Understanding China’s Power Grid – Part 1: Where Electricity Comes From
China’s power grid is one of the most expansive and complex electricity systems in the world. As the country continues its shift toward a low-carbon economy, substantial progress has been made in renewable energy development, supported by new data from 2024. This series delves into the structure of China’s power grid, beginning with the sources of electricity powering the nation.
1. The Origins of Power: Energy Generation
China’s power sector saw remarkable growth in renewable energy capacity in the first three quarters of 2024, reflecting the government’s commitment to an energy system balancing security and sustainability. From January to September 2024, the country added 210 million kilowatts of new renewable energy capacity, a 21% year-on-year increase, accounting for 86% of total new power installations. Total renewable capacity now stands at 1.73 billion kilowatts, representing about 54.7% of China’s total installed capacity—a 25% increase from 2023. Key contributors include hydropower, wind, solar, and biomass.
1.1 Non-Renewable Energy Sources
1.1.1 Thermal Power Generation
Thermal power remains the most widely used form of electricity generation in China. Power plants across the country use a variety of fuels:
- Coal: The main source of thermal power in China.
- Gas: A cleaner, but less common, alternative to coal.
- Waste-to-Energy: Facilities that incinerate waste to generate electricity.
- Cogeneration Plants: Plants that produce both heat and electricity, improving overall efficiency.
1.1.2 Nuclear Power
China’s nuclear energy capacity remains a steady contributor to the grid, primarily concentrated along the coast. Nuclear power currently accounts for about 2.2% of China’s energy, with projections of 120 million kilowatts by 2030.
1.1.3 The Potential of Nuclear Fusion
Nuclear fusion, though still in the experimental stage, is part of China’s long-term plan for sustainable, carbon-free energy. China has collaborated in the International Thermonuclear Experimental Reactor (ITER) project since 2006, with major domestic research efforts like the “artificial sun” project pushing the limits of fusion technology.
1.2 Renewable Energy Sources
1.2.1 Hydropower
Hydropower capacity reached 430 million kilowatts as of September 2024, with 7.97 million kilowatts added in the first three quarters of the year. This includes conventional hydropower and 4.98 million kilowatts of pumped storage. Hydropower production grew by 16%, reaching 1004 billion kilowatt-hours, with an average usage of 2,672 hours.
1.2.2 Solar Power
Solar power has seen significant growth, with 161 million kilowatts of new capacity installed from January to September 2024—an impressive 24.8% increase over the previous year. By September, China’s total solar capacity reached 770 million kilowatts, marking a 48.4% year-on-year increase. This includes 430 million kilowatts of centralized solar and 340 million kilowatts of distributed solar. Solar power generation hit 635.9 billion kilowatt-hours, a 45.5% increase, with a utilization rate of 97.2%.
1.2.3 Wind Power
Wind power also made strides, with 39.12 million kilowatts of new capacity added in 2024 (including 36.65 million kilowatts onshore and 2.47 million kilowatts offshore). By September, wind capacity had reached 480 million kilowatts. Wind power generation grew to 712.2 billion kilowatt-hours, an increase of 13%, with a utilization rate of 96.2%.
1.2.4 Biomass Power
Biomass energy provides an important renewable option, with 1.37 million kilowatts of new capacity added this year. As of September 2024, biomass capacity had grown to 45.51 million kilowatts, generating 153.8 billion kilowatt-hours in the first three quarters, a 4.3% year-on-year increase.
2. Power Demand and Load
China’s power consumption spans multiple sectors, including industrial, residential, and transportation, with electric vehicles emerging as a notable consumer. Renewable sources, especially wind and solar, now generate 1,349 billion kilowatt-hours, comparable to third-sector electricity use and surpassing urban and rural residential consumption for the first three quarters of 2024.
- Tier 1 Loads: Critical infrastructure such as hospitals and government facilities.
- Tier 2 Loads: Key businesses and services where outages cause moderate disruption.
- Tier 3 Loads: Less critical services experiencing minimal impact from interruptions.
3. How Power is Transmitted: Grid Infrastructure
China’s West-to-East Power Transmission Project supports transporting power from resource-rich western provinces to eastern demand centers. High-voltage transmission lines reduce energy loss and improve efficiency.
Key Components:
- Substations: Voltage transformation points for effective long-distance transmission.
- Transmission Lines: High-voltage lines and towers maintain stability over long distances.
Distribution Networks
Operating at 35 kV and below, distribution networks deliver power from substations to end-users across urban and rural areas.
This series will continue exploring China’s power grid, covering innovations in energy storage, digitalization, and the progress toward carbon neutrality.