China’s Reliance on Coal Undermines ‘Unprecedented Pace’ of Clean Energy Production: Report

Energy production in China is pitting renewables and coal against each other, while holding back advances in energy production, said a new analysis from the Centre for Research on Energy and Clean Air (CREA) and Global Energy Monitor (GEM).

China is both the biggest emitter of carbon dioxide and the largest renewable energy producer in the world, reported The Guardian.

“China’s rapid expansion of renewable energy has the potential to reshape its power system, but this opportunity is being undermined by the simultaneous large-scale expansion of coal power. The continued approval and construction of new coal plants — [one] driven by industry interests and outdated contracts rather than actual grid needs — risks locking China into fossil fuel dependence at a time when flexibility is crucial for integrating clean energy. Without decisive policy [shifts], China’s energy transition will remain an ‘energy addition’ rather than a true transformation away from coal,” said Qi Qin, the report’s lead author and China Analyst at CREA, in a press release from GEM and CREA.

🇨🇳 NEW | China – Coal power biannual review – H2 2024 ⚠️ Even as China's clean energy surged in 2024 & became key economic driver, coal remains strong – with approvals up in H2 2024 after slow start in H1 w/Global Energy Monitor 📄 Find report here: energyandcleanair.org/publication/…

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— Centre for Research on Energy and Clean Air (@creacleanair.bsky.social) February 12, 2025 at 9:55 PM

The Chinese government has promised that the country will reach peak carbon emissions before the end of the decade and become carbon neutral by 2060. However, experts are afraid the targets will remain elusive as long as China continues to prioritize coal power and approve new coal production.

“Coal-fired power generation could decline, yet the coal industry continues to expect growth, setting the stage for an increasingly unsustainable conflict between coal investments and the need to decarbonise the power system,” the report said.

The analysis found that last year’s renewables production in China reached at an “unprecedented pace,” adding 356 gigawatts (GW) of solar and wind capacity — a figure nearly equal to the total in the United States for 2024, and roughly 4.5 times more than the European Union, The Guardian reported.

NEW – China’s construction of new coal-power plants ‘reached 10-year high’ in 2024 | @anikanpatel.carbonbrief.org @creacleanair.bsky.social @globalenergymon.bsky.social Read here: https://buff.ly/4hQ6VXQ

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— Carbon Brief (@carbonbrief.org) February 12, 2025 at 7:02 PM

CREA said that, even though solar and wind took off, usage inexplicably fell during the later part of 2024.

“The record decline in solar output and the unexpected drop in wind utilisation was not explained by weather conditions, indicating rising curtailment – much of which may be unreported,” the report said.

Qin said cutbacks were largely driven by previous power purchase agreements that included minimum coal purchase quotas for local governments.

“China started to do [these agreements] in 2020 for energy security, to ensure there will be enough power throughout the year at reasonable price,” Qin said, as reported by The Guardian. “More solar and wind should be integrated into the power grid, but the fact is it wasn’t [because of these agreements].”

The rate of China’s new coal energy approvals was also a concern, according to the report.

“Chinese coal power and mining companies are sponsoring and building new coal plants beyond what is needed,” said Christine Shearer, GEM research analyst, in the press release. “The continued pursuit of coal is crowding out the country’s use of lower-cost clean energy.”

Last year the world’s second-largest economy approved 66.7 GW of coal capacity, began construction on 94.5 GW of coal power projects and resumed 3.3 GW of suspended construction projects. A single GW equals a large coal-fired power plant.

The report said 93 percent of coal power construction starts in the world last year were in China.

“Without urgent policy shifts, China risks reinforcing a pattern of energy addition rather than transition, limiting the full potential of its clean energy boom,” the report said.