It is increasingly clear that the world continues with great changes in all fields. Transformation is taking place in almost all areas, and the energy transition or green agenda is the big framework that unites multiple sectors. Big countries play an important role in the dynamics with which the world will realize the changes that have started. There is no doubt that this year the spotlight will be on China. Not that it wasn’t like that until now. China is a large economy with huge opportunities for investors and was certainly attractive to them. But this year, after the political developments in China, it seems that the country is going one step further. The re-election of President Xi Jinping and the announcements of a new opening of the Chinese economy in the direction of creating development and achieving the country’s modernization goals.
China’s development and creation of new additional measures that will encourage these processes is also good news for the renewable energy sector. Last year, China and other major Eastern economies benefited greatly from Western sanctions on Russia, as Russian gas and oil were diverted to these markets at good prices. It gave a positive effect on economic flows. But despite that, China has a leading role in investments in renewable energy sources. Announcements from political leaders are already having a positive effect in global investment circles.
About 35% of the investments in renewable energy sources at the global level are made in China. Most of the production of equipment and repro materials for installations of projects from renewable energy sources are also of Chinese production. There is no doubt that China will be one of the countries with the largest projects even during 2023. A decision has already been made to invest more in renewable energy projects than in fossil energy. Last year, China had a 14% growth in the renewable energy sector. Energy from renewable sources, solar, wind and hydro accounts for 46% of the total electricity produced in China during 2022.
According to the announcements of the Chinese Electricity Council, this year there will be new changes in the energy structure. Solar and wind power in China will surpass hydropower for the first time this year. By the end of the year, it is planned that the installed capacity of solar energy facilities will amount to 490 GW. The capacities in wind turbines will be quite the same. China is slated to have 430 GW by the end of the year.
China’s ambitious plans also indicate an increase in the investment portfolio in the renewable energy sector. Last year investments in the green energy sector invested about 546 billion dollars. The announced projects indicate the continuation of investments and their increase compared to last year. The announced modernization and development in the country will certainly have a positive impact on the renewable energy sector, and the increased pace of China’s investments will be followed by other countries as well.