In the global pursuit of sustainable development, China’s new energy sector has emerged as a pivotal force. From a supplementary power source to a mainstream pillar, the industry is undergoing a profound transformation. Backed by strong policy support, continuous technological innovation, and a complete industrial chain, China is not only accelerating its own energy transition but also providing high-quality, affordable green products to the world, making a significant contribution to the global response to climate change .
Industry Overview: Scale and Leadership
China’s new energy industry has achieved remarkable scale growth. By the end of September 2025, the country’s installed renewable energy capacity approached 2.2 billion kilowatts, accounting for 59.1% of the total installed capacity. Within this, the combined installed capacity of wind and solar power surpassed 1.7 billion kilowatts, having historically exceeded thermal power capacity . In the first three quarters of 2025, renewable energy generation reached 2.89 trillion kilowatt-hours, representing about 60% of total societal electricity consumption. Notably, the increase in combined wind and solar power generation significantly exceeded the overall growth in electricity demand for the first time, indicating that China’s new energy needs are now being substantially met by green power .
This leadership extends to the global stage. China has built the world’s largest, most complete, and competitively advantaged new energy industrial chain, supplying 70% of global wind power equipment and 80% of global photovoltaic (PV) modules .
Innovation-Driven Development: Technology as the Core Competitiveness
Under the guidance of “new quality productive forces,” China’s new energy sector has shifted from scale expansion to technology-driven value creation.
In the solar sector, Chinese companies continue to break efficiency records. For instance, JinkoSolar’s high-efficiency N-type TOPCon modules have achieved a maximum conversion efficiency of 25.58%, a world record . The rapid adoption of N-type battery technology is continuously improving the stability and efficiency of solar power generation.
Wind power technology is also advancing rapidly. In August 2025, a 26-megawatt offshore wind turbine developed by a Chinese firm was installed off the coast of Shandong Province, setting global records for unit capacity and rotor diameter. A single unit can generate 100 million kilowatt-hours annually, meeting the electricity needs of 55,000 households .
Energy storage, crucial for integrating variable renewable energy, has seen explosive growth. By mid-2025, China’s installed new energy storage capacity reached approximately 95 million kilowatts — a nearly 30-fold increase in five years. This sector is diversifying beyond lithium-ion batteries to include flow batteries and compressed air storage, providing greater flexibility to the power grid . The New Energy Storage Technology Development Roadmap (2025-2035) projects continued expansion, with capacity expected to exceed 180 million kilowatts by 2027 .
Export Performance: The Rise of the “New Three”
The strength of China’s new energy industry is vividly reflected in its export data. In 2025, exports of the “new three” — electric vehicles (EVs), lithium-ion batteries, and PV products — reached a staggering 1.28 trillion yuan, a 28% increase from 1 trillion yuan in 2024 .
This growth, however, masks different dynamics within each sector, as shown in the table below.
Geopolitical and market shifts are also reshaping trade flows. In May 2025, Germany replaced the United States as the largest export market for Chinese lithium-ion batteries, partly due to high U.S. import tariffs . Meanwhile, exports to Belt and Road partner countries are booming, with wind turbine generator exports surging by 73.9% .
Global Contribution: Filling the “Green Gap”
China’s commitment to providing global public goods for climate action is clear. According to the Ministry of Commerce, Chinese wind, PV, and EV products are now exported to over 200 countries and regions. The large-scale manufacturing and technological progress in China have dramatically reduced global costs, contributing to a more than 60% and 80% decline in the cost of wind and PV power generation worldwide, respectively. This has made green technology more accessible and affordable for consumers globally .
This commitment is further institutionalized in China’s latest Nationally Determined Contribution (NDC) announced in September 2025. By 2035, China aims to reduce its net greenhouse gas emissions by 7-10% from its peak, increase non-fossil energy consumption to over 30%, and achieve a wind and solar power capacity six times that of 2020, targeting 3.6 billion kilowatts .
Future Outlook: Embracing Challenges and Opportunities
Despite its success, the industry faces challenges such as overcapacity, intense homogenized competition, and “profitless growth” in some sectors. In response, the focus is shifting from scale to quality. Policies now encourage innovation, deeper industrial integration (e.g., “renewable energy + computing power”), and the development of new business models like virtual power plants and green electricity direct supply .
The industry is also actively “de-risking” from vicious competition. Industry associations and leading enterprises are promoting self-discipline to curb irrational price wars and are expanding into emerging markets, particularly in the Middle East, seeking new growth opportunities .
In conclusion, China’s new energy industry has evolved into a mature and vital part of the global energy landscape. With a strong foundation, cutting-edge technology, and a clear commitment to global cooperation, it is well-positioned to navigate current challenges and continue powering a greener and smarter future for the world .
