Western powerhouse: How Sichuan is shaping China’s energy future [Eye on Sichuan series]
With vast hydropower potential, growing solar and wind capacities, and supportive government policies, Sichuan has reduced its reliance on coal and increased green energy production. EAI deputy director Chen Gang explains how this province is playing a role in China’s green transition.
China aims to peak carbon emissions by 2030 and achieve carbon neutrality by 2060. Sichuan province, in southwestern China, is a key player in this effort, leveraging its natural resources to lead the country’s clean energy transition — defined by its focus on low carbon emissions.
With vast hydropower potential, growing solar and wind capacities, and supportive government policies, Sichuan has reduced its reliance on coal and increased green energy production — clean, renewable power from nature with minimal environmental impact. This local transition is vital not only for reducing Sichuan’s carbon footprint but also for developing a robust and green industrial system across China’s western region.
Renewable energy — power from naturally replenishing sources like the sun, wind and water — now constitutes 70% of Sichuan’s total energy consumption...
Sichuan’s green transition
Sichuan province has long been a significant energy producer, utilising its abundant hydroelectric resources and substantial natural gas reserves. It leads all Chinese provinces in hydroelectric generation, typically delivering a substantial power surplus to other regions.
The province’s geographical features, including the upper Yangtze River and its tributaries, offer ideal conditions for hydropower development. Major hydropower stations, such as the Three Gorges Dam and Baihetan Dam, contribute significantly to China’s total hydropower generation, with Sichuan’s capacity exceeding 90 gigawatts (GW) as of 2023, accounting for over 25% of the national total.
While hydropower remains dominant, Sichuan has accelerated solar and wind energy deployment. The province’s solar capacity has rapidly grown, particularly in western high-altitude regions, reaching 10 GW by 2023. Wind farms in mountainous areas add 8 GW, with plans for further expansion. Additionally, Sichuan uses biomass energy from agricultural waste and explores geothermal energy in some areas.
Renewable energy — power from naturally replenishing sources like the sun, wind and water — now constitutes 70% of Sichuan’s total energy consumption, demonstrating the region’s commitment to reducing fossil fuel dependence. Sichuan’s green transition is driving economic development in China’s western region, a key area for the country’s dual circulation strategy, prioritising domestic demand and indigenous innovation. (NB: Renewable energy is not depleted when used but it is not always 100% clean or green, e.g., large-scale hydropower can harm ecosystems while burning biomass can emit CO2.)
Electricity generated in Sichuan is transmitted to Jiangsu, Zhejiang, Shanghai, and other eastern provinces via ultra-high voltage (UHV) transmission lines.
From coal to clean energy
Sichuan’s abundant clean energy resources are crucial in the government’s low-carbon development policies. The province is integral to China’s “West-to-East Electricity Transmission Project” (西电东送), thanks to its rich hydropower resources and strategic location.
Electricity generated in Sichuan is transmitted to Jiangsu, Zhejiang, Shanghai, and other eastern provinces via ultra-high voltage (UHV) transmission lines. The province is a hub for UHV grid construction, including AC and DC transmission lines, helping to reduce coal reliance in the industrialised east.
Over the past decade, Sichuan has significantly increased its installed renewable electricity capacity. Hydropower capacity rose from 70 GW in 2015 to over 90 GW in 2023, while combined solar and wind capacity grew from 2 GW in 2015 to 18 GW in 2023. Consequently, over 85% of Sichuan’s electricity now comes from clean energy sources.
The province has actively reduced coal consumption, with coal’s share in power generation dropping from 40% in 2010 to less than 15% in 2023. Many small coal-fired plants have been phased out, improving air quality. Sichuan has invested in UHV transmission lines, such as the Yibin–Jiangsu UHV Line, to transmit 8 GW of low-carbon electricity to eastern China.
The clean energy transition in Sichuan has brought economic and environmental benefits. The sector employs over 500,000 workers, contributing to job creation and economic development. The reduction in coal use has improved air quality, particularly in major cities like Chengdu, where PM2.5 levels have decreased. Sichuan’s efforts significantly contribute to China’s national emissions goals, showcasing renewable energy’s potential to drive sustainable development.
Structural rigidity and overreliance on hydropower pose additional challenges, necessitating comprehensive strategies to diversify energy supply and enhance infrastructure resilience.
Challenges: hydropower overreliance & industrial carbon footprint
Despite these achievements, Sichuan must guard against a resource curse due to its rich clean energy resources. In the summer of 2022, a severe power crunch, primarily caused by extreme heat and drought that halved local hydropower production, disrupted supply chains that had recently relocated to the western region.
This power crisis affected manufacturers, including Toyota and battery producer Contemporary Amperex Technology Co., and impacted electric vehicle charging facilities. Structural rigidity and overreliance on hydropower pose additional challenges, necessitating comprehensive strategies to diversify energy supply and enhance infrastructure resilience.
High-energy-consuming sectors remain significant carbon emission sources, and total emissions have not markedly decreased. Sichuan’s industrial base is a significant producer of various chemical products, electronic components, lithium batteries, polysilicon and aluminium, notably contributing over 20% of China’s lithium chemical output. As China shifts more manufacturing and heavy industries from the eastern coast to the western hinterland, Sichuan must consider these factories’ carbon footprints in policy planning.
Sichuan’s low-carbon strategy: farming, transport and technologies
To tackle these challenges, Sichuan has implemented a range of strategies to enhance energy efficiency and broaden the adoption of clean energy. The province is advancing the development of ecological and organic farming, advocating low-carbon agricultural practices, and promoting green agricultural transformation. In the industrial sector, initiatives such as the “Sichuan Industrial Green Development Action Plan” aim to reduce energy consumption per unit of industrial output by over 15% by 2025.
The transportation sector is also evolving, with plans to increase the use of new energy vehicles and reduce carbon emission intensity. By 2025, over 75% of vehicles in highway passenger transport are expected to use new energy sources, significantly cutting emissions. These efforts are supported by the “14th Five-Year Plan for the Development of Carbon Neutral Transportation in Sichuan Province,” which emphasises changes in energy structure and consumption intensity. (NB: New energy refers to advanced clean technologies such as renewables, hydrogen and new energy vehicles (NEVs), a term commonly used in China.)
Sichuan’s low-carbon strategy requires coordinated actions across multiple sectors, including promoting energy-saving technologies in the industrial sector, developing green buildings and public transportation, and increasing the share of clean energy in the energy mix. Expanding the use of hydrogen and carbon capture technologies will also help reduce local carbon emissions.
Pioneering green hydrogen and energy storage
Sichuan is exploring innovative solutions to advance its clean energy transition, encouraging industries and individuals to actively engage in carbon reduction efforts. The province is investing in green hydrogen — a carbon-free fuel made by using renewable electricity to split water into hydrogen and oxygen. By leveraging surplus hydropower, this initiative could provide a sustainable energy source for industrial applications and transportation.
Energy storage technologies are also being developed to address the seasonal variability of hydropower and the intermittency of wind and solar power. Sichuan plans to expand its energy storage capacity to 5 GW and develop 10 GW of green hydrogen capacity.
These initiatives will help balance energy supply and demand, reduce reliance on fossil fuels, and support the integration of renewable energy into the grid. By fostering innovation and collaboration, Sichuan can continue to lead in clean energy development and contribute to global efforts to combat climate change.
Sichuan province has made significant strides in its clean energy transition, becoming a cornerstone in China’s effort to increase low-carbon energy supply and balance electricity distribution between the eastern and western regions. However, the province still faces challenges, including an overreliance on hydropower and the presence of a high-polluting manufacturing sector.
By adopting comprehensive strategies that promote energy efficiency, diversify clean energy supply, and enhance infrastructure resilience, Sichuan can overcome these obstacles and become a pivotal province in supporting China’s green transition.
