The People's Republic of China has reached a historic milestone in the development of its energy system. According to the National Energy Administration of China, by mid-2026, the installed capacity of photovoltaic (solar) power plants in the country exceeded that of coal-fired power plants for the first time. This event marks a fundamental structural shift in the energy balance of the world's largest consumer and producer of energy.
Record Pace of Renewable Capacity Additions
The growth dynamics of China's renewable energy sector are staggering in scale. In the first seven months of 2026 alone, electricity generation from solar power plants increased by 15,5% year-on-year, reaching 802,4 billion kWh, which accounts for approximately one-eighth of the country's total generation. As of the end of July 2026, the cumulative installed capacity of solar energy reached 1,286 billion kW, slightly but symbolically surpassing coal capacity, which stands at 1,285 billion kW.
This leap was the natural result of record additions of new facilities in the previous year. At that time, 315 GW of solar capacity and 119 GW of wind capacity were commissioned. In total, renewable energy sources accounted for more than 80% of all new generating capacity added to the country's power system during that period.
Historical Precedent: Decline in Coal's Share
Against the backdrop of rapid growth in green energy, there is a natural and accelerated reduction in China's dependence on coal. For the first time in the country's modern history, the share of coal in electricity generation has fallen below the critical threshold of 50%.
According to estimates by energy analysts, in 2025, electricity generation from coal-fired power plants decreased by almost 2%. This fact is particularly significant because the decline occurred against the backdrop of overall growth in electricity demand in China. Experts note that this is the first such case in the last six years and possibly the first precedent in history where coal generation declines while energy consumption grows. If not long ago fossil fuels accounted for about 62% of electricity generation, now this share is confidently moving toward levels below half.
Drivers of the Energy Transformation
This transformation is driven by several key factors:
1. Energy security: the desire to reduce dependence on fossil fuel imports and volatility in global energy prices.
2.Economic efficiency: China has achieved an unprecedented reduction in the cost of producing solar panels and wind turbines, making renewable energy economically more advantageous compared to building new coal units.
3.Climate agenda: stringent domestic environmental standards and international commitments to peak carbon dioxide emissions before 2030 and achieve carbon neutrality by 2060 stimulate large-scale public and private investment in clean energy.
Challenges on the Path to a Green Future
Despite optimistic trends, China's energy system faces a number of complex infrastructure challenges. The rapid growth of intermittent generation requires large-scale modernization of power grids, development of energy storage systems, and implementation of smart grid technologies. In certain periods, there are cases of generation curtailment when the grids physically cannot handle peak output from renewable sources.
Nevertheless, the overall trajectory remains unchanged: coal is gradually transitioning from a base energy source to a backup role, ensuring system stability during periods of peak load or low solar and wind activity.
Conclusion
China clearly demonstrates that a large-scale energy transition is possible even in a country with a traditionally coal-based economy and enormous energy demand. Surpassing the milestone where solar capacity exceeds coal capacity and the share of coal in generation falls below 50% serves as a powerful signal for the global energy market. This experience shows that a combination of political will, technological progress, and economic incentives can reshape the architecture of global energy in a historically short period.
