China’s renewable energy investment landscape is undergoing a significant transformation, as the country moves from a state-dominated system toward greater private sector participation.
According to the International Energy Agency (IEA) report, China’s energy investment has historically been driven by state-owned enterprises, focusing on massive infrastructure projects backed by government financing. These projects, often aligned with national energy security and the broader energy transition, continue to receive strategic attention — reflected in the $120 billion allocated in 2025 for infrastructure and resource management initiatives.
However, a new phase is unfolding. The Chinese government is now actively encouraging private investment in key energy sectors, including renewables, new energy storage, nuclear power, and even traditionally state-controlled upstream oil and gas. This shift is not just symbolic. In 2024 alone, China facilitated private participation in over 8,000 recommended energy-related projects.
A landmark development was the entry of private capital into China’s nuclear power sector. Once an exclusive domain of a few state-owned giants, the approval of five new nuclear projects in 2024 allowed private companies to acquire up to 10 percent equity stakes. This move highlights a broader policy shift, acknowledging the need for diversified capital sources to accelerate the energy transition.
The momentum continued into 2025 with the National Energy Administration launching new measures aimed at supporting private firms across the energy spectrum — from renewable generation and storage to digital infrastructure and grid transmission. These reforms not only aim to boost domestic energy capacity but also to align China with global trends that increasingly rely on private capital to drive low-carbon growth.
While state-owned enterprises still lead in core energy infrastructure, China’s policy evolution marks a growing recognition that achieving long-term sustainability and energy security will require a more dynamic and inclusive investment ecosystem. As private players take on a more prominent role, China is laying the groundwork for a greener, more resilient energy future.
Renewable energy investment
China has witnessed a dramatic surge in renewable energy investment since the Paris Agreement, reaching over USD 625 billion in clean energy investment in 2024 — almost double the 2015 level. This growth enabled China to achieve its 2030 wind and solar capacity targets six years early. However, renewable investment growth is expected to slow in 2025, especially in solar PV, due to policy shifts like pricing reforms and changing macroeconomic priorities.
While China met its 5 percent GDP growth target in 2024, economic pressures such as weak consumption and real estate woes have refocused priorities toward energy security and efficiency. Two major trends now define investment: a massive push into grid, storage, and smart infrastructure — led by State Grid Corporation’s record CNY 600–650 billion spending plans — and a continued reliance on coal, with coal power investment expected to exceed USD 54 billion in 2025. This dual strategy aims to ensure supply stability while integrating renewables more effectively.
GreentechLead.com News Desk