New Energy

China’s Energy Transition at Odds With Solar Glut, Cheap Power

China is still expected to keep installing renewables at pace, with annual additions of around 300 gigawatts over the next decade.

Photographer: Qilai Shen/Bloomberg
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The green energy transition in China is at a critical juncture, as oversupply in the solar sector, declining power prices, and continued reliance on fossil fuels threaten to derail progress.

Chinese spending on renewable energy dwarfs its rivals, with over $800 billion — or 4.5% of its GDP — invested last year, according to BloombergNEF. But the country still faces significant hurdles in balancing its ambitious climate goals with delivering energy security, according to experts at BNEF’s summit in Beijing last week.