On June 25, the National Energy Administration (NEA) released national power industry statistics for the January–May period. By the end of May, China’s cumulative installed power generation capacity reached 4.01 billion kilowatts (kW), rising 11.0% year-on-year. Of this total, installed solar power capacity stood at 1.26 billion kW, an increase of 16.3% year-on-year; installed wind power capacity hit 660 million kW, growing 17.0% year-on-year. From January to May, the national average cumulative utilization hours of power generation equipment reached 1,155 hours, a drop of 95 hours compared with the same period last year.

Jiang Debin, Deputy Director of the Statistics & Digital Intelligence Department of the China Electricity Council (CEC), pointed out that three major factors have driven China’s installed power capacity to break the 4-billion-kilowatt threshold.

First, clear policy orientation: systematic advancement guided by the carbon peaking and carbon neutrality goals. Over the 15 years from 2010 to 2025, installed capacity of all power sources in China expanded rapidly. Wind power and photovoltaic (PV) capacity registered average annual growth rates of 22.7% and 75.7% respectively, 4.3 times and 14.3 times that of thermal power. They constitute the primary driving force behind the milestone. Building on the official rollout of the carbon peaking and carbon neutrality goals in 2020, China has introduced a raft of supporting policies including the 14th Five-Year Plan for Renewable Energy Development, market-based green power trading, and new energy consumption guarantee schemes. With unprecedented efforts, the authorities have removed obstacles across the whole industrial chain covering planning, approval, grid connection and power absorption for new energy development. Innovative models such as large-scale renewable energy base projects, county-wide promotion of distributed PV, and direct green power access have translated policy momentum into capacity expansion momentum.

Second, technological progress cuts costs: wind and solar power have shifted from subsidy reliance to economically preferred options. In the past decade, prices of PV modules have plunged by over 90%, and the cost of onshore wind power has fallen to roughly the same level as coal-fired power, or even lower. In most regions, solar PV has become the most cost-competitive power source. The combination of technological advances and scale effects has transformed new energy from a subsidy-dependent sector into a profitable business, fully stimulating investment enthusiasm among market entities — this is the fundamental economic logic behind the capacity boom.

Third, industrial chain support enables implementation: a complete manufacturing ecosystem and robust engineering capacity ensure production and deployment. China boasts the world’s most comprehensive new energy equipment industrial chain, covering silicon materials, solar cells, inverters, complete wind turbines, blades and tower barrels. Approximately 80% of global PV modules and 60% of wind power equipment are made in China. Meanwhile, supporting infrastructure including ultra-high voltage (UHV) power transmission, pumped storage hydropower and new energy storage is under accelerated construction, ensuring newly built large-scale capacity can be completed, power transmitted and electricity consumed. A complete industrial system and strong construction and organization capabilities serve as the critical guarantee for turning the 4-billion-kilowatt target from blueprints into reality.