Post by : Anis Farhan

A New Kind of Power: China's Green Shift

For many years, China was known as the "world's factory," producing a vast range of goods. But now, it's quickly becoming recognized for something else entirely: its huge lead in green technology and renewable energy. While China is still a major consumer of energy, it's making massive strides in producing and using clean power sources like solar and wind. This isn't just about protecting the environment; it's a core part of China's economic plans, helping it move towards a more sustainable and high-tech future. This transformation is not only changing China but also making green energy cheaper and more available for countries around the globe.

China's journey to becoming a green tech giant has been driven by a mix of factors. Rapid economic growth brought challenges like air pollution, which became a serious concern for its citizens. At the same time, the government saw a big opportunity to become a leader in new, advanced industries. They poured huge amounts of money into research, development, and manufacturing for clean energy, much like they did for other industries in the past. This long-term planning, combined with a strong focus on innovation, has allowed China to scale up its production of green technologies at a speed and size unmatched anywhere else.

Today, China doesn't just build many of the world's solar panels and wind turbines; it also installs a huge amount of renewable energy capacity within its own borders. This dual approach – becoming both a manufacturing hub and a massive consumer of green energy – creates a powerful cycle of growth and improvement. It shows how a country can turn environmental challenges into economic opportunities, influencing the global shift towards a cleaner energy future.

Sunshine and Wind: Dominance in Manufacturing

When we talk about China's green tech revolution, two areas really stand out: solar panels and wind turbines. China has become the undisputed global leader in manufacturing these essential pieces of renewable energy technology. It's safe to say that a large majority of the world's solar panels and wind turbines are either made in China or use components produced there.

Consider solar panels (photovoltaics or PV). China has invested more than ten times what Europe has in building solar PV supply chains over the past decade. This massive investment has led to incredible efficiency and economies of scale. Simply put, China can produce solar panels at a much lower cost than almost any other country. This isn't just because of cheaper labor; it's due to highly integrated supply chains, advanced factories, and continuous improvements in technology. In 2023, China added as much solar capacity as the entire world did the year before, and it controls over 80% of all stages of solar panel manufacturing, from the raw material (polysilicon) to the finished module.

The story is similar for wind energy. China has the largest wind resources in the world, both on land and offshore, and it has built an enormous capacity to produce wind turbines. In some recent years, China has installed more wind power capacity than the rest of the world combined. Companies like Goldwind are major global players in turbine manufacturing. China's offshore wind farms, in particular, are growing at a remarkable pace, with the country operating almost half of the world's installed offshore wind capacity. This dominance in manufacturing has played a crucial role in driving down the global costs of renewable energy, making it a more affordable option for countries worldwide.

Powering Up at Home: Massive Renewable Energy Adoption

It's not just about what China sells to the world; it's also about what it's building at home. China is by far the largest installer of renewable energy capacity within its own borders. This massive domestic adoption is a key driver for its green tech revolution, creating a huge market that helps perfect its technologies and bring down costs even further.

In 2024, the newly installed capacity of renewable energy in China accounted for an astonishing 86% of its total new power capacity. By the end of that year, renewable energy sources, including hydro, wind, and solar, made up a record 56% of China's total installed power capacity. This means that for the first time, clean energy sources now provide more power generation capacity than traditional thermal (coal and gas) power plants in China.

While coal still plays a significant role in China's overall energy mix, the rapid growth of renewables shows a clear commitment to shifting away from fossil fuels. Large-scale solar farms are sprouting up in its western provinces, while massive wind farms are being built across the country, including pioneering offshore projects along its long coastline. This huge domestic market not only consumes the products of its manufacturing prowess but also acts as a testing ground for new innovations, ensuring that China stays at the cutting edge of renewable energy development.

Beyond Solar and Wind: Batteries and Electric Vehicles

China's green tech revolution extends far beyond just solar panels and wind turbines. It is also a global leader in battery technology and Electric Vehicles (EVs), which are critical components of a clean energy future.

Lithium-ion batteries, which power everything from EVs to grid-scale energy storage, are another area where China holds immense sway. In 2023, China's battery production alone was enough to meet the global demand for both EVs and stationary energy storage. It controls about 70% of the global manufacturing capacity for these batteries, producing them at a scale and cost that is hard for other nations to match. This dominance ensures that the crucial storage component for renewable energy is readily available and affordable.

This battery power directly fuels China's booming Electric Vehicle (EV) industry. Chinese EV makers are not only dominating their huge domestic market but are also rapidly expanding their exports around the world. In 2024, China produced 13 million new energy vehicles (NEVs), including battery EVs and plug-in hybrids, with a significant portion being exported. This growth is supported by a rapid build-out of charging infrastructure across the country, making EVs a viable and attractive option for millions of consumers. By pushing aggressively into EVs and battery storage, China is accelerating the global transition away from fossil fuels in transportation and power grids.

Policies and Future Vision: Sustaining the Revolution

China's green tech revolution is not accidental; it's the result of decades of strategic government policy and massive, consistent investment. Early on, the government set ambitious targets for carbon emissions and renewable energy development, backed by financial incentives like subsidies and favorable tariffs. These policies provided a clear direction and strong support for companies to invest heavily in clean energy technologies.

The government also invested heavily in research and development (R&D), ensuring that Chinese companies are not just mass-producing existing technologies but also innovating and developing next-generation solutions. This long-term vision, often outlined in its "Five-Year Plans," has created a robust ecosystem for green industries. While some of China's trade practices have faced criticism from Western nations, the overall impact has been to drive down costs for green technologies globally, making them more accessible for everyone.

Looking ahead, China continues to set bold goals. It aims to have 80% of its total energy mix come from non-fossil fuel sources by 2060 and achieve a combined 1,200 gigawatts (GW) of solar and wind capacity by 2030. These ambitious targets will continue to fuel innovation and deployment, reinforcing China's role as a pivotal player in the global clean energy transition. The scale and speed of China's green revolution demonstrate a powerful commitment to tackling climate change while simultaneously driving economic growth and shaping the future of global energy.

Disclaimer

The views herein are the author's and don't reflect Newsible Asia's official stance. This content is for information only, not professional advice. Readers should research and consult experts before acting. Newsible Asia is not responsible for any losses from reliance on this article.