IEA Releases Heat Pump Taxonomy to Advance Global Data Standardisation; China's Solar Capacity Surpasses 1.2 Billion Kilowatts as Installation Mix Shifts Toward Utility-Scale Projects
（2026/05/18—2026/05/24）
Author：Hao-Wang
International Energy News
1. IEA Releases Heat Pump Taxonomy to Advance Global Data Standardisation
The International Energy Agency (IEA), in collaboration with more than 50 institutions, has published the Heat Pump Taxonomy Project report, establishing a unified classification framework for heat pump technologies to address fragmented and inconsistent global data.
Heat pumps are a cornerstone technology for delivering secure, affordable and sustainable heating, and have become one of the most prevalent heating solutions in the buildings sector with far-reaching implications for future energy consumption trends. However, differences in statistical boundaries, definitions and metrics across regions have long resulted in incomparable and inconsistent data on heat pump installations, performance and costs, undermining the evidence base needed for policy-making and industry planning.
The classification framework introduced in this report focuses initially on heat pumps used as primary heating equipment in buildings, organising them into a structured system based on source, sink and product characteristics, with plans to extend coverage to other application sectors over time. A common taxonomy will enhance cross-country data comparability and foster international collaboration. The report is accompanied by the launch of the Heat Pump Taxonomy Technology Explorer, an interactive tool through which users can examine the technical characteristics, major regional markets and applications of different heat pump types available on the market.
2.Countries and Consumers Respond to Energy Crisis; Nearly 30% of New Cars Sold Globally This Year Expected to Be Electric
The IEA's newly released Global EV Outlook 2026 projects global electric vehicle sales to reach 23 million units in 2026, accounting for close to 30% of all new cars sold worldwide. Sales already exceeded 20 million units in 2025, a year-on-year increase of 20%, setting all-time records in nearly 100 countries. Although overall sales edged down slightly in the first quarter of 2026 due to policy shifts in certain markets, Europe, Asia Pacific and Latin America posted strong counter-trend growth of 30%, 80% and 75% respectively.
The Middle East energy crisis is emerging as a new catalyst for accelerating the electric vehicle transition. Volatile fuel prices are prompting consumers and governments alike to shift toward electric mobility, while continued declines in battery costs are reinforcing market competitiveness. The report projects that, even in the absence of new policy measures, the global electric vehicle fleet will surge from approximately 80 million today to 510 million by 2035.
3. Clean Energy Accelerates Displacement of Fossil Fuels as Multiple Energy Shocks Force Global Transition
BloombergNEF has published its New Energy Outlook 2026, noting that the world has endured three major energy shocks so far this decade, each exposing the inherent volatility and insecurity of the current energy system. The report argues that sustained deployment of economically competitive clean technologies could significantly reduce countries' dependence on imported fossil fuels and fundamentally strengthen energy security.
Meanwhile, the IEA's latest Oil Market Report shows that Middle East supply disruptions have driven global oil inventories down at a record pace, with Brent crude averaging above USD 120 per barrel in April amid severe price volatility. As a result, global oil demand in 2026 is forecast to contract by approximately 420,000 barrels per day year-on-year, with the petrochemical and aviation sectors bearing the heaviest impact.
Data from the US Energy Information Administration indicate that major oil-producing countries in the Middle East collectively shut in approximately 10.5 million barrels per day of crude output in April, with Strait of Hormuz transit disruptions expected to persist through late May. The energy crisis is evolving from a short-term supply shock into a sustained driver of structural transformation in the global energy mix, with renewable energy and electrification poised to accelerate under mounting pressure.
Domestic Energy News
1. China's Solar Capacity Surpasses 1.2 Billion Kilowatts as Installation Mix Shifts Toward Utility-Scale Projects
Data from the National Energy Administration show that newly connected solar capacity in China reached approximately 41.2 GW in the first quarter of 2026, bringing cumulative installed capacity to 1.241 billion kilowatts, a year-on-year increase of 31.2%. New additions declined by approximately 31% compared with the same period in 2025, reflecting a high base effect and grid absorption constraints, though the outcome broadly met industry expectations.
A notable structural shift is under way. Utility-scale solar accounted for approximately 19.6 GW of new capacity, representing a 48% share — up 9 percentage points year-on-year — reclaiming its dominant position. Commercial and industrial distributed generation accounted for 29%, with residential rooftop installations making up the remaining 23%. Large-scale wind and solar bases in western China continued to deliver significant volumes and were the primary growth driver for the quarter.
At the regional level, Yunnan led the country with a 14.1% share of new installations, leveraging its complementary hydro-solar resources. Guangdong saw accelerated rooftop solar deployment among businesses driven by elevated commercial electricity prices, while Henan retained its top ranking in the residential segment on the back of county-wide rollout policies. The sector also faces two key challenges. A solar utilisation rate of 90.6% in the first quarter points to persistent grid absorption pressures, while grid investment grew 43.3% year-on-year, underscoring the urgent need to scale up energy storage. At the same time, prolonged low-price competition across the supply chain remains unresolved, and industry governance is shifting its focus toward quality metrics such as generation efficiency, absorption rate and economic returns per unit of installed capacity. Looking ahead, the coordinated development of solar, storage and ultra-high-voltage transmission is set to fundamentally reshape the country's energy supply landscape.
2. New Policy Issued to Promote Multi-User Green Power Direct Connection
On 20 May 2026, relevant national authorities issued a notice on the orderly development of multi-user green power direct connection arrangements. The policy marks a pivotal transition in China's green power direct connection model, expanding it from exclusive use by single entities to a more inclusive framework accessible to multiple users.
The new policy significantly broadens the scope of eligible scenarios to cover nine categories including industrial parks and zero-carbon parks, while streamlining project planning and approval processes end-to-end. To facilitate the friendly near-site consumption of renewable energy, the policy imposes strict restrictions on grid-connected projects feeding surplus power back to the grid and introduces an innovative time-of-use traceability mechanism for self-generated and self-consumed green electricity. The policy also refines the transaction pricing framework, clarifying that projects shall participate in electricity markets as a whole in phases. These measures are expected to effectively stimulate demand for green energy and provide important support for the development of new power systems and a modern energy structure.
3. Multiple Authorities Issue Interim Measures for Nuclear Power Plant Decommissioning Preparedness
Relevant national authorities have jointly issued Interim Measures for the Management of Nuclear Power Plant Decommissioning Preparedness to strengthen lifecycle management of nuclear power plants from construction through operation. The measures aim to regulate preliminary decommissioning preparedness activities and ensure the long-term sustainable development of China's nuclear power industry.
The document establishes that nuclear power plant operators bear full responsibility for decommissioning preparedness and associated costs. Relevant enterprises are required to implement the principle of minimising radioactive waste at every stage, including site selection, design and operation. With regard to funding, operators must accrue decommissioning provisions on an annual basis from the time a unit enters commercial operation, recording these as part of production costs. The cumulative accrual rate is provisionally set at no less than 10% of the completed project settlement value. Nuclear power groups are also required to establish a periodic review mechanism conducted every five years, with dynamic adjustments to accrual rates to ensure that decommissioning fund reserves remain adequate.
(Main news sources: CCTVNEWS APP, International Energy Network, China Energy Network, National Energy Administration, China Energy News)
