Clean energy transition to gain momentum in China: Woodmac
About 120GW of new solar and wind capacity is expected in 2022.
The shift to clean energy is set to gain momentum in China as renewable energy is expected to account for more than 50% of its new power capacity addition, Wood Mackenzie reported.
This is even as the market awaits guidance from China’s five-year plan, particularly on the level of incremental coal demand and coal-fired power capacity are allowed, potential acceleration of renewables targets and the desired share of gas in the energy mix amongst others.
“China may have resorted to stabilise coal supply in the short term and balancing competing energy goals is still challenging, but it does not mean it is diverting away from its long-term climate change goals,” Principal economist Yanting Zhou said.
“China is set to accelerate the pace of matured technology adoption in 2022.”
The country’s renewable energy is slated to see strong growth within the period of the 14th five-year plan (2021-25), during which it is expected to account for over 50% of the new capacity additions.
China is projected to add some 120 gigawatts of new solar and wind capacity this year, up 20% from 2021.
In addition, electric vehicles sales is seen to reach 4.8 million units in 2022, reflecting more than 20% of new car sales, and a 45% growth from last year.
“As such, the country has achieved its 2025 target of having EVs account for 20% of total vehicle sales,” Zhou said.
“Despite subsidy phase-out, China has successfully achieved a market-based EV growth through a variety of EV models with different price points yet achieving functionality.”