China’s National Energy Administration has issued measures to set minimum targets for renewable energy consumption in critical energy-intensive industries and assign responsibility weights for renewable power consumption to provincial-level administrative regions.

The measures will take effect on August 1, 2026.

Target Categories

The measures define the minimum renewable energy consumption ratio as the minimum share of renewable energy in total energy consumption.

The targets are divided into minimum ratios for renewable electricity consumption and minimum ratios for non-electric renewable energy consumption.

The renewable power target covers all forms of clean energy generation. The non-electric target covers renewable heating and cooling, renewable hydrogen, ammonia and methanol production, other integrated renewable energy applications, biofuels, and other non-electric uses of renewable energy.

Compliance Options

Key energy-consuming industries may meet renewable electricity targets through self-generation and self-consumption, direct green electricity connections, Green Electricity Certificate trading, green power trading, or certificate transfers.

Compliance with minimum renewable power consumption targets will be calculated using Green Electricity Certificates corresponding to energy generated during the assessment year.

Provincial Obligations

The measures define the renewable power consumption responsibility weight as the share of each provincial-level administrative region’s total electricity consumption that must be met with renewable energy.

The weights will be divided into the total responsibility weight for renewable energy consumption and the responsibility weight for non-hydropower clean power consumption.

Implementation Responsibility

Provincial energy authorities will have primary responsibility for implementing renewable power consumption obligations. They must work with departments responsible for economic operations and the National Energy Administration’s regional offices to formulate provincial implementation plans, which will take effect after provincial government approval.

Grid companies must cooperate with provincial energy authorities, increase investment in grid infrastructure, carry out grid construction, and organize obligated entities within their service areas to meet renewable consumption responsibilities.

Entities responsible for meeting renewable power consumption obligations include power grid companies, electricity suppliers, electricity retail companies, relevant electricity consumers, and enterprises using captive power projects.

Electricity trading institutions must organize renewable electricity trading and report data on inter-provincial renewable electricity transactions, Green Electricity Certificate trading, and green electricity trading.

Monitoring and Penalties

The National Energy Administration, along with relevant government departments, will appoint independent third-party organizations to conduct quarterly monitoring of implementation by key energy-consuming industries and provinces.

Annual evaluations will assess whether key energy-consuming industries have met minimum renewable energy consumption ratio targets and whether provinces have met renewable responsibility weights.

If an enterprise in a key energy-consuming industry fails to meet its target, provincial energy authorities, relevant industry regulators, and local National Energy Administration offices must make up the shortfall within three months through purchases of Green Electricity Certificates or other market-based transactions.

If the target remains unmet after the three-month period, the enterprise can face regulatory interviews, public criticism, inclusion in the national credit system under applicable laws and regulations, and enhanced supervision.

If a province fails to meet its renewable consumption responsibility weight, it can purchase Green Electricity Certificates within three months to cover the shortfall and must propose additional measures to improve renewable energy consumption.

Market Access

The measures prohibit provinces from restricting renewable energy’s participation in inter-provincial electricity markets or inter-provincial Green Electricity Certificate trading.

China expanded its installed solar power capacity by 41.4 GW in the first quarter of 2026. On a year-over-year (YoY) basis, solar capacity addition dropped 41.7% from 70.97 GW. Its cumulative installed power generation capacity reached 3,960 GW by the end of March 2026, a 15.5% YoY increase, according to data released by the National Energy Administration.

The country aims to achieve 3.6 TW wind and solar capacity by 2035.