Chinese companies installed a record 24GW of capacity in Belt & Road (B&R) countries in 2024, with solar and hydropower leading these installations, according to a report from Wood Mackenzie.
The “Record Chinese overseas power project completion in 2024: Update on the Belt & Road Initiative,” report found that 52% of the 24GW of projects employed renewable technology, including 8GW solar power and 5GW of hydroelectric power.
Solar energy made up two-thirds of the new renewable capacity added in 2024.
In contrast, 48% of the projects were thermal power, which included 6GW of legacy coal plants and 6GW of gas and oil plants.
“The rapid growth in overseas solar projects in 2024 is remarkable,” said Alex Whitworth, vice president, head of Asia Pacific power and renewables research at Wood Mackenzie.
“Chinese companies are heavily prioritising greener technologies overseas and these make up over two thirds of the project pipeline.
“As Chinese manufacturers drive down the costs of renewable power technology, Chinese companies are leading its deployment in many developing markets that could not previously afford it.”
The report also noted that 19GW of coal power projects remain in the pipeline, although they are subject to potential cancellations due to the global shift away from coal and China’s policy of “No new overseas coal power” announced in 2021.
Additionally, 9GW of gas projects are currently under construction or in the planning stages.
The report also stated that developing countries remain the primary focus of the B&R Initiative, with Asia accounting for 70% of the installed capacity, followed by Africa at 15%.
The top five B&R markets – Pakistan, Indonesia, Vietnam, Saudi Arabia, and Malaysia -are expected to see substantial growth in wind and solar installations over the next decade, with a projected 120GW requiring an investment of $73bn.
Among these nations, Saudi Arabia is projected to have the highest demand, with plans to install 41GW of solar power and 13GW of wind power.
Chinese companies are more and more involved in investing in renewable power in the top five B&R markets.
Five years ago, they accounted for only 7% of the wind and solar capacity in these markets.
However, this share has risen to over 60% in 2024, and it could reach 80% by 2030 if the trend continues, according to Wood Mackenzie.