Wood Mackenzie: Chinese Firms to Achieve Record 24 GW in Overseas Power Installations in 2024, Fueled by Renewable Energy

Key Takeaways

Chinese firms installed a record 24 GW of power capacity in Belt & Road countries in 2024, doubling 2023 figures.
Renewable energy sources accounted for 52% of projects, primarily solar and hydropower, indicating a shift towards green technology.
Since 2013, 156 GW of power projects have been completed under the Belt & Road Initiative, with significant investments in developing countries.

Record Growth in Overseas Power Development

Chinese companies have achieved a milestone in overseas power development by installing a record 24 gigawatts (GW) of capacity in Belt & Road (B&R) countries during 2024. This represents a dramatic increase, doubling the capacity installed in 2023 and marking the highest investment level since the initiative was introduced in 2013. The growth is primarily attributed to renewable energy sources, with solar and hydropower leading the way.

According to Wood Mackenzie’s report, “Record Chinese Overseas Power Project Completion in 2024: Update on the Belt & Road Initiative,” 52% of the new projects utilized renewable technologies. Specifically, the installations included 8 GW of solar power and 5 GW of hydroelectric power, with solar energy constituting two-thirds of the new renewable capacity for the year. Thermal power projects made up the remaining 48%, involving both legacy coal plants and gas or oil facilities.

Alex Whitworth, Vice President of Asia Pacific power and renewables research at Wood Mackenzie, pointed out the significance of the rapid expansion of solar projects. He noted that Chinese companies are increasingly prioritizing greener technologies overseas, which now make up over two-thirds of their project pipeline. This trend has been facilitated by Chinese manufacturers reducing the costs of renewable technology, allowing deployment in developing markets previously unable to afford such resources.

Despite the progress, the report also highlights that 19 GW of coal power projects are still in the pipeline. These projects face potential cancellations due to a global shift away from coal and China’s promise made in 2021 to cease new overseas coal power developments. Additionally, there are 9 GW of gas projects that are either being constructed or are in planning phases.

Since the inception of the B&R Initiative, Chinese companies have installed a total of 156 GW of power capacity across participating countries, which is 1.5 times Australia’s total capacity as of 2024. This extensive effort includes the completion of 369 overseas power projects, amounting to an investment of approximately USD 281 billion.

The report emphasizes that developing nations remain the primary focus of the B&R Initiative, with 70% of capacity installed in Asia and 15% in Africa. The top five markets—Pakistan, Indonesia, Vietnam, Saudi Arabia, and Malaysia—are expected to experience substantial growth in wind and solar projects over the next decade, necessitating investments of around USD 73 billion. Particularly, Saudi Arabia aims to install 41 GW of solar and 13 GW of wind power.

Yanqi Cao, managing consultant for Asia Pacific power research at Wood Mackenzie, noted that Chinese companies are increasingly investing in renewable power within these key markets. Their share of wind and solar capacity in these nations has risen from 7% five years ago to over 60% in 2024, potentially reaching 80% by 2030 if current trends persist.

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