China, as the world’s largest renewable energy market, has set ambitious energy transition goals. However, challenges in renewable power consumption, notably curtailment of renewable electricity, arise due to unclear alignment between both these policies and the institutional context, as well as that between policy instruments and their objectives. Building on policy feedback theory, this study developed a systematic analytical framework to examine the co-evolution of the policy mix for China’s renewable electricity consumption and its interactions with the broader political and social systems. We also identified that utilization targets were crucial for increasing power grid connectivity of renewable energies. This study emphasizes the need for enhanced coordination among key stakeholders in renewable energy market, clearly defined consumption responsibilities, and a shift toward market-oriented mechanisms. Additionally, this study suggests a strategy aligning renewable energy growth with grid infrastructure development and regulatory power plants and resources. This could shed lights on the pathway towards China’s 2030 carbon peak and 2060 carbon neutrality goals.