China’s energy transition is a revolution

5/17/2019

China is rushing headlong toward a more sustainable and green energy industry, with aggressive renewable energy campaigns in spite of significant setbacks like limited transmission capacity and a steadily growing backlog of subsidy payments.

According to data released this week, in 2018 China grew its renewable power capacity by a whopping 12 percent as compared to the previous year, with the government continuing to introduce new renewable energy projects all the time.

Numbers shared by the National Energy Administration (NEA) during a media briefing this week show that by the end of last year the total renewable power capacity in China increased to 728 gigawatts (GW). This increase accounted for an impressive 38.3 percent of China’s total installed power capacity, 1.7 percentage points higher on the year and approximately 7 percentage points higher than the end of 2015. So far, China’s renewables investment has been focused on hydro, biomass, solar and wind power.

Of the 728 GW added to the grid in 2018, 20.59 GW were from new wind power capacity and 44.3 GW from new solar capacity. This amount of new solar capacity is higher than earlier estimates, but it shows a decrease in solar growth nonetheless, following a 2017 decision to cut down on Chinese solar subsidies. In addition to wind and solar, there were also smaller contributions to the grid, including from hydropower, which added 8.54 GW of capacity for a total hydropower capacity of 352 GW by the end of the year.

This growing enthusiasm for renewables in China comes from a larger “energy revolution” objective that endeavours to wean the world’s second-largest economy off of its long-time dependence on coal. With the fastest growing consumer market in the world and notoriously horrific air quality, China is looking to move away from one of the dirtiest forms of power production to something much cleaner and with a significantly lighter carbon footprint.

A recent guideline put together by the National Development and Reform Commission and the National Energy Administration set objectives for China’s clean energy consumption between now and 2020. The guideline stipulates that by this year, the wind power utilization rate should top 90 per cent, while the utilization rates of both photovoltaic and hydropower should reach more than 95 per cent.

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Concurrently the regional communities can establish their own microgrid and benefit from electrification from renewable sources.