China installed a record 293 gigawatts (GW) of wind and solar in 2023 – pushing its total capacity to 1,050GW, according to a new report.
The report, published by Australia-based thinktank Climate Energy Finance, says that, if this rate of renewables growth is maintained, then China could reach its “dual carbon” climate goals earlier than planned.
Here, Carbon Brief interviews the author of the report, Xuyang Dong. The questions and Dong’s answers are reproduced in full, below.
(An abridged version of this interview was published in the 16 May edition of China Briefing, Carbon Brief’s fortnightly email newsletter focusing on climate and energy developments relating to China. Sign up for free.)
Carbon Brief: Your report concluded that China’s coal power output will soon peak and decline – despite rising coal capacity – thanks to the rapid rise of clean energy sources. How widely do you think that potential tipping point is understood, both within China and internationally?
Xuyang Dong: This potential is not being understood or acknowledged enough both within China and internationally. China is prioritising energy security over the need to reduce coal-use. It has positioned thermal power as the backup energy source to ensure energy security, as electricity demand continues to grow and boost the economy. This strategy is being emphasised after the downturn in hydropower generation last year caused by droughts, as well as blackouts in different parts of the country due to the unmet rising electricity demand. I think there is a pressure domestically of not wanting to admit it, as they really want to ensure energy security first. Concurrently, China is increasing renewable energy capacity at a staggering pace that far outstrips every other nation on the planet.
Internationally, news headlines continue to emphasise that China is building new coal-fired power plants, leading to a lack of confidence about China’s commitment to decarbonising its national electricity grid, although the expansion in renewable energy additions in China is at an unprecedented speed and scale.
However, the picture is more positive when we look at installed capacity. At the end of March this year, 53% of China’s installed capacity is zero-emissions. This paves the way for China to reduce its reliance on coal and to do so rapidly – as we map in our report. China now needs to be more ambitious in its climate targets and it is well positioned to do so.
CB: If China is to announce more ambitious climate goals and expand renewable energy like you suggested in the report, in your opinion, what are the barriers?
XD: We are aware there are concerns over China’s land-use as a major constraint for building more wind and solar farms. We have run a case study on a 1.5 gigawatt (GW) solar project being built in the Tengger Desert in Ningxia province. The project has 3.5m solar modules installed and only took up 0.1% of the total desert. In our model, we estimate that China needs to install a total of 5,405GW of new solar capacity to reach its dual-carbon targets and that may require only 11% of a total land area of the Gobi Desert, a neighbouring desert to Tengger.
The real challenge is that more transmission lines are needed. China recently started construction of an ultra-high-voltage power line project, which will cover three provinces – Shaanxi, Hubei and Anhui – to send 36 terawatt hours (TWh) of electricity to Anhui per annum and help boost renewable energy consumption by more than 18TWh per annum. More transmission lines like this are needed to maximise the renewable energy generation potential of China’s desert areas and to resolve China’s land use constraints in the east coast.
CB: What do you think about policy support?
XD: I think being more ambitious in the overall climate target would be a good start because China has the capacity, the money and the technology to deploy the renewable energy at the speed and scale it requires.
Considering its political system is “top-down”, a more ambitious target could help the central government to give out more mandates, build better transmission lines and distribute the generated power into the areas that are needed.
Internationally, China needs to align with other developed countries to take its responsibilities as the leading renewable superpower and the carbon price would be an important policy lever. The external incentives and penalties, such as [having a Chinese version of] the EU’s carbon border adjustment mechanism (CBAM), would also help. CBAM encourages the EU’s trading partners, especially China, to reduce the emissions of their exports. A further driver would be for other nations to also catch up with China’s staggering renewable expansion and start to emulate its speed and scale, so there will be no excuse left for China to do less.
CB: Speaking of CBAM, your report recommended China to have one of its own. Can you explain how introducing one would help, politically, to enable greater ambition from China’s leaders?
XD: Having one itself could incentivise China to increase the price of carbon, which currently is significantly lower than the EU and the rest of the developed world, although there is a deflation in China and most of the commodities are a lot lower than the rest of the world. But a higher price on carbon could be a good incentive, especially limiting the emission in the manufacturing industry. It could also match China’s carbon price with the EU and lead to less trade barriers. For other trading partners, for example, Australia. Australia has been exporting raw materials. It could also incentivise Australia to do an embedded decarbonisation on its exports as well.
CB: Wouldn’t you worry the CBAM would make trading with some countries, such as developing countries, harder with China?
XD: The Chinese CBAM could list different categories and for different countries. It can have a higher standard for the developed countries and encourage the developed world to help the emerging market and developing economy to decarbonise. In the Asia-Pacific region, China, Japan, South Korea and Australia could work together to decarbonise.
CB: In the future you described, what role do you think solar and wind energy will play?
XD: As our report mapped out, wind and solar will be the leading energy sources in the future. China’s manufacturing capacity is driving down the cost for solar panels, modules and wind turbines. The cost of deploying them is lower, too. In the meantime, they have the world’s leading technology, which can increase the utilisation rates. However, it needs to be accompanied by a better sort of combination in the energy storage system, and better energy storage, so the renewable energy it generates doesn’t go to waste and it can also help with China’s entire curtailment issues.
CB: What do you think about the current energy storage situation in China?
XD: It has become a priority compared to a year ago. Most of the policy before is supporting more build out for solar and wind power projects, progressively, and now we can see more documents focusing on storage systems. In fact, there is more and more manufacturing capacity for batteries as well, so we can see a dropping price in the batteries, which will be beneficial for a larger deployment of energy storage systems.
CB: Speaking of solar and battery, what do you think about China’s “new three” – solar, batteries and EV – and how they help China in energy transition and economy?
XD: The “new three” has played a very huge part in China’s economic growth. In 2023, 40% of China’s total 5.2% GDP growth last year was driven by it. [Read more on Carbon Brief’s analysis on clean energy and China’s economic growth in 2023]. This is very significant, especially because China is facing multiple headwinds in different areas, including the housing sector, population decline and deflation.
According to the International Energy Agency (IEA), the first quarter of 2024 saw China sell nearly 1.9m electric cars, more than the rest of the world combined. I think it’s inevitable that China’s solar manufacturing overcapacity continues to lead the global renewable market. China’s solar manufacturing overcapacity has been a big topic and it is posing a threat to the industry as it is resulting in price slump for the solar panels and making a lot of business non-profitable. However, there are still some major players remaining financially healthy.
I know there are a lot of concerns about this overcapacity in the industry, such as in the EU and the US, and I think for China to address the concerns over industrial overcapacity, it needs to, first, stimulate domestic demand and deployment of solar and windfarms, energy storage systems buildout and EV sales. Secondly, China could use its cheap renewable exports to help emerging markets and developing economies to build more renewable energy capacity, boosting and accelerating the global energy transition. Finally, it should be collaborating on joint ventures with European and US investors to build local factories.
CB: You mentioned there are some “financially healthy” Chinese companies and they have often been accused of using state subsidies to win “unfair” competition. What’s your view on the accusations?
XD: It’s a very classic way of the Chinese government doing things. When they see an opportunity, they build the capacity first and they will even run at a loss-making state to just dominate the market. Once they have taken over the market, they can profit from that. China has shown this sort of a pattern of doing business in the past.
However, in the meantime, China has shown it has the labour capacity, resources and the capital to deploy or develop the manufacturing capacity at this rate. It drives down the prices of a solar panel and module, wind turbine, as well as battery and EV prices, so I think it is good news to the global energy transition overall, especially for countries from the emerging market and developing economies when they really need more capital and more cost-efficient materials for them. So I guess it really depends on how you look at it and how you work with China instead of working against it.
The post Interview: China’s renewables ‘pave the way to rapidly reduce coal reliance’ appeared first on Carbon Brief.
Interview: China’s renewables ‘pave the way to rapidly reduce coal reliance’
Claver Gatete is Executive Secretary of the UN Economic Commission for Africa. Jason Veysey is Energy Modeling Program Director and Senior Scientist at the Stockholm Environment Institute. Lisa Sachs is Director of the Columbia Center on Sustainable Investment at Columbia University.
The case for global energy transition has rarely been clearer. The closure of the Strait of Hormuz earlier this year exposed the cost of unplanned, fossil-dependent systems, while the falling cost of renewables, the rising penetration of electric vehicles, and the growing value of demand flexibility have made the direction of travel obvious. The benefits of a clean, secure, integrated system are no longer in dispute. What remains unclear is how to build it.
Countries around the world have called for faster renewable energy deployment and alternative energy arrangements. A secure, affordable, resilient, decarbonised system requires specific investments in specific places in a specific sequence, optimised across sectors and borders. But very few governments have the analytical foundation to translate those imperatives into investment.
The two instruments that are supposed to determine investment priorities for decarbonisation – Nationally Determined Contributions (NDCs) and country platforms – cannot answer the most basic question facing any country undertaking an energy transition: what should the energy system look like?
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To close this gap, every country needs a bankable, economy-wide optimisation model for its energy system. A model is not a plan, but it can help answer the critical question of what the future energy system should look like. It shows how optimal scenarios vary as assumptions and policies are adjusted, calculates investment requirements and sequencing, and quantifies how system costs are affected by assumptions, policies, and exogenous variables like trade policy and financing terms.
Tool for efficient investment
Optimisation is a simplified way of simulating an energy system, but it can be an extremely powerful tool for moving energy planning from reactive (how do we manage the disparate actions in the energy system?) to intentional (what energy system underpins our national objectives?). A model can show how optimal scenarios vary as assumptions and policies are adjusted, and how investment requirements are quantified and sequenced.
Optimisation models can treat the energy system and the sectors it serves as an integrated whole, optimising across sectors and projects in ways that can be mutually reinforcing. If considered independently, growth in industrial demand, transport electrification, and digital infrastructure can add stress to the energy system. But an optimised plan can arrange these and other changes in an efficient, synergistic way.
Two to tango: How governments can unlock private investment for national climate goals
New load can be added where low-cost power is available; industrial customers can ensure the viability of investments in energy supply; electric vehicle charging policy can smooth load curves and reduce costs for all consumers.
Additionally, optimisation modeling can also change the financeability of investments. Taken alone, each project faces uncertainty about the rest of the system, which raises the cost of capital and causes projects to stall or unwind after contracts are signed. A coherent, optimised plan makes visible the coordination that private capital would otherwise have to bet on: identified offtake, sequenced and committed transmission, contracted power supply, and so on.
What COP31 and COP32 should do
The upcoming COPs in Turkey and Ethiopia can shift the center of gravity of international climate cooperation from fragmented commitments to planning. Three moves are urgently needed.
First, optimised, economy-wide, long-term energy system planning must be the foundation on which any meaningful NDC, country platform, or finance commitment rests. NDCs are typically drafted by environment or single-line ministries, with limited cross-sectoral input from ministries of energy, finance, and planning. They contain targets, derived from sectoral strategies or national commitments, not from an analytically grounded picture of what the energy system should look like and what investments would make it work. Country platforms are generally a portfolio of investments assembled from existing project pipelines, rather than derived from a system-level analysis of what an optimised, decarbonised energy system would require.
Second, recognise regions as a key planning unit. Modern integrated energy systems are inherently regional. Renewable endowments are unevenly distributed; balancing variable supply across borders lowers aggregate cost, reduces redundant backup capacity, and unlocks economies of scale no individual nation can achieve. Many energy investments in Southeast Asia, East Africa, Southern Africa and Central Asia may only be financeable in a regional context. Assessing domestic infrastructure without regional optimisation perpetuates the perception that decarbonisation is more expensive than it is.
COP31 leaders unveil global targets, with spotlight on electrification
Third, finance the planning capacity. A coordinated commitment by multilateral development banks, bilateral donors, and philanthropic partners to help every region and its constituent countries develop and maintain their own modelling capability, with open-source tools and regional analytical hubs, would close the most consequential gap in the current architecture. The cost is small relative to current spending on country platforms, failed project preparation, and misallocated infrastructure investment.
This includes supporting regional institutions such as the ASEAN Centre for Energy, the African Energy Commission, regional power pools, and the Latin American and Caribbean Energy Organization to determine what optimised regional systems require. Country-by-country pledging, repeated at every COP, will not deliver what meaningfully integrated systems can.
The 2026 energy crisis made the cost of unplanned, fossil-dependent systems newly visible. That window of clarity will close. The international community should seize the moment to build the planning foundation that has been missing for thirty years, rather than commissioning another round of NDCs or pledges, striving for outcomes neither was designed to deliver.
The post Every country needs a model to help optimise its energy transition appeared first on Climate Home News.
Every country needs a model to help optimise its energy transition
The world is currently experiencing what is expected to become the strongest El Niño on record – dubbed a “super El Niño” by many.
El Niño is the warm phase of a recurring climate pattern in the tropical Pacific that releases heat from the ocean into the atmosphere.
This temporarily raises global temperatures and reshapes rainfall and extreme weather around the world – impacting the lives of billions of people.
The current El Niño event began in June and is expected to last into 2027.
El Niño is part of a wider climate pattern called the El Niño-Southern Oscillation (ENSO) cycle.
The ENSO cycle also has a cool phase, known as La Niña, as well as a “neutral” phase. El Niño and La Niña events typically last between nine and 12 months, but can go on longer.
Below, Carbon Brief explains how the ENSO cycle works, its impacts on extreme weather and global temperatures and why this El Niño event is projected to be the most intense since records began.
The post Explainer: How the ‘super El Niño’ will reshape the world’s weather appeared first on Carbon Brief.
https://interactive.carbonbrief.org/el-nino-explainer/index.html
The second-largest reservoir in the US reached a record-low water height on Saturday – just days after the country’s largest reservoir broke its own record.
Both Lake Mead and Lake Powell are located on the Colorado River.
They provide water for populations across seven US states in the south-western US, with around 40 million people getting some or all of their municipal water from the Colorado River.
The river also provides water for around 5.5m acres (22,258 square kilometres) of farmland across Colorado, Arizona, California and the other states in the river basin.
Experts tell Carbon Brief that climate change, population growth and over-consumption are all contributing to the current record-low levels of the reservoirs.
Record lows
At full capacity, Lakes Mead and Powell can hold a combined 68 cubic kilometres of water – enough to supply all household consumption in the contiguous US for nearly 1.5 years. However, the water level in both reservoirs has been declining for decades.
The chart below shows the water level of Lake Mead, in metres above mean sea level. The reservoir, which began to fill in 1935 following the construction of the Hoover Dam, has a “full pool” maximum capacity of 347.60 metres. The water level in Lake Mead reached a record low of 317.11 metres on 7 August.
The following chart shows the water level of Lake Powell, in metres above mean sea level. Lake Powell’s full-pool level is 1,127.76 metres.
While the reservoir reached its maximum capacity several times in the 1980s, it has not done so since. On 15 August, the water level in Lake Powell was recorded at a new record-low of 1,072.87 metres.
Both reservoirs have continued to decline in the days since breaking their respective records. The downward trend will largely continue in both lakes until next spring, when the snowpack in the mountains of the Upper Colorado River Basin begins to melt, says Dr Jack Schmidt, a senior research scientist at Utah State University’s Center for Colorado River Studies. He tells Carbon Brief:
“The big dilemma of the moment is that we’re only in the middle of August, and we have no assurance of what the coming winter will be. The only thing we can be sure of is that we will be depleting overall total basin reservoir storage from now until, roughly, early April.”
Compounding factors
The record lows across the two reservoirs are the result of several compounding factors, experts tell Carbon Brief.
Since the turn of the 20th century, the amount of water flowing along the Upper Colorado River has declined by about 20%. Research suggests that half of this decline can be attributed to human-induced climate change.
Most of the river’s streamflow comes from the snowpack of the Upper Colorado River Basin, which stretches across five western US states but is primarily located in Colorado and Utah.
This region has been gripped by a historic “megadrought” for more than a quarter of a century. Nearly half of the megadrought’s intensity over 2000-18 is attributable to climate change, according to a 2020 study.
At the same time, the increasing population in the US south-west has put added pressure on the Colorado River’s water supply. The number of people obtaining some or all of their water from the Colorado system has grown by 15 million (around 60%) since 1992.
Schmidt tells Carbon Brief:
“There’s an ultimate cause of the present water crisis, and there’s a proximate cause. The ultimate cause is a warming climate, a warming planet and a pretty clear correlation between warming conditions and decreased runoff in the Colorado River Basin.
“The proximate cause is that in this messy democratic republic of ours, big policy decisions that match the variability of the climate occur painfully slowly – with intense political negotiations – and only incrementally.”
On 31 July, the US Bureau of Reclamation, which manages water resources in the western US, released an environmental impact statement on its proposed post-2026 strategy for managing Lakes Powell and Mead. The strategy itself has not been released yet.
Schmidt notes that the statement does appear to give the Bureau flexibility to “respond to crisis” by reducing the delivery of water to several states. However, he adds:
“They acknowledge it won’t work if we just stay critically dry, and of course every climate model for the 21st century, especially with a continually warming planet, says that that’s exactly what’s going to happen.”
The post Analysis: The two largest reservoirs in the US have hit record-low levels appeared first on Carbon Brief.
Analysis: The two largest reservoirs in the US have hit record-low levels
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