China closed 2025 with its largest annual expansion of the energy system on record. Investment surged past a symbolic threshold. Power capacity grew at a pace rarely seen in any major economy. Together, the numbers point to a system still in rapid build-out, with renewables at the center and grids struggling to keep up.
By the end of January 2026, the National Energy Administration (NEA) announced that China’s investment in major energy projects topped 3.5 trillion yuan in 2025, or nearly US$500 billion. This marks an almost 11% rise from the previous year and is the first time China’s annual energy investment has hit that level.
This spending surge coincided with another milestone. By the end of 2025, China’s total installed power generation capacity reached 3.89 terawatts (TW), up 16.1% year on year. No other country added capacity at a comparable scale during the year.
$500B Flows Across the Energy System: Power, Grids, and Security
The NEA described 2025 as a year of broad-based energy investment. Spending increased not only in clean energy but also in grids, coal, and energy security projects.
Renewables absorbed a large share of new capital. China added more than 430 gigawatts (GW) of new wind and solar capacity during the year. This pushed combined installed wind and solar capacity beyond 1.8 TW for the first time. Solar and wind now account for nearly half of China’s total installed power capacity.
Investment in onshore wind rose especially fast. The NEA said spending on key onshore wind projects jumped by almost 50% compared with 2024. Developers focused on large inland bases and projects tied to long-distance transmission lines.

Solar continued to expand at an even faster pace. By the end of 2025, China’s installed solar capacity reached 1.20 TW, up 35.4% from a year earlier. This followed another strong year in 2024 and confirmed China’s position as the world’s largest solar market by a wide margin.
Wind capacity also grew quickly. Total installed wind power reached 640 GW, a 22.9% increase from 2024. Growth came from both onshore projects and steady additions offshore.
At the same time, investment did not shift entirely away from conventional energy. The NEA said spending also increased in coal power, hydropower, and coal mining, reflecting ongoing concerns about power reliability and supply security.
Grid construction remained a priority, particularly projects designed to move electricity from resource-rich western regions to demand centers in the east. Private companies played a larger role in this expansion.
The NEA reported that private-sector investment in major energy projects rose to almost 13% year-on-year. Much of that capital flowed into solar manufacturing, wind development, and coal-related infrastructure.
China’s Capacity Additions in Gigawatt Chunks
China’s investment surge translated into record growth in installed capacity. At the end of 2024, total power capacity stood at about 3.35 TW. One year later, it had risen to 3.89 TW. This implies net additions of roughly 540 GW in a single year.
That figure reflects capacity from all sources, including renewables, coal, gas, nuclear, and hydropower. While the NEA does not publish a single “net additions” number, the difference between year-end totals shows the scale of expansion.
Solar alone accounted for a large share of this growth. Industry data based on official statistics indicate that China added roughly 315 GW of new solar capacity in 2025. Wind additions added another large block, pushing combined wind and solar growth above 430 GW.
This pace of construction is historically unusual. Even during earlier phases of China’s renewable boom, annual additions were far smaller. The 2025 figures show that China is now building new power capacity at a speed measured in hundreds of gigawatts per year, not tens.
By contrast, capacity growth in many other major economies has slowed due to permitting delays, grid constraints, and financing challenges. China’s ability to add large volumes of capacity in a short time reflects its centralized planning, domestic manufacturing base, and strong state-backed financing.
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China vs. the United States: A Scale Gap That Keeps Widening
The scale of China’s 2025 build-out becomes clearer when placed in an international context.
In the United States, the Energy Information Administration (EIA) projected about 63 GW of new utility-scale generating capacity additions for 2025 across all technologies. This includes solar, wind, gas, battery storage, and other sources.
China’s wind and solar additions alone, at more than 430 GW, were roughly six to seven times larger than total expected US utility-scale additions for the year. If total net capacity growth is used instead, China’s increase of about 540 GW would be more than eight times the US figure.

These comparisons depend on definitions and data sources. China’s numbers are based on year-end installed capacity totals, while the US figure is a forward-looking projection of new builds. Even so, the gap in scale remains large under most reasonable comparisons.
What stands out is not only the size of China’s additions, but their composition. Renewables drove most of the growth. Solar capacity in China alone now exceeds the total installed power capacity of many advanced economies.
When Building Faster Than the Grid Can Absorb
Rapid capacity growth has consequences. One clear signal appeared in power plant utilization data.
In 2025, power plants with a capacity of 6,000 kilowatts and above recorded an average utilization of 3,119 hours. This was 312 hours lower than in 2024. Lower utilization suggests that capacity is growing faster than electricity demand or grid flexibility.
Several factors explain this trend. Wind and solar output vary by weather and time of day. Coal and hydropower plants remain in the system to provide stability, even when renewables generate strongly. In addition, grid bottlenecks can prevent power from reaching where it is needed.
The NEA has repeatedly pointed to grid expansion as a priority. In 2025, major investments went into ultra-high-voltage transmission lines, regional interconnections, and grid digitalization. These projects aim to reduce curtailment and improve the system’s ability to absorb renewable power.
Still, the utilization figures show the challenge ahead. As capacity continues to rise, grid management and market reform will play a larger role in determining how efficiently new assets are used.
Growth First, Optimization Next
China’s 2025 energy data tell a consistent story. Investment reached a new high. Capacity expanded at a historic pace. Renewables dominated new additions, but conventional power and grids remained part of the strategy.
The numbers also show a system in transition rather than completion. Record build-out has brought new pressures, especially on utilization and grid integration. These issues are likely to shape energy policy decisions in the years ahead.
For now, what stands out most is scale. With energy investment approaching $500 billion and annual capacity additions measured in hundreds of gigawatts, China continues to expand its power system faster than any other country. The 2025 data confirm that this expansion is no longer an exception, but an established pattern.
The post China Adds Power 8x More Than the US in 2025, with $500B Energy Build-Out in a Single Year appeared first on Carbon Credits.
Carbon Footprint
Climate Impact Partners Unveils High-Quality Carbon Credits from Sabah Rainforest in Malaysia
The voluntary carbon market is changing. Buyers are no longer focused only on large volumes of cheap credits. Instead, they want projects with strong science, long-term monitoring, and clear proof that carbon has truly been removed from the atmosphere. That shift is drawing more attention to high-integrity, nature-based projects.
One project now gaining that spotlight is the Sabah INFAPRO rainforest rehabilitation project in Malaysia. Climate Impact Partners announced that the project is now issuing verified carbon removal credits, opening access to one of the highest-quality nature-based removals currently available in the global market.
Restoring One of the World’s Richest Rainforest Ecosystems
The project is located in Sabah, Malaysia, on the island of Borneo. This region is home to tropical dipterocarp rainforest, one of the richest forest ecosystems on Earth. These forests store huge amounts of carbon and support extraordinary biodiversity. Some dipterocarp trees can grow up to 70 meters tall, creating habitat for orangutans, pygmy elephants, gibbons, sun bears, and the critically endangered Sumatran rhino.
However, the forest within the INFAPRO project area was not intact. In the 1980s, selective logging removed many of the most valuable tree species, especially large dipterocarps. That caused serious ecological damage. Once the key mother trees were gone, natural regeneration became much harder. Young seedlings also had to compete with dense vines and shrubs, which slowed the forest’s recovery.
To repair that damage, the INFAPRO project was launched in the Ulu-Segama forestry management unit in eastern Sabah.
- The project has restored more than 25,000 hectares of logged-over rainforest.
- It was developed by Face the Future in cooperation with Yayasan Sabah, while Climate Impact Partners has supported the project and helped bring its credits to market.
Why Sabah’s Carbon Removals are Attracting Attention
What makes Sabah INFAPRO different is not only the size of the restoration effort. It is also the way the project measured carbon gains.

Many forest carbon projects issue credits in annual vintages based on year-by-year growth estimates. Sabah INFAPRO followed a different path. It used a landscape-scale monitoring system and waited until the forest moved through its strongest natural growth period before issuing removal credits.
- This approach gives the credits more weight. Rather than relying mainly on short-term annual estimates, the project measured carbon sequestration over a longer period. That helps show that the forest delivered real, sustained, and measurable carbon removal.
The scientific backing is also unusually strong. Since 2007, the project has maintained nearly 400 permanent monitoring plots. These plots have allowed researchers, independent auditors, and technical specialists to observe the full growth cycle of dipterocarp forest recovery. The result is a large body of field data that supports carbon calculations and strengthens confidence in the credits.
In simple terms, buyers are not just being asked to trust a model. They are being shown years of direct forest monitoring across the project landscape.
Strong Ratings Support Market Confidence
Independent assessment has also lifted the project’s profile. BeZero awarded Sabah INFAPRO an A.pre overall rating and an AA score for permanence. That places the project among the highest-rated Improved Forest Management, or IFM, projects in the world.
The rating reflects several important strengths. First, the project has very low exposure to reversal risk. Second, it has a long and stable operating history. Third, its measured carbon gains align well with peer-reviewed ecological research and independent analysis.
These points matter in today’s market. Buyers have become more cautious after years of debate over the quality of some forest carbon credits. As a result, they now look more closely at durability, transparency, and third-party validation. Sabah INFAPRO’s rating helps answer those concerns and makes the project more attractive to companies looking for credible carbon removal.
The project is also registered with Verra’s Verified Carbon Standard under the name INFAPRO Rehabilitation of Logged-over Dipterocarp Forest in Sabah, Malaysia. That adds another level of market recognition and verification.
A Wider Model for Rainforest Recovery
Sabah INFAPRO also shows why high-quality nature-based projects are about more than carbon alone. The restoration effort supports broader ecological recovery in one of the world’s most important rainforest regions.
Climate Impact Partners said it has worked with project partners to restore degraded areas, run local training programs, carry out monthly forest patrols, and distribute seedlings to support rainforest recovery beyond the project boundary. These efforts help strengthen the wider landscape and expand the project’s environmental impact.
That broader value is becoming more important for buyers. Companies increasingly want projects that support biodiversity, ecosystem health, and local engagement, along with carbon removal. Sabah INFAPRO offers that mix, making it a stronger fit for the market’s shift toward higher-integrity credits.

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Carbon Footprint
Bitcoin Falls as Energy Prices Rise: Why Crypto Is Now an Energy Market Story
Bitcoin’s recent drop below $70,000 reflects more than short-term market pressure. It signals a deeper shift. The world’s largest cryptocurrency is becoming increasingly tied to global energy markets.
For years, Bitcoin has moved mainly on investor sentiment, adoption trends, and regulation. Today, another force is shaping its direction: the cost of energy.
As oil prices rise and electricity markets tighten, Bitcoin is starting to behave less like a tech asset and more like an energy-dependent system. This shift is changing how investors, analysts, and policymakers understand crypto.
A Global Power Consumer: Inside Bitcoin’s Energy Use
Bitcoin depends on mining, a process that uses powerful computers to verify transactions. These machines run continuously and consume large amounts of electricity.
Data from the U.S. Energy Information Administration shows Bitcoin mining used between 67 and 240 terawatt-hours (TWh) of electricity in 2023, with a midpoint estimate of about 120 TWh.

Other estimates place consumption closer to 170 TWh per year in 2025. This accounts for roughly 0.5% of global electricity demand. Recently, as of February 2026, estimates see Bitcoin’s energy use reaching over 200 TWh per year.
That level of energy use is significant. Global electricity demand reached about 27,400 TWh in 2023. Bitcoin’s share may seem small, but it is comparable to the power use of mid-sized countries.
The network also requires steady power. Estimates suggest it draws around 10 gigawatts continuously, similar to several large power plants operating at full capacity. This constant demand makes energy costs central to Bitcoin’s economics.
When Oil Rises, Bitcoin Falls
Bitcoin mining is highly sensitive to electricity prices. Energy is the highest operating cost for miners. When power becomes more expensive, profit margins shrink.
Recent market movements show this link clearly. As oil prices rise and inflation concerns persist, energy costs have increased. At the same time, Bitcoin prices have weakened, falling below the $70,000 level.

This is not a coincidence. Studies show a direct relationship between Bitcoin prices, mining activity, and electricity use. When Bitcoin prices rise, more miners join the network, increasing energy demand. When energy costs rise, less efficient miners may shut down, reducing activity and adding selling pressure.
This creates a feedback loop between crypto and energy markets. Bitcoin is no longer driven only by demand and speculation. It is now influenced by the same forces that affect oil, gas, and power prices.
Cleaner Energy Use Is Growing, but Fossil Fuels Still Matter
Bitcoin’s environmental impact depends on its energy mix. This mix is improving, but it remains uneven.
A 2025 study from the Cambridge Centre for Alternative Finance found that 52.4% of Bitcoin mining now uses sustainable energy. This includes both renewable sources (42.6%) and nuclear power (9.8%). The share has risen significantly from about 37.6% in 2022.
Despite this progress, fossil fuels still account for a large portion of mining energy. Natural gas alone makes up about 38.2%, while coal continues to contribute a smaller share.

This reliance on fossil fuels keeps emissions high. Current estimates suggest Bitcoin produces more than 114 million tons of carbon dioxide each year. That puts it in line with emissions from some industrial sectors.
The shift toward cleaner energy is real, but it is not complete. The pace of change will play a key role in how Bitcoin fits into global climate goals.
Bitcoin’s Climate Debate Intensifies
Bitcoin’s growing energy demand has placed it at the center of ESG discussions. Its impact is often measured through three key areas:
- Total electricity use, which rivals that of entire countries.
- Carbon emissions are estimated at over 100 million tons of CO₂ annually.
- Energy intensity, with a single transaction using large amounts of power.

At the same time, the industry is evolving. Mining companies are adopting more efficient hardware and exploring new energy sources. Some operations use excess renewable power or capture waste energy, such as flare gas from oil fields.
These efforts show progress, but they do not fully address the concerns. The gap between Bitcoin’s energy use and its environmental impact remains a key issue for investors and regulators.
- MUST READ: Bitcoin Price Hits All-Time High Above $126K: ETFs, Market Drivers, and the Future of Digital Gold
Bitcoin Is Becoming Part of the Energy System
Bitcoin mining is now closely integrated with the broader energy system. Operators often choose locations based on access to cheap or excess electricity. This includes areas with strong renewable generation or underused energy resources.
This integration creates both opportunities and challenges. On one hand, mining can support energy systems by using power that might otherwise go to waste. It can also provide flexible demand that helps stabilize grids.
On the other hand, it can increase pressure on local electricity supplies and extend the use of fossil fuels if cleaner options are not available.
In the United States, Bitcoin mining could account for up to 2.3% of total electricity demand in certain scenarios. This highlights how quickly the sector is scaling and how closely it is tied to national energy systems.
Energy Markets Are Now Key to Bitcoin’s Future
Looking ahead, the connection between Bitcoin and energy is expected to grow stronger. The network’s computing power, or hash rate, continues to reach new highs, which typically leads to higher energy use.
Electricity will remain the main cost for miners. This means Bitcoin will continue to respond to changes in energy prices and supply conditions. At the same time, governments are starting to pay closer attention to crypto’s environmental impact, which could shape future regulations.

Some forecasts suggest Bitcoin’s energy use could rise sharply if adoption increases, potentially reaching up to 400 TWh in extreme scenarios. However, cleaner energy systems could reduce the carbon impact over time.
Bitcoin is no longer just a financial asset. It is also a large-scale energy consumer and a growing part of the global power system.
As a result, understanding Bitcoin now requires a broader view. Energy prices, electricity markets, and carbon trends are becoming just as important as market demand and investor sentiment.
The message is clear. As energy markets move, Bitcoin is likely to move with them.
The post Bitcoin Falls as Energy Prices Rise: Why Crypto Is Now an Energy Market Story appeared first on Carbon Credits.
Carbon Footprint
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The post LEGO’s Virginia Factory Goes Big on Solar as Net-Zero Push Speeds Up appeared first on Carbon Credits.
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