China is leading the way in the installation of solar and wind power, surpassing its targets and scaling back plans for nuclear energy. With a pace of installing renewables equivalent to five large nuclear power plants per week, China is becoming a role model for other countries seeking to decarbonize rapidly. The country’s success can be attributed to its large-scale renewable energy projects in regions like the Gobi Desert, the use of long high-voltage transmission lines, and the implementation of pumped hydro and battery storage for grid stability. Despite China’s reliance on coal and the building of new coal-fired power plants, renewables are expected to overtake coal generation by the end of this year. However, China needs to install renewables at an even faster rate to meet its 2060 carbon neutrality target. As Australia struggles to meet its renewables targets and debates the role of nuclear power, the speed and scale of China’s energy transition provide valuable lessons for the world.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| China installing record amounts of solar and wind | From fossil fuel reliance to renewable energy dominance | China becomes a global leader in renewable energy production | Rapid decarbonization and climate change goals |
| China meeting its 2030 renewable energy target early | Exceeding renewable energy targets ahead of schedule | China continues to invest heavily in renewable energy projects | Commitment to achieving climate goals |
| Energy experts looking to China for lessons on rapid decarbonization | Seeking guidance on transitioning to a clean energy economy | Increased adoption of renewable energy worldwide | Recognition of the urgency in combating climate change |
| China using large-scale transmission lines to connect solar and wind farms | Maximizing renewable energy potential by transmitting it over long distances | Improved efficiency and scale of renewable energy transmission | Expanding renewable energy infrastructure |
| China combining pumped hydro and battery storage to stabilize renewable energy supply | Addressing the intermittency of renewable energy sources | Enhanced stability and reliability of renewable energy grid | Ensuring a consistent power supply from renewables |
| China building coal-fired power stations alongside renewable energy zones | Maintaining stable power supply while transitioning to renewables | Transitioning towards renewable energy while managing energy demand | Balancing needs for reliable power supply and decarbonization |
| China decreasing its reliance on nuclear energy | Shifting focus towards solar as foundation of energy generation | Reduced investment in nuclear energy in favor of renewables | Cost-effectiveness and safety of solar energy |
| China executing a long-term, difficult, and costly transition plan | Implementing a comprehensive strategy for transitioning to renewables | Successful and accelerated decarbonization efforts | Commitment to long-term sustainability goals |
| Australia falling behind in renewable energy transition compared to China | Slow progress in transitioning to renewables | Australia struggles to meet renewable energy targets | Inefficient planning and policy implementation |
| Australia debating the merits of nuclear power while China focuses on renewables | Diverging energy strategies of Australia and China | Australia lags behind China in renewable energy investment | Different approaches to decarbonization goals |