- China will increase coal production and power generation while expanding wind and solar capacity, reinforcing the role of fossil fuels in its energy mix.
- Renewable subsidies are being reduced as solar and wind costs drop, and a new pricing mechanism has been set for clean energy sources.
China reaffirmed its commitment to coal as a key part of its energy strategy, announcing on Wednesday, March 5, 2025, that it will continue increasing coal production and ensuring its role as a stable power source.
In a wide-ranging official report released the same day, Beijing stated it would move forward with reforms to how clean energy is priced on the grid. This follows last month’s decision to scale back subsidies for renewable energy projects, citing falling costs.
“China will actively and prudently work towards peaking carbon emissions and achieving carbon neutrality”.
China leads the world in renewable energy investment, particularly in wind, solar, and electric vehicles. Last year, solar capacity alone surged by 45%, and total low-carbon generation capacity—including wind and hydropower—reached 40% of the country’s energy mix. This milestone meant China achieved its 2030 low-carbon target six years ahead of schedule.
“The change in energy strategy shows that while renewables are growing, China is prioritizing stability in its power supply,” said an Energy Analyst.
In 2024, the country is expected to add 277 GW of solar capacity and 80 GW of wind power, setting a new record for renewable energy expansion. Despite this, coal remains a dominant energy source. The National Development and Reform Commission recently announced it would cut wind and solar subsidies, arguing that costs had fallen enough for renewables to compete in the free market.
However, coal production is also set to rise, with forecasts predicting a 1.5% increase this year—the ninth consecutive annual rise—highlighting China’s continued reliance on hydrocarbons for stable power generation.