Coal-fired power plant construction starts in China reached their highest level since 2015 last year

China began construction on coal-fired power plants with a combined capacity of 94.5 gigawatts (GW) last year. This was the highest level since 2015, according to a report by the Centre for Research on Energy and Clean Air (CREA) and the Global Energy Monitor (GEM). This development raises concerns about the ability of the world’s largest carbon dioxide emitter to meet its climate targets. It also risks undermining China’s massive expansion of solar and wind power, which has already outpaced growth in the US and Europe.

China is the world’s largest coal consumer and accounted for 93% of global coal-fired power plant construction starts last year. In addition to building new plants, it also resumed work on suspended projects with a capacity of 3.3 GW. The country pledged to “strictly control” coal-fired power generation between 2021 and 2025. But concerns over electricity shortages have driven a sharp rise in new projects since 2023, Reuters reported.

The increase in coal-fired power plant construction last year came despite a record expansion in renewable capacity. It could also make it harder to connect clean energy to the grid, the report warned.

China’s energy regulator says the country has retired 100 GW of outdated coal-fired power plants over the past decade. New projects are therefore being built only as backup for new renewable energy sources.

China also increased its wind and solar power capacity by 356 GW last year. Six years ahead of schedule, it met its target of reaching 1,200 GW of renewable capacity by 2030. Renewables, however, face a challenge and must compete for space on China’s power grid. Capacity utilization rates fell sharply last year, according to the report.

China has pledged to start reducing coal consumption between 2026 and 2030 as it seeks to peak its emissions before the end of the decade. This has prompted the industry to build as much coal capacity as possible before potential new restrictions that could take effect next year, the report warned.

Proposals for new or revived coal-fired power plant projects in China fell to 68.9 GW last year, down from more than 100 GW in each of the previous two years. This suggests that construction starts could slow.