Energy Insider: AI Model Aims to Fast-Track Energy Transition, Solar Installations Smash Record

This week’s Caixin energy wrap reviews significant developments in China’s climate and energy sectors, highlighting industry advancements, policy updates, and overseas projects. The major stories include the launch of an AI energy model by a state enterprise, record-breaking solar installations, the impending establishment of a national electricity market, and the opening of a Chinese solar plant in Indonesia[para. 1].

State-owned CHN Energy Investment Group Co. Ltd. has introduced Qingyuan, China’s first large artificial intelligence (AI) model tailored for the power industry. Built using CHN Energy’s comprehensive datasets—including those covering fossil fuels and renewables—the AI software was officially unveiled on June 28. It is now being adopted across the company’s four business divisions, including electricity trading and equipment maintenance. Qingyuan utilizes data such as electricity prices and meteorological statistics to enhance operational efficiency and support China’s transition to green energy. Industry executives note that while AI is becoming more prevalent in China’s energy sector—ranging from oil and gas to mining—its current applications remain limited and have yet to fundamentally disrupt traditional energy business models. Nonetheless, Beijing encourages the adoption of AI to improve productivity and bolster its technological competitiveness globally[para. 5][para. 6][para. 7][para. 8].

China’s push into renewables reached a new milestone in May 2024, with solar power installations soaring to a record high. Nearly 93 gigawatts (GW) of solar panels were added in just one month, marking an almost fivefold increase from the previous year. This rapid installation pace was attributed to a policy deadline: developers raced to complete projects before a June 1 cut-off for state-guaranteed purchases of renewable electricity. As a result, China’s total solar capacity reached 1,080 GW by the end of May—about half of the global total. The country's electricity capacity mix increasingly favors renewables, with fossil fuels now accounting for around 40%. Analysts view China’s market-based pricing policy as a major driver of the solar boom and expect power-sector carbon dioxide emissions to continue falling as clean energy grows faster than demand, despite ongoing construction of coal and gas plants[para. 11][para. 13][para. 14][para. 15][para. 16].

China is also planning sweeping changes to its electricity market structure, aiming to roll out a unified national power market by the end of 2024. State Grid Corp. of China’s general manager, Pang Xiaogang, affirmed the target at the 2025 Summer Davos forum. The reform will standardize and facilitate electricity trading nationwide, with top-level policies, trading rules, and technical standards to be established by 2025 and the full market completed by 2029. Officials and industry leaders stress that the ongoing transformation—driven by climate imperatives and soaring renewable installations—demands a more robust policy and market framework[para. 19][para. 20][para. 23][para. 24].

On the international front, Longi Green Energy Technology Co. Ltd., a major Chinese solar manufacturer, started construction on its first Indonesian factory. The new plant, built in collaboration with a subsidiary of Indonesia’s state-owned Pertamina, will produce 1.6 GW of high-efficiency solar modules annually. This venture comes as Chinese solar firms expand production overseas—particularly in Southeast Asia and the Middle East—in response to trade pressures from Washington. Indonesia’s burgeoning market, with plans for 69.5 GW of new power generation by 2034 (including 17.1 GW of solar), as well as fresh World Bank funding for renewable projects, has attracted attention from industry giants like Longi[para. 26][para. 27][para. 30][para. 31][para. 32].