What changed
China’s coal-fired power share fell to 49.7% in the first half of 2026, dipping below half for the first time, while China continued to supply most of the world’s wind equipment and photovoltaic modules. A new assessment puts China’s 2026 energy investment at $940 billion and says global renewable capacity reached 5,149 gigawatts by the end of 2025.
Why it matters
The shift changes coal’s job inside China’s power system. Coal generation is moving from the main source of electricity toward backup and grid-balancing work, while renewable power takes the larger role.
China’s influence also extends well beyond its own power stations. The assessment says Chinese manufacturers supplied 70% of global wind equipment and 80% of photovoltaic modules, helping drive wind costs down by more than 60% and solar costs by more than 80%. If those figures hold, decisions made in China’s factories will continue to shape how quickly renewable projects become affordable elsewhere.
The global picture is moving, but not cleanly. Renewable generation reached 33.8% worldwide at the end of 2025, narrowly ahead of coal at 33.0%. Yet energy-related carbon dioxide emissions still rose 0.4% to 38.4 billion tonnes. China’s emissions fell 0.5%, while US emissions rose 2.4%.
The investment forecast is an assessment rather than a settled outcome, and its methodology is not provided. Still, the direction is clear: China is becoming both a major consumer of renewable power and the central supplier of the equipment needed to build it.
Comments
No comments yet.