- China approved only ten new coal plants with 9 gigawatts of capacity in H1 2024, an 83% decrease from last year.
- China added over 400 gigawatts of wind and solar power since 2023, leading to a 7% drop in coal power output.
- Beijing’s focus is shifting towards reducing carbon emissions, with new coal plant approvals slowing and construction on previously permitted plants continuing.
China, the world’s largest builder of coal-fired power plants, is undergoing a significant policy shift. In the first half of 2024, the country approved only ten new coal plants with a combined capacity of 9 gigawatts, an 83% decrease compared to last year.
The Helsinki-based Centre for Research on Energy and Clean Air (CREA) and U.S.-based Global Energy Monitor report highlights China’s rapid expansion into renewable energy. Since 2023, China has added more than 400 gigawatts of wind and solar power. Consequently, coal power output has decreased by 7% from June 2023 to June 2024.
“Renewable energy build-outs now meet all incremental power demand in China,” the report states. This shift indicates that the central government is adapting its energy policy. Clean energy has become increasingly central to China’s energy and economic strategies.
China’s National Development and Reform Commission, the economic planning body, did not comment on the report.
The report also points to other signs of policy change. For example, China did not approve any new coal-based steel plants in the first half of 2024. Beijing now focuses more on reducing carbon emissions than measuring energy efficiency improvements.
Despite the drop in new permits, construction continues on previously approved coal plants. In the first half of 2024, China began building 41 gigawatts of coal capacity. This amount nearly matches what was built in 2022 and accounts for over 90% of global coal plant construction.
The report shows a slowdown in new project proposals. From January to June 2024, developers submitted 37.4 gigawatts of new and revised proposals. This figure decreased from 60.2 gigawatts the previous year. The government plans to commission 80 gigawatts of coal-fired power in 2024. This plan could lead to increased project completions later in the year.
Experts surveyed by CREA late last year predicted that China could reach a peak in carbon emissions before its 2030 goal. The new report suggests that halting new coal plants could accelerate climate progress. China’s existing baseload power capacity of 1,890 gigawatts exceeds the estimated peak demand of 1,450 gigawatts.
China argues that new coal facilities are necessary for grid stability and to secure power supply during peak demand, such as during July’s record-breaking heat. The official policy remains to “strictly control” coal power projects.
The report highlights a clear trend towards renewable energy. While coal continues to play a significant role, its future in China’s energy landscape is increasingly uncertain. The shift towards renewables is fundamental to China’s broader energy and economic strategies.