Starting Jan 1, China’s Grid to Prioritise Renewable Energy, By Law

The new law is expected to support the transition to green energy in the grid, besides other positives

China’s first Energy law comes into effect on January 1, 2025, and promises to change the energy markets in many ways from the beginning. The law, meant to support the transition to green energy in an orderly way, among many other things, will introduce many new rules and processes for the energy market.

According to official government data, emissions from the energy sector are responsible for 77.9% of China’s total greenhouse gas emissions in 2018. When broken down by type of emissions, China’s energy sector accounted for 86.5% of its carbon dioxide emissions, 44.7% of its methane emissions, and 21.5% of its nitrous oxide emissions in 2018.

Approved on November 8 by the 12th  session of the Standing Committee of National People’s Congress, China’s top legislature, the law was long in the making before getting the approval of the ruling body.

Global RE Growth Hits New Highs Amid Falling Costs: IEA Report

Also Read

With nine sections that cover stipulations on energy planning, development and utilization, energy market systems, energy reserves and emergency measures, energy technology innovation, supervision and management, legal responsibilities, supplementary provisions, the law is expected to play a key role in driving the green transition underway. China is by far the largest market for green energy today, and accounts for close to 80% of the global EV market as well, with its dominance in segments like electric buses crossing 90% of global numbers.

Be it distributed energy, power trading, micro grids, the law will provide an impetus to some serious institution building in these segments as well, besides continuing the push for more solar and wind energy. Chinese customers can also expect to see their first introduction to time of day metering to change user behaviour during solar hours and peak hours.

China has a stated goal of peaking on Co2 emissions by 2030, and achieving net zero by 2060. It’s actual work on the ground has supported these measures, leading many to hope that the world’s leading emitter of greenhouse gases might actually achieve both these targets before schedule, with the net zero target looking a real possibility by 2055 or earlier. For the record, China has achieved its renewable energy target for 2030 of 1200 GW in 2024, on the back of an extraordinary capacity addition in wind and solar over the past three years.

Public Capital and Solar Firms- Made For Each Other?

Also Read