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Report: China's declining coal plant approvals indicate a shift in energy policy

August 21, 2024

The sharp decline in the number of new coal plants in China indicates that the world's biggest builder polluting power stations is shifting its energy policy to more renewable development. However, coal will continue to play a major part, according a report on Thursday.

China approved only 10 new coal-fired plants with a combined capacity of 9 gigawatts in the first six months of 2024, a drop of 83% from the previous year. This is according to the Helsinki-based Centre for Research on Energy and Clean Air and the U.S. Global Energy Monitor.

The report showed that China added more than 400 GW in wind and solar power since 2023. This led to a 7 % drop in coal production between June 2023 - June 2024.

The report stated that "new renewable energy builds-outs are now capable of meeting China's incremental power demand, and there is evidence the central government might be embracing this shift."

It said that "China's economic powerhouse, has transformed clean energy into an important cornerstone in its broader energy and economy strategies."

The National Development and Reform Commission, China's economic planning agency, declined to comment on this report.

Beijing has also moved to prioritize carbon emission reductions over energy efficiency improvements, as a result of its policy shift.

The findings of the permit are similar to a Greenpeace report also released in this week, based on different data.

China began building 41 GW previously permitted coal plant during the first half year. This is nearly as much as the total built in 2022 and represents over 90% of global total. A power crunch in 2022 and 2023 and the subsequent focus on energy security led to a surge of coal permit approvals.

The report on Thursday said that new project proposals were slowing, but not as fast as permits. In January-June 37.4 GW in new and revised projects were submitted, down from 60.2-GW a year ago.

The government's goal of commissioning 80 GW coal-fired energy this year could lead to a surge in project completions during the second half of 2018.

CREA surveyed experts late last year and found that China was on track to achieve its carbon emission peak before 2030, as stated in the country's official goal. According to the new report, China could accelerate climate action by canceling new coal plants. It notes that China's current baseload power capability of 1,890GW is already sufficient to meet estimated peak needs of 1,450GW.

China claims it is building new coal power plants to maintain grid stability and ensure electricity supply during times of high demand, like the record-breaking heat in July. The stated policy of the Chinese government is to "strictly regulate" coal power projects.

(source: Reuters)

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