Energy Insider: China’s Wind and Solar Growth Smash Records, Coal Production Hits All-Time High

In this week's Caixin energy wrap, multiple aspects of China's climate and energy scenario are highlighted, capturing growth trends and strategic shifts. [para. 1]

**Wind and Solar Growth Records**: China has significantly advanced its wind and solar energy goals by far exceeding its 2030 targets well ahead of schedule. In 2024, 79.82 GW of wind turbines and 278 GW of solar panels were installed, pushing the total wind and solar capacity past 1,400 GW. This achievement broke previous growth records set in 2023. The cumulative renewable energy capacity, encompassing wind, solar, hydropower, and biomass, rose by 25% to 1,889 GW by the end of last year, representing about 56% of China's total power capacity. [para. 5][para. 6]

The solar power capacity growth is notable given the substantial increase of 217 GW recorded in 2023, illustrating a 30% growth rate in 2024. This growth was driven by large-scale solar bases in deserts and distributed solar farms on rooftops—showing an increase of 159 GW and 118 GW, respectively. [para. 6][para. 7]

**Coal Production Peaks**: In a contrasting trend, China's coal production reached an all-time high of 4.76 billion tons in 2024, reflecting a 1.3% increase from 2023. Coal remains a vital part of China's energy mix, acting as a safety net for the energy system. China aims to further expand its coal production to 4.8 billion tons by constructing "large modern" mines in 2025. This dual-track approach illustrates the simultaneous growth in coal and renewable energy sectors, exemplified by developments in Inner Mongolia, China's largest coal producer with output soaring to nearly 1.3 billion tons, up 5.4% from the previous year. [para. 9][para. 10][para. 11]

**Overseas Renewable Investments**: China's overseas renewable energy projects have increased considerably, with investments reaching a record high. In 2024, Chinese companies installed 24 GW of power generation capacity in Belt and Road Initiative (BRI) countries, doubling the amount from 2023. Most of this capacity, 52%, comprised renewable technologies, notably 8 GW from solar and 5 GW from hydropower. The remainder consisted of fossil-fuel projects, including coal, gas, and oil. This reflects a strategic shift towards greener technologies in international projects, where renewable technology has become a significant component of power project pipelines. [para. 13][para. 15]

**Trade Dynamics with U.S.**: The export of lithium-ion batteries is an area where the United States remains China’s largest overseas market, accounting for a quarter of the over $60 billion in battery exports in 2024. This occurred despite a 25% tariff imposed by the U.S. on Chinese power batteries. The proliferation of energy storage batteries contributed to a boost in exports, offsetting the tariff's impact. Nevertheless, a decrease in lithium carbonate prices and an abundant supply chain brought down the export value by 6% to $611.2 billion. [para. 19][para. 20]

These developments highlight China’s complex yet strategic advancement in its energy sector—from breaking domestic renewable energy records and increasing coal production to expanding its influence through overseas renewable investments and maintaining strong trade relations, specifically with the United States in terms of battery exports, despite existing tariffs. [para. 6][para. 11][para. 15]