- A 2021 study by the IEA concludes that, if China adopts and implements sufficient decarbonization measures towards its carbon neutrality goal 2060, the share of RE (mainly solar PV and wind power) in China’s power generation can rise from ca. 25% in 2020, to 40% in 2030 and 80% in 2060.
- One of the central policies underlying this projection is the action plan towards a carbon peak by 2030, announced by the State Council in 2021. The plan envisions to double the cumulative capacity of wind and solar power generation from 2021 to 2030. In consequence, an increased flow of state and private investment into expanding RE capacity in China can be expected.
- On the other side of the equation, consumption of RE needs to be equally expanded. Accordingly, NDRC and NEA set up an annually updated quota system for RE consumption. For each province, the system defines the desired share of RE in total electricity consumption. By 2030, the quota of RE electricity consumption is set to reach 40% across all provinces. In provinces currently below this level, such as Beijing, Tianjin, Hebei, etc., provincial governments are facing mounting pressure to increase the level of RE consumption rapidly.
- Further pushing RE consumption, a recent guidance by the NDRC aimed at promoting green energy consumption by companies, explicitly encourages multinational companies to purchase green energy through medium- and long-term power purchasing contracts.
- Following the trend, State Grid is currently rolling-out a streamlined green energy purchasing process for companies who are eager to improve their corporate carbon footprint and show themselves as responsible contributors to China’s decarbonization. A new green power trading system has been launched in September 2021.
Sinolytics is a European consulting and analysis company focused entirely on China. It advises European companies on their strategic orientation and concrete business activities in China.