China: China is in the middle of an energy construction surge unlike anything seen before, as Beijing races to secure enough power for fast-growing, electricity-hungry industries shaping the future economy.

According to data from the National Energy Administration (NEA), China added 543 GW of new power capacity across all technologies in 2024 alone. That figure is around 12 % larger than India’s total installed power capacity at the end of the year. Even more striking, the generation China has added since the end of 2021 now exceeds the size of the entire US power system.

Since 2023, annual capacity additions have averaged more than 400 GW, a sharp increase from roughly 150 GW per year over the previous six years. The expansion follows electricity shortages in 2021 and 2022 and reflects President Xi Jinping’s focus on energy security, lower fuel import dependence, and providing competitively priced power for sectors such as AI, robotics and advanced materials.

China is expanding across all energy sources. Solar made up more than half of new capacity last year, while wind, coal and gas plants also reached record installation levels. Nuclear and hydropower additions were smaller but are expected to play a much larger role, supported by the world’s largest nuclear construction pipeline and plans for a massive hydropower project in Tibet.

By contrast, US capacity growth has lagged, leaving electricity markets tight as data centres and AI push up demand. Analysts warn this imbalance could affect long-term competitiveness.

China now faces new challenges, including grid congestion, renewable curtailment and falling coal plant utilisation. Recent policy signals suggest the next phase will focus on grid upgrades and market reforms, while maintaining enough capacity to protect energy security through the next five-year plan.

Source: Business Times

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