Report: Grid Bottlenecks Slowing China's Green Energy Growth

China's ambitious expansion of renewable energy sources is facing significant headwinds due to growing bottlenecks within its power grid, according to a new analysis by Global Energy Monitor (GEM).

The report highlights that increasing transmission constraints, coupled with new electricity market regulations and incentives favoring coal usage, are collectively stifling the flexibility of China's energy system. This situation results in the "curtailment" of wind and solar power – meaning energy that could have been generated under favorable weather conditions is instead reduced or entirely withheld.

“

The consequence is increasing curtailment: wind and solar power that could have been generated under the prevailing weather conditions was instead reduced or completely withheld.

While China leads the world in developing green energy, the challenge lies in transporting power from the vast solar and wind farms located in the northern and northwestern regions to the industrial hubs and densely populated metropolises along the eastern and southern coasts. Ultra-high-voltage transmission lines, designed to move large amounts of energy over thousands of kilometers with minimal loss, are crucial for this task. However, the report indicates that only about one-fifth of the power flowing through these lines comes from solar and wind, with coal accounting for 42 percent.

Despite these grid limitations, China continues its rapid build-out of renewable capacity. GEM experts estimate that China might meet its five-year plan goal of increasing the share of solar and wind power in its total electricity capacity to over 50 percent even before 2030. The nation is currently constructing solar parks with a total capacity of 262 gigawatts and wind farms totaling 251 gigawatts. However, the report underscores that the ultimate success of these renewable energy megaprojects hinges on the amount of coal power they actively displace.

“

Ultimately, the success of China's renewable energy megaprojects will be measured not by additional gigawatts, but by the amount of coal they actively displace.