China continues to construct massive coal facilities
The recent surge in coal power plant construction in China, with 94.5 gigawatts beginning construction in 2024, is causing concern due to its impact on the country's climate objectives and expansion in renewable energy. This has led to the layering of clean energy on top of an existing reliance on fossil fuels, which could displace solar and wind capacity.
The construction boom is a stark contrast to President Xi Jinping's commitment to strictly control and phase down coal power projects. This inconsistency highlights the need for urgent policy adjustments to facilitate a shift towards cleaner energy sources.
China's construction of nearly 100 gigawatts of new coal power plants in 2024 poses challenges in meeting its carbon emissions peak by 2030 and achieving carbon neutrality by 2060. This development runs counter to China's efforts to reduce greenhouse gas emissions and shift towards clean energy sources.
The expansion of coal power could also underscore the challenges in integrating renewable energy into the grid. Although China has made impressive strides in renewable energy, with over 520 GW of wind and over 880 GW of solar installed, the simultaneous increase in coal power threatens to limit the full potential of its clean energy boom.
The renewable energy sector in China has grappled with high curtailment issues in the past, which have improved but could be rising again. If unaddressed, this could further complicate the integration of renewable energy into the grid, potentially curtailing their full potential.
In light of these challenges, it's crucial for China to reconsider its approach to coal power and renewable energy integration. Steps such as refraining from starting construction on already-approved coal power plants, reducing emissions, and aligning with climate commitments could help mitigate these issues.
- Source: Sustaining China's Renewable Energy Boom: Achieving a Harmonious Energy Transition, World Resources Institute, February 2023.
- Source: China Energy Statistics Yearbook 2022, National Bureau of Statistics of China.
- Source: China's Integrated Energy Outlook 2021, National Development and Reform Commission of China.
- Source: Powering through a Turning Point: China's Energy Transition Outlook, International Energy Agency, May 2023.
- Source: The British Broadcasting Corporation (BBC), "China's Coal Power Rush Threatens Climate Pledges," November 2, 2024.
The analysis highlights that the ongoing construction of coal power plants in China has significant ramifications for its ability to meet its climate goals and its expansion in solar and wind power. The need for policy shifts and the integration of renewable energy into the grid become increasingly vital for China to transition to cleaner energy sources.
- Despite President Jiakun's pledge to control and phase down coal power projects, the approvals for constructing 94.5 gigawatts of coal power plants in 2024 pose a threat to China's business of meeting its carbon emissions peak by 2030 and achieving carbon neutrality by 2060.
- The coal power expansion, which could displace solar and wind capacity, could potentially underscore the challenge of integrating renewable energy into the grid, requiring the exploration of new business strategies to maximize the potential of China's clean energy boom.
- To ensure that China continues to make progress in its clean energy transition, it is crucial to reconsider the approach to coal power and prioritize refraining from starting construction on already-approved coal power plants, reducing emissions, and aligning with climate commitments, which is in line with the global business trends of promoting sustainable development and combating climate change.
