Grid constraints and rising coal-fired power generation in China led to soaring curtailment rates of solar and wind power generation in the first half of the year.
China curtailed as much as 360 terawatt-hours (TWh) of solar and wind generation between January and June, up by 49% from a year earlier, a report by the Centre for Research on Energy and Clean Air (CREA) and Global Energy Monitor (GEM) showed.
All the clean electricity curtailed would have been enough to meet all of China’s electricity demand growth in the first half of 2026 and allow coal power generation to fall, the organizations said.
As China’s solar and wind installations soar, power generated from these assets needs to be curtailed at times when generation exceeds the amount the grid can absorb.
Renewable electricity curtailment is set to “pose a major risk to income stability alongside power price fluctuations,” Wood Mackenzie said in an analysis of China’s renewables growth at the end of last year.
WoodMac forecast that average wind and solar curtailment rates will exceed 5% in seven and 21 provinces, respectively, over the next 10 years.
Provinces with high curtailment rates and volatile power prices will face challenges attracting investment under the new pricing mechanism in China’s renewables sector, said Sharon Feng, senior analyst, China power market at Wood Mackenzie.
“Developers need to carefully evaluate provincial grid conditions and long-term price projections when making investment decisions,” Feng added.
The rise in coal generation so far this year has meant that China’s wasted solar and wind power generation has soared to new highs.
“The rapid expansion of coal power capacity has deepened oversupply in the power system, reflected in both falling coal power plant utilisation and growing volumes of wasted clean electricity,” CREA and GEM said in their report.
“Curtailed wind and solar alone exceeded the entire increase in power demand during the period.”
By Charles Kennedy for Oilprice.com
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