
China's electricity sector is a complex and rapidly evolving landscape. As the largest producer and consumer of coal globally, coal-fired power plants have been the mainstay of China's electricity generation, contributing to over half of the country's total electricity. However, China has also emerged as a leader in renewable energy, witnessing stunning growth in its installed renewable capacity over the last two decades. This transition towards cleaner energy sources is driven by the country's ambitious pledge to achieve carbon neutrality by 2060, in line with the Paris climate accord. While challenges and setbacks persist, China's efforts to reform its national electricity system and embrace a sustainable future are significant and have global implications in the fight against climate change.
| Characteristics | Values |
|---|---|
| Total power generation capacity for renewable energy sources | 53.9% as of 2023 |
| Power generation capacity from coal | 1040 GW in 2019 |
| Number of nuclear plants in operation | 55 as of February 2023 |
| Number of nuclear plants under construction | 22 as of February 2023 |
| Number of nuclear plants planned | More than 70 as of February 2023 |
| Power generation capacity from nuclear plants in operation | 57 GW as of February 2023 |
| Power generation capacity from nuclear plants under construction | 24 GW as of February 2023 |
| Power generation capacity from nuclear plants planned | 88 GW as of February 2023 |
| Share of electricity from nuclear energy | About 5% |
| Share of electricity from hydropower | 13% in 2024 |
| Share of electricity from wind and solar energy | 18% in 2024 |
| Share of electricity from fossil fuels | 62% in 2024 |
| Share of electricity from coal | 58% in 2024 |
| Share of electricity from natural gas | 3% in 2024 |
| Share of electricity from non-fossil fuels | 27% in 2020 |
| Share of electricity from coal-fired power plants | 63% in 2020 |
| Share of electricity from natural gas in the eastern and northeastern regions | Increasing |
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What You'll Learn

China's electricity sources
China's electricity sector is characterised by fast growth and an enormous installed base. China has the largest installed electricity generation capacity in the world, with 1505 GW and 5583 TWh generated in 2014. China's electricity sources are varied, with a mix of renewable and non-renewable energy sources.
China's electricity comes from renewable sources such as solar, wind, and hydropower, as well as from fossil fuels like coal and natural gas. China has the world's fourth-largest coal reserves and massive hydroelectric resources. In recent years, there has been a push towards renewable energy sources, with the country aiming to go carbon-neutral by 2060. As of 2023, the total power generation capacity for renewable energy sources in China is at 53.9%. China is on track to have at least 2461 GW of renewable electricity capacity installed by 2030, with solar capacity nearly tripling.
Despite the growth in renewable energy, China still relies heavily on fossil fuels for its electricity generation. In 2024, fossil fuels provided 62% of China's electricity, with coal generation reaching a record high. China is the largest producer and consumer of coal in the world and is the largest user of coal-derived electricity. Coal-fired power plants are preferred by grid companies as they are steady and predictable, and they are allowed more hours of grid access than renewables. However, the use of coal is a major source of greenhouse gas emissions, and China is the world's largest coal mine methane emitter.
Nuclear energy also plays an increasing role in China's electricity sector. As of February 2023, China has 55 nuclear plants in operation, with 22 under construction and more than 70 planned. About 5% of the country's electricity comes from nuclear energy.
China has two wide-area synchronous grids, the State Grid and the China Southern Power Grid, which were synchronized in 2005. The government has announced plans to create a unified electricity system, merging regional grids into one national market.
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Renewable energy
China has been making efforts to transition to renewable energy sources. In 2020, the Chinese Communist Party's general secretary, Xi Jinping, announced that China aims to be carbon-neutral by 2060, in accordance with the Paris climate accord. China is the world's largest investor in renewable energy. In 2017, investments in renewable energy amounted to US$279.8 billion worldwide, with China accounting for US$126.6 billion or 45% of global investments.
China sees renewable energy as a source of energy security and a means to reduce carbon emissions. Unlike oil, coal, and gas, renewable energy systems can be built and used wherever there is sufficient water, wind, and sun. China is a major leader in clean energy technology, and as Chinese renewable manufacturing has grown, the costs of renewable energy technologies have dropped significantly. In 2015, China became the world's largest producer of photovoltaic power, with 43 GW of total installed capacity. From 2005 to 2014, production of solar cells in China expanded 100-fold.
China has also been transitioning to renewable energy sources such as wind, solar, and hydropower. Wind power is the second most crucial renewable energy source for China. From 2014 to 2023, the cumulative installed wind power capacity more than quadrupled to 440 gigawatts. From 2004 to 2022, domestic hydropower consumption increased more than threefold to over 12 exajoules. China is also a world leader in the manufacture of solar photovoltaic technology, with its six biggest solar companies having a combined value of over $15 billion.
China is also making significant strides in energy storage capabilities, such as pumped hydro storage and battery storage technologies, which are crucial for managing fluctuations in electricity supply and demand. China is on track to have at least 2461 GW of renewable electricity capacity installed by 2030, with solar capacity nearly tripling.
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Fossil fuels
China is the world's largest producer and consumer of electricity. Fossil fuels, predominantly coal, remain a significant source of electricity generation in China. In 2021, coal accounted for 62% of electricity generation, a slight decrease from 2020, when coal generated 63% of China's electricity. Coal is a major contributor to China's greenhouse gas emissions, and the country is the world's largest producer and consumer of coal and the largest user of coal-derived electricity.
China has been transitioning towards low-carbon sources of energy, such as nuclear and renewables, including hydropower, solar, and wind. In 2023, renewable energy sources accounted for 594.7 TWh of electricity generation in China, a year-on-year increase of 11.4%. This included 342.2 TWh of wind and solar power, a 27.8% increase from the previous year. China's total installed renewable electric generation capacity in 2023 was 1.26 TW, with 376 GW from wind power and 425 GW from solar power.
Despite the shift towards renewables, fossil fuels still provided 62% of China's electricity in 2024. China's per capita power sector emissions have risen, and the country is the world's largest coal mine methane (CMM) emitter. To address these emissions, China has implemented policies targeting gassy mines. By 2027, mines with high methane concentrations must capture or destroy the methane.
Natural gas is gradually replacing coal-fired capacity in some regions of China, particularly in the east, where power demand is higher, and the northeast, where stricter environmental regulations have been enacted. However, coal remains a critical fuel in China's electric power sector due to its abundant reserves and highly efficient coal fleet. China approved 5 GW of new coal power in the first half of 2021 and 46.1 GW of coal-fired power plant projects in 2020.
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Nuclear energy
The development of nuclear power in China initially began in the 1950s, during the Cold War, with cooperation from the USSR. This phase of nuclear development ended in 1959 when the USSR withdrew its support. However, China continued its pursuit of nuclear power technology, establishing the China National Nuclear Corporation (CNNC) in 1955 and building over 40 chemical separation plants for uranium and thorium extraction by 1963.
China's first independently designed and constructed nuclear power plant, the Qinshan Nuclear Power Plant, was connected to the grid in 1991. As of 2023, China has 55 nuclear plants in operation, with 22 under construction and over 70 planned. Nuclear power currently accounts for about 5% of China's electricity generation, with coal remaining the dominant source of electricity, contributing over half of the country's total.
China's nuclear fleet is concentrated near population centres in the eastern coastal regions, with reactors located from the Liaoning province in the north to the Hainan province in the south. The fleet primarily consists of pressurised water reactors (PWR), including US and French-designed reactors with capacities ranging from 1157 MW to 1660 MW. China is also developing a domestically designed small modular reactor, the Linglong-1 ACP100, based on AP1000 technology.
China has set ambitious targets to reduce its reliance on fossil fuels and transition to low-carbon energy sources. The country aims to peak its carbon emissions before 2030 and become carbon neutral before 2060, in line with the Paris climate accord. Nuclear energy is expected to play a crucial role in achieving these goals, with plans to increase the share of non-fossil fuels in primary energy consumption.
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Energy security
China's energy security is a complex issue with a variety of factors at play. The country has abundant energy reserves, including the world's fourth-largest coal reserves and substantial hydroelectric resources. As such, coal has traditionally been a major source of electricity in China, with over half of the country's electricity generated from coal as recently as 2020. China is the largest producer and consumer of coal globally and is the largest user of coal-derived electricity. However, the country has also made significant strides towards renewable energy sources in recent years.
China's renewable energy sector has experienced rapid growth, with the country now leading the world in renewable energy capacity. In 2023, renewable energy sources accounted for 53.9% of China's total power generation capacity. This includes solar, wind, and hydropower. China has set ambitious targets for further expanding its renewable energy capacity, aiming to have at least 2461 GW of renewable electricity capacity installed by 2030, which would double the 2022 figure. The country has also made a pledge to triple renewable energy globally by 2030, in cooperation with the United States.
Despite these advancements, China still faces challenges in ensuring energy security. The country's giant grid system prefers high-speed transmission from reliable sources, which has favored coal-fired power plants over renewables due to their steady and predictable nature. Additionally, geopolitical tensions and droughts impacting hydropower output have heightened anxieties about energy security. China's current climate and energy ambitions are outlined in its five-year plan, which includes a commitment to carbon neutrality by 2060.
To address energy security concerns, China has announced plans to create a unified electricity system by merging regional grids into one national market. This reform aims to improve the integration of variable renewable power sources and balance intermittent supply with demand. China is also addressing emissions from coal mining by implementing policies to capture or destroy methane from gassy mines by 2027.
In summary, China's energy security landscape is characterized by a transition from traditional coal-fired power to renewable energy sources. While coal continues to play a significant role, the country is actively investing in clean energy technologies and policy frameworks to promote sustainability and reduce carbon emissions. China's progress in renewable energy capacity and its commitment to global climate cooperation highlight the importance the country places on energy security and the development of a more sustainable energy landscape.
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Frequently asked questions
As of 2023, renewable energy sources account for 53.9% of China's total power generation capacity.
China generates about 70% of its electricity from fossil fuels, primarily coal.
About 5% of China's electricity comes from nuclear energy, with plans to increase nuclear capacity to 60 GW by 2020.
China has pledged to triple renewable energy capacity by 2030 and aims to achieve carbon neutrality by 2060. The government plans to create a unified electricity system, merging regional grids to accommodate more variable renewable power sources.
Transitioning to renewable energy sources will help reduce CO2 emissions and exposure to local air pollution, improving human health and mitigating climate change. Additionally, renewable energy offers economic benefits, with the potential to create new jobs and stimulate sustainable economic growth.











































