Energy Transitions in China and India Leapfrogging in Wind and Solar Power Technology

Abstract

China and India are undergoing rapid transitions towards renewable energy. While their power mix is still dominated by coal, renewables—especially wind and solar— have in recent years outpaced the capacity addition of coal. Both countries have managed to become global leaders in the wind and solar markets in a relatively short period of time. In 2016, China and India ranked first and fourth, respectively, in the world in terms of capacity addition of wind and solar photovoltaic (PV) technologies. They were also home to several domestic, globally competitive wind and solar PV manufacturers. The rapid growth of clean-energy industries points to the potential of environmental leapfrogging, which suggests that developing countries might be able to follow more sustainable development pathways than those experienced by industrialized countries. The leapfrogging in wind and solar power technologies in China and India is largely because of strong government targets and policy support. Therefore, these cases serve as useful examples of how government policy can guide energy transitions in the power sector. By comparing the wind and solar industry development in China and India, this paper discusses how government policy influences development and deployment of wind and solar technologies, explore what challenges remain for the further scaling up of the clean-energy industries, and draw lessons for a transition into a low-carbon power sector.