China rejects 360 TWh of clean energy as power grids hit capacity limits

China rejected 360 terawatt-hours (TWh) of clean energy during the first six months of the year, an increase of 49% compared to the same period last year. This wastage, known as curtailment, occurs when wind or solar power is preemptively rejected because power grids have reached their capacity limits.

Reports from Global Energy Monitor (GEM) and the Center for Research on Energy and Clean Air (CREA) suggest that China's curtailment rates are significantly higher than official government figures. Analysts attribute this issue to insufficient transmission infrastructure and supply contracts that prioritize the operation of newly built coal-fired power plants. Wood Mackenzie analyst Yuan Ren noted that the problem appears to be structural rather than a temporary bottleneck, predicting continued pressure through the end of the decade.

This trend is impacting the renewable sector; a combination of curtailment and new policies removing guaranteed fixed prices for renewables has contributed to a 66% drop in new solar installations in China this year. Meanwhile, China's coal-fired power generation is expected to rise, reversing a decade-long decline. Similar grid capacity challenges are being reported in other nations, including Australia and Japan.