China Wastes Clean Energy Equivalent to Mexico's Annual Need Amid Grid Strain

China, the world's largest solar power producer, discarded approximately 360 terawatt-hours (TWh) of clean energy in the first six months of 2026. This amount is sufficient to meet Mexico's entire annual electricity needs. The waste, a 49 percent increase from the same period last year, highlights a growing challenge in renewable energy development worldwide.

This phenomenon, known as curtailment, occurs when solar and wind power plants reduce or refuse production because the electricity grid cannot absorb the excess supply. Global Energy Monitor (GEM) and the Center for Research on Energy and Clean Air (CREA) reported figures significantly higher than those released by the Chinese government. Analysts point to a combination of limited transmission infrastructure and supply contracts that guarantee the operation of new coal-fired power plants as primary reasons why much of the renewable energy produced cannot reach consumers.

"The reduction in production in China is structural, not a temporary bottleneck. We expect the pressure of production reduction to continue until the end of this decade," said Yuan Ren, an analyst at Wood Mackenzie. Curtailment, coupled with new policies that eliminate fixed prices previously guaranteeing revenue for renewable energy producers, has contributed to a 66 percent decline in new solar power plant construction in China this year. Simultaneously, coal-fired power generation in China is projected to increase, reversing a decade-long trend of decline.

The National Energy Administration (NEA) stopped publishing provincial curtailment data in March. While the NEA stated that 8.6% of solar and 9.1% of wind power production faced curtailment in the first half of 2026, GEM and CREA estimate that 26.1% of total solar and wind power production was rejected by the grid. This calculation uses weather-adjusted data to account for production not officially reported as curtailment. The worsening curtailment makes it increasingly difficult for investors to assess the financial viability of renewable energy projects, shifting investment away from these ventures.

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The reduction in production in China is structural, not a temporary bottleneck. We expect the pressure of production reduction to continue until the end of this decade.