The importance of renewable energy for Inner Mongolia lies in its pivotal role in transitioning from a province heavily reliant on fossil fuels to a key exporter of renewable energy to China. Inner Mongolia currently contributes nearly 10% to China's total operating capacity from coal power, making it the province with the highest coal-operating capacity in the country. Furthermore, its prospective capacity from coal power plants accounts for almost 7% of the national total, ranking it the third-largest province with coal projects in the pipeline.

However, Inner Mongolia also possesses vast potential for solar and wind energy. Its expansive deserts and sandy lands provide ideal locations for solar and onshore wind installations. In 2024 alone, Inner Mongolia added over 41 GW of new renewable energy capacity – the most in China for a second year running. Total renewable energy generation surpassed 200 TWh, with 60 TWh sent to other parts of China, which is also the highest nationally.