At this point, China, a leader in energy transition, could be said to be heading towards becoming an electrostate. The clean energy industry in the Asian country currently represents 10% of the GDP, surpassing the real estate sector.
This progress has not only reduced emissions but has also contributed to lowering global electrification costs, marking a structural change in the global economy.
China, a leader in energy transition and on its way to becoming the first electrostate in the world
In April 2025, the country installed more solar capacity in a single month than Australia achieved in its entire history.
This milestone reflects the extent of China’s commitment to a renewable energy-based model, but the transformation goes beyond the fight against climate change.
It responds to strategic objectives such as energy independence, improving air quality, reducing oil dependency, and industrial modernization.
China, a leader in energy transition. (@actualidadRT).
A planned industrial transformation
The severe pollution associated with the industrialization of the 90s and 2000s forced a change of course. With the Made in China 2025 plan, the country promoted technologically advanced industries, prioritizing renewable energies, electric mobility, and energy storage.
Instead of just providing subsidies, the government designed integrated industrial clusters, where battery factories coexist with electric vehicle plants or solar modules. This model reduced logistical costs, increased efficiency, and accelerated innovation.
Today, China has a self-sufficient production system that covers everything from the extraction of critical materials like lithium and rare earths to the manufacturing of cutting-edge technology. Thus, it has established itself as the global leader in clean technology supply chains.
Renewables and coal: an evolving transition
The deployment of renewable energies in China is progressing at a record pace: in April 2025 alone, it added 45.2 GW of solar energy. However, the country is also continuing to build coal power plants to ensure energy supply.
Although this coexistence has generated criticism, analysts consider it a transitional phase. According to the think tank Carbon Brief, Chinese emissions fell by 1.6% in the first quarter of 2025, marking a turning point.
With the massive addition of solar and wind capacity, a structural decline in the share of coal in the energy matrix is projected.
Furthermore, Chinese economies of scale have led to a decrease in solar and wind energy global costs, benefiting countries with fewer resources to accelerate their own energy transition.
Solar panels in China. Photo: X.
Nuclear energy: another silent pillar of the transition
While renewables receive most of the attention, nuclear energy is also crucial in China’s decarbonization plan.
In 2024, China had 57 GW of installed nuclear capacity and has already announced the goal of reaching 200 GW by 2040. This development reinforces the country’s strategy to diversify sources and ensure a stable supply while progressively reducing coal dependency.
