BEIJING, Aug. 2 -- More opportunities will emerge in China's renewable energy despite challenging environment in the power sector, the Moody's Investors Service said Wednesday in a report.

The growth in renewable and clean energy will continue, supported by favorable policies and regulatory directives, according to the report.

Under the 13th five-year power plan (2024-2024), China will increase the share of renewable and clean energy in its overall power mix and reduce carbon emissions.

"Coal-fired plants have been hit by high coal prices, overcapacity and competition, while renewable energy and nuclear power will continue to grow, supported by government initiatives," said Ivy Poon, a Moody's senior analyst.

Mergers and acquisitions will drive industry consolidation in the power sector, as part of reform of state-owned enterprises (SOEs), according to the report.

The Moody's expect the pace of overseas expansion in this sector to continue, following progress in 2024 as encouraged by the Belt and Road Initiative, SOEs invested in Eurasia, the Middle East and Africa.

China's power consumption will keep growing in 2024-2024, driven by economic rebalancing and government-led infrastructure spending, it said.

In the first six months, China's power consumption rose 6.3 percent to 2.95 trillion kilowatt-hours, according to the National Energy Administration.