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China coal power surges despite record renewable energy growth in 2025

BEIJING: China experienced a significant increase in new coal power capacity during the first half of 2025 despite achieving record levels of clean energy installation.

The country brought 21 gigawatts of coal power online in the first six months of this year, representing the highest first-half total since 2016 according to a joint report by the Centre for Research on Energy and Clean Air and Global Energy Monitor.

China also began or restarted construction on coal projects totalling 46 gigawatts while launching another 75 gigawatts-worth of proposed new and revived coal power projects.

This coal expansion threatens China’s goal to peak carbon emissions by 2030 and risks solidifying coal’s role in its power sector for years to come.

The growth occurred alongside China’s installation of 212 gigawatts of solar capacity in the first half of the year, setting a new record that exceeds total American solar power capacity as of late 2024.

“Coal power development in China shows no sign of easing, leaving emissions on a high plateau and stranding coal in the system for years to come,“ said Christine Shearer, research analyst at GEM and co-author of the report.

More coal projects could come online soon because a “huge pipeline of already permitted projects remains” from approval spikes in 2022 and 2023 when China’s electricity grid struggled to adapt to renewables growth.

“Since then, better grid operation and storage have addressed those issues, while the coal power projects approved at the time are still under construction,“ said Lauri Myllyvirta, lead analyst at CREA.

The latest coal expansion comes despite China’s rapidly expanding renewable power generation now covering the country’s electricity demand growth.

China is on track to install enough clean power from solar, wind, nuclear, and hydro in 2025 to meet the entire electricity demand of Germany and Britain combined.

Only one gigawatt of coal power was retired in the first half of 2025, leaving the country well short of its target to retire 30 gigawatts between 2020 and the end of this year.

“Powerful coal interests continue to push for projects,“ said Qi Qin, lead author of the report and China analyst at CREA.

“Even though coal’s share of capacity is declining, long-term contracts and broad capacity payments keep many plants running at high output.”

This risks new coal projects “crowding out the space renewables need to grow” according to the researchers.

China is likely to announce new emissions and energy goals in the coming months when it releases details of its 15th Five-Year Plan for 2026 to 2030. – AFP

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