China Installs Record 24 GW of Power in Belt & Road Nations, 52 Percent Renewables

Chinese companies have marked a significant milestone in global energy development, achieving a record 24 GW of overseas power capacity installations in 2024 across Belt & Road (B&R) countries.

This was revealed in the latest report by Wood Mackenzie titled 'Record Chinese Overseas Power Project Completion in 2024: Update on the Belt & Road Initiative,' which represents a remarkable doubling of the capacity installed in 2023.

As per the report, this is the highest level of investment in these countries since the Belt & Road Initiative (B&R) was launched in 2013. A key highlight of the report is the growing dominance of renewable energy in these projects.

Of the 24 GW installed, 52 percent of the projects were based on renewable technologies, including 8 GW of solar and 5 GW of hydroelectric power. Solar energy alone accounted for nearly two-thirds of the new renewable capacity in 2024, reflecting a significant shift towards greener energy sources in the B&R countries.

Alex Whitworth, Vice President and Head of Asia Pacific Power and Renewables Research at Wood Mackenzie, commented on this trend, saying, “The rapid growth in overseas solar projects in 2024 is remarkable. 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.”

Despite the focus on renewable energy, the report also reveals that 48 percent of the power installations were thermal power projects. This includes 6 GW of legacy coal plants and 6 GW of gas and oil plants. However, these thermal projects are facing increasing scrutiny, with 19 GW of coal power projects still in the pipeline, potentially facing cancellations due to the global shift away from coal and China’s own policy of ‘No new overseas coal power,’ announced in 2021. Moreover, 9 GW of gas projects are under construction or in planning.

Since the launch of the Belt & Road Initiative, Chinese companies have made significant strides in overseas power installations, with a cumulative total of 156 GW of power projects completed in participating countries. This is 1.5 times the total installed capacity of Australia as of 2024. Between 2013 and 2024, Chinese companies completed 369 overseas power projects, representing a total investment of approximately USD 281 billion.

Yanqi Cao, Managing Consultant for Asia Pacific Power Research at Wood Mackenzie, highlighted the scale of this achievement, saying, “Chinese companies have installed 156 GW of power projects in participating countries. These projects represent a significant portion of China’s broader energy ambitions and its commitment to promoting cleaner energy solutions globally.”

The primary focus of the Belt & Road Initiative remains on developing countries, with Asia accounting for 70 percent of the installed capacity, followed by Africa at 15 percent. The report forecasts substantial growth in the top five B&R markets—Pakistan, Indonesia, Vietnam, Saudi Arabia, and Malaysia—in the coming decade. These countries are projected to require 120 GW of new wind and solar installations, demanding an investment of USD 73 billion.

Saudi Arabia, in particular, is poised to become a major player, with plans to install 41 GW of solar power and 13 GW of wind power in the coming years.

Wood Mackenzie notes that Chinese companies have become increasingly influential in the renewable energy sector of the top B&R markets. Five years ago, Chinese firms accounted for just 7 percent of the wind and solar capacity in these countries. By 2024, that share had surged to over 60 percent, and if current trends continue, it could reach as high as 80 percent by 2030.