One of China’s most notable leadership areas is solar energy. Photo by Reuters.
With races that are rapidly evolving towards a decarbonized future, a country leaves the majority of the world behind China. According to the latest one World Energy Investment 2025 Report from the International Energy Agency (IEA) China is currently investing in energy about as much as the US and the European Union combined. Furthermore, the biggest share of its investment is coming to clean, renewable technologies.
An IEA report published last week estimated global energy investments reached $3.3 trillion in 2025, a modest 2% increase compared to 2024 in this huge amount. These include solar power, wind power, nuclear, battery storage, improved grid infrastructure, and electrification measures such as electric vehicles and heat pumps.
China’s original role
Many countries have pledged ambitious targets to reach net-zero emissions in the coming decades, but China has already put money on its mouth place. The IEA reports that China alone accounts for almost a third of global investment in clean energy, which has risen from just a quarter a decade ago.
To put that into perspective, China’s energy investment footprint for 2025 is Combined Clean energy investments in both the US and the European Union. This incredible person not only highlights China’s dominant industrial role in the global energy transition, but also highlights the growing East-West disparity in infrastructure and energy strategy.
According to Spanish outlets Renewable EnergyCovering this week’s IEA report, China focuses on expanding its key pillars to achieve solar PV production capacity, battery manufacturing, strengthening electrical grids and deep decarbonization.
The Supremacy of the Sun, the Ambition of Storage
One of China’s most notable leadership areas is solar energy. The IEA points out that Chinese companies are responsible for more than 80% of the world’s solar panel production. China not only installs more panels than anyone else, but also produces most of the world’s used.
Battery manufacturing and storage infrastructure has also received a major boost. Beijing is seeing long-term storage essential for stable, resilient, renewable grids. The synergistic effect of solar deployment and storage capacity is important to alleviate the intermittent challenges posed by renewable energy.
Strong grid – but not strong enough
Despite this impressive surge in renewable energy and storage, the IEA warns that China, like many countries, is not investing in its electrical grids quickly enough. Solar and wind investments are booming, but grid capacity can quickly become a bottleneck.
The report says global investment in the grid needs to double by 2030 to meet clean energy goals. In China, its network infrastructure is at risk of lagging behind its generation capabilities, putting strain on the system and increasing vulnerability to outages or reductions.
Geopolitical meaning
China’s massive energy spending is not without global consequences. China’s domination in clean energy technology could create new dependencies, just as Europe once relied heavily on Russian gas, as Western countries strive to reduce emissions and meet climate commitments. Whether it’s solar panels, batteries, or rare earth elements, China is considered an energy superpower for the green transition.
This change also raises questions about long-term energy safety and technical sovereignty. Europe and the US have launched multi-billion dollar initiatives, including the EU’s Green Deal Industrial Plan and the US Inflation Reduction Act, bringing clean high-tech manufacturing closer to homes. However, as IEA data shows, China is a few steps ahead in both size and speed.
Looking ahead
Good news? A global momentum is being built. 2025 marks a historic milestone with $2.2 trillion in clean energy this year. Investments in power generation, grids and storage have led to 50% increase in fossil fuel investments. This is a strong signal that the transition is not only ongoing, but also accelerating.
But the pace needs to be faster. The IEA warns that many countries may not be able to meet their climate targets without bolder policy support and faster grid upgrades. The Chinese example shows what is possible when investment is consistent with infrastructure and industrial strategy. It remains to be seen whether others can follow the lawsuit and whether they should emulate China’s centralized approach.
But for now, one thing is clear. If clean energy is the engine of tomorrow’s economy, China is already in the driver’s seat.
