Clean-energy growth helped China’s carbon dioxide (CO2) emissions fall by 1% year-on-year in the first half of 2025, extending a declining trend that started in March 2024.
The CO2 output of the nation’s power sector – its dominant source of emissions – fell by 3% in the first half of the year, as growth in solar power alone matched the rise in electricity demand.
The new analysis for Carbon Brief shows that record solar capacity additions are putting China’s CO2 emissions on track to fall across 2025 as a whole.
Other key findings include:
- The growth in clean power generation, some 270 terawatt hours (TWh) excluding hydro, significantly outpaced demand growth of 170TWh in the first half of the year.
- Solar capacity additions set new records due to a rush before a June policy change, with 212 gigawatts (GW) added in the first half of the year.
- This rush means solar is likely to set an annual record for growth in 2025, becoming China’s single-largest source of clean power generation in the process.
- Coal-power capacity could surge by as much as 80-100GW this year, potentially setting a new annual record, even as coal-fired electricity generation declines.
- The use of coal to make synthetic fuels and and chemicals is growing rapidly, climbing 20% in the first half of the year and helping add 3% to China’s CO2 since 2020.
- The coal-chemical industry is planning further expansion, which could add another 2% to China’s CO2 by 2029, making the 2030 deadline for peaking harder to meet.
Even if its emissions fall in 2025 as expected, however, China is bound to miss multiple important climate targets this year.
This includes targets to reduce its carbon intensity – the emissions per unit of GDP – to strictly control coal consumption growth and new coal-power capacity, as well as to increase the share of cleaner electric-arc steelmaking in total steel output.
If policymakers want to make up for these shortfalls, then there will be additional pressure on China’s next “nationally determined contribution” (NDC, its international climate pledge for 2035) and its 15th five-year plan for 2026-30, both due to be finalised in the coming months.
The falling trend in CO2 emissions – and the clean-energy growth that is driving it – could give policymakers greater confidence that more ambitious targets are achievable.
Falling emissions from power, cement and steel
The reduction in emissions in the first half of 2025 was predominantly driven by the power sector, aided by the building materials, steel and heating industries.
Coal use in the power industry fell by 3.4% compared with the same period a year earlier, while gas use increased by 6%, resulting in a 3.2% drop in emissions for the sector overall.
The reduction in CO2 emissions from coal use in the power sector is shown at the bottom of the figure below, along with the small rise due to higher gas-fired electricity generation.
Other changes in CO2 emissions in the first half of 2025, compared with the same period in 2024, are broken down by source and sector in the rest of the figure.
Emissions from the building materials sector fell by 3% and from the metals industry by 1%, with cement falling 4% and steel output 3%. The reason for these reductions is the ongoing contraction in the construction sector, with real estate investment falling 11% and the floor area of new construction starts by 20%. Traditional targets of government infrastructure investment, such as transportation, also showed relatively slow growth.
CO2 reductions resulting from the drop in steel output were limited by a fall in the share of electric arc furnace (EAF) steelmaking, a much less emissions- and energy-intensive process than the coal-based production of primary steel.
The share of electric-arc output in total production fell from 10.2% in 2024 to 9.8% in the first half of 2025, despite a government target of 15% for this year.
Excess coal-based capacity and a lack of incentives for shifting production mean that electric arc steelmakers, rather than coal-based steel mills, tend to absorb reductions in output, as their operating costs are higher and costs of shutting down and starting up production lines are lower.
Shifting to EAF steel is one of the largest emission reduction opportunities in China over the next decade, according to an analysis by the Centre for Research on Energy and Clean Air.
Elsewhere, consumption of oil products increased by 1%. However, this growth did not come from transport fuel demand. The production of petrol, diesel and jet fuel all continued to fall, with electric vehicles eating into road-fuel demand. Instead, growth was driven by demand for naphtha from petrochemicals producers, including newly commissioned plants.
Gas use outside the power sector – mainly heating – dropped by 1%, after a fall in the first quarter due to mild winter temperatures and a smaller increase in the second quarter.
Solar boom covers power demand growth
The first half of 2025 saw a new record for the growth of clean power generation excluding hydro, made up of solar, wind, nuclear and biomass.
Clean power generation from solar, wind and nuclear power grew by 270 terawatt hours (TWh), substantially exceeding the 170TWh (3.7%) increase in electricity consumption. Hydropower generation fell by 3% (16TWh), moderating the fall in fossil fuel-fired power generation.
The rise in power generation from solar panels, on its own, covered all of the growth in electricity demand, increasing by 170TWh – equivalent to the national power output of Mexico or Turkey over the same period. Wind power output grew by 80TWh and nuclear by 20TWh.
As a result, the share of low-carbon sources reached 40% of the nation’s electricity generation overall in the first half of the year, up from 36% in the same period of 2024.
The figure below shows how clean-energy sources excluding hydro (columns) have started matching the recent increases in China’s electricity demand (solid line), as well as the average amount of growth in recent years (dashed line).
Strikingly, the record growth of solar and continued expansion of wind mean that both sources of electricity generation overtook hydropower for the first time in the first half of 2025, as shown in the figure below. Despite steady growth, nuclear power is a relatively distant fourth, at less than half of the power generation from each of the other three major non-fossil technologies.
The growth in solar power generation was driven by record capacity growth. China added 212GW of new solar capacity in the first half of the year, double the amount installed in the first half of 2024, which itself had been a new record.
For comparison, the world’s second-largest nation for solar capacity – the US – had only installed 178GW, in total, by the end of 2024, while third-ranked India had 98GW.
Some 93GW of new solar capacity was added to China’s grid in May alone, as the rush to install before a change in pricing policy culminated. This rate of installations translates to approximately 100 solar panels installed every second of the month.
The acceleration was due to a change in the policy on tariffs paid to new wind and solar generators, which started in June. Previously, new plants were guaranteed to receive the benchmark price for coal-fired power output in each province, for each unit of electricity they generate. Under the new policy, new generators have to secure contracts directly with electricity buyers, causing uncertainty and likely putting downward pressure on revenue.
The resulting surge in new capacity means that solar is poised to overtake wind this year – and hydro this year or next – to become the largest source of clean power generation in China.
This is despite solar capacity additions slowing down in June and projections diverging widely on how much growth to expect for the remainder of 2025 and into 2026, under the new policy.
The consensus among forecasters has been one of a sharp slowdown in installations.
After the new pricing policy was announced, the China Electricity Council (CEC) and China Photovoltaic Industry Association (CPIA) projected 210GW and 215-235GW for 2025 as a whole, respectively, implying plummeting additions in the second half of the year. In contrast, the State Grid Energy Research Institute expects 380GW to be added to the grid this year.
After data for May installations became available, the CEC upgraded its forecast for the whole year to 310GW and the CPIA to 270-300GW, implying that 60-100GW would be added in the second half of the year. This would still be a sharp deceleration compared with the second half of 2024, when 173GW was added.
For wind, the State Grid researchers expect 140GW and CEC 110GW, while 51GW was added in the first half of the year. Both numbers indicate larger capacity additions in the second half of 2025 and an increase for the full year compared with 2024.
The State Grid should have detailed knowledge of projects seeking to connect to the electricity grid, so its projections carry extra weight compared with others. If its expectations for wind and solar growth are realised, this would result in around 850TWh of annual clean power generation being added to the grid in 2025, as shown in the figure below.
This new clean power capacity would be more than enough to meet the entire electricity demand of Brazil (760TWh), or Germany and the UK combined (817TWh).
With the State Grid also projecting demand to grow by 400-640TWh (4.0-6.5%), clean-energy growth should push down CO2 from China’s power sector this year – and well into next year.
China’s top economic planner, the National Development and Reform Commission (NDRC), is also taking steps to spur demand for contracts with solar and wind producers.
A new policy – published in July – requires for the first time that steel, cement and polysilicon factories, as well as some new data centres, meet a certain percentage of their demand using renewable electricity.
Previously, such requirements were only applied to provinces, power distribution companies and the aluminum industry. Their mandated renewable energy shares have also now increased.
These changes boost demand for contracts with renewable electricity suppliers, just as new solar and wind plants are having to secure contracts directly with buyers, under their new pricing policy.
The increase in demand for renewable power resulting from these measures broadly matches the low end of the growth projected in solar and wind this year. The renewable quotas therefore offer a backstop of support for the continued growth of clean power, which will be required to meet China’s wider climate and energy targets.
The increase in solar power generation from rising installations could be even larger, but is being limited by issues around grid management and capacity.
The share of potential solar power output that was not utilised rose to 5.7% in the first half of 2025, from 3.2% a year earlier. While technical issues such as uncompleted grid connections could play a role amid the boom, this also implies a significant increase in curtailment.
The average utilisation rate of solar panels fell by 12% in the first quarter of this year, compared with the 2020–2023 average, according to China Electricity Council data accessed through Wind Information. This is a much larger reduction than indicated by the reported curtailment rates. The flipside of this dip in utilisation is that improvements to grid operation and infrastructure will unlock even more generation from existing solar capacity.
Coal power capacity is expected to surge this year, even as demand for power generation from coal contracts. The State Grid predicts 127GW of thermal power added. Some of this will be gas, but based on non-coal thermal power additions expected by the CEC, around 90-100GW is coal, while the CEC projects 80GW of coal power added.
Data from Global Energy Monitor shows 93-109GW of coal-power projects under construction that could be completed this year, assuming a 2.5 to 3-year lead time from issuance of permits to grid connection. The largest amount of coal-fired capacity China has ever connected to the grid in one year is 63GW in 2008, so 2025 seems likely to set a new record by a large margin.
A former senior official at one of China’s largest power firms stated in an interview in June 2025 that companies are building coal power capacity due to central government pressure.
There is little enthusiasm to invest and the target to expand coal-power capacity to 1,360GW in this five-year plan period, covering 2021-2025, is unlikely to be met. Operating coal-power capacity was 1,210GW at the end of June, up from 1,080GW at the end of 2020.
The influx of coal-fired capacity will result in falling utilisation and profitability.
However, oversupply of coal power could also weaken demand for contracts with solar and wind producers, undermining clean-energy growth. This makes measures that offer a backstop of demand for clean power, such as the sector quotas, all the more significant.
Coal chemicals shooting up
The only major sector that saw growth in emissions in the first half of the year was the chemicals sector. Coal use in the sector, both as a fuel and a feedstock, increased by a dramatic 20% year-on-year, on top of a 10% increase in 2024.
Oil use in the chemicals sector increased as well, as reflected in a 9% increase in total consumption of naptha – a key petrochemicals feedstock – estimated from OPEC data.
The growth is driven by the coal-to-chemicals industry, which turns coal into synthetic liquid and gaseous fuels, as well as petrochemical products. This is a sector that China has developed aggressively, to reduce reliance on imported oil and gas, as well as to promote the exploitation of coal resources in the country’s far west – particularly Xinjiang – where coal and coal power exports to the rest of China are limited by transportation capacity and costs.
The sector consumed approximately 390m tonnes of coal in 2024, resulting in an estimated 690m tonnes CO2 emissions (MtCO2), making it responsible for 6% of China’s fossil CO2 emissions and 9% of the country’s coal use in 2024.
Coal use and emissions increased 10% from 2023 while total coal conversion capacity increased only 5%, implying that the utilisation of existing capacity increased as well.
The coal-to-chemicals industry used 155m tonnes of standard coal in 2020 and CO2 emissions were estimated at 320MtCO2. The coal-to-chemicals industry therefore added around 3% to China’s total CO2 emissions from 2020 to 2024, making it one of the sectors responsible for the recent acceleration in the country’s CO2 emissions growth and its shortfall against targets to control increases in CO2 emissions and coal use.
Output from the sector reportedly replaced 100m tonnes of oil equivalent (Mtoe) of oil and gas in 2024, which implies 250-280MtCO2 emissions avoided from oil and gas use, depending on how the avoided demand breaks down between oil and gas.
The net effect of the industry on CO2 emissions was therefore an increase of around 410-440MtCO2, or 4% of China’s total CO2, highlighting that coal-based chemical production is much more carbon-intensive than its already carbon-intensive oil- and gas-based equivalent.
The sector’s growth in coal use and emissions reflects drastically improved profitability in most segments in recent years. Its profitability depends heavily on the oil price, so the sharp increase in oil prices from the 2015-2020 level in 2021-24 supported output growth, whereas the recent fall in oil prices could temper it.
The chemical industry association still expects the sector to expand capacity for another decade, until 2035, even under China’s CO2 peaking target.
Analysis by Tianfeng Securities touts the years 2025-2030 as the “peak period” for investment in coal to chemicals, claiming that potential annual investment over the next five years could reach three times the 2021-23 level and that half of this potential investment is in Xinjiang province.
Sinolink Securities projects that an average of at least 37m tonnes of coal conversion capacity will be added in the coal-to-chemicals industry each year from 2025 to 2029, with coal-to-oil-and-gas and coal-to-methanol dominating these capacity additions.
This would mean a 40% increase in the industry’s capacity from 2024 to 2029, with the potential to add over 250MtCO2 per year of emissions, increasing total CO2 emissions by over 2%.
The figure below illustrates this potential increase, which would continue recent trends.
If this further expansion takes place – and assuming new chemicals plants are used at the same rate as the existing fleet is being used today – then it would complicate China’s carbon peaking target and make the CO2 intensity target for 2030 even more challenging to meet.
However, this is not the first time that the industry has been predicted to boom. In 2014, the China Coal Association issued a prediction that the coal-to-chemicals industry would be using 750Mt of coal per year by 2020, converting to about 540Mt of “standard” coal.
In reality, less than a third of this demand was realised – in large part due to low oil prices – and the sector was still only using half of this amount by the end of 2024.
New targets on the horizon
Given the major increase in solar capacity in the first half, as well as expected additions of wind and nuclear throughout the year, China is on track for a fall in emissions in 2025.
This would continue a declining trend that began in early 2024 and leaves open the possibility that China’s emissions could have peaked already, years ahead of its “before 2030” target.
The recent slide in China’s total CO2 emissions is shown in the figure below, with the shallow decline illustrating the potential that this trend could be reversed.
Even if China’s emissions fall by a few percent this year, however, this is unlikely to be sufficient to meet the carbon intensity target for 2025 in the current five-year plan. Still, it would make the country’s 2030 carbon intensity commitment under the Paris Agreement easier to meet.
A continuing fall in emissions, extending the fall that began in early 2024, could also affect target-setting for the next five-year plan – which is being prepared for release in early 2026 – by showing that China could peak and reduce its emissions well ahead of the 2030 deadline.
Yet, despite rapid progress in 2024 and 2025, China is bound to miss multiple emissions-related targets in the 2021-2025 period, due to rapid CO2 rises during and after the Covid pandemic.
These targets include improvements in carbon intensity, “strict” controls of the growth in coal consumption and new coal-fired power plants, as well as the share of cleaner electric arc steelmaking in total steel output.
If China’s policymakers want to make up the shortfall against these 2025 targets and get on track for their 2030 goals, then they would need to set out higher ambitions in the 15th five-year plan, covering 2026-2030. For example, this could include reducing the carbon intensity of China’s economy by more than 20% over the next five years.
China’s new pledge (NDC) under the Paris Agreement, with targets for 2035, is due to be published in the next few months and will provide important indications of their intentions.
The new pricing policy for wind and solar has also increased the importance of target-setting, by making “contracts for difference” available for the amount of capacity needed to meet the central government’s clean-energy targets. An ambitious clean-energy target for 2035 would be a significant new backstop for clean-energy growth, with both climate and economic relevance.
Another major question is how the government will react to the influx of coal-fired capacity, even as power generation from coal recedes. It could either move to close down older coal plants – or to limit clean-energy additions.
With respect to coal power plants, the key point remains, however, that as long as clean power generation keeps growing faster than electricity demand, then increases in coal and gas fired capacity will result in falling utilisation, rather than increased CO2 emissions.
About the data
Data for the analysis was compiled from the National Bureau of Statistics of China, National Energy Administration of China, China Electricity Council and China Customs official data releases, and from WIND Information, an industry data provider.
Wind and solar output, and thermal power breakdown by fuel, was calculated by multiplying power generating capacity at the end of each month by monthly utilisation, using data reported by China Electricity Council through Wind Financial Terminal.
Total generation from thermal power and generation from hydropower and nuclear power was taken from National Bureau of Statistics monthly releases.
Monthly utilisation data was not available for biomass, so the annual average of 52% for 2023 was applied. Power sector coal consumption was estimated based on power generation from coal and the average heat rate of coal-fired power plants during each month, to avoid the issue with official coal consumption numbers affecting recent data.
CO2 emissions estimates are based on National Bureau of Statistics default calorific values of fuels and emissions factors from China’s latest national greenhouse gas emissions inventory, for the year 2021. Cement CO2 emissions factor is based on annual estimates up to 2024.
For oil consumption, apparent consumption is calculated from refinery throughput, with net exports of oil products subtracted.
The post Analysis: Record solar growth keeps China’s CO2 falling in first half of 2025 appeared first on Carbon Brief.
Analysis: Record solar growth keeps China’s CO2 falling in first half of 2025
Climate Change
DeBriefed 29 May 2026: Europe’s ‘mind-boggling’ May | Indian heat deaths | Nigeria’s solar mini-grids
Welcome to Carbon Brief’s DeBriefed.
An essential guide to the week’s key developments relating to climate change.
This week
UK, Europe and India battle heatwaves
‘MIND-BOGGLING’ MAY: The UK and continental Europe have set “mind-boggingly crazy” temperature records for May amid a deadly heatwave, reported the Financial Times. According to the Associated Press, the UK “smashed a century-old temperature record for the second time in 24 hours on Tuesday”. The newswire added that records “also fell in France, where temperatures reached 36C on Monday in the country’s south-west”. On Wednesday, Portugal hit a record May temperature of 40.3C, said BBC News.
‘BRUTAL REMINDER’: In parts of Italy, the heatwave triggered blackouts, reported Reuters. The heatwave has also been linked to more than a dozen deaths in the UK and France, including from people drowning and suffering heat-related deaths while competing in sporting events, said ABC News. Simon Stiell, the executive secretary of UN Climate Change, said the intense heatwaves were a “brutal reminder” of the cost of global warming, reported Politico. Carbon Brief has in-depth coverage of the record-shattering heatwave.
INDIA’S DEADLY HEAT: In the southern Indian states of Andhra Pradesh and Telangana, more than 100 people died within three days following an intense heatwave, reported the Khaleej Times. The publication noted that authorities urged people to stay indoors and avoid direct exposure to the heat. Meanwhile, some parts of India are “grappling with power cuts as record-breaking heat has pushed electricity demand to an all-time high”, reported Reuters.
Around the world
- CRUDE DIPS: The International Energy Agency (IEA) said global investments in oil projects will fall below $500bn in 2026, continuing a three-year decline, reported Bloomberg. Carbon Brief’s analysis of the data shows the US’s “data-centre boom” means it is now investing more in fossil-fuel power than China.
- DODGING NET-ZERO: The world’s biggest miner, Australian giant BHP, has backtracked on climate action by halting or delaying projects to cut “vast” amounts of emissions, according to a Guardian investigation.
- SOLAR SLIP: China’s new solar installations dropped for a fourth straight month, reflecting weakening domestic demand, said Bloomberg.
- NO LOGGING: Deforestation in the Brazilian Amazon fell last year to its lowest level since 2019, according to a new report, said Agence France-Presse.
- EXECUTIVE ACTION: Puerto Rico’s governor announced a state of emergency to fight a surge in coastal erosion, citing the need to protect natural resources and vulnerable communities, reported the Associated Press.
Four million
The number of homes in the UK with air conditioning, double the figure from three years ago, reported the Guardian. There are 29m households in the UK.
Latest climate research
- Carbon Brief will soon be launching a new fortnightly newsletter focused on climate research. Sign up for free today.
- LGBTQ+ households in the US are “significantly more likely” to face energy poverty and insecurity than the general population | Energy Research & Social Science
- Global rice-paddy greenhouse gas emissions have doubled over the past six decades | Nature Food
- Vegetation greening and human-caused warming are the “main drivers” of a surge in flash floods over the last decade | Science Advances
(For more, see Carbon Brief’s in-depth daily summaries of the top climate news stories on Tuesday, Wednesday, Thursday and Friday.)
Captured
A Carbon Brief investigation has shed light on the impact of weather-related flooding on National Health Service (NHS) facilities across the UK. At least 67 NHS hospital wards, departments and other sites have been forced to temporarily close or relocate due to weather-related flooding. The chart above shows sites of weather-related flooding incidents at NHS facilities. The size of the circles indicates the number of incidents reported at each site.
Spotlight
How solar mini-grids can ‘help boost’ Nigeria’s economy
This week, Carbon Brief covers a new report on Nigeria’s solar mini-grid industry.
Amid the impact of the US-Iran war on the Nigerian economy, a new report has argued that solar-mini grids can help to reduce the country’s reliance on fossil fuels and create more than 200,000 jobs.
In Nigeria, Africa’s third-largest economy, the war has led to an increase in energy prices and a decrease in petrol consumption. Petrol is one of the country’s main sources of transport and household fuel. According to one estimate, prices have surged by up to 40% since the conflict commenced in February.
Although the Nigerian treasury has benefited from rising crude oil prices – the country is a major exporter of oil and gas – the impact has been most visible on the wider population.
Rising energy prices “have affected the purchasing power of workers”, Agnes Funmi Sessi, a labour union leader in Lagos, told Carbon Brief.
However, scaling the deployment of solar “mini-grids” could help the country move away from fossil fuels, stimulate rural economies and improve livelihoods, according to the new report authored by the thinktank, the Africa Policy Research Institute.
“We estimate that, by deploying over 10,000 mini-grids, the sector could create 212,688 direct full-time informal and productive-use jobs across the off-grid and under-grid market segments,” the report said.
A nascent industry
Solar “mini-grids” are small-scale, localised electricity generation and distribution systems powered by solar panels.
The report positioned Nigeria’s mini-grid sector as one of the fastest-growing in Africa, with the country having just 11 mini-grids in 2015 and 155 by 2024, along with at least 42 active developers.
Many of the companies within the sector are young and apply novel local techniques in their deployment of solar technology, the report said.
However, access to finance remains a huge barrier. According to the report, the sector may require up to $8bn to connect 35.4 million people to mini-grids.
“Most Nigerians want solar power in their homes, but it is a capital intensive business for vendors and customers,” Dr Ben Iheagwara, a renewable energy entrepreneur and policy analyst, told Carbon Brief.
The report urged the Nigerian government and its international partners to “attract private capital by de-risking investments and ensuring regulatory clarity and long-term planning”.
Other key recommendations for policymakers and stakeholders include investment in skills development and paying attention to the gender gap.
Powering rural communities
Many rural communities, which make up about 37% of the country, are disconnected from the national grid system, so often have to generate their own electricity through mini-grid systems.
According to Nigeria’s electricity regulator, NERC, a mini-grid is defined as a power generating system with an installed capacity of up to 10 megawatts.
A mini-grid can be powered by fossil fuels such as diesel or petrol, but solar power is now considered a cheaper and cleaner source.
With more than 80 million people lacking access to electricity in Nigeria, solar mini-grids are increasingly viewed as the lowest-cost electrification solution, the report said.
Watch, read, listen
MOVING FORWARD: The Energy Transition Show dug into electricity reform in South Africa, discussing the country’s coal legacy and the role of renewables.
ENERGY POVERTY: In an opinion article for Project Syndicate, executive director of the African Climate Foundation, Saliem Fakir, argued that the energy transition in emerging and developing economies is driven by economics and security rather than emissions targets.
VANISHING CITY: BBC News reported on a coastal community in Nigeria where the ocean has “already swallowed more than half of the town”.
Coming up
- 31 May: Colombia presidential elections
- 31 May-5 June: Global Environment Facility council meeting, Samarkand, Uzbekistan
- 2-5 June: The Venice Agreement for Peatlands workshop, Kisumu, Kenya
Pick of the jobs
- National Oceanography Centre, engagement assistant (external communications) | Salary: £28,254. Location: Southampton, UK
- Dangote Industries, decarbonisation specialist | Salary: Unknown. Location: Lagos, Nigeria
- City of New York, chief decarbonization officer | Salary: $261,469. Location: New York City
- Climate Central, writer and associate editor | Salary: $72,000-$75,000. Location: US (Remote)
DeBriefed is edited by Daisy Dunne. Please send any tips or feedback to debriefed@carbonbrief.org.
This is an online version of Carbon Brief’s weekly DeBriefed email newsletter. Subscribe for free here.
The post DeBriefed 29 May 2026: Europe’s ‘mind-boggling’ May | Indian heat deaths | Nigeria’s solar mini-grids appeared first on Carbon Brief.
At the African Development Bank (AfDB) annual meetings this week, several African leaders called for investments in electricity infrastructure which go beyond lighting homes to powering economies.
Applauding the AfDB for its energy programmes like Mission 300 – which aims to provide electricity access to 300 million Africans by 2030 – the Central African Republic’s President Faustin-Archange Touadera said that without power supply “we will not be able to achieve development”.
Speaking alongside him, the Republic of Congo’s President Denis Sassou Nguesso echoed this, saying that “as we need to help our people to turn towards agriculture, to turn towards livestock rearing, we also need to provide power to them.”
As the Mission 300 initiative advances, attention is increasingly shifting from simply connecting households to ensuring that electricity access translates into economic opportunities and livelihoods. That shift is driving the launch of a new Centre of Excellence for Productive Use of Energy being developed under Mission 300 by the philanthropically funded Global Energy Alliance for People and Planet (GEAPP).
-
Kenya seeks regional coordination to build African mineral value chains
Kenyan President William Ruto is the latest African leader to announce an end to raw mineral exports as governments want to add more value to their resources -
Africa needs more than export bans to cash in on critical minerals, experts say
Restricting raw materials exports is well-intentioned but without other policies to foster domestic processing, they can backfire -
Africa records fastest-ever solar growth, as installations jump in 2025
Africa’s solar power installations have increased sharply, driven by utility-scale projects and privately financed rooftop and commercial systems
In an interview with Climate Home News, Carol Koech, GEAPP’s vice president for Africa, said the initiative is designed to ensure that electrification supports income generation, agriculture and local economic development rather than only basic household access.
Q: What is the Centre of Excellence for Productive Use of Energy aiming to achieve with Mission 300?
A: Mission 300 is increasingly being seen as a job platform and so the role of the Centre of Excellence in translating those electricity connections to jobs. So we want the centre to do four things. First, as a delivery engine, which enables countries to embed a cross-institutional advisor that supports the electrification components, but also other components that are happening in the country.
Second, we want the centre to be an innovation and strategy hub. Today, there’s really no place where you can go to find the state of the industry for productive use of energy across the globe, and we want to make the centre of excellence the place where you can go and get information about what technologies are available, where deployment is happening and how much is being deployed.
(Photo: Lighting Global/SunCulture/World Bank)
The third pillar is to coordinate and mobilise capital. We anticipate the centre coordinating internally within the ecosystem but also mobilising additional financing to help productivity. The last piece is how to scale businesses, enterprises and partnerships around this centre because we anticipate that as we grow this space, new industries will emerge and those industries will need to be supported.
Q: Why is productive use of energy becoming important under Mission 300?
A: Mission 300 gave us a bigger platform to demonstrate that energy is truly an enabler for economic development. It’s not sufficient to just provide a connection, but it is required that that connection truly translates to economic development for the communities that benefit.
We shouldn’t bring electricity and then start thinking about what people can do with it. We need to think about both at the same time and ensure electricity arrives together with the things that will make a difference in people’s lives. Historically, we’ve brought electricity and imagined a miracle would happen, but we know that hasn’t been the case.
The question is how to ensure universal access in the cheapest way while still transforming communities. Some mini-grids have been deployed in places where demand is extremely low, making them too expensive to sustain. But when mini-grids are paired with productive uses, the economics start to change. If businesses currently running on fossil fuel generators move to solar or renewable energy, operating costs fall and the business case for mini-grids becomes much stronger.
Q: How could this work in practice for agriculture and rural communities?
A: I’ll give you a practical example in our pilot country Zambia. Zambia has two programmes, they have the ASCENT programme for energy access and they also have the Zambia agribusiness and trade platform (ZATP). Some of the components of the ZATP programme – which is an agri-business program to help farmers to be productive – have a productive use component but don’t have an energy supply component. So we’re offering things like mills, processing facilities, irrigation and others. In some parts of Zambia, these productive use equipment has been supplied but has not been powered, so communities are not benefiting from that.
So the whole point is if we coordinate where the agribusiness programme is deployed together with where the energy access programme is deployed and layer those two programmes together in one place, then you could solve the energy access problem and solve productive use together and therefore have really meaningful outcomes for communities.
Q: How will the centre help both households and small businesses use electricity productively?
A: The question on whether we should electrify households or businesses is neither here nor there. We need to electrify all. The argument is really once we electrify businesses, the owners of those businesses will be able to pay what they need for their households as well as increase production for their businesses.
Electricity consumption is usually an indicator of economic development and by pushing productive use into households, especially where households are also smallholder farmers, the question becomes: how can electricity access translate to additional economic development for them? If you are connected onto a mini-grid, then you can actually use that connection to run irrigation, put in a dryer, or a cold storage system, whatever you require to improve your income but the fact that you have energy means that you can access productive use. Now, we need to ask ourselves how do these farmers or these households then get access to these appliances, because that’s another barrier.
Q&A: Will subsidy cuts for Chinese clean-tech exports hurt Africa’s solar boom?
The cost of these appliances is usually extremely high, and when you have programmes such as the ZATP running in Zambia, that’s already a public funding approach to making these appliances available and potentially reachable for farmers, either at household level, at farm level or at community level.
Q: How does this complement the already existing Mission 300 national energy compacts designed by countries?
A: Each of the national energy compacts have a productive use component, a pillar that talks about distributed renewable energy, productive use, and clean cooking. This is actually complementing the work of the countries, and this centre is like an available support, back office for countries to tap into as they implement their national energy compacts, if they have specific requirements and support for that pillar three.
So the advisers that will be embedded into countries, their role is to coordinate within country programs that are running where energy could make a difference. The advisers will be sourced from the country and so they will make sure that the donor money is coordinated to benefit the country fully. Their role will include going to ministries of agriculture or any related ministries and understanding where they are prioritising programmes that require electrification. In many cases, programmes and money have already been allocated, but this component is about how do we deploy it in a way that it actually truly brings a difference, so those advisers will do that.
Q: How will the centre address financing and private sector investment challenges?
A: What we’re really looking at is different financing mechanisms. In the past, we have provided subsidies and results-based financing to suppliers, distributors and manufacturers to help create markets for productive-use appliances. I see this as one mechanism the centre could use, but the bigger opportunity is aligning public funding across different programmes so that more of it can support productive uses, either through direct funding or subsidies.
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When it comes to private sector investment, the reality is that Africa’s energy sector still faces serious constraints. Most private investment has gone into power generation, particularly through independent power producers, and even then that has only been possible in places where the off-takers, usually utilities, are bankable.
To unlock more private capital, countries need the right policies, reforms and regulations, but even more importantly, utilities must become financially viable. If the off-taker is not bankable, then the project is not bankable.
Another major question is how to attract private investment into transmission infrastructure. There are different models being explored, but the reality is that public funding alone is not sufficient to achieve Mission 300, so finding new ways to mobilise private capital will be critical.
The post Q&A: How can African electricity access power jobs not just lightbulbs? appeared first on Climate Home News.
Q&A: How can African electricity access power jobs not just lightbulbs?
The “data-centre boom” is driving a surge in gas investment in the US, pushing its fossil-power spending ahead of China, according to the International Energy Agency (IEA).
A rapid expansion of data centres across the nation is at the heart of the US tech sector’s plans to continue “dominat[ing]” the global artificial intelligence (AI) industry.
High demand for electricity to power these data centres has led to companies rushing to build new gas-fired power plants across the country.
This trend, combined with “soaring” gas-turbine prices, drove a threefold increase in US gas‑power investment in 2025 – and the IEA expects this to continue throughout 2026.
As the chart below shows, Chinese investment in coal- and gas-fired power is expected to drop this year, amid domestic policy changes and the Iran war sending gas prices spiralling.
Together, these trends mean the IEA expects US investment in fossil-fuelled power plants to overtake China’s in 2026.
The IEA’s latest world energy investment report shows that spending on renewables and electricity grids continues to dominate at the global scale.
In the US, Trump administration policies such as the phase-out of tax credits for renewables has led to the IEA revising its forecast for new wind and solar power downwards.
At the same time, US electricity demand is expected to rise by an average of 2% per year from 2026 to 2030, with data centres contributing half of the overall increase.
This is leading to what the IEA calls an “AI-driven push” to build new gas-power plants in the US, the world’s largest data-centre market and largest gas producer.
Globally, orders for new gas-power plants increased to 130 gigawatts (GW) in 2025 – a 25-year high – and US demand was a “major factor” in this, according to the IEA.
Much of the demand is coming from tech companies in the US seeking to bypass grid connection queues by building “captive” gas-power plants.
As the chart below shows, since the start of 2025 these US captive data centres alone have signed off on more investment in new gas turbines than any country in the world – aside from the US itself.
Overall, investment in grid upgrades, power equipment and electricity generation to support the buildout of data-centre infrastructure around the world hit $105bn in 2025, according to the IEA.
This is more than the total invested in the energy sector across the whole of Africa – a continent where more than 600 million people do not have access to electricity.
The IEA notes that strong demand for gas-power plants for data centres in the US – and, to a lesser extent, the Middle East – is “limiting the availability of turbines for near-term deployment elsewhere in the world”.
The agency also points out that as the tech sector becomes a “major energy investor”, accounting for around 40% of all corporate power-purchase agreements, it is also “underpinning momentum” for emerging clean technologies, such as small modular nuclear reactors and advanced geothermal.
The post AI boom means US is now ‘investing more’ in fossil-fuel power than China appeared first on Carbon Brief.
AI boom means US is now ‘investing more’ in fossil-fuel power than China
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