China is expected to add approximately 240 million kilowatts of new power generation capacity in the second half of the year, marking a 50% increase from the 160 million kW added during the first six months. This growth will bring the total annual capacity to around 400 million kW, driven by rising electricity demand from emerging industries, according to a trade organization report.
The country achieved a milestone by surpassing a total installed capacity of 4 billion kW in the first half of the year, a figure projected to grow to about 4.3 billion kW by year’s end. This information was released in a recent report by the China Electricity Council, an organization representing businesses and institutions in the power sector.
The growth is primarily fueled by renewable energy sources. By 2026, non-fossil fuel power capacity is expected to reach 2.7 billion kW, making up roughly 63% of the total capacity. Wind and solar power will constitute half of this total, while the share of coal-powered generation is anticipated to decrease to approximately 31%.
Electricity production is key to achieving China’s carbon reduction targets. In 2020, the country announced goals to peak carbon dioxide emissions by 2030 and become carbon neutral by 2060.
To meet these targets, China must accelerate the development of renewable energy sources such as wind, solar, hydro, and nuclear power. The aim is to double green energy capacity by 2035 compared to current levels, said Zhang Lin, who oversees planning and development at the China Electricity Council, during a recent press conference.
Power consumption in the first half of the year increased by 5.3%, reaching 5.1 trillion kilowatt-hours, compared to the same period last year. This growth rate surpasses the 3.7% recorded in the first half of 2025. The report expects the second half to maintain a year-over-year increase of 5% to 6%.
Rising demand from emerging sectors is the main driver of increased electricity use, with internet data services experiencing a 44% surge compared to the previous year, nearing the total consumption levels projected for 2024. Additionally, power consumption in the new energy charging and swapping services sector jumped by 57%.
These two sectors contributed collectively to about 17% of the overall growth in China’s electricity demand during the first half of the year. As China further develops new high-quality productive forces, demand from these sectors is expected to grow even more, according to Jiang Debin, deputy director of the country’s statistics and digital intelligence department. This increase will likely steer the power generation mix toward more technological innovation, greener, and lower-carbon solutions.