China's Green Energy Wasted: Grid Can't Handle Renewables

In the first half of 2026, China experienced substantial renewable energy curtailment, wasting 360 terawatt-hours (TWh) of wind and solar power. This figure, representing a quarter of the green energy generated, is 49% higher than the same period last year. The primary cause is the lack of adequate transmission infrastructure to move power from generation sites to consumption centers.

This energy waste allowed China's coal generation to increase by 3.4% year-on-year, undoing a decade of decline. Despite government orders to curb coal capacity, new coal plants continue to come online, contributing to system overcapacity. Legacy approvals and policy protections ensure coal generators a significant grid share, regardless of cheaper clean power availability.

The problem of curtailment is not isolated to China, with countries like Australia, Japan, and India also facing similar challenges due to insufficient grid infrastructure. Analysts suggest that battery storage solutions are crucial for storing surplus renewable energy and mitigating curtailment.

This situation has led to a significant drop in new solar installations in China, as investors shift towards projects that include battery storage. The ongoing issue of curtailment is expected to persist throughout the remainder of the decade.