What Share of China’s Energy is Renewable and Why is the Sector Growing So Fast?

Beijing has announced a new climate action plan—its first pledge to include absolute targets for cutting planet-warming gases—committing to reduce emissions by 7–10 per cent by 2035

Thu Sep 25 2025
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ISLAMABAD: China, the world’s largest polluter and second-biggest economy, is emerging as a paradox on the global climate stage – a nation still heavily reliant on coal, yet at the same time breaking records in renewable energy.

In a video address to the United Nations on Wednesday, Chinese President Xi Jinping announced a new climate action plan—its first pledge to include absolute targets for cutting planet-warming gases—committing to reduce emissions by 7–10 per cent by 2035.

The move comes as China, which now accounts for nearly 30 per cent of global emissions, is also rapidly scaling up clean energy production while exporting solar panels, batteries, and electric vehicles worldwide, according to AFP.

The pace of this energy transition is striking.

What is renewables’ share? 

In April 2025, wind and solar together supplied 26 per cent of China’s electricity, the highest monthly share on record, according to the global energy think tank Ember.

That milestone beat the previous record of 23.7 per cent set in March 2025, as favourable spring weather lifted renewable output while moderating energy demand.

Both wind and solar hit individual records. Wind power contributed 13.6 per cent of generation, while solar delivered 12.4 per cent.

Solar’s rise has been particularly dramatic. In April 2020, solar accounted for just 4.1 per cent of China’s electricity. Five years later, it has tripled its share, bolstered by the installation of vast new capacity.

China installed more solar panels in 2024 than the rest of the world combined, tripling its annual rate of installations in two years—from about 103 GW in 2022 to 333 GW in 2024.

The momentum has carried into this year. Around 72 GW of solar capacity was added in the first quarter of 2025 alone, up 18 per cent compared to Q1 2024, according to Ember data.

That surge has translated into record-breaking generation. In April 2025, China produced 96 terawatt-hours (TWh) of solar power, surpassing the previous high of 89 TWh set in August 2024.

The shift is reshaping China’s energy mix. Fossil fuel generation dropped by 72 TWh—or 3.6 per cent—year-on-year in the first four months of 2025, a sign that the growth of renewables is beginning to eat into coal’s dominance.

What is behind the boom?

Analysts point to both political will and economic shifts behind the boom.

China’s 2020 pledge to achieve carbon neutrality by 2060 sent a powerful signal favouring green investments. At the same time, macroeconomic conditions helped accelerate the transition.

“A clampdown on excessive real estate lending since 2020 coincided with pandemic-era stimulus measures that helped drive more investment into renewables manufacturing,” said Lauri Myllyvirta, lead analyst at the Centre for Research on Energy and Clean Air (CREA) in an interview with Reuters.

Lending to manufacturing has continued to expand in 2025, particularly in green and high-tech industries.

How important is China as a renewables manufacturer?

China’s role is not limited to domestic energy generation. The country dominates global renewable energy manufacturing.

It will hold more than 80 per cent of the world’s solar manufacturing capacity through 2026, according to consultancy Wood Mackenzie.

From polysilicon to finished panels, China controls over 80 per cent of capacity at every stage of the supply chain, Rystad Energy estimates.

Its factories can produce 1,000 GW of solar modules annually—more than double current global demand.

China’s dual identity—as both the planet’s top polluter and its clean energy powerhouse—may well define the future of the global energy transition.

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