Solar power has overtaken coal as China’s largest source of installed power generation capacity for the first time, marking a landmark shift. By the end of July, China’s installed photovoltaic capacity had reached 1,286 gigawatts (GW), accounting for 31.5% of the total, the National Energy Administration (NEA) reported, calling the milestone a “signature achievement” in China’s green and low-carbon energy transition. “For over a century, since the birth of China’s electric power industry, the historical pattern of coal power serving as the largest power source has been broken,” the NEA posted on its official WeChat account. Coal’s share of generated electricity dropped below 50% for the first time during the first half of 2026. In the first seven months of the year, the country generated 802.4 billion kilowatt-hours of solar power, a 15.5% year-on-year surge. China now produces about 80% of the world’s solar modules and has built what the NEA called the world’s “most complete and most competitive” photovoltaic industrial chain.
As large volumes of solar and wind capacity come online, China is also accelerating upgrades to its power grid, aiming to build what it describes as a “new-type power system” capable of integrating the growing share of renewable energy. Investment in China’s new-type power grid was expected to exceed CNY5 trillion during the 15th Five Year Plan period (2026-2030). The rapid rise of artificial intelligence (AI) has also turned reliable energy systems into a critical arena of international competition. Large-scale AI deployment requires vast computing power, while surging computing load is driving sharp increases in electricity consumption. In Changshu, an affluent city in Jiangsu province, electricity consumed by data centers and other computing infrastructure surpassed residential air conditioning demand this summer, according to state broadcaster CCTV. Citing local utility data, the report noted that the computing industry contributed nearly half of the city’s incremental power demand, becoming the main driver of the growth in electricity demand, the South China Morning Post reports.
