2024: China Installs 8 GW Solar Projects In Belt & Road Countries

Chinese companies installed 24 Gigawatts (GW) capacity in Belt and Road (B&R) countries in 2024, according to a new report from Wood Mackenzie. This record number doubles the capacity installed in 2023 and is a new high for investment since the initiative was launched in 2013. Notably, renewable energy sources, particularly solar and hydropower, led the 2024 installations, reflecting a clear shift towards greener technologies. In 2024, China also hit its own 2030 target of 1200 GW of renewable additions, and looks set to almost double it by 2030 now.

According to the report “Record Chinese Overseas Power Project Completion In 2024: Update on the Belt & Road Initiative,” 52% of these projects employed renewable technology. The report included details of 8 GW of solar power and 5 GW of hydroelectric power. Solar energy made up two-thirds of the new renewable capacity added in 2024. In contrast, 48% of the projects were thermal power, which included 6 GW of legacy coal plants and 6 GW of gas and oil plants.

Annual newbuilds of overseas power projects by project capacity, 2013- 2024 (GW)

Alex Whitworth, Vice President, and head of Asia Pacific power and renewables research at Wood Mackenzie, said, “Chinese companies are heavily prioritising greener technologies overseas and these make up over two-thirds of the project pipeline. As Chinese manufacturers drive down the costs of renewable power technology, Chinese companies are leading its deployment in many developing markets that could not previously afford it.”

However, the report also noted that 19 GW of coal power projects remain in the pipeline, although they are subject to potential cancellations due to the global shift away from coal and China’s policy of ‘No new overseas coal power’ announced in 2021. Additionally, 9 GW of gas projects are currently under construction or in the planning stages.

Cumulative capacity of completed overseas power projects, 2013-2024 (GW)

According to Wood Mackenzie, Chinese companies have installed 156 GW of power projects in participating countries since the launch of the B&R Initiative. This amount is 1.5 times the total installed capacity of Australia as of 2024.

“Chinese companies have installed 156 GW of power projects in participating countries since the launch of the B&R Initiative,” said Yanqi Cao, managing consultant, Asia Pacific power research at Wood Mackenzie. “Between 2013 to 2024, these companies completed 369 overseas power projects, representing an investment of approximately US$281 billion,” Cao added.

The report also stated that developing countries remain the primary focus of the B&R Initiative, with Asia accounting for 70% of the installed capacity, followed by Africa at 15%. The top five B&R markets—Pakistan, Indonesia, Vietnam, Saudi Arabia, and Malaysia—are expected to see substantial growth in wind and solar installations over the next decade, with a projected 120 GW requiring an investment of US$73 billion. Among these nations, Saudi Arabia is projected to have the highest demand, with plans to install 41 GW of solar power and 13 GW of wind power.

“Chinese companies are more and more involved in investing in renewable power in the top five B&R markets. Five years ago, they accounted for only 7% of the wind and solar capacity in these markets. However, this share has risen to over 60% in 2024, and it could reach 80% by 2030 if the current trend continues,” Cao concluded.