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China's Green Power Costs Plummeting
13 Jun
Summary
- Wind and solar costs to drop over 20% this decade.
- New energy surpassed coal as China's largest source.
- China adds 250-320 million kW of new energy capacity this year.
China's renewable energy sector is poised for significant transformation, with wind and solar power costs anticipated to fall by over 20% within the next ten years. This downward trend in cost, driven by technological advancements and large-scale development, is making renewables increasingly competitive.
As of the end of last year, new energy sources, including wind and solar, collectively accounted for 47.3% of China's total power capacity. This milestone marked a historic moment where renewables surpassed coal, officially becoming the nation's largest electricity source.
The utilization of these green resources is also surging, with generation reaching 2.3 trillion kWh in 2025, a 25% year-on-year increase. This clean energy now contributes 22.1% of total electricity generation.
Looking ahead, China plans to add between 250 million and 320 million kilowatts of new energy installed capacity this year. Further expansion is projected, with an average annual growth of at least 180 million kilowatts anticipated through 2030 and beyond.
By 2035, the total installed capacity for wind and solar power is targeted to reach at least six times the 2020 level, aiming for 3.6 billion kilowatts to meet national climate commitments.
