China's green energy push hampered by rigid power grid, leading to 'wasted' renewables

China, a global leader in the green energy transition, is experiencing a paradoxical situation where its massive investments in renewable energy are being hampered by a rigid power grid, leading to significant waste. While the country is accelerating its shift away from fossil fuels and is expected to benefit from global energy supply disruptions, it struggles to fully utilize its expanded renewable capacity.

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This rise occurred despite the construction of a record number of new wind and solar power facilities.

Analysis of China's energy landscape in the first quarter of 2026 reveals a 2% increase in carbon dioxide emissions compared to the previous year, primarily driven by the power sector. This rise occurred despite the construction of a record number of new wind and solar power facilities. The underlying cause is an increase in fossil fuel generation, particularly coal and gas, which grew by 4% in the first quarter after a slight decrease the previous year. This trend contradicts expectations of reduced emissions and highlights a critical flaw in China's energy management.

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The core issue is the grid's inflexible management, which prioritizes stable fossil fuel power over variable renewable sources, hindering the effective utilization of clean energy infrastructure.

The issue lies in the utilization rate of renewable energy facilities. While China has significantly increased its installed capacity for wind and solar power, representing 60% of its total power generation capacity, the actual electricity generated is far below potential. The article points to a decline in the capacity factor for wind power to 18% and solar power to 11%. If these rates had remained stable, the increase in clean energy generation (including nuclear and hydro) would have comfortably met the total electricity demand growth. However, the reduced utilization means that clean energy generation only increased by 60 TWh, less than half of what could have been achieved, effectively wasting renewable energy equivalent to France's annual power output.

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If these rates had remained stable, the increase in clean energy generation (including nuclear and hydro) would have comfortably met the total electricity demand growth.

Researchers emphasize that this 'waste' is not due to the renewables themselves but stems from inflexible grid operations. Approximately three-quarters of the decline in wind and solar capacity factors over the past three years is attributed to "increased curtailment due to inadequate grid management and integration," rather than weather conditions. The grid's structure, which relies on medium-to-long-term contracts for stable fossil fuel power, disincentivizes flexibility. Power authorities and generators have little reason to adjust coal power output to accommodate variable renewable energy. Furthermore, inter-provincial electricity trading, often based on annual contracts, complicates the real-time transmission of renewable energy. This situation mirrors challenges faced by South Korea, where grid capacity limitations lead to the arbitrary restriction of new renewable energy connections and the underutilization of new coal power plants due to the inflexibility of nuclear power generation.

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Approximately three-quarters of the decline in wind and solar capacity factors over the past three years is attributed to 'increased curtailment due to inadequate grid management and integration,' rather than weather conditions.