EU proposes overhaul of carbon trading system to ease corporate decarbonization pressures. China's concentrated solar power installed capacity ranks second globally.
（2026/7/20—2026/7/26）
Author: Shu-Xin Zhang
International Energy News
1. EU proposes overhaul of carbon trading system to ease corporate decarbonization pressures
The European Commission proposed on July 17 a revision to the EU Emissions Trading System (ETS), aiming to reduce the decarbonization burden on companies while ensuring the achievability of the 2040 climate targets.
Under the proposed plan, the annual reduction in total emission caps—known as the "linear reduction factor"—would be adjusted to 3.7% between 2031 and 2035, and further lowered to 1.7% between 2036 and 2040, making the pace of emission cuts more gradual. The current factor stands at 4.3%, and is set to rise to 4.4% between 2028 and 2030.
The plan also proposes extending the provision of free emission allowances to companies beyond 2030. For sectors covered by the Carbon Border Adjustment Mechanism (CBAM), the phase-out of free allowances would be slowed, with the measures extended to 2038. In terms of coverage, the proposal includes integrating the waste incineration sector into the trading system, while further refining rules for aviation and maritime transport. On the financing front, the EU plans to establish an "Industrial Decarbonization Bank" to pool €100 billion in support of large-scale industrial decarbonization projects, with the first phase expected to be launched before 2030.
Launched in 2005, the EU ETS requires companies to pay for their greenhouse gas emissions and uses the revenues to fund the green transition. It is a key policy tool for achieving the EU's target of a 90% net reduction in greenhouse gas emissions by 2040 compared to 1990 levels.
2. West Africa's largest biomass power plant unit 2 comes online
On July 14, Unit 2 of the 46-MW Bioya biomass power plant project in Côte d'Ivoire—the largest biomass clean energy project under construction in West Africa—completed its endurance and performance tests and was officially put into operation. The project was undertaken by a consortium of China Energy Engineering Group's construction and international subsidiaries on an EPC basis.
The project uses palm leaf stalks and shells—long regarded as waste in the local area—as fuel. By recycling agricultural and forestry waste on-site, the plant benefits 12,000 palm farming households and establishes a complete "palm cultivation–waste recycling–green power generation" industrial chain, promoting the synergistic development of traditional agriculture and new energy industries.
With an installed capacity of 46 MW, the plant generates 348 GWh annually, accounting for 15% of Côte d'Ivoire's total renewable energy generation. It can meet the daily electricity needs of 1.7 million residents, covering the Aboisso region and three surrounding provinces. Power is preferentially transmitted to the Abidjan economic zone, which contributes 60% of the national GDP. Monthly power outages in the region are expected to drop from 8–10 to 2–3 times, with each outage lasting less than one hour, supporting the country's industrialization efforts.
As a biomass power plant, the project is expected to reduce CO₂ emissions by 180,000 tons annually—equivalent to planting about 10 million trees—contributing to improved local air quality and climate change mitigation. At its peak, the project created over 1,000 local jobs, continuously raising household incomes.
3. India's coal-fired power generation hits three-year high in June 2026
India's total power generation rose 10.4% year-on-year to 178.31 billion kWh in June, while coal-fired generation surged about 14% to 120.2 billion kWh—its highest level since November 2023, according to daily data from the Grid Controller of India.
Data from the India Meteorological Department indicates that a strong El Niño event made June the fifth driest since 1901, with extreme heat substantially driving up cooling demand. Despite the continued expansion of India's renewable energy capacity, solar power lacks adequate storage facilities to ensure stable supply, and below-average monsoon rainfall has also led to a significant drop in hydropower output.
Domestic energy news
1. China's concentrated solar power installed capacity ranks second globally
On July 16, the 2026 Qinghai Clean Energy Development Forum was held in Xining. Data released by the China Electricity Council at the forum showed that by the end of June 2026, China had completed and commissioned 24 concentrated solar power (CSP) projects, with a total installed capacity of 2.1 GW, ranking second globally. In addition, 26 CSP projects with a combined capacity of 3.2 GW are currently under construction, positioning China as a major global contributor to new CSP capacity.
In terms of technological innovation, China has mastered mainstream CSP technologies, including tower, trough, and Fresnel systems, and has achieved internationally leading status in fourth-generation CSP technology. The country has established a globally leading full CSP industrial chain, with over 95% of technical equipment now domestically produced. Key materials and equipment—such as high-temperature heat absorption, thermal storage, and heat collection systems—are independently developed and controlled, while power plant operation and maintenance technologies continue to improve.
On the policy front, the *Opinions on Promoting the Large-Scale Development of Concentrated Solar Power*, jointly issued by the National Development and Reform Commission and the National Energy Administration in December 2025, set a target of approximately 15 GW of total CSP installed capacity by 2030.
2. China's first integrated hydro-wind-solar smart operation large model debuts at 2026 WAIC
On July 17, the 2026 World Artificial Intelligence Conference (WAIC) and the High-Level Meeting on Global AI Governance opened in Shanghai, featuring the debut of China's first integrated hydro-wind-solar smart operation large model.
Developed independently by SDIC Yalong River Hydropower Development Company and officially released on July 16, the model is designed to implement the national "AI + Energy" strategy and accelerate the construction and operation of the Yalong River hydro-wind-solar integrated base.
At the Huawei Electric Power Industry Summit, SDIC Yalong River highlighted the model's core technological strengths and real-world performance. The model integrates four key application scenarios—hydrometeorological forecasting, multi-energy coordinated dispatch, intelligent equipment maintenance, and power market trading—into a unified intelligent decision-making system. In resource forecasting, it enables 60-day extended watershed runoff predictions and significantly improves the accuracy of wind and solar power generation forecasts. In intelligent maintenance, it leverages an equipment knowledge graph for early fault warning, achieving over 96% diagnostic accuracy for photovoltaic equipment failures and increasing maintenance efficiency by 50% in remote high-altitude stations.
The model runs on China's first high-altitude cave intelligent computing center, which is powered directly by green electricity from the river basin. The natural low temperature of the cave environment reduces cooling energy consumption, creating a green, low-carbon cycle of "green electricity powering computing power, computing power optimizing green electricity."
As a key national clean energy base, the Yalong River basin integrated project is expected to address the challenges of coordinated multi-energy operations, improve new energy integration capacity, and enhance overall power plant efficiency. Its application provides a replicable and scalable model for the digital and intelligent transformation of large-scale clean energy bases across the country.
3. Gansu's new energy storage installed capacity surpasses 10 GW
Gansu Province has recently surpassed 10 GW of installed new energy storage capacity connected to its power grid, marking a new phase in the large-scale development of energy storage and providing strong support for building a new power system and ensuring energy security.
By the end of June 2026, Gansu's total installed renewable energy capacity reached 81.54 GW, accounting for 65% of the province's overall power mix. To address the bottleneck of insufficient regulatory resources constraining the high-quality development of new energy, the Gansu Energy Regulatory Office has prioritized high-quality energy storage development in recent years. Through improved trading rules and innovative regulatory mechanisms, it has encouraged energy storage stations to actively respond to price signals and participate deeply in market trading, enabling peak shaving and valley filling to ensure power system stability. In 2021, Gansu became the first province in China to enable new energy storage participation in the ancillary services market. Subsequently, it also pioneered the participation of energy storage in the spot market and medium- and long-term markets, establishing a multi-dimensional market participation model. In parallel, Gansu developed China's first coordinated dispatch and control system for new energy storage, optimizing scheduling efficiency.
Looking ahead, the Gansu Energy Regulatory Office will continue to strengthen market oversight and regularly monitor energy storage operations to fully leverage its role in smoothing renewable output fluctuations, boosting renewable integration, and ensuring power supply, as part of Gansu's green and low-carbon energy transition.
(Main news sources: CCTVNEWS APP, Xinhua New Media, International Energy Network, China Energy Network, National Energy Administration)
