China is driving the world’s advanced energy solutions deployments. Here's how

• In 2023, China invested more in clean energy technologies than the cumulative total of the other top 10 investing countries.
  
• The country has become a global force in the acceleration of advanced energy solutions deployments.
  
• Here, we showcase the particular strides China is making in energy storage and clean hydrogen.

China has been the leading force in accelerating advanced energy solutions deployments like energy storage and clean hydrogen. It also has a strong position in the fields of advanced nuclear, Carbon Capture, Utilization, and Storage (CCUS), and sustainable aviation fuels.

Investments in clean energy technologies made by China in 2023 were more than the cumulative total of the other top 10 investing countries in that same year. Investments in renewables and the electrification of transport accounted for more than 60% of the total, followed by investments in power grids, energy storage, nuclear technologies, and hard-to-abate sectors.

China deploys vast capacities domestically, and at the same time is the key supplier to global markets. According to IEA, despite the ongoing implementation of domestically focused industrial strategies in other countries, the value of China’s clean technology exports is set to exceed $340 billion in 2035, based on current policy settings. This is roughly equivalent to the projected oil export revenue of both Saudi Arabia and the United Arab Emirates combined in 2024.

Moreover, IEA estimates that China is currently the cheapest location for manufacturing key clean energy technologies, without taking into account explicit financial support from governments. It costs up to 40% more on average to produce solar PV modules, wind turbines, and battery technologies in the US, up to 45% more in the EU, and up to 25% more in India.

China’s dominant position across clean technologies is not the result of a short- or medium-term effort. The government there has made huge strides to enable business cases for investment by using mandates, incentives, and comprehensive energy- and industrial policy. This has driven deployments domestically, enabled exports, and created domestic supply chains.

China also invests heavily in R&D. In 2023, the country’s investment in R&D for clean energy technologies was 2.5 times the global world average spending.