WUHAN, CHINA – OCTOBER 13: (CHINA OUT) A man is seen watering plants in front of a coal-fired power plant on October 13, 2021 in Hanchuan, Hubei Province, China. China’s electricity consumption, a key barometer of economic activity, rose 6.8 percent year-on-year in September as the country’s economy recovers further, official data showed on Wednesday. Total energy use was 694.7 billion kWh last month, according to the National Energy Administration. China’s National Development and Reform Commission announced on Wednesday that it has widened the floating trading price range for coal-fired power generation to 20% up and down. (Photo by Getty Images)
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China is known to grow coal and renewable energy capacity combined for some years now. While the expectation for most observers was that green energy would eventually gain the upper hand after a transitional period, the 2025 figures published by the Global Coal Plant Tracker paint a different picture about the direction China’s electricity mix might take.
Last year, China installed nearly 70 gigawatts of new coal power, more than the grid took off. The last time that number was this high was in 2007. In 2018, between 2020 and 2022 as well as 2024, net coal additions had remained below 30 gigawatts.
This chart shows the capacity of newly installed and decommissioned coal power plants in China (in gigawatts).
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The blackouts that occurred in 2021 and 2022 due to coal shortages, droughts and Covid demand fluctuations are cited as reasons why China decided to invest again in the technology that is considered a very reliable source of energy – a decision that is now manifesting itself in coal-fired power plants. However, the country brings so much capacity online that experts are concerned Future renewable energy development will be affected despite the Chinese leadership’s claims that coal will play a back-up role.
China’s energy price policy is another factor fueling shortages regardless of capacity estimates. Because the market is not deregulated, energy prices are fixed and providers cannot raise them when their costs rise. This drives them from maintaining production in times of difficulty.
Renewable energy renewal?
Despite growing coal capacity, the share of China’s electricity generated from fossil fuels has fallen over the yearsreaching an even higher 58% in 2024. The share of hydropower was over 13% in 2024, but is declining due to critical droughts plaguing the country. At the same time, renewable energy sources such as wind and solar energy are expanding rapidly, but have not yet reached the 20% share of electricity generated annually. To achieve critical climate goals, China will need to continue progress rather than slow or even reverse it.
It’s not just coal-fired power plants that are already connected. China has more projects in the pipeline. Additional data shows that China has a staggering 500 gigawatts of coal power under construction, permitted, pre-permitted and announced as of this January. While cancellation rates are high, the country’s coal frenzy continues to result in a steady increase in available coal power each year. Christine Shearer of the Global Energy Monitor said according to the Associated Press that China had commissioned more coal power capacity in 2025 alone than India, the second largest producer of new coal, had done in the last decade.
This chart shows the countries with the most coal power plants under (pre)construction (in megawatt capacity).
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China is indeed miles ahead of second-placed India in terms of largest coal capacity in the licensing process or under construction. The former has been increasing permitting and construction over time, while the latter has recently announced and approved more projects but started fewer. Other countries building more coal plants are Russia and Kazakhstan, while reduced activity was seen in Bangladesh and Vietnam.
