Energy Insider: China’s World-Beating Renewables Build-Out, Beijing Orders Coal Power Plants to Slash Emissions

In this week’s Caixin energy wrap, we examine China's latest significant climate and energy news on policy, industry advancements, projects, and more.[para. 1]

**Focus: China Dominates Global Solar and Wind Power Construction**

China is constructing almost twice as much wind and solar power capacity compared to the rest of the world combined. At present, China is building 339 gigawatts (GW) of major solar and wind farms, which accounts for nearly two-thirds of the global total of 525 GW. Specifically, China’s solar installations are six times the current capacity being built in the U.S. and 23 times that of Spain. For wind power, China's capacity under construction surpasses that of the U.S. by 13 times and the U.K. by 20 times.[para. 6][para. 7][para. 8]

This growth underscores China’s increasing dominance in the renewable energy sector. The International Energy Agency recently projected that China will achieve its 2030 wind and solar capacity goals six years ahead of schedule, by this or next month.[para. 11]

**Policy: Beijing Orders Coal Power Plants to Cut Carbon Emissions**

Beijing has instructed regional governments and power companies to revamp their coal power plants to cut carbon emissions significantly. One proposed strategy is to retrofit power units for electricity generation from coal mixed with biomass or green ammonia. Another approach involves carbon capture, storage, and utilization technologies which capture and utilize or store carbon dioxide emissions. The first retrofit projects should begin by 2025 and aim to reduce emissions by about 20% from 2023 levels, with more methods introduced by 2027 to halve emissions compared to 2023 levels.[para. 13][para. 19]

**Solar Market: Global Expansion into the Middle East**

Chinese solar firms, Jinko Solar Co. Ltd. and TCL Zhonghuan Renewable Energy Technology Co. Ltd., have announced plans to establish plants in Saudi Arabia. Jinko Solar’s subsidiary partnered with two Saudi companies to create a $985 million project for producing 10 GW of solar cells and panels annually. TCL Zhonghuan plans a joint venture with the same companies to set up a factory producing 20 GW of silicon crystals and wafers annually, with an investment of about $2.1 billion.[para. 23][para. 25][para. 28]

This expansion follows a recent meeting between Chinese Vice-Premier He Lifeng and PIF Governor Yasir Al-Rumayyan in Beijing, where deepening ties in energy and clean energy cooperation were emphasized. These moves also reflect Chinese manufacturers' response to the U.S. anti-dumping investigations on solar cells exported from Southeast Asia, pushing them to find new production bases.[para. 29][para. 32]

**Market: China’s National Carbon Market Celebrates Third Anniversary**

China’s national emissions trading scheme celebrated its third anniversary on July 16, having traded 465 million tons of emission quotas by July 15, with a cumulative turnover of nearly 27 billion yuan ($3.7 billion). The market, covering over 2,000 power companies and around 5 billion tons of CO2 emissions (40% of China's total), is the largest compliance carbon market in the world by emissions covered.[para. 34][para. 36][para. 40]

**Electricity: Rapid Growth of High-Voltage Transmission Network**

China has significantly expanded its high and ultra-high-voltage electricity transmission lines, which have grown by nearly 70% since 2013 to nearly 920,000 kilometers (572,000 miles) by the end of last year. This network, with a transmission capacity of 300 GW in 2022, is crucial for carrying solar and wind power from the resource-abundant north and northwest regions to economically developed southern and eastern areas, and Beijing.[para. 43][para. 47]

Despite this growth, some experts believe the pace should increase further to match China's rapid renewable power deployment. For instance, Yu Aiqun from Global Energy Monitor suggests that the State Grid should expedite the development of these transmission lines dedicated to renewables.[para. 49][para. 50]