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 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 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 (26%) and 0.52 TW of wind (15%), with combined photovoltaic and wind capacity exceeding 40%. In 2024, China’s renewable energy power generation hit 3500 TWh, constituting 35% of total power generation. Wind and photovoltaic generation together amounted to 1800 TWh, representing 19% of total generation.
For grids, China’s ability to integrate renewable energy has significantly improved, with enhanced system regulation capabilities. In recent years, with the rapid growth of wind and photovoltaic power, China’s utilization rates of such energy have remained consistently over 95%, reaching 96% and 97% in 2024. These resources are concentrated in China’s northern, northwestern, and northeastern regions, while electricity load centers are located in eastern and southern coastal areas. Through continuous UHV project construction, China has greatly improved the cross-provincial and inter-regional transmission capacity for renewable energy, effectively resolving the geographic mismatch between these resources and load. In 2024, 20 DC UHV lines transmitted 400 TWh of renewable energy (57% of total DC UHV transmission), up 4.3 percentage points year-on-year. This serves as crucial support for renewable energy absorption.
Demand-wise, China has made positive progress in energy conservation and carbon reduction in sectors like industry and transportation. According to data from MIIT, by December 2025, China had fostered over 6,000 green factories, over 400 green industrial parks, over 700 green supply chain enterprises, and promoted over 40,000 green products. Green factory output value accounts for 20% of total manufacturing output. From January to October 2025, China sold 10.15 million NEVs, a 22% year-on-year increase, with a penetration rate of 53%, up 5 percentage points year-on-year.
Chengtong Securities emphasizes that central SOEs are the core force driving China’s energy transition and a key factor leading the development of China’s renewable energy industry. China’s central energy SOEs are domestic leaders in areas like wind, hydropower, and nuclear power. In 2023, 11 central energy SOEs added about 150 GW of renewable energy capacity (52% of the national total), with a cumulative capacity of 560 GW (53% of the national renewable energy total). Large-scale wind-photovoltaic power bases in China are primarily led and implemented by central energy SOEs, setting technological benchmarks and providing scale leadership for the industry. SOEs actively deploy demonstration projects such as integrating photovoltaic-thermal-storage systems, offshore photovoltaic projects, and photovoltaic-powered hydrogen production, innovating integrated development models for renewable energy.
Chengtong Securities noted that China’s clean energy industrial chains, represented by NEVs, lithium batteries, photovoltaic, and wind power, have consistently driven down costs and improved efficiency through sustained technological innovation and full market competition, providing solid product and service support for the global green transition. In terms of efficiency, Chinese photovoltaic companies have driven continuous product iteration, from monocrystalline cells in 2008 to mainstream n-type TOPCon cells in 2024, with average conversion efficiency reaching 25.4%, up 8 percentage points from 2008. China’s wind turbine industry has advanced large-scale units, with average onshore and offshore turbine capacities reaching 6 MW and 10 MW in 2024, up 4 MW and 6 MW from a decade ago. Regarding costs, China has facilitated the continuous reduction of global photovoltaic and wind power costs. From 2010 to 2023, the global LCOE for these resources decreased by over 90% and 60%, respectively, now lower than 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 markets 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 orientation 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, developing buy-side-oriented research with deep specialization in sectors such as pharmaceuticals, high-end manufacturing, TMT, renewable energy, and consumer goods.
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