China has surpassed coal to become the leading source of installed power generation capacity with solar energy, marking a significant milestone in the country's transition toward cleaner energy. According to data released by the National Energy Administration (NEA), solar photovoltaic capacity reached 1,286 gigawatts by the end of July, representing 31.5 percent of the nation’s total installed power capacity.
This development breaks a pattern that had persisted for more than a century, since the inception of China’s electric power industry, during which coal remained the dominant power source. The NEA described this shift as a “signature achievement” in China’s ongoing green and low-carbon energy transformation.
Recent official statistics reveal that coal accounted for less than half of China’s generated electricity for the first half of 2026. In contrast, solar power accounted for approximately 13 percent of the country’s total electricity consumption by July. During the first seven months of 2026, solar power output increased by 15.5 percent year-on-year, totaling 802.4 billion kilowatt-hours.
China remains a global leader in solar technology, producing about 80 percent of the world’s solar modules. The NEA highlighted the nation’s photovoltaic industrial chain as the most complete and competitive worldwide. Alongside expanding renewable capacity, China is accelerating upgrades to its power infrastructure to support what it terms a “new-type power system,” designed to integrate a growing share of renewable energy into the grid.
Investment in this modernized power grid is forecast to exceed 5 trillion yuan (approximately HK$5.8 trillion) during China’s 15th Five-Year Plan period, spanning 2026 to 2030. The power system is a central component of a broader infrastructure initiative known as the “six networks,” which also includes computing networks, telecommunications, and underground utility pipelines. These initiatives have been emphasized in recent high-level government meetings as priorities for sustaining economic development.
In the context of rising technological demands, large-scale deployment of artificial intelligence (AI) is increasing the need for reliable and efficient energy supplies. AI applications require extensive computing power, contributing to a significant rise in electricity consumption. A report by state broadcaster CCTV highlighted that in Changshu, a city in Jiangsu province, electricity use by data centers and computing infrastructure has surpassed residential demand for air conditioning during the summer months. Local utility data indicate that the computing sector accounted for nearly half of the city’s incremental power demand, making it the primary driver of electricity consumption growth during this period.
As China continues to expand its renewable energy capacity and modernize its grid infrastructure, the interplay between technological advances and energy demand is expected to remain a key consideration in shaping the country’s energy landscape.