China’s Green Energy Surge

Context:

China installed more wind turbines and solar panels in 2024 than the rest of the world combined, marking a pivotal moment in global renewable energy leadership.

China’s Renewable Energy Investment (2024):

Total investment: $940 billion in 2024 (Carbon Brief).
This investment surpasses all other nations combined in renewable energy infrastructure additions.
From $10.7 billion in 2006, this reflects exponential state-backed growth.

Key Raw Material Control:

China controls global supply chains of critical minerals such as:
Polysilicon (for solar panels) and Lithium (for batteries)
- This dominance is a result of long-term extraction agreements and technological upgradation in refining processes.

Manufacturing Dominance:

China leads in:
- Solar panel production (e.g., Longi Green Energy)
- Wind turbine production (e.g., Goldwind)
- Battery manufacturing (e.g., CATL – Contemporary Amperex Technology Co. Limited)

Strategic State Planning:

Institutional support through:
- Renewable Energy Law (2005) — Ensured price guarantees and grid access.
- 11th Five-Year Plan (2006–2010) — Elevated renewables as a national strategic priority.
- Massive support through SOEs (State-Owned Enterprises) like State Grid Corporation, Huaneng, and Genertec.
Execution coordinated by National Development and Reform Commission (NDRC) and National Energy Administration (NEA).

Technological Advancements and Global Outreach:

China is investing in:
- AI-powered smart grids
- Green hydrogen
- Thorium-based nuclear reactors
Belt and Road Initiative (BRI) also supports green infrastructure in Africa, Latin America, and South Asia, cementing China’s energy diplomacy.

Transmission Infrastructure & Integration:

Faced curtailment challenges in provinces like Inner Mongolia due to poor grid absorption capacity.
Response: Investment in Ultra-High Voltage (UHV) transmission lines, with State Grid doubling its investment to $88.7 billion in 2024.

India Non-Fossil Fuel Power Capacity

Installed Capacity vs Actual Generation:

As of June 30, 2025, non-fossil fuel sources comprise 50% of India's total installed electricity capacity (~484 GW).
However, actual electricity generated from clean sources remains under 30%, owing to lower capacity utilisation factors (CUFs).

Components of Non-Fossil Fuel Sources:

Include solar, wind, biomass, hydropower (small and large), and nuclear power.
Solar CUF: ~20%, Wind CUF: ~25–30%, Coal CUF: ~60%, Nuclear CUF: ~80%.

Grid Limitations & Storage Challenges:

Clean energy utilisation is hampered by lack of grid flexibility and inadequate battery storage.
Power from coal still meets ~75% of base load demand, especially during non-solar hours (evenings).

Policy Solutions & Way Forward:

Adoption of hybrid renewable energy systems (solar + wind + hydro + battery storage).
Introduction of time-differentiated tariffs and smart grid technology to enhance clean energy integration.