-- Wang Zixun, Chief Renewable Energy Analyst at Chengtong Securities, published a research report reviewing China’s achievements in the renewable energy sector in recent years. He highlighted the central role of SOEs in China’s energy transition and renewable energy industry development. He stated that global climate action has entered a critical phase, with the green transition being an irreversible trend. China has provided a replicable model of experience for the global green transition and supplied high-quality clean energy products and services. China’s renewable energy industry will continue to robustly drive the global green transformation.
He noted that since 2025, the renewable energy sector has led gains among A-share industries, with the energy storage sector performing particularly strongly. As of December 5, 2025, the CITIC Power Equipment Index and the CSI Energy Storage Thematic Index have risen 39% and 58% year-to-date, respectively, achieving excess returns of approximately 22% and 41% over the CSI 300 Index. In May 2025, CATL successfully listed on the Hong Kong Exchanges and Clearing Limited (HKEX), completing its A+H share structure. Its Hong Kong share price has maintained a stable premium of over 10% compared to its A-shares. The strong performance of China’s renewable energy sector is fundamentally driven by the high momentum of the global renewable energy industry. This reflects both the high recognition by global capital of the investment value of China’s renewable energy sector and the globally leading position of China’s renewable energy industrial chain.
Chengtong Securities pointed out that China’s energy transition has achieved remarkable results, having initially established a clean, low-carbon, safe, and efficient renewable energy system with coordinated development across power generation, grid, and demand sides.
On the power generation side, China’s photovoltaic and wind power industries have made significant progress. By the end of 2024, China’s installed renewable energy capacity reached 1.89 TW, accounting for 56% of total installed capacity. This includes 0.89 TW of photovoltaic power (26%) and 0.52 TW of wind power (15%), with combined photovoltaic and wind capacity exceeding 40%. In 2024, China’s renewable energy power generation reached 3,500 TWh, constituting 35% of total power generation. Wind and photovoltaic generation together amounted to 1,800 TWh, representing 19% of total generation.
On the grid side, China’s ability to integrate renewable energy has significantly improved, with enhanced system regulation capabilities. In recent years, amid the rapid growth of wind and photovoltaic power, utilization rates have remained consistently above 95%, reaching 96% and 97% respectively in 2024. Renewable energy resources are mainly concentrated in northern, northwestern, and northeastern China, while major electricity load centers are located in eastern and southern coastal regions. Through continuous ultra-high-voltage (UHV) project construction, China has significantly strengthened cross-provincial and inter-regional transmission capacity for renewable energy, effectively addressing the geographic mismatch between energy supply and demand. In 2024, 20 DC UHV transmission lines delivered 400 TWh of renewable energy, accounting for 57% of total DC UHV transmission, up 4.3 percentage points year-on-year. This has become a critical support for renewable energy absorption.
On the demand side, China has made positive progress in energy conservation and carbon reduction across sectors such as industry and transportation. According to data from the Ministry of Industry and Information Technology (MIIT), by December 2025, China had cultivated over 6,000 green factories, more than 400 green industrial parks, over 700 green supply chain enterprises, and promoted more than 40,000 green products. Output from green factories accounts for approximately 20% of total manufacturing output. From January to October 2025, China sold 10.15 million new energy vehicles (NEVs), representing a year-on-year increase of 22%, with a penetration rate of 53%, up 5 percentage points from the previous year.
Chengtong Securities emphasized that central SOEs are the core driving force behind China’s energy transition and a key factor leading the development of the renewable energy industry. China’s central energy SOEs hold leading domestic positions in wind, hydropower, and nuclear power. In 2023, 11 central energy SOEs added approximately 150 GW of renewable energy capacity, accounting for 52% of the national total, with cumulative capacity reaching 560 GW, or 53% of China’s total renewable energy capacity. Large-scale wind and photovoltaic power bases in China are primarily led and implemented by central energy SOEs, setting technological benchmarks and providing scale leadership for the industry. These SOEs actively deploy demonstration projects such as photovoltaic–thermal–storage integration, offshore photovoltaic systems, and photovoltaic-based hydrogen production, continuously innovating integrated renewable energy development models.
Chengtong Securities also noted that China’s clean energy industrial chains—represented by NEVs, lithium batteries, photovoltaics, and wind power—have consistently reduced costs and improved efficiency through sustained technological innovation and full market competition, providing strong product and service support for the global green transition. In terms of efficiency, Chinese photovoltaic companies have driven continuous product upgrades, from monocrystalline cells in 2008 to mainstream n-type TOPCon cells in 2024, with average conversion efficiency reaching 25.4%, an increase of 8 percentage points compared with 2008. China’s wind turbine industry has advanced rapidly toward large-scale units, with average onshore and offshore turbine capacities reaching 6 MW and 10 MW respectively in 2024, up 4 MW and 6 MW from a decade ago. In terms of cost, China has played a major role in driving down global photovoltaic and wind power costs. From 2010 to 2023, the global levelized cost of electricity (LCOE) for photovoltaic and wind power declined by more than 90% and 60% respectively, now falling below that of fossil fuels. China’s renewable energy products are exported to over 200 countries and regions, meeting the majority of global demand for photovoltaic modules and wind power equipment, and helping emerging and developing economies establish green, safe, and cost-controllable energy systems.
As an integral part of the financial services sector under the state-owned China Chengtong Holdings Group Ltd., Chengtong Securities adheres to a development philosophy focused on serving the real economy, supporting the high-quality development of central SOEs, and facilitating state capital operation strategies. Its research institute is driven by both macroeconomic and industry research, delivering buy-side-oriented research with deep specialization in sectors such as pharmaceuticals, high-end manufacturing, TMT, renewable energy, and consumer goods.
Contact Info:
Name: Liu Honggang
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Organization: Chengtong Securities
Website: https://www.cctgsc.com.cn/
Release ID: 89179469
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