In a notable shift from previous practices, China’s latest monthly power report has excluded detailed data on usage rates by generation source. This move follows recent trends indicating a decline in the utilization of renewable power plants, and it comes amid growing scrutiny and debate over the country’s renewable energy strategies.
On Friday, the National Energy Administration (NEA) of China released its monthly power statistics, covering January to May. Unlike earlier reports, this release only collectively provided the average operating hours for all power plants, omitting the usual breakdown by generation sources such as hydro, thermal, nuclear, wind, and solar. The NEA has not provided a reason for this change, nor did they respond immediately to requests for comment.
The absence of detailed data is particularly significant, given recent trends. The previous month’s report, which included data from January to April, showed a decline in utilization for solar and wind power plants, while hydro and thermal plants saw increased usage. Specifically, the average operating hours for wind and solar plants fell by 77 hours and 42 hours to 789 and 373 hours, respectively. In contrast, hydro plants increased by 48 to 783 hours, and thermal plants rose by 23 to 1,448 hours.
This trend is expected to continue, especially after the government eased regulations on renewable power utilization in May. According to a new CO2 action plan announced on May 29, China will raise the limit on renewable power curtailment from 5% to 10% and expedite the construction of ultra-high voltage transmission lines. Curtailment, a practice where grid managers limit the electricity supplied to the grid to balance demand, is a critical factor in these changes. The previous 5% limit was already consistent with the 1.5-4% rates observed in other major markets, as noted by the International Energy Agency (IEA).
For 2024, China aims to reduce energy consumption per unit of GDP by approximately 2.5% and decrease carbon dioxide emissions by about 3.9%. Industrial enterprises above the designated size are targeted to cut their energy consumption by around 3.5%, and non-fossil energy consumption should reach about 18.9%. The country plans to save approximately 50 million tons of standard coal through energy-saving and carbon-reduction transformations in key areas and industries, reducing about 130 million tons of carbon dioxide emissions.
Targets for 2025 include non-fossil energy consumption, which is expected to account for around 20% of total energy consumption. Continued efforts will save approximately 50 million tons of standard coal and reduce carbon dioxide emissions by about 130 million tons. To achieve these targets, China will focus on reducing and substituting fossil energy consumption, optimizing energy consumption structures, and implementing energy-saving measures across various sectors, emphasizing management mechanisms and accountability.
The increase in the curtailment limit is aimed at facilitating the expansion of renewable energy capacity. However, this is anticipated to lower utilization rates for new renewable installations. During the first five months of the year, the average utilization hours of all power generators surveyed stood at 1,372, 59 hours lower than in 2023, according to NEA data.
The omission of detailed utilization data from the latest report raises questions about transparency and the future trajectory of renewable energy in China. It mirrors a similar incident last August when China suspended the release of youth unemployment data due to record highs, only to resume the reports in January with a new methodology excluding students.
