China is expected to increase curbs on renewable power plant output due to grid capacity issues. The curtailment rates, known as curbs, are likely to rise this year and slow down China s energy transition. The State Grid s pledge to keep curtailment rates within 5% by 2020 has been challenging due to surging solar and wind installations. Investment in power generation projects has outpaced growth in power transmission projects. China s rapid addition of wind and solar power has put it ahead of its 2030 installation target.
The renewable sector is currently impaired by high central bank rates and a more significant long-term environmental crisis is accelerated by currency devaluation.