China's Energy Transition and Its Impact on Dry Bulk Market
Demand for dry bulk cargoes could be set for a new reality, as a result of China’s ongoing energy transition towards cleaner fuels. China’s power mix is still dominated by coal, but the direction of travel is becoming harder to ignore.
Renewable Energy Growth
In 2025, China generated around 10,575 TWh of electricity. Thermal power, still accounted for about 6,327 TWh. However, renewable generation rose by around 1,680 TWh, or roughly 80%, between 2020 and 2025.
- Hydro remains large, but it is no longer the main driver, increasing only moderately from around 1,355 TWh in 2020 to 1,462 TWh in 2025.
- Wind generation rose from about 467 TWh to 1,128 TWh.
- Solar rose from around 261 TWh to 1,173 TWh, increasing more than fourfold in five years.
Nuclear Power
Nuclear power adds another layer to this shift. It is smaller than wind, solar or hydro in the current mix, but it is growing from a more stable base because it can provide high-utilisation, low-carbon generation. In 2025, China produced about 485 TWh of nuclear electricity, equal to around 4.6% of total generation.
China had 60 operating reactors and 58.7 GW of nuclear capacity as of May 2026. More importantly, it had 36 reactors under construction, which would add another 38.9 GW of capacity. If built out, that would lift China’s nuclear capacity by roughly two-thirds from today’s level.
Conclusion
Including nuclear, the shift is even clearer. China’s clean power generation from hydro, nuclear, wind and solar reached about 4,248 TWh in 2025, equal to roughly 40% of total electricity generation. This change is not small, and it may have a significant impact on the dry bulk market.