China Resources Power's July Net Generation Surge and Renewable Energy Momentum

China Resources Power Holdings Co (HKG: 0272) has emerged as a pivotal player in China's energy transition, leveraging its dual focus on thermal and renewable power to align with national decarbonization goals. In July 2025, the company reported a 14.1% year-on-year increase in total net generation, reaching 20,975,595 MWh, driven by newly commissioned capacities and surging demand during a heatwave. While thermal plants contributed a 17.2% growth, the real story lies in the company's renewable energy momentum, which underscores its strategic positioning in a rapidly evolving market.

Strategic Positioning in China's Energy Transition

China's 2060 carbon neutrality roadmap has accelerated the phase-out of coal and the expansion of renewables. By 2025, the National Energy Administration (NEA) aims for renewables to account for over half of installed capacity, a target China Resources Power is well on track to support. The company's July performance highlights this alignment: photovoltaic (PV) generation surged 44.8% year-on-year, while wind output, though down 5.3% due to lower wind speeds, showed resilience in the first seven months of 2025 with a 5.4% total net generation increase.

The company's renewable portfolio is expanding rapidly. Solar and wind now constitute a growing share of its energy mix, with solar output alone accounting for nearly half of China's global solar capacity growth in 2024. This aligns with the NEA's 2030 target of 2,461 GW of renewable capacity, nearly double the 2022 figure. China Resources Power's investments in large-scale solar farms and wind projects in resource-rich regions position it to capitalize on these targets.

Growth Trends in Wind, Solar, and Hydro

China's renewable energy landscape is dominated by solar and wind, which together now outpace hydro in electricity generation. In Q1 2025, China produced 951 terawatt-hours (TWh) of clean energy, with solar and wind contributing 561 TWh—surpassing hydro's 226 TWh for the first time. China Resources Power's 44.8% surge in solar output mirrors this national trend, driven by declining PV costs and improved grid integration.

Wind energy, while facing temporary headwinds in July due to weather, remains a cornerstone of the company's strategy. The NEA's push for pumped storage and gas-fired peak-shaving plants is addressing intermittency challenges, enabling wind to maintain its role in the energy mix. Meanwhile, hydropower continues to provide grid stability, with China Resources Power's hydro assets complementing variable renewables.

Competitive Edge Amid Coal Phase-Out Policies

The company's dual strategy—balancing thermal power for short-term demand with renewables for long-term sustainability—offers a competitive edge. While coal still accounts for 62% of China's electricity generation, its share is declining, and the NEA's 2027 methane capture mandate will further pressure coal's viability. China Resources Power's thermal plants, which saw a 17.2% growth in July, are likely temporary assets, with the company prioritizing renewable expansion.

The company's ability to adapt to grid constraints is another strength. As curtailment rates for renewables rise—solar curtailment hit 6.6% in H1 2025—China Resources Power is investing in storage and transmission infrastructure. This aligns with national efforts to build high-voltage lines and energy storage projects, ensuring renewables are efficiently distributed to high-demand regions like Shanghai and Fujian.

Investment Potential and Long-Term Profitability

China Resources Power's alignment with national policy and its diversified energy portfolio make it an attractive long-term investment. The company's renewable capacity is expected to grow alongside China's 2030 targets, with solar and wind projected to account for over 50% of power consumption growth by 2025.

Financially, the company is well-positioned. Its July net generation surge, coupled with a 5.4% year-on-year increase in renewable output over the first seven months of 2025, signals strong operational scalability. As China's cleantech revolution accelerates, the company's focus on renewables—backed by government incentives and a global shift toward decarbonization—positions it to outperform peers reliant on fossil fuels.

Conclusion

China Resources Power is a linchpin in China's 2060 carbon neutrality roadmap, combining thermal flexibility with renewable innovation. While short-term challenges like wind curtailment exist, the company's strategic investments in solar, wind, and grid infrastructure ensure long-term profitability. For investors seeking exposure to China's energy transition, the company offers a compelling blend of policy alignment, operational resilience, and growth potential. As the world's largest electricity consumer pivots toward renewables, China Resources Power stands at the forefront of a transformative era.