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Law just one part of key drivers of power transition

By Hou Liqiang | CHINA DAILY | Updated: 2026-05-07 08:54
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Hou Liqiang

This year marks the 20th anniversary of China's Renewable Energy Law coming into force — a milestone many developing nations now turn to for reference as they scramble to accelerate their own energy transitions.

And rightly so. The law signaled strong political will and kicked off one of the fastest energy transitions in history — one that started almost from scratch. Today, renewable energy accounts for over 60 percent of China's total installed power generation capacity, with total installed renewable capacity surpassing 1,800 gigawatts in 2025.

China's experience in promoting energy transition holds significant potential for many developing nations, as it is not far from other developing states in terms of development stages. As Nigeria's Minister of Environment, Balarabe Abbas Lawal, once stressed in an interview with China Daily, China "understands what we are going through because they have just gone through it".

Yet, we must be careful not to over-romanticize China's experience in renewable energy development — particularly the law's role. Doing so risks missing some key drivers of China's success: its vast domestic market and complete industrial chain. These are precisely what many developing countries lack.

Consider China's geography — from 1.3 million square kilometers of desert in the northwest to 4.73 million square kilometers of maritime territory, spanning multiple climate zones from tropical to cold temperate. This diversity allowed China to test and scale a wide range of renewable technologies under different conditions. Its massive population and industrial base created unparalleled economies of scale, driving down the cost of solar panels and wind turbines to record lows.

But for many much smaller nations with limited land, fragmented infrastructure, or a small electricity market, copying the law without these structural advantages may lead to disappointment.

The hard truth? No amount of legislation can substitute for market scale or an integrated industrial ecosystem. Even China succeeded not by law alone — but through intense bilateral and multilateral cooperation.

The country learned from Germany and Denmark through demonstration projects, welcomed international investment, and trained a generation of policymakers, entrepreneurs and skilled workers. That cooperation — not the law in isolation — built today's giants, such as wind turbine giant Goldwind and BYD, the latter selling 4.6 million new energy vehicles in 2025.

Therefore, developing countries cannot go it alone. They must deepen South-South cooperation — sharing regional markets, jointly building supply chains, and co-investing in manufacturing. Some capacity may be outdated for China but remains highly useful elsewhere, as it can help developing nations start to build their own industrial chains — the key to future takeoff.

Thus, developing nations should set ambitious goals, but begin with humility. The law offers a compass, but only cooperation can pave the road.

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