China has almost as much large utility-scale wind and solar capacity in operation as the rest of the world combined, according to non-profit Global Energy Monitor (GEM). The country is also likely to surpass its own ambitious renewables target well ahead of the 2030 deadline.

The world’s second largest economy was home to 228GW of operating utility solar capacity at the end of May 2023, more than the 206GW in operation elsewhere. This represented about 75% of the combined total operating capacity of utility-scale solar projects (of at least 20MW) across the whole of Asia.

For wind, China is home to 310GW of combined operating onshore and offshore utility capacity, equivalent to almost 40% of the global total. Total operating capacity of utility-scale wind projects (of at least 10MW) is far behind in other competing economies, including the US (138GW), Germany (43GW), Spain (28GW), India (28.1GW) and the UK (26.6GW).

As the world’s largest energy consumer and greenhouse gas producer, China has invested heavily in renewable energy since the early 2000s. Chinese president Xi Jinping committed in December 2020 to build more than 1200GW of cumulative wind and solar power capacity by 2030.

If all of the combined 750GW of prospective projects – including those announced, in pre-construction and under construction – are built and commissioned as planned, it is likely China will achieve and potentially surpass this target, according to GEM.

A variety of incentives and measures are behind the renewables rollout in China to help address growing energy demand and pollution issues. Dorthy Mei and Martin Weil, two researchers at GEM, say that “generous” feed-in tariff subsidies, which guarantee above-market rates are paid for electricity produced by renewables, have been the primary policy tool used over the past decade.

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Local renewable energy developers in China can also access income tax breaks for the first three years of operation and long-term loans with favourable interest rates from state-owned banks. Established supply chains in China for wind turbines and solar panels also ensure a reliable supply of components for renewables developers. “The implementation of province-level minimum targets for the percentage of electricity consumption from non-hydro renewables is another contributing factor to China’s progress,” said Ms Mei and Mr Weil, noting that provinces’ progress on renewables is closely monitored and audited by the central government.

The leading regions for solar developments in China were concentrated in its northern and north-western provinces, which tend to have higher solar radiation. Shanxi placed first with 18.8GW of operating capacity, followed by Xinjiang (17.1GW), Hebei (16GW) and Qinghai (15.4GW).

The largest operating solar power plant in China is located in Ningxia province, with a nameplate capacity of 2GW. A number of even larger projects have been announced, including two projects in the Kubuqi Desert of Inner Mongolia, with nameplate capacity of 7GW and 8GW.

Like solar, onshore wind capacity is concentrated across inland northern Chineses provinces. Inner Mongolia had by far the largest set of operating wind installations, with 40.5GW of capacity, followed by Hebei (22.9GW), Xinjiang (22.9GW) and Shandong (21.5GW). As regards to offshore wind, China had 31.4GW of installed capacity in May 2023, more than Europe’s total offshore capacity according to GEM, but representing just 10% of China’s total wind capacity. 

Unlike most other countries, which actively court foreign renewables developers, virtually all the investments in China’s renewable power plants come from Chinese investors. Most of these are national or provincial state-owned generation companies.

Relative to their domestic peers, foreign investors in China do not have access to the same favourable debt financing from state-owned banks and face extra steps in the permitting process. “In short, it is difficult for foreign investors to compete and there is little need or incentive for domestic investors or the government to bring them in as partners,” said Ms Mei and Mr Weil.

While China has made remarkable progress in its renewables rollout, the country remains the world’s largest polluter. Today China only gets 13.4% of its electricity from wind and solar, according to Chinese national statistics cited by GEM. The majority (65%) of its power comes from fossil fuels, especially coal, the source that emits the most carbon dioxide per unit of energy.