China energy investment to hit $940 billion in 2026 as grid spending rises

According to the China Enterprise Reform and Development Society's Global Energy Transition Report 2026, China's energy investment is expected to reach an all-time high of $940 billion by 2026. This surge in spending is primarily directed towards electricity grids and infrastructure to support the nation's growing renewable energy sector.

The International Energy Agency predicts that China's power grid investment will amount to around $140 billion in the current year, indicating a shift from generating capacity to integrating existing and new facilities. As of the end of 2025, China's renewable power capacity stands at 2.337 billion kilowatts, accounting for 60.1% of the country's total electricity generation capacity.

This signifies China's leading role in global renewable energy development, as it generated 63.6% of the world's newly added renewable capacity. Renewable electricity generation contributed 3.99 trillion kilowatt-hours, or 38.3% of China's overall electricity output, and managed to meet the entire rise in national electricity consumption.

This expansion has also resulted in a decrease in coal's share in the country's power supply, with coal-fired generation falling below 50% for the first time. In 2025, China's energy-related carbon dioxide emissions decreased by 0.5%, showing the impact of the changing electricity generation mix. Despite these changes, China continues to be a significant producer of renewable energy equipment, manufacturing about 70% of the global wind-power equipment and 80% of photovoltaic equipment.

The country's growing emphasis on grid development may enhance demand for electrical equipment, transmission technology, and energy infrastructure as renewable capacity continues to expand.