China’s Renewable Boom Hits Grid Limits

China’s wind and solar buildout is expanding faster than parts of its power system can absorb, leaving more renewable electricity curtailed and contributing to a reported increase in energy and power-sector emissions in early 2026.

Analysts attribute the problem to inflexible coal and gas contracts, provincial electricity-trading rules, transmission constraints and uneven system planning. Grid investment, storage and improved dispatch could reduce near-term losses, but the material also points to persistent manufacturing overcapacity that infrastructure expansion alone may not resolve.