China's Renewables Boom Faces Record Clean Power Curtailments

Key facts

• China curtailed 360 TWh of solar and wind generation from January to June.
• This represents a 49% increase in curtailment compared to the same period last year.
• Grid constraints and increased coal-fired power generation are cited as primary causes.
• The wasted clean electricity exceeded the entire increase in power demand during the period.
• High curtailment rates and volatile power prices could deter investment in China's renewables sector.

China's rapid expansion of solar and wind power installations has led to record levels of clean energy curtailment in the first half of the year, with 360 terawatt-hours (TWh) of generation being wasted. This represents a 49% increase from the previous year, according to a report by the Centre for Research on Energy and Clean Air (CREA) and Global Energy Monitor (GEM).

The surge in curtailments is attributed to grid constraints and a simultaneous rise in coal-fired power generation, which has deepened oversupply in the power system. This situation is reflected in falling coal power plant utilization rates and growing volumes of wasted clean electricity.

Analysts warn that renewable electricity curtailment poses a significant risk to the income stability of renewable energy projects, alongside power price fluctuations. Wood Mackenzie forecasts that average wind and solar curtailment rates could exceed 5% in numerous Chinese provinces over the next decade. Sharon Feng, a senior analyst at Wood Mackenzie, noted that provinces with high curtailment rates and volatile prices may struggle to attract investment under China's new renewables pricing mechanism, advising developers to carefully assess provincial grid conditions and long-term price projections.

The report highlights that the curtailed wind and solar power alone exceeded the entire increase in power demand during the January-June period. The rapid expansion of coal power capacity has exacerbated the oversupply, leading to both reduced utilization of coal plants and substantial wastage of clean energy.