Analysis
In a landmark report released by the International Renewable Energy Agency (IRENA) on March 26, the world saw its largest-ever leap in renewable energy installations in 2024. An overwhelming 92.5% of all new electricity added globally last year came from clean sources—chief among them solar and wind energy. Notably, nearly two-thirds of this growth was driven by one country: China,
According to an AP dispatch this week citing the report, China alone accounted for 374 gigawatts (GW) of newly installed renewable capacity, with solar comprising approximately 280 GW of that. To put this into perspective, China’s 2024 solar addition was more than eight times that of the United States and five times Europe’s combined efforts. With this, China’s total installed solar capacity soared to nearly 887 GW—solidifying its dominance in the global clean energy space.
GBA: A microcosm of the country’s green future
Often dubbed “China’s Silicon Valley,” the Greater Bay Area is not just a financial and technological hub—it is increasingly positioning itself as a green energy leader. The region’s role in China’s solar dominance is both direct and strategic.
Shenzhen and Guangzhou, two core cities in the GBA, are home to some of the largest photovoltaic (PV) manufacturers and battery storage innovators in the world.
Companies like BYD, Trina Solar, and Huawei’s Digital Power division are actively exporting technology while supporting domestic deployment. BYD, for example, not only leads in electric vehicle production but has significantly expanded its solar panel and energy storage businesses.
According to China’s National Energy Administration (NEA), Guangdong Province alone installed over 38 GW of renewable energy capacity in 2024, of which solar contributed more than 22 GW. Over 30% of that came from the GBA cities. With land constraints in urban centers, the region has turned to creative solutions such as floating solar farms, rooftop solar installations, and integrated urban solar technologies.
In Shenzhen, all new public buildings are now required to include solar rooftops. In Zhuhai, the development of floating PV systems on reservoirs is part of a broader strategy to blend water resource management with clean energy goals. Dongguan, traditionally an industrial powerhouse, is rapidly converting factory roofs into solar farms, taking advantage of its sprawling manufacturing zones.
IRENA noted that 46% of the world’s electricity is now sourced from renewables. In China, that figure is even higher in some regions. Guangdong province reported that renewables (including hydro and nuclear) accounted for more than 52% of electricity generated in 2024.
Ambitions vs. reality
Despite record-breaking figures, IRENA cautions that the current pace still falls short of the international goal to triple renewable capacity by 2030. The world is on track to fall 28% short if the current rate continues.
Yet, China’s momentum gives room for cautious optimism. The country has committed to peaking carbon emissions before 2030 and achieving carbon neutrality by 2060. President Xi Jinping reaffirmed these targets at COP28, underscoring the role of innovation and green finance in accelerating the transition.
The GBA, as a pilot region for China’s “dual carbon” goals, plays a pivotal role in testing scalable solutions. Green bonds issued in Hong Kong and Shenzhen exceeded ¥380 billion ($52 billion) in 2024, much of it allocated to renewable infrastructure, electric transportation networks, and energy efficiency upgrades.
Innovation as an accelerator
One factor behind China’s outsized success is the synergy between manufacturing scale and technological innovation. For example, “perovskite tandem cells” — a new generation of solar panels promising over 30% efficiency – are being mass-produced in labs and startups across GBA cities like Foshan and Shenzhen.
Likewise, advances in energy storage, driven by lithium-iron phosphate (LFP) batteries, are helping smooth out the intermittency of solar power. BYD and CATL, both with massive footprints in Guangdong, have developed battery storage solutions deployed not only across China but in international markets from Europe to Southeast Asia.
The integration of 5G, AI, and big data in grid management—led by companies like Huawei—has also allowed for smarter balancing of electricity loads, real-time monitoring of energy use, and predictive maintenance of solar infrastructure.
Challenges on the horizon
However, the road to a carbon-neutral future isn’t without hurdles. The GBA faces urban land constraints, rising electricity demand due to tech-intensive industries, and the challenge of integrating massive renewable input into an aging grid infrastructure.
To address this, China’s State Grid is investing in ultra-high-voltage (UHV) transmission lines connecting inland solar and wind resources to coastal demand centers. One such line connects Gansu and Inner Mongolia to the Pearl River Delta, ensuring power reliability even during solar intermittency.
Moreover, policy shifts are needed to balance local government interests, private sector innovation, and national decarbonization goals. Electricity pricing reforms, subsidies for rooftop solar, and integration of carbon pricing are being tested in cities like Guangzhou and Shenzhen.
Global challenge, regional opportunity
As United Nations Secretary-General António Guterres noted, renewable energy is “powering down the fossil fuel age.” But for that momentum to be sustained, especially to meet the 2030 tripling goal, more regions must follow China’s lead.
Simon Stiell, the UN’s top climate official, pointed out that as some nations backtrack on climate leadership, it opens space for others to lead. The GBA—and China more broadly—is seizing that space, not just in solar panels, but in policy experimentation, financial innovation, and technology export.
The GBA is uniquely positioned: it is a testbed for green innovation, a hub for solar manufacturing, a magnet for sustainable investment, and a gateway to both mainland and international markets. If the world is to accelerate toward its climate goals, regions like the Greater Bay Area will need to continue setting the pace. MDT
Numbers that matter
Global renewable energy added in 2024: 585 GW
China’s share of new renewable capacity: 374 GW (~64%)
Solar’s share in China’s new capacity: ~280 GW (~75%)
GBA contribution to China’s new solar installations: ~30 GW (estimated)
Total global renewable energy market value (2024): $2 trillion
China’s solar industry market share: Over 80% of the global PV manufacturing capacity
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