China’s thermal power generation, which primarily relies on coal and some natural gas, saw a slight decline in the first quarter of the year. This decrease was attributed to stronger contributions from hydropower, wind, and solar energy, according to government data cited by Reuters.
Thermal power output dropped by 4.7% from January to March, while hydropower generation increased by 9.5%. Overall electricity demand fell by 1.3% in the first two months of the year but rebounded with a 1.8% rise in March, as reported by the Chinese National Bureau of Statistics.
The data does not include smaller-scale wind and solar installations, but figures from the National Energy Administration, which accounts for these sources, show that electricity demand, based on output, rose by 1.3% in the first two months of the year.
This decline in thermal power generation marks the first such decrease since at least 1998, excluding changes during the Covid-19 pandemic lockdowns. The drop is likely due to warmer weather, which led to a 5.8% decline in thermal power output during the first two months.
This first-quarter decline follows a record high in coal-powered generation in 2024, which reached 6.34 trillion kilowatt-hours—a 1.5% annual increase. Despite the growth in renewable energy sources, coal continues to play a vital role in China’s power system, providing a stable foundation for the surge in wind and solar energy. This trend is expected to persist as electricity demand rises with the growing electrification of homes and transportation.
Meanwhile, the decline in coal usage and the increase in domestic supply contributed to a 6% drop in coal imports in March, following a 2% rise in the first two months of the year. This decline resulted in a 0.9% overall decrease in coal imports for the first quarter.
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