China commissioned 21 GW of coal-fired power plants in the first half, the most since 2016

China commissioned 21 GW of new coal-fired power plants in the first half of this year, the highest figure for this period since 2016. Researchers at the Finnish Centre for Research on Energy and Clean Air (CREA) said the figure reflects the increase in permits for new coal-fired power plants in 2022-2023. The international news agency Reuters reported.

The strong first half for new coal-fired power plants in China foreshadows further growth in 2025. According to the China Electricity Council’s outlook, up to 80 GW of new coal-fired power plants could be commissioned this year, which would be the highest figure in the past 10 years.

This figure is expected to be reached in part thanks to the increase in permits for new coal-fired power plants issued in 2022 and 2023, which came in response to inadequate electricity generation and power cuts in 2021 and 2022. The capacity covered by permits issued in the first half of this year fell slightly compared with previous years, to a total of 25 GW.

"The contradiction we are seeing this year is clear: coal’s share of electricity generation is falling to a historic low, while newly commissioned coal-fired power capacity is set to reach a decade high," CREA researchers said.

According to Reuters, China has pledged to reduce its use of coal-fired power plants in the 2026-2030 period, with these plants increasingly expected to serve as backup for renewable energy sources. However, CREA researchers say this is unlikely to happen in practice because of existing capacity payments, inflexible dispatch, long-term contracts and the lack of a nationwide plan to retire coal-fired power plants.

Falling CO2 emissions and growth in renewables

Despite the high level of newly commissioned coal-fired power capacity, China recorded its largest drop in power-sector CO2 emissions since 2020 in the first quarter of this year. China’s sluggish economy, affected by the real estate crisis and a new trade war with the US, dampened electricity demand in the first months of this year, enabling the country’s energy companies to cut year-on-year electricity generation from fossil fuels by 4%.

The expansion of renewable energy sources has also had a positive effect on the development of CO2 emissions from electricity generation in China. China broke its own record in 2024, bringing more than 350 GW of new capacity online. Almost 280 GW came from solar power plants, taking their total installed capacity up 45% year on year, while nearly 80 GW came from wind power plants, whose total installed capacity grew by 18% year on year.