1,147 GW of coal-fired power plants for the first time, according to Rystad Energy. This milestone was driven by the rapid adoption of solar panels and the deliberate decommissioning of smaller coal-fired plants.
The rate of commissioning coal-fired combined heat and power plants (CHPPs) in China has significantly slowed this year. In 2023, 48.1 GW of coal-fired CHPPs were added to the grid, but in H1 2024, only 8.6 GW were connected, marking the lowest half-year figure in over two decades.
This slowdown is partly due to increased competition from the low-carbon energy sector, which has seen substantial cost reductions over the past decade. The levelized cost of energy from onshore wind farms in China dropped from US$0.08 per kWh in 2012 to US$0.03 per kWh in 2022, while the cost for solar panels fell from US$0.21 to US$0.04 per kWh over the same period, according to the International Renewable Energy Agency (IRENA).
These cost reductions have significantly accelerated the commissioning rates of renewable energy sources (RES). Rystad Energy reports that in 2023, China commissioned a total of 293 GW of wind and solar power plants, a stark contrast to the mid-2010s when annual additions barely exceeded 50 GW.
Simultaneously, China has more than doubled its investment in nuclear reactors between 2019 and 2023, from US$6.4 billion to US$14 billion. The International Atomic Energy Agency (IAEA) notes that during this period, China commissioned 10 nuclear reactors with a combined net capacity of 10.2 GW. This growth has positioned China as the third largest country globally by installed nuclear power capacity, at 54.2 GW, trailing only France (61.4 GW) and the US (97.0 GW).
The planned shutdown of long-term operational coal-fired CHPPs has been another crucial factor in China’s power generation sector. Global Energy Monitor reports that 124 GW of coal-fired CHPPs were taken offline in China from 2000 to H1 2024, representing over 10% of the current operational capacity.
However, coal remains dominant in China’s energy mix: in 2023, coal-fired power plants generated 60.7% of the country’s electricity, while wind and solar accounted for 15.5%. The remaining 23.8% came from other energy sources, including nuclear and hydropower, with renewables’ share limited by their dependency on weather conditions.
