China's wind, solar energy capacity outpaces coal power

China's combined installed capacity for wind and solar power has historically surpassed that of coal power by the end of the first quarter this year, marking a significant milestone in the country's energy transition, according to a report from the China Electricity Council.

The report predicts that as wind and solar power continue their rapid growth, their combined capacity surpassing coal power will become a regular occurrence.

As China accelerates the transition of the energy sector, the share of coal power capacity in all Chinese provinces had fallen below 50 percent as of the end of March, it said.

Alongside the increase in generation capacity, investment in power grid projects also saw rapid growth. The report attributed this surge to the large-scale integration of new energy sources, upgrades to grid digitalization and intelligence, and the construction of major projects like ultra-high voltage (UHV) transmission lines.

In the first quarter, investment in power grid engineering reached 95.6 billion yuan ($13.19 billion), a year-on-year increase of 24.8 percent, while investment in grid equipment saw an even sharper rise, growing by 59.5 percent.

Looking ahead, the report forecasts that China's macro economy will maintain steady growth in 2025, driving stable and relatively fast growth in electricity consumption. Total electricity consumption across the country is expected to reach 10.4 trillion kilowatt-hours (kWh), an increase of around 6 percent year-on-year. The maximum peak load is projected to be around 1.55 billion kW, it said.

On the supply side, the report forecasts that China's total installed power generation capacity is expected to exceed 3.8 billion kW by the end of 2025, up about 14 percent from the previous year. New installed capacity is projected to exceed 450 million kW, with new renewable energy capacity accounting for over 300 million kW.

By the end of 2025, non-fossil fuel power generation capacity is expected to reach around 2.3 billion kW, accounting for over 60 percent of the total installed capacity. The report predicts that the share of coal power in the total installed capacity will fall to about one-third by year-end.