China has reinforced its status as the world’s leading manufacturer of clean energy equipment, supplying roughly 70 percent of global wind power equipment and 80 percent of solar photovoltaic (PV) modules, according to a recent industry report from the China Electric Power Planning and Engineering Institute (EPPEI). The report highlights significant advancements in China’s energy security and green transition, emphasizing a historic milestone in 2025 when the combined installed capacity of wind and solar power surpassed that of coal-fired thermal power for the first time.

In 2025, China’s total primary energy production reached 5.13 billion metric tons of standard coal equivalent, marking a 3.6 percent increase from the previous year. The country remains the world’s largest energy producer, accounting for more than 20 percent of global energy output and about one-third of global power generation. Installed power generation capacity expanded by 16.1 percent year-on-year to 3.89 billion kilowatts by the end of 2025.

Despite the rapid growth of renewables, coal production remains stable, with an output increase of 1.4 percent to 4.85 billion tons last year. Oil and natural gas production also rose, with crude output reaching 216 million tons and natural gas hitting 262.06 billion cubic meters, marking the ninth consecutive year of significant gas production growth.

The report details progress in diversifying China’s energy supply, including expanding overseas oil and gas cooperation zones across Central Asia, Russia, the Middle East, Africa, the Americas, and the Asia-Pacific. This diversification has broadened China’s crude oil import sources to about 40 countries. Domestically, coal’s share of energy consumption declined to 51.4 percent in 2025, down 1.8 percentage points from the previous year, while clean energy consumption—which encompasses natural gas, hydropower, nuclear, wind, and solar—rose 1.8 percentage points to 30.4 percent.

Renewable energy now constitutes the dominant segment of China’s power grid, accounting for over 60 percent of total installed capacity. Wind and solar power combined reached an installed capacity of 1.84 billion kilowatts, overtaking thermal power worldwide. New electricity generation from wind, solar, and biomass sources represented more than 90 percent of the total new electricity consumption in 2025. The China Electricity Council noted that overall electricity demand continues to grow robustly, driven by advanced manufacturing, high-tech sectors, and widespread electrification.

Technological advancements also feature prominently. Large-scale vanadium flow battery stations commenced operations, and compressed air energy storage efficiency surpassed 70 percent. Emerging business models such as virtual power plants and distributed energy resources have expanded, alongside a nearly 50 percent increase in electric vehicle charging infrastructure to over 20 million units.

On the international front, China’s clean energy industry has facilitated global decarbonization efforts through significant exports and investments. Over the past decade, Chinese investments in thermal power overseas exceeded 60 million kilowatts with over $30 billion committed. Between 2022 and 2025, China engaged in more than 500 overseas new energy projects across 140 countries and regions, with overseas solar photovoltaic capacity exceeding 100 million kilowatts and wind power over 30 million kilowatts. Cumulative solar PV module exports surpassed $180 billion, reaching more than 200 countries and regions.

A recent example of international collaboration includes Chinese solar technology firm Longi’s agreement with Romanian developer Enexus for a 50 megawatt-hour liquid-cooled battery energy storage system. This project complements Longi’s solar module deployments in Romania since 2025 and supports the country’s goal of adding 5.8 gigawatts of ground-mounted solar capacity by 2030. The integrated system aims to enhance grid resilience by mitigating solar power variability and reducing energy curtailment.

The report also underscores the growing intersection of artificial intelligence (AI) and the energy sector. AI applications are increasingly deployed for grid management, renewable energy forecasting, and operational optimization. For example, AI-driven models combining meteorological and hydrological data have improved power generation forecasting in complex terrains like the Yalong River basin. In thermal power, AI assists with combustion optimization and rapid response to grid fluctuations caused by intermittent renewables.

However, AI’s rapid expansion drives significant power demand. By the end of June 2025, China had built 52 large-scale computing clusters, consuming 170 billion kilowatt-hours annually—approximately 1.6 percent of total societal power use. Projections estimate that computing power’s electricity consumption could reach 800 billion kilowatt-hours by 2030, about 6 percent of China’s national electricity consumption.

Experts emphasize that sustaining this growth requires large-scale, low-carbon, and economical power supplies. China’s extensive renewable energy capacity offers a vital advantage, enabling the country’s expanding computing infrastructure to meet rising electricity needs without compromising carbon reduction targets. This dynamic fosters a deepening integration between AI and energy systems, moving toward a unified, intelligent, and green infrastructure for the future.