The State Grid Corporation of China, responsible for over 80% of the nation’s power grid, has increased its planned investment for this year to a record-high of $82.7 billion (600 billion Chinese yuan).
This significant investment aims to expand transmission lines, connecting key renewable energy generation centers to areas with high demand.
Budget Increase and Grid Bottlenecks
The corporation recently raised its budget spending for 2024 by 13%, according to the Economic Information Daily cited by Bloomberg.
This move is aimed at addressing grid bottlenecks caused by the rapid growth of solar and wind power installations, which need to be integrated into the grid to deliver clean energy.
China’s Net-Zero Goals
China has committed to achieving net-zero emissions by 2060 and peaking its carbon emissions before the end of this decade.
While the country is the global leader in renewable energy investment, it remains one of the few major economies still approving and building coal-fired power plants.
Energy Security and Economic Growth
Energy security and the need for stable power generation during peak demand are priorities for China, as they are essential for supporting the growing economy and ensuring supply stability.
These concerns often take precedence over emissions reduction efforts.
Shifting Energy Mix
Despite continued growth in coal-fired power generation, China achieved a significant milestone in the first half of 2024.
Increased hydropower, solar, and wind output reduced the share of coal in power generation to below 60% for the first time ever.
Hydropower’s Impact
Double-digit growth in China’s hydropower output this year played a major role in pushing coal’s share of electricity generation below 60%.
While coal-fired output continued to increase, as did all other power sources due to rising electricity demand, the growth in hydropower and solar generation outpaced that of coal.
Global Leadership in Renewables
China remains the undisputed global leader in solar and wind capacity installations. According to a report by the Global Energy Monitor (GEM), the country is currently building twice as much renewable power capacity as the rest of the world combined.