A Call for Updates and Integration of Best Practices

A Call for Updates

Two decades after its establishment, China's renewable energy law is due for an update. Experts and officials believe the legislation needs to be revised to align with the latest industry developments and the growing importance of renewable energy.

"Renewable energy has transitioned from a supplementary source to a primary alternative," said Pan Huimin, deputy director of the National Energy Administration's department of new energy and renewable energy sources. "Large-scale, market-driven, high-quality stock substitution of renewable energy is expected in the near future."

With renewable energy now fully integrated into the market and becoming increasingly cost-competitive, the law should be revised accordingly, Pan added.

The 2005 law outlines China's goals and measures for developing renewable energy, including wind, solar, hydropower, biomass, geothermal, ocean energy, and other non-fossil energy sources. It also encourages various market entities to contribute to renewable energy development.

Recently, the National Development and Reform Commission established working groups to promote amendments to the renewable energy law and electricity law.

Chen Zhen, deputy director of the Chinese Renewable Energy Industries Association and founder of Sunshine Law Firm, emphasized that the law provides stability and long-term expectations for the sector. "We look forward to the amendments to the law, as they could integrate best practices and policies developed over the past two decades."

China's experience has shown that developing countries can achieve rapid growth through innovation while minimizing environmental impacts on the global ecosystem, said Zou Ji, CEO and president of Energy Foundation China.

For example, China's distributed renewable energy network, such as offshore wind farms, offers valuable insights for island and coastal nations, Zou explained.

As of the end of 2024, China's installed capacity for renewable energy power generation reached 1.889 billion kilowatts — 15.46 times that of 2005. The installed capacity of wind and solar power accounted for a combined total of 1.406 billion kW.

In 2024, renewable energy generated over one-third of the country's electricity — 8.62 times the level in 2005 — with wind and solar power contributing a total of 1.83 trillion kilowatt-hours, according to the National Energy Administration.

As a result, renewable energy generation helped reduce carbon dioxide emissions by 2.92 billion metric tons in China, while exports of wind and solar power equipment contributed to an additional 1.05 billion tons of reductions, Pan noted.