China to Invest $940 Billion in Energy in 2026, Leading the World

China is set to lead global energy investment in 2026, with plans to allocate a staggering $940 billion toward the sector, according to the Global Energy Transition Report 2026 published by the China Enterprise Reform and Development Society and reported by China Central Television (CCTV).

This investment figure positions China as the top spender worldwide in energy development next year, reflecting its ongoing commitment to expanding and modernizing its power system amid a global push toward cleaner energy sources.

By the end of 2025, China had installed renewable power capacity totaling 2.337 billion kilowatts. This accounts for just over 60 percent (60.1%) of the nation's overall power capacity and represents nearly two-thirds (63.6%) of all new renewable energy installations globally. Such a dominant share underscores China's significant role in the global renewable energy market.

Renewable sources generated 3.99 trillion kilowatt-hours of electricity in China last year, making up 38.3 percent of the country’s total power output. Notably, the growth in renewable generation was sufficient to fully meet the increase in electricity demand, indicating a shift away from fossil fuels for meeting new energy needs.

China’s energy strategy is evolving beyond simply expanding capacity. The focus is increasingly on enhancing electricity grids and related infrastructure to better integrate renewable power. The International Energy Agency projects that China’s investment in grid infrastructure will reach about $140 billion in 2026, a significant increase aimed at supporting the country's renewable energy buildout and ensuring grid stability.

Coal-fired power, historically the backbone of China’s electricity generation, has seen a notable decline. In the first half of 2026, coal’s share dropped below 50 percent for the first time, settling at 49.7 percent. This marks a meaningful milestone in the country’s energy transition efforts. Additionally, China’s energy-related carbon dioxide emissions decreased by 0.5 percent in 2025, reflecting the impact of its shifting energy mix.

Apart from domestic developments, China continues to dominate the global supply of renewable energy equipment. The country provides 70 percent of the world’s wind-power devices and 80 percent of photovoltaic (solar) equipment. This production capacity not only supports China’s own renewable ambitions but also plays a critical role in the global clean energy supply chain.

China’s massive investment and infrastructure upgrades come as part of broader efforts to reduce carbon emissions and meet international climate targets. The country’s approach highlights the complexity of transitioning a vast energy system while balancing economic growth, energy security, and environmental goals.

As the world’s largest energy consumer and emitter of greenhouse gases, China’s progress in renewable energy deployment and grid modernization has significant implications for global energy trends. The country’s continued investment in clean energy technology and infrastructure is likely to influence international markets and the pace of the global energy transition in the years to come.