China is experiencing a coal-power construction surge, the largest in a decade, even as the nation aims to increase its renewable energy use13. This reliance on coal, the most polluting fossil fuel, complicates China’s transition to cleaner energy sources.
In 2024, construction began on nearly 95 gigawatts of new coal-fired generators, the most since 2015, according to a study by the Centre for Research on Energy and Clean Air and Global Energy Monitor13. Local governments also approved 67 gigawatts of new coal capacity after speeding up permit approvals in the latter part of the year.
This increase in coal-fired power coincides with China’s rapid development of clean energy, including 356 gigawatts of new wind and solar capacity in 20241. Because of this, additional electricity from fossil fuels is not needed1. While thermal power generation grew less than 2% last year, President Xi Jinping has pledged to reduce coal use from 2026.
Despite these efforts, coal remains a key component of China’s energy security plans. Government officials consider it necessary as a backup for the inconsistent power generated by wind and solar sources. However, there are indications that coal generators are solidifying their position, potentially hindering the growth of renewables. This could limit China’s ability to achieve its emission reduction goals by 2030.
The continued expansion of coal power is being driven by coal producers, with mining companies receiving over three-quarters of new permits, the report found1. Long-term coal-power contracts are also contributing to coal’s dominance over renewable energy sources.
Qi Qin, an analyst at CREA, stated that while China’s rapid expansion of renewable energy has the potential to reshape its power system, the large-scale expansion of coal power is undermining this opportunity.
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