Shandong province's combined wind and solar power installed capacity has surpassed 50% of its total power generation capacity for the first time, marking a milestone in the region's energy transition.

The province's wind and solar capacity reached 130.56 GW as of June 30, accounting for 50.18% of total installed capacity, following the commissioning of the 30 MW Huanneng Dezhou Xiaomiaozhuang wind power project.

Shandong, a major energy consumer, recorded total electricity supply of 868.46 TWh in 2025, with local generation at 698.26 TWh. The province's industrial base, including steel, chemicals and equipment manufacturing, drives substantial power demand, making energy transition conditional on maintaining high-intensity supply.

Coal power once accounted for as much as 80% of Shandong's generation capacity. In late October 2024, new energy and renewable power capacity surpassed coal for the first time, with new energy and renewables at 46.9% and coal at 46.88%. The latest milestone of wind and solar exceeding 50% reflects deepening structural adjustment.

The shift aligns with national strategy. In 2022, the State Council issued a document supporting Shandong in building a multi-GW deep-sea offshore wind base and large-scale wind and solar bases on saline-alkali tidal flats in northern Shandong and coal mining subsidence areas in southwestern Shandong. The province also set a target of achieving over 90 GW of renewable capacity by 2025.

However, exceeding 50% capacity does not mean the transition is complete. The inherent intermittency of renewables places higher demands on grid capacity, energy storage, market absorption and coal power flexibility retrofits. Shandong disclosed in May that new energy and renewable capacity had reached 125 GW, and outlined plans to coordinate generation, regulation, storage and consumption. In 2026, the province plans to complete flexibility retrofits for over 3 GW of coal power units and install around 14 GW of new energy storage capacity.

Coal power continues to play a role in ensuring supply, peak shaving and providing a safety net during the transition, with the goal of shifting coal from a primary power source to a system regulator, allowing incremental power to come increasingly from green energy. In 2025, Shandong's non-fossil fuel power generation reached 224.54 TWh, accounting for 32.3% of total generation, as changes in capacity structure translate into changes in generation structure, supporting the greening of the province's manufacturing sector.