China's Non-Fossil Power Capacity Overtakes Coal in Historic Shift

China's energy transition reached a historic milestone at the end of 2025, with total installed non-fossil fuel power generation capacity rising to 2.4 billion kilowatts and accounting for 61.7% of the country's total power capacity, officially surpassing coal-fired power for the first time and becoming the largest source of installed electricity generation capacity.

The shift marks a new phase in China's energy transformation, ending decades of coal's absolute dominance in the country's power system.

The transition has been supported by steady economic growth. China's total industrial value-added reached 41.6826 trillion yuan in 2025, up 5.8% year-on-year, while total energy consumption climbed 3.2% to 6.15 billion tonnes of standard coal equivalent.

Despite rising energy demand, structural adjustments continued to gain momentum. Coal retained its role as a key pillar of energy security, though consumption growth remained subdued. Raw coal output from major industrial enterprises rose 1.2% to 4.83 billion tonnes, while coal consumption edged up just 0.1% to 5.14 billion tonnes. Coal's share in total energy consumption declined to 52.7%, down 0.5 percentage points from a year earlier.

Coal imports fell 9.6% year-on-year to 490.27 million tonnes, ending two consecutive years of rapid growth. Imported coal accounted for roughly 10% to 11% of domestic consumption.

In the oil and gas sector, domestic crude oil production increased 1.5% to 216.05 million tonnes in 2025. Crude oil imports rose 4.4% to 577.73 million tonnes, leaving China's dependence on imported crude at 72.7%.

Natural gas production maintained relatively strong growth, with output from major industrial enterprises reaching 262.06 billion cubic meters, up 6.3% year-on-year. However, weaker industrial demand contributed to a 2.9% decline in natural gas imports to 127.87 million tonnes. Apparent natural gas consumption rose only 0.1% to 426.55 billion cubic meters.

The power sector remained the centerpiece of China's energy transition, with several indicators reaching record highs.

China's total installed power generation capacity climbed 16.1% year-on-year to 3.89134 billion kilowatts in 2025. Solar power capacity exceeded 1.2 billion kilowatts, reaching 1.20173 billion kilowatts, up 35.4% from the previous year. Wind power capacity rose 22.9% to 640.01 million kilowatts.

Combined installed wind and solar capacity reached 1.84 billion kilowatts, accounting for 47% of China's total power generation capacity.

Solar power generation recorded the strongest growth among major energy sources, increasing 39.8% year-on-year to 1.17324 trillion kilowatt-hours. Wind power generation rose 13.1% to 1.12792 trillion kilowatt-hours. Hydropower generation reached 1.46167 trillion kilowatt-hours, while nuclear power generation totaled 485.23 billion kilowatt-hours.

Together, solar, wind, hydropower and nuclear energy accounted for 42.9% of China's total electricity generation.

In contrast, thermal power generation declined for the first time, falling 0.7% year-on-year to 6.32715 trillion kilowatt-hours. Its share of total electricity generation dropped to 59.8%.

China's energy storage sector also experienced rapid expansion.

By the end of 2025, installed pumped-storage hydropower capacity reached 65.94 million kilowatts, up 12.72% year-on-year and exceeding the 62 million-kilowatt target set under the country's 14th Five-Year Plan. Ten pumped-storage projects entered operation during the year, adding 7.44 million kilowatts of new capacity.

Growth in new energy storage technologies was even more pronounced. Total installed new energy storage capacity surged 85% year-on-year to 144.7 GW by the end of 2025, surpassing the 100 GW threshold for the first time.

Lithium-ion batteries dominated the sector, accounting for 65.96% of total new energy storage capacity. Northern China and Northwestern China emerged as the leading regions, representing 32.5% and 28.2% of the national total, respectively.

China's new energy vehicle industry maintained strong momentum throughout 2025.

Production reached 16.626 million units, while sales totaled 16.49 million units, increasing 29.0% and 28.2% year-on-year, respectively. The market penetration rate of new energy vehicles rose to 50.8%, surpassing the 50% mark for the first time.

Charging infrastructure continued to expand in parallel. By the end of 2025, China had 20.092 million charging facilities nationwide, up 49.7% from a year earlier. Public charging stations totaled 4.717 million units, while battery-swapping stations reached 5,155, an increase of 16.03%.

Installed power battery capacity rose 40.4% year-on-year to 769.7 GWh. Lithium iron phosphate batteries remained dominant, accounting for 81.2% of total battery installations.

Activity in China's carbon market and green certificate trading system continued to increase.

Total trading volume in China's national carbon emissions market reached 234.5979 million tonnes in 2025, with transaction value totaling 14.63 billion yuan.

China issued 2.947 billion green certificates during the year, including 1.893 billion certificates eligible for trading. Total green certificate transactions reached 930 million, reflecting growing liquidity and broader practical application of the system.