China needs grids, not more solar or wind power capacity - Nikkei Asia
Published February 18, 2026
China Requires Enhanced Grid Infrastructure Rather Than Increased Solar or Wind Capacity
As China strives to transition towards renewable energy sources, the emphasis on expanding solar and wind power capacity has been a significant part of this effort. However, experts argue that the country’s immediate focus should shift towards improving its electrical grid infrastructure to accommodate the growing energy demands and ensure the effective integration of renewable energy sources.
China is currently the world's largest producer of solar energy and has made substantial investments in wind power. In 2022, the nation added approximately 87 gigawatts (GW) of solar capacity and around 26 GW of wind capacity, further solidifying its position as a leader in renewable energy production. Despite these impressive figures, the existing grid infrastructure is struggling to keep pace with the rapid expansion of renewable energy generation.
The challenges faced by China’s grid are multifaceted. A significant portion of the renewable energy produced, especially from solar and wind sources, is often generated far from urban centers where demand is highest. For instance, the northwest region of China, which is rich in solar and wind resources, is relatively remote from major consumption areas such as Beijing and Shanghai. This geographic disparity necessitates robust transmission networks to transport electricity where it is needed most.
According to the National Energy Administration (NEA), the country’s grid infrastructure requires an investment of over 1 trillion yuan (approximately $150 billion) to enhance its capacity and reliability. This investment is critical to ensure that the energy produced from renewable sources can be effectively utilized rather than wasted due to transmission constraints.
Moreover, the existing grid is often described as outdated and inefficient. A report from the China Electric Power Research Institute indicates that the current grid system is unable to handle the variability and unpredictability associated with renewable energy sources, which can lead to significant energy losses. In 2021 alone, it was estimated that around 20 terawatt-hours (TWh) of renewable energy were wasted due to grid limitations.
In addition to the technical challenges, regulatory and policy frameworks also play a crucial role in the development of grid infrastructure. The Chinese government has recognized the need for reform and has initiated several policies aimed at promoting grid modernization. However, the implementation of these policies has been slow, and there remains a significant gap between policy objectives and actual progress on the ground.
Experts emphasize that without a significant overhaul of the grid system, the expansion of solar and wind capacity may not yield the desired outcomes in terms of energy security and sustainability. The International Energy Agency (IEA) has also highlighted the importance of grid development as a prerequisite for achieving renewable energy targets. In its World Energy Outlook, the IEA noted that a robust grid is essential for facilitating the transition to a low-carbon energy system.
China is not alone in facing these challenges. Many countries around the world are grappling with similar issues as they transition to renewable energy. However, the scale of China's renewable energy ambitions makes its situation particularly critical. The country aims to achieve carbon neutrality by 2060 and has set a target for non-fossil fuel energy to account for 25% of its total energy consumption by 2030. Achieving these goals will require not only an increase in renewable energy capacity but also a corresponding enhancement of grid infrastructure.
To address these challenges, China is exploring various solutions, including the development of smart grid technologies and energy storage systems. Smart grids utilize advanced digital technology to optimize the generation, distribution, and consumption of electricity, making it easier to integrate renewable energy sources. Additionally, energy storage systems can help mitigate the intermittency of renewable energy generation by storing excess energy for use during periods of high demand.
In recent years, China has made strides in the deployment of energy storage technologies. The country is currently the largest market for battery energy storage systems, with significant investments being made in both lithium-ion and flow battery technologies. However, further investment and innovation are necessary to enhance the scalability and efficiency of these systems.
As China continues to expand its renewable energy capacity, the need for a resilient and efficient grid infrastructure becomes increasingly apparent. The government has indicated that it will prioritize grid development in its future energy plans, but the pace of progress will be crucial in determining the success of the country’s renewable energy transition.
In conclusion, while China's efforts to expand solar and wind power capacity are commendable, the focus must shift towards strengthening the grid infrastructure to ensure that this energy can be effectively utilized. Investing in grid modernization and innovative technologies will be essential for achieving the country's ambitious energy goals and ensuring a sustainable energy future.
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