The energy construction in China is moving at a rapid pace. Last year, 356 gigawatt solar and wind power plants were added in the country. A nuclear reactor has an effect of approximately 1.1 gigawatt.
It's an "enormous change compared to ten years ago", says Lauri Myllyvirta, China expert at the Centre for Research on Energy and Clean Air (Crea).
Every time you visit a place, you see more solar panels, more electric cars, and more charging stations, he says.
Especially solar power stands out. In ten years, the capacity has increased tenfold, and last year 277 gigawatt was added, an increase of 28 percent from 2023, which was also a record year. Six out of ten new solar panels in the world during the year were installed in China.
One of the few growth areas
Lauri Myllyvirta sees several reasons for the enormous growth.
It started with leader Xi Jinping's surprising announcement in 2020 that China would reach carbon neutrality by 2060. At the same time, the state began to crack down on the overheated real estate sector. So there, banks and local governments were left standing – what should they invest in now?
Many landed on green energy due to the political signals and that it seemed like one of the few growth areas with great potential. It led to a massive investment wave in manufacturing and implementation that surprised everyone and far exceeded the government's goals.
Myllyvirta believes that last year's giant figures can be beaten this year. It's the final sprint for the current five-year plan, and many are rushing to reach their local and regional goals.
10 percent of GDP
What the next five-year plan means for the energy transition is unclear. The green energy sector – mainly solar power, electric vehicles, and batteries – now accounts for 10 percent of the country's economy.
So if a goal is set that indicates a slowdown in solar, wind, and other green technologies compared to what is installed annually, it will be an economic drag, while the country seeks ways to accelerate GDP growth.
Not enough
But despite the enormous green energy addition – 500 terawatt-hours last year – it's not enough for the energy-hungry nation. Around the country, construction began on new coal-fired power plants with a total capacity of 94.5 gigawatt last year.
It's not new electric cars that are driving the increase, but the energy-intensive manufacturing industry.
The second factor is the residential and service sector. China is a country with a harsh climate, and it's only in the last five to ten years that people have started using air conditioning. But it's mainly industry that accounts for most of the growth, he says.
China is the world's largest emitter of the greenhouse gas carbon dioxide, which leads to global warming. This is largely due to the country burning coal to generate electricity.
Last year, 30 gigawatt of coal-fired power was connected to the grid, and construction of new coal-fired power plants with a capacity of 94.5 gigawatt also began.
Even though coal production is increasing in absolute terms, the proportion of electricity production accounted for by coal has decreased significantly. In 2015, 71.1 percent of China's electricity came from coal. Last year, the figure was 58.7 percent, as the expansion of green electricity has increased so rapidly.
Sources: Reuters, AP, The Guardian
