By 2040, renewables will account for 40% of total power generation in China by 2020, while coal, which contributes about 67% of generation now, will fall to 40% over that period, predicted the International Energy Agency.
China is already a leader in renewables, ranking first in the world by installed capacity of wind, solar and hydropower. Half of all additions to its electricity generating capacity since 2013 have been renewables or nuclear.
The country's coal use peaked four years ago and it will cede its role as the driver of global oil demand to India after 2025, said the Paris-based agency said November 14 in its World Energy Outlook.
China will account for a third of new wind and solar power installations and 40% of electric vehicle investments through 2040, it said.
Underscoring the shift is a maturing economy that is moving away from energy-intensive industry and government policies aimed at cleaning up air pollution that causes almost 2 million premature deaths a year, the agency said in the report. Falling costs of renewables also play a role, as solar is expected to become China's cheapest source of new electricity additions, surpassing natural gas by 2020 and coal by 2030.
New government policies aiming to reverse poor air quality are proving to be a boon for natural gas, the most benign of fossil fuels, and renewables. Natural gas use, which was about 210 billion cubic meters last year, is projected to grow by 400 billion by 2040. China's imports will be second to only the European Union, making it a lynchpin of global trade.
(Writing by Jessie Jia Editing by Harry Huo)
For any questions, please contact us by firstname.lastname@example.org or +86-351-7219322.