China burned more coal at power plants between January and July 2025 than any time since 2016. The country put 21 gigawatts of coal power online during the first six months of 2025. According to Deutsche Welle, this represents the highest six-month level in nine years.

The report comes from the Center for Research on Energy and Clean Air and Global Energy Monitor. New construction and re-firing of existing coal plants totaled 46 gigawatts. Proposed projects with capacity for another 75 gigawatts were also announced. Total projected coal plant output could hit between 80-100 gigawatts in 2025.

Coal currently accounts for half of China's energy production. This share has dropped from three-quarters in 2016. Despite President Xi Jinping's 2021 pledge to retire 30 gigawatts between 2020 and 2025, only 1 gigawatt was retired in the first half of this year.

Why This Coal Expansion Matters Now

China's increased coal reliance threatens its goal to peak carbon emissions by 2030. The world's largest greenhouse gas emitter risks keeping emissions on a high plateau for years. Powerful coal interests continue securing long-term contracts and capacity payments. These arrangements crowd out renewable sources and keep many plants running at high output.

The coal expansion occurs despite China's electricity demand growth being covered by renewable sources. The International Energy Agency reports that China consumes nearly 40% more coal than the rest of the world combined. China's share of global coal consumption now stands at 58%, with over one-third of all coal burned at Chinese power plants.

Record temperatures in 2024 pushed up electricity demand for cooling. This weather-driven demand increase accounted for most of the global rise in coal-fired generation last year.

Global Energy Sector Faces Mixed Coal Trends

While China expands coal capacity, other regions show different patterns. Global Energy Monitor reports that European Union countries retired 11 gigawatts of coal capacity in 2024, a fourfold increase over 2023. The United Kingdom completed its coal phaseout entirely. All but three EU countries plan to be coal-free by 2033.

Global coal demand reached a record 8.8 billion tonnes in 2024, up 1.5% from 2023. However, several trends reversed in the first half of 2025. Coal use declined in China and India due to strong renewable generation increases. By contrast, coal consumption grew 10% in the United States as natural gas prices rose.

The divide between progress and continued buildout widened in 2024. Many countries completed or accelerated coal exits while others ramped up construction. This uneven path leaves the global coal transition off pace for Paris Agreement goals.

Renewable Growth Creates Energy Paradox

China installed record renewable capacity alongside its coal expansion. Wind and solar generated over 25% of China's electricity in April 2025, the highest monthly share on record. The country added 212 gigawatts of solar capacity in the first half of 2025. Ember data shows China is on track to install clean power equivalent to Germany and Britain's combined electricity demand.

China's wind and solar capacity now surpasses thermal power capacity for the first time. The country achieved its 2030 target of 1,200 gigawatts of renewable capacity six years ahead of schedule. Solar installations reached 1.08 terawatts, representing half of global total capacity.

Despite these renewable advances, grid flexibility challenges persist. Curtailment rates for solar power exceeded 5% nationwide in March 2024. Seven provinces exceeded 10% curtailment in February, according to monitoring centers. Better grid operation and storage developments have addressed some issues, though coal plants remain as backup power.

The economics favor renewable sources over coal plants. High coal prices mean most Chinese coal plants operate at financial losses. More than half of large coal firms made losses in the first half of 2022. As renewables push down energy costs, coal becomes increasingly unprofitable.

Further Reading

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