How has Renewable Energy Capacity Grown in China?
As the world aims to triple renewable energy capacity to 11,000 GW by 2030, China is spearheading this endeavour to build new renewable energy assets.
According to the International Energy Agency (IEA), China will:
- Account for almost 60% of new renewable energy capacity between 2025 to 2030
- Operate around 50% renewables globally by the end of the decade
In 2024, total renewable energy capacity hit 1.889 TW or 56% of total energy capacity. A total of 97% of renewables capacity comprise:
- Solar – 887,000 MW
- Wind – 521,000 MW
- Hydro – 436,000 MW
Meanwhile, China’s renewable energy generation also reached 3,460 TWh in 2024, representing a year-on-year rise of 19 percent, and accounting for about 35 percent of the total electricity generated.
Why did China establish the GEC?
With increasing use of renewable energy, a system was essential to track its use. In 2017, China piloted the Green Electricity Certificate (GEC) scheme in order to:
- Support the tracking of renewable energy consumption
- Liberalise its renewable energy market
- Promote investment in renewables
- Meet increasing demand from businesses and individuals to buy renewable electricity voluntarily
At its inception, the GEC was accepted in China alongside other types of Energy Attribute Certificates (EACs), such as the I-REC(E).
What is a Green Electricity Certificate?
A Green Electricity Certificate (or GEC) is China’s version of an EAC. Like other EACs, each GEC represents 1 MWh of renewable electricity.
Each GEC provides proof of production of renewable electricity and enables its owner to claim the associated environmental attribute of renewable energy consumption. Information provided by a GEC transaction voucher includes:
- Transaction number
- Name of renewable energy project
- Identification code of project/ device
- Type of renewable energy source
- Location of project/ device
- Date of electricity generation
- A QR Code which links to a webpage that contains essential information on the GEC including its unique serial number
What are the benefits of using GECs?
- Trace electricity use: The information provided in the GEC enables end-users to trace the source of electricity production and consequently, consumption of their electricity to a renewable energy source
- Decarbonise: Entities can buy and retire GECs to reduce their carbon footprint
- Sustainability Compliance: By using GECs, enterprises can meet their sustainability requirements and standards
- Demonstrate support for renewable energy: Procuring GECs signal their support for green electricity
- Show care for environment: Each GEC represents the business’ commitment to create a greener planet for present and future generations
How is the GEC different from other EACs such as the I-REC(E)?
The GEC can only be traded once. It cannot be resold multiple times unlike I-REC(E). Once a generator has sold the GEC to a buyer, the buyer has to retire and claim the associated environmental attributes of the GEC.
How has China’s EAC Market and GEC Scheme Evolved?
At its launch in 2017, only centralised large scale onshore grid connected wind and solar PV projects receiving a feed-in tariff were eligible to participate in the GEC system and issue GECs.
In 2023, GEC coverage was extended to all types of renewable energy sources including:
- Wind power: Distributed and offshore wind power
- Solar power: Distributed and centralised solar photovoltaic (PV)
- Conventional hydropower
- Biomass power
- Geothermal power
- Ocean energy generation
How is the I-REC(E) impacted by the development of the GEC and China’s Energy Policies?
In September 2024, the I-TRACK Foundation, founder of the I-REC(E), announced that no new electricity generation assets can be registered for I-REC(E) issuance in China. It also shared that “for devices that are already registered and that request issuance until 31 March 2025, issuance will only be permitted for power generated up until 31 December 2024.”
For power generated from 2025 onwards, entities have to use the GEC to track renewable energy use in China. The I-REC(E) should not be used.
Learn more about GECs
GECs are recognised as the only tool to verify renewable energy claims in China and reduce Scope 2 emissions. In our next blog post, we will share more about why global entities can and should use GECs to become more sustainable.
You may also contact us enquiry@redex.eco to find out more about GECs.
Find out how we can support your renewable energy journey in China.
