Solar and wind energy exceeded coal capacity in China for the first time in history in June, according to analysis by Norwegian research consultancy Rystad Energy.
The consultancy is predicting that by 2026, solar power will alone surpass coal as China’s primary source of electricity, with a cumulative capacity exceeding 1.38 TW, 150 GW more than coal.
While over 100 GW of new solar were deployed in China over the first six months of 2024, Rystad Energy found only 8 GW of coal was added. However, China remains the largest global consumer of coal, accounting for more than 50% of worldwide consumption.
Rystad Energy says the Chinese government is implementing stricter restrictions on new coal projects to meet carbon reduction goals. The consultants explained efforts are now focused on phasing out smaller coal plants, upgrading existing ones to reduce emissions and enforcing more stringent standards for new projects.
Simeng Deng, Senior Analyst at Rystad Energy, says we’re at a pivotal moment for both China and the global energy transition.
“With strong renewable energy project pipelines in place, the country is on track to shed its reputation as the world’s largest greenhouse gas emitter and power consumer,” Deng said. “Solar energy will be central to this transformation, with advancements in supply chains, infrastructure and capacity additions set to surpass coal in future energy production. This shift could be a landmark achievement, potentially transforming China from a coal-dependent giant into a leader in clean energy,”
Rystad Energy added that as China’s clean power capacity grows, it will need to address challenges such as low utilization and intermittency, through upgrades to grid infrastructure and adding battery storage to maintain grid reliability.
In India, the world’s second-largest coal consumer, the share of coal in the country’s total power capacity fell below 50% earlier this year, for the first time since the 1960s.
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