Natural gas enthusiasts betting on Asia to drive global energy demand in the coming decades may face disappointment. A new report from Global Energy Monitor (GEM) highlights that Asia’s largest economies are constructing far more coal-fired power plants than gas-fired ones, with coal currently providing about 45% of the region’s energy.
Across the continent’s 10 largest economies, over 1 million megawatts (MW) of new power capacity are under construction, with coal and renewable energy sources taking the lead. Solar energy represents the largest share at 26%, or 270,000 MW, followed by coal at 24%, with nearly 250,000 MW. Wind and hydropower projects make up 20% each, while gas-fired power plants account for just 7%, or 70,000 MW.
To put this in context, natural gas accounted for 43.1% of power generation in the U.S. in 2023, with renewables providing 21.4% and coal 16.2%. Asia’s push toward renewable energy is clear, but the region is still heavily reliant on coal.
Coal’s Continued Role in Asia’s Energy Landscape
Despite ambitious clean energy goals in some countries, coal is not being phased out in Asia anytime soon. In China, the world’s largest coal consumer, coal-fired power capacity continues to expand rapidly. The country approved 66.7 gigawatts (GW) of new coal plants in 2024, driven partly by droughts that have affected hydropower production. China’s coal production reached a record 4.76 billion tons in 2024, with the country beginning construction on 94.5 GW of new coal projects—the highest level since 2015.
“China’s government has placed energy security and the energy transition at odds,” said Gao Yuhe from Greenpeace. “Beijing has made it clear that coal power will grow at a ‘reasonable pace’ until 2030.”
India is also committed to coal. Two years ago, India’s coal minister, Pralhad Joshi, confirmed that coal would remain a significant part of the country’s energy mix until at least 2040. He called coal an affordable energy source and emphasized that demand for it has not yet peaked.
China’s Clean Energy Dominance
While coal remains strong in Asia, China is also the global leader in clean energy. In 2023, clean energy technologies accounted for more than 10% of China’s economy, with investments reaching 13.6 trillion yuan ($1.9 trillion). This dwarfed global fossil fuel investments, which totaled $1.12 trillion. China has surpassed coal in renewable energy capacity, with 1,410 gigawatts of wind and solar power installed last year.
China is particularly dominant in solar energy production, controlling around 95% of the world’s polysilicon and wafers. This has led to concerns about global reliance on China for solar panel manufacturing. The International Energy Agency (IEA) has warned that the concentration of solar supply in China poses a significant vulnerability.
Challenges Ahead for China’s Clean Energy Industry
Despite China’s current dominance, experts predict the country’s leadership in clean energy may begin to decline. According to S&P Global, China’s share of solar panel manufacturing will drop to 65% by 2030, down from 70% in 2024. Similarly, its share of battery-cell manufacturing is expected to fall to 61% from 80%.
The slow pace of global demand, export restrictions, and overcapacity are expected to slow China’s growth in the clean energy sector. S&P Global forecasts that China will face slower manufacturing growth in the coming years, leading to a more diversified global clean tech manufacturing landscape by 2030.
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