China's total installed power generation capacity has surpassed 4 billion kilowatts as of the end of May, making it the first country globally to reach this milestone. Experts in the power sector attribute this significant achievement to three primary factors: systematic advancement guided by the "dual carbon" goals, cost reduction driven by technological innovation, and robust implementation supported by a complete industrial chain.
China Electricity Council Director of Planning and Development, Zhang Lin, noted that from an international perspective, the 4 billion kilowatt capacity is approximately 1.7 times the combined total installed capacity of the European Union and the United States. Looking at China's own historical development, this figure is 1.8 times the capacity at the start of the 14th Five-Year Plan period and 2.6 times that at the beginning of the 13th Five-Year Plan period. The large-scale growth of China's power industry is inextricably linked to the driving force of technological innovation.
Principal Drivers Behind the Growth
Jiang Debin, Deputy Director of the Statistics and Digital Intelligence Department at the China Electricity Council, analyzed the main reasons. First, policy direction has been firmly anchored by the systematic push for the "dual carbon" goals. Between 2010 and 2025, China's installed capacity for various power sources has grown rapidly. The average annual growth rates for wind and solar photovoltaic capacity were 22.7% and 75.7% respectively, which are 4.3 times and 14.3 times the average annual growth rate of thermal power capacity. This represents the most significant driving force behind China surpassing the 4 billion kilowatt threshold in power generation capacity.
He stated that following China's clear articulation of its carbon peak and carbon neutrality targets in 2020, a series of supporting policies were intensively introduced. These include the 14th Five-Year Plan for renewable energy development, green power market-based trading mechanisms, and new energy consumption guarantee measures. These policies have, with unprecedented intensity, removed obstacles across the entire chain—from planning and approval to grid connection and consumption—paving the way for new energy development.
Second, technological advancements have driven down costs, transforming wind and solar power from "subsidy-dependent" to "economically preferred" options. Over the past decade, the price of PV modules has dropped by over 90%, and the cost of onshore wind power has become comparable to or even lower than that of coal-fired power. In most regions, solar PV has become the most economically viable power source. Jiang Debin explained that the combination of technological progress and economies of scale has shifted new energy from being "subsidy-reliant" to "profitable," igniting investment enthusiasm among market participants. This is the fundamental economic logic behind the surge in installed capacity.
Third, a complete industrial chain has supported implementation, ensuring the capability to "manufacture and install." China possesses the world's most comprehensive industrial chain for new energy equipment, from silicon materials, battery cells, and inverters to complete units, blades, and towers. Approximately 80% of the world's PV modules and 60% of wind power equipment are manufactured in China. Simultaneously, the accelerated construction of supporting infrastructure—such as ultra-high-voltage transmission, pumped storage, and new types of energy storage—ensures that large-scale new capacity can be "built, transmitted, and consumed." This complete industrial system and strong project execution capability are the key enablers that turned the 4 billion kilowatt target from blueprint to reality.
In 2025, new electricity generation from wind, solar, and biomass sources covered 97.1% of the increase in total electricity consumption, indicating that nearly all new electricity demand was met by green energy. This coincided with the first decline in thermal power generation in nearly a decade.
Jiang Debin emphasized that reaching 4 billion kilowatts signifies greater confidence in energy security and more solid steps in the green transition. China is steadily advancing from being a major power producer to a global leader in the power sector.
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