China’s rapid expansion of wind and solar power has led to a new challenge: managing imbalances in electricity supply across different regions. The surge in renewable energy capacity has often exceeded local demand, forcing authorities to occasionally halt renewable generators. To address this issue, the Chinese government has introduced new regulations aimed at bolstering long-distance transmission capabilities and improving coordination between provinces.
Since late 2018, China has added a staggering 1.137 billion kilowatts of total generating capacity, with annual growth averaging 9%, according to data from the National Bureau of Statistics (NBS). The bulk of this increase comes from renewable sources such as wind (277 million kW, 19% annually) and solar (517 million kW, 29% annually). Meanwhile, thermal capacity, predominantly from coal-fired plants but also gas generators, rose by 257 million kW annually.
The rapid deployment of intermittent renewables has exacerbated existing challenges in balancing the national transmission system. Historically, China has relied on transferring electricity from surplus-generating regions in the west and north to high-demand areas along the east and south coasts. This practice has been vital in ensuring sufficient electricity supply to major urban and industrial centers.
Ten provincial-level areas in the east and south (including Liaoning, Hebei, Beijing, Tianjin, Shandong, Jiangsu, Shanghai, Zhejiang, Fujian, and Guangdong) accounted for 50% of national electricity consumption in 2022 but generated only 40% of the total electricity. In contrast, six remote and sparsely populated northern and western areas (Inner Mongolia, Xinjiang, Shanxi, Shaanxi, Gansu, and Ningxia) generated 25% of the country’s electricity while consuming only 18%.
To manage variable renewable output more effectively, China’s State Grid Corporation has expanded its ultra-high voltage transmission network. This network enables electricity to travel thousands of kilometers with minimal losses, allowing surplus power from remote areas to meet demand in populous regions. China has emerged as a global leader in this technology, exporting its expertise worldwide.
The government’s strategy involves increasing the number of generators across larger geographic areas and enhancing scheduling mechanisms to smooth out fluctuations in renewable energy production.
