Forging ahead: China’s electricity transition in action

China is transitioning from a focus on adding renewable capacity to building a "new electricity system" that integrates high levels of variable energy. In 2024, China invested $625 billion USD in clean energy, significantly outpacing other major regions. This shift, combined with expanding electrification in industry, transport, and buildings, is contributing to a structural decline in fossil fuel generation. By the first half of 2025, combined wind and solar generation surpassed the combined output of hydro, nuclear, and bioenergy, and total installed capacity for these sources exceeded that of coal for the first time.

• China's clean energy investment in 2024 reached $625 billion USD, which was higher than the combined investments of Europe ($426 billion), North America ($409 billion), and the rest of Asia-Pacific ($291 billion).
• The share of electricity generated from wind and solar rose to 18% of China's total in 2024, up from 9% in 2020 and 4% in 2015. Some provinces exceeded the European Union's 29% share, including Qinghai (46%), Gansu (36%), Jilin (33%), Hebei (32%), and Heilongjiang (30%).
• China is rapidly expanding energy storage, with total capacity exceeding 135 GW by the end of 2024. Battery storage has overtaken pumped hydro as the primary source, with 2024 battery commissions totaling 37 GW/91 GWh, surpassing the combined additions of the US and Europe.
• Electrification is displacing fossil fuels across multiple sectors; in 2023, end-use electrification added 73 TWh of new demand, with industry contributing 34 TWh, transport 22 TWh, and buildings 12 TWh.
• China is targeting harder-to-abate sectors through green hydrogen and heat pumps. In 2024, China accounted for over 60% of global renewable-based hydrogen capacity growth, reaching just over 125,000 tonnes/year.
• Fossil fuel generation is showing signs of a structural peak. In the first half of 2025, thermal generation declined by 2% compared to the first half of 2024, despite a 3.7% increase in electricity demand and a 6.4% rise in industrial production.
• In the 12 months ending June 2025, combined wind and solar generation (2,073 TWh) exceeded the combined generation of hydro, nuclear, and bioenergy (1,936 TWh).

APA

Ember (2025). Forging ahead: China’s electricity transition in action. https://ember-energy.org/chapter/forging-ahead-chinas-electricity-transition-in-action/

Chicago

Ember. Forging ahead: China’s electricity transition in action. 2025. https://ember-energy.org/chapter/forging-ahead-chinas-electricity-transition-in-action/.

Wikipedia

{{cite report |author=Ember |title=Forging ahead: China’s electricity transition in action |date=9 September 2025 |url=https://ember-energy.org/chapter/forging-ahead-chinas-electricity-transition-in-action/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ember2025forging, author = {{Ember}}, title = {{Forging ahead: China’s electricity transition in action}}, institution = {Ember}, year = {2025}, month = sep, url = {https://ember-energy.org/chapter/forging-ahead-chinas-electricity-transition-in-action/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }