China’s drive towards clean energy has seen massive financial commitments, with 2024 witnessing investments of 6.8 trillion yuan ($940 billion) in its green energy sector. This investment almost rivals the global fossil fuel investments of $1.12 trillion, as revealed by the UK-based Carbon Brief.
Although growth slowed from 40% in 2023 to just 7% in 2024, China’s clean energy sector remains a major player, according to a report by Reuters.
The electric vehicle, battery, and solar industries account for over half of these investments, highlighting their importance in China’s clean energy landscape.
Reports from the Centre for Research on Energy and Clean Air (CREA) show that the clean energy sector’s contribution to China’s GDP rose to 10% in 2024, up from 9% the previous year.
The clean energy industries, encompassing batteries, power generation, renewable manufacturing, and electric vehicles, grew at thrice the pace of the broader Chinese economy.
Nevertheless, their share of GDP growth diminished to 26% in 2024 from 40% in 2023, attributed to a deceleration in the sector’s growth rate.
Despite deflation and falling prices for renewable energy equipment, such as solar panels and batteries, the lower costs have facilitated wider adoption of renewables.
Among the contributors, the electric vehicle industry led with a 3 trillion yuan input from production, alongside 1.4 trillion yuan from factory investments. Charging infrastructure was also a significant factor, contributing an additional 122 billion yuan.
Solar energy followed, contributing a total of 2.8 trillion yuan, with power generation projects bringing in 1 trillion yuan and solar manufacturing adding 779 billion yuan.
Projections indicate that China’s clean power investments will continue to grow rapidly through 2025, aligning with the end of the current five-year plan. However, experts highlight the necessity for more ambitious targets in the 2026-2030 plan to sustain the momentum of clean energy deployment.
In a related development, China’s National Development and Reform Commission is working with the energy administration to reduce subsidies for renewable energy projects.
2024 also saw a remarkable 45% increase in solar installations, setting a new benchmark. With 887GW of installed solar power, China’s capacity is now sixfold that of the US, as per data from the International Renewable Energy Agency.
Original Story at www.power-technology.com