China's clean energy sector has catapulted the country ahead of nearly all other economies in terms of investment growth last year, with solar, wind, and battery technologies accounting for more than 90% of new investments. According to a recent analysis by the Centre for Research on Energy and Clean Air, these sectors have not only driven China's economic expansion but also generated record-breaking revenues comparable to the GDPs of major countries like Brazil and Canada.
The growth of clean energy in China has been nothing short of remarkable, with nearly double-digit growth in real value between 2022 and 2025. This is a testament to the country's commitment to transitioning away from fossil fuels and towards renewable energy sources. The sector has become so dominant that it's hard to imagine Beijing missing its 5% annual growth target without clean energy.
China's clean energy boom is not just limited to generating power; it's also driving technological innovation, particularly in battery technology for electric vehicles (EVs) and grid storage upgrades. Ever-more efficient technologies are being developed to meet the ever-increasing demand for these solutions, further solidifying China's position as a global leader in clean energy.
The impact of this growth is being felt globally, with exports surging and affordable solar power now available in many countries across the world. The International Energy Agency has hailed solar power as providing "the cheapest electricity in history," paving the way for widespread adoption in developing nations.
However, not everyone is celebrating China's clean energy revolution. Climate campaigners are warning that despite the country's rapid transition away from fossil fuels, its coal industry remains a powerful force and will contest the pace of change. The government's recent decisions to allow the construction of record-breaking new coal-fired power plants raise concerns about the country's ability to hit peak carbon emissions.
With China set to unveil its next five-year plan soon, the future direction of the country's energy sector hangs in the balance. One thing is clear: solar power will overtake coal as the dominant source of energy in China by 2026. But with the coal industry racing against time, concerns about stranded assets, higher system costs, and a harder transition are looming large.
The growth of clean energy in China has been nothing short of remarkable, with nearly double-digit growth in real value between 2022 and 2025. This is a testament to the country's commitment to transitioning away from fossil fuels and towards renewable energy sources. The sector has become so dominant that it's hard to imagine Beijing missing its 5% annual growth target without clean energy.
China's clean energy boom is not just limited to generating power; it's also driving technological innovation, particularly in battery technology for electric vehicles (EVs) and grid storage upgrades. Ever-more efficient technologies are being developed to meet the ever-increasing demand for these solutions, further solidifying China's position as a global leader in clean energy.
The impact of this growth is being felt globally, with exports surging and affordable solar power now available in many countries across the world. The International Energy Agency has hailed solar power as providing "the cheapest electricity in history," paving the way for widespread adoption in developing nations.
However, not everyone is celebrating China's clean energy revolution. Climate campaigners are warning that despite the country's rapid transition away from fossil fuels, its coal industry remains a powerful force and will contest the pace of change. The government's recent decisions to allow the construction of record-breaking new coal-fired power plants raise concerns about the country's ability to hit peak carbon emissions.
With China set to unveil its next five-year plan soon, the future direction of the country's energy sector hangs in the balance. One thing is clear: solar power will overtake coal as the dominant source of energy in China by 2026. But with the coal industry racing against time, concerns about stranded assets, higher system costs, and a harder transition are looming large.