Approximately 90% of Global Renewable Energy is Cheaper Than Fossil Fuels, Yaxia Hydropower Project is a Matter within China's Sovereignt
（2025/07/21—2025/07/27）
Author：Hao-Wang
International Energy News
1. Approximately 90% of Global Renewable Energy is Cheaper Than Fossil Fuels
According to a report by the International Renewable Energy Agency (IRENA), the vast majority of new renewable energy projects are now more cost-effective than fossil fuels. Of the 582 gigawatts (GW) of new renewable capacity added globally last year, approximately 91% of utility-scale projects were more cost-effective than their fossil fuel alternatives.
Specifically, solar photovoltaic (PV) power was 41% cheaper than the least expensive fossil fuel options, while onshore wind projects were 53% cheaper. Driven by technological advancements and economies of scale, the cost of renewable technologies has steadily declined since 2010, with battery storage system costs falling by as much as 93%. The report estimates that in 2024, existing renewable energy sources could prevent up to $467 billion in fossil fuel costs. However, it also warns that geopolitical tensions, trade tariffs, and material supply constraints could slow this momentum and drive up costs.
2. IEA: Oil Demand Growth to Hit New Low This Year
The global oil market faces a growing risk of a supply-demand imbalance, according to the International Energy Agency's (IEA) July Oil Market Report. The report forecasts that global oil demand growth in 2025 will slow to its lowest rate since 2009.
Meanwhile, global oil supply is rising sharply, with significant production increases from major oil-producing nations in June. These nations plan to further raise output targets and phase out previous voluntary production cuts. This growth in supply, outpacing sluggish demand, has led to a surge in global oil inventories, which increased by over 70 million barrels in May and continued to climb in early June. The IEA concludes that while the short-term production increase may meet peak summer consumption, it poses a significant risk of a market surplus and increased price volatility in the second half of 2025.
3. Chinese-Contracted Largest Geothermal Power Plant in Indonesia Begins Operation
The Lumut Balai Unit II geothermal power plant in Indonesia, the country's largest under a Chinese-led EPC (Engineering, Procurement, and Construction) contract, has recently commenced commercial operation.
Located in Indonesia's South Sumatra province, the plant has a total installed capacity of 55 megawatts (MW). As the first project of its kind undertaken by a Chinese enterprise globally, its operational performance has met advanced international standards. The plant is expected to reduce annual carbon dioxide emissions by 580,000 tons, significantly alleviating local power shortages and supporting the nation's green energy transition. A notable aspect of the project was its mentorship program, which successfully trained a new generation of local technical professionals through partnerships between experienced technicians and local employees.
Domestic Energy News
1. Ministry of Foreign Affairs: Yaxia Hydropower Project is a Matter within China's Sovereignt
On July 23, China's Ministry of Foreign Affairs addressed questions regarding the Yaxia Hydropower Project at its regular press conference. A ministry spokesperson stated that the project aims to develop clean energy, improve public livelihood, and address climate change. The project's planning and construction adhere strictly to the highest industry standards, incorporating comprehensive ecological and environmental protection measures to preserve the original ecosystem by avoiding critical ecologically sensitive areas.
The spokesperson emphasized that the project will aid in disaster prevention and mitigation for the entire river basin and will not have adverse effects on downstream regions. The Chinese side has conducted necessary communication with downstream countries on this matter and will continue to strengthen cooperation in areas such as hydrological data sharing and flood control for the benefit of all people in the basin.
2. Central SOEs Sign Over 300 Billion Yuan in Deals to Boost Tibet's High-Quality Development
At a conference held in Lhasa on July 20 to promote the high-quality development of Tibet, 16 central state-owned enterprises (SOEs) signed 75 industrial project agreements with the Tibet Autonomous Region, with a total investment of 317.537 billion yuan.
The projects primarily focus on key sectors such as clean energy, green minerals, power and communications, and infrastructure. Once operational, they are expected to create over 11,400 direct jobs. In addition to industrial investment, SOEs also signed agreements for employment, financial, and consumption-based assistance. Major energy and power SOEs, including State Grid, China Datang, China Huadian, and National Energy Group, are the main drivers of this investment. They will increase investment and cooperation with a focus on developing clean energy bases in Tibet, tackling key technological challenges, and building the new energy industry chain to support local economic and social development.
3. Chain Expo Highlights China's Full-Chain Advantage in Clean Energy
The high-quality development of China's clean energy supply chain was a key highlight at the recent 3rd China International Supply Chain Expo (CISCE). Leveraging the world's most complete industrial system, China has established a leading global position in sectors such as photovoltaic (PV) module and wind power equipment manufacturing.
The expo showcased a series of major technological breakthroughs—from a 26-megawatt offshore wind turbine and efficient green hydrogen production to deep-sea energy development—demonstrating the industry's significant progress in independent innovation and cost efficiency. Concurrently, China is sharing development opportunities through open cooperation, having launched green energy projects with over 100 countries. Looking ahead, the industry will continue to focus on key technologies like hydrogen and long-duration energy storage, as well as aligning with international standards, to provide stable momentum for the global energy transition.
(Main news sources: CCTVNEWS APP, International Energy Network, China Energy Network, National Energy Administration, China Energy News)
