China’s rapid shift towards renewable energy is having significant implications for natural gas producers, including Russia, Turkmenistan, and Kazakhstan. However, the shift could prove beneficial for Uzbekistan’s clean energy goals.
According to a recent BloombergNEF report, China dominates global manufacturing in nearly all clean energy sectors except hydrogen electrolyzers. The report, titled Energy Transition Supply Chains 2025, highlights that China also attracts the majority of investment for clean technology plants, such as those producing batteries, solar panels, and wind turbines. In 2024, 76% of investments in such plants were directed towards China.
Beyond its manufacturing prowess, China is experiencing remarkable growth in clean energy, particularly solar power. Renewable sources now account for 80% of China’s rising energy and electricity demand. By 2030, China is on track to have 2,461 GW of renewable electricity capacity, more than double its 2022 total, with solar capacity nearly tripling.
Fossil fuels still make up about 62% of China’s energy use, but this share is expected to decrease as the economy slows and renewables grow. China’s government aims for carbon neutrality by 2060, a key factor driving this transition.
These shifts are influencing energy dynamics in Central Asia. Once a major driver of global gas demand, China is now focusing more on renewables. This change in priorities likely explains why China rejected Russia’s proposal in early 2025 to increase gas shipments through Kazakhstan and why the Power of Siberia 2 pipeline project remains stalled.
China’s reduced demand for gas may have also prompted Turkmenistan to pursue a deal with Turkey to send gas westward. Turkmenistan may have sensed that China won’t need as much gas in the future.
China’s push for renewable energy, coupled with a rise in protectionism in advanced economies, means that Uzbekistan could benefit from discounted Chinese goods, including solar panels and other clean energy technology. As developing markets receive more imports from China, Uzbekistan stands to gain from lower costs in its clean energy transition.
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