China leads renewable energy growth while maintaining coal dependency

China is undergoing a massive and contradictory energy transformation. The country has reached its 2030 targets for wind and solar capacity as of 2024, achieving this goal six years ahead of schedule. According to the International Energy Agency, China invested $625 billion in clean energy in 2024, representing approximately 31% of global investment in the sector.

Despite this unprecedented deployment of renewables, China remains heavily dependent on coal to maintain the stability of its massive electrical grid. This paradox is driven by the intermittent nature of solar and wind power, which fluctuates with weather conditions. The rapid growth of renewable capacity has, in some regions, outpaced the ability of the existing power grid to transport and integrate the surplus energy.

To address these infrastructure challenges, China is investing heavily in electrical transmission, distribution, and storage. The IEA estimates that China allocated around $88 billion to transmission and distribution in 2025. Furthermore, China maintains global dominance in the manufacturing of solar panels, batteries, and wind turbine components, as well as in the electric vehicle market.