China to hit record 230 GW renewable installations in 2023

It is more than double the capacity additions in the US and Europe combined.

China is expected to reach 230 gigawatt installations of wind and solar projects in 2023 on the back of the technologies’ low cost and government support, according to a report by Wood Mackenzie.

The country’s installation this year is more than double the total deployment in the US and Europe combined, with total investments seen to reach $140b this year.

 “China announced its 2060 carbon neutral target in 2020 and since then has been quietly re-organising the entire power sector to support rapid electrification and expansion of renewables,” said Alex Whitworth, Vice President, Head of Asia Pacific Power and Renewables research at Wood Mackenzie. 

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“As we came out of COVID-19 lockdowns this year, it’s impressive to see how far ahead China really is. While some other markets are moderating renewables targets, China has pushed up its 2025 wind and solar outlook by 43% or 380 GW in just a couple of years,” he added.

The report said China’s withdrawal of preferential feed-in tariffs for renewables in 2022 saved the government billions in subsidies. 

The country also allocated $455b in grid investments from 2021 to 2025, increasing by 60% from the previous decade, enabling the country to be a leader in grid-connected energy storage which will reach 67 GW in 2023.

WoodMac also noted that China’s new policies resulted in the development of over 100 GW of flexible plants that burn less coal which backs up renewable energy. The share of coal in its total generation is now down to 55%.