According to CINNO Research, China's new energy sector continued its robust investment momentum in the first half of 2025. Based on CINNO Research data statistics, total investment in China's new energy projects reached approximately 1.4 trillion yuan in H1 2025. Despite a 32.2% year-over-year decline, it remains one of the most dynamic investment sectors in technology, particularly maintaining high activity in frontier areas such as next-generation battery technology and smart grid infrastructure.
Chart: Distribution of China's New Energy Industry Investment Projects from January-June 2025, Source: CINNO Research
**Internal Capital Flow Breakdown in New Energy Sector: Energy Storage Grows Against the Trend, Wind and Solar Investment Becomes More Rational**
China's new energy industry investment in H1 2025 exhibited an adjustment pattern of "one rising, multiple declining." According to CINNO Research data, wind and solar power, as traditional advantage sectors, occupied 40.8% of industry share with 560.4 billion yuan in investment, but declined 44.4% year-over-year, indicating market saturation trends. Within this, wind power project investment totaled 365.4 billion yuan, while solar project investment reached 195.0 billion yuan, reflecting continued attractiveness in segments such as offshore wind power.
Energy storage emerged as the biggest highlight, achieving 10.5% year-over-year growth with 279.9 billion yuan in investment, raising its share to 20.3%. This was primarily driven by breakthroughs in new energy storage technologies and surging demand for grid-side energy storage.
In contrast, battery industry investment of 243.0 billion yuan (17.7% share) and hydrogen energy sector investment of 230.4 billion yuan (16.8% share) declined by 25.8% and 40.2% respectively, indicating capital is shifting from mature technology areas toward directions with greater growth potential.
This investment landscape reflects the new energy industry's deep adjustment phase, with capital increasingly focused on technological innovation and practical application scenarios, as the sector gradually transitions from scale expansion to high-quality development.
**New Characteristics of New Energy Industry Evolution in H1 2025:**
According to CINNO Research data statistics for H1 2025:
**Wind and Solar Sectors:** Of the total 195.0 billion yuan in solar investment, solar power station projects received 91.8 billion yuan in investment, accounting for 47.1%, showing that large-scale centralized power stations remain the investment focus. Wind power industry investment was highly concentrated, with 352.4 billion yuan in wind power operation project investment representing 96.4% of total wind power investment of 365.4 billion yuan, reflecting the industry's entry into large-scale development phase.
**Battery Sector:** Of total investment of 243.0 billion yuan, battery cell manufacturing received 124.2 billion yuan in investment, accounting for 51.1%, indicating that with breakthroughs in new battery technologies, core manufacturing segments continue to attract capital favor.
**Energy Storage Sector:** Of total investment of 279.9 billion yuan, pumped hydro storage maintained its dominant position with 148.2 billion yuan representing 52.9% share, while investment in new energy storage technologies is steadily increasing.
This investment pattern demonstrates that the new energy industry is transitioning from rapid expansion to high-quality development, with capital increasingly focused on core segments with technological barriers and scale advantages.
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