China's Coal Conundrum: A Complex Balancing Act

Strategic Insights -

China's decision to continue building coal-fired power stations has been met with criticism, but the reality is far more nuanced. The UK, which once had its own coal mining industry, has since moved away from coal due to ideological and environmental concerns. In contrast, China's coal mining industry remains a significant employer, with over 230,000 coal miners in Shaanxi province alone. However, this comes at a great cost, with pollution, groundwater contamination, and health problems associated with coal mining affecting local communities.

Key Takeaways:

  • The structure of China's regional power grid system encourages regional coal-fired production, but a national grid is being implemented to enable control over energy sources.
  • China's coal-fired capacity has decreased since 2015, with 475 GW of coal-fired capacity added in the nine years before 2015 and only 294 GW in the nine years since.
  • Global Energy Monitor reports highlight the pollution, groundwater contamination, and health problems associated with Chinese coal mining areas.
  • China's five-year plans target significant growth in renewable energy capacity, with 50% renewable energy capacity and 30% renewable generation by 2025 in Shaanxi province.
  • Over 5,000 community-owned solar systems have been built to provide revenue for low-income families, and the largest solar farm in the world has been constructed.
  • President Xi has reaffirmed China's commitment to climate actions, stating that the country will not slow down its climate actions and has the largest and most complete new energy industrial chain.
  • The pace of change in China's energy sector is remarkable, with coal mining jobs expected to disappear by mid-century, and over a quarter of a million jobs lost.

Statistics:

  • 28% of China's energy consumption is now from electricity, compared to 22% in the US and 21% in the EU (IRENA).
  • 475 GW of coal-fired capacity were added in China in the nine years before 2015.
  • 294 GW of coal-fired capacity were added in China in the nine years since 2015.
  • 594 GW of new coal capacity have been cancelled in China.
  • 230,000 coal miners are employed in Shaanxi province.
  • Nearly 1 million people work in China's coal industry.
  • China's coal mining industry is responsible for pollution, groundwater contamination, and health problems in local communities (Global Energy Monitor).
  • Over 5,000 community-owned solar systems have been built in China.

Sources:

  • IRENA
  • Global Energy Monitor
  • Maddie Evans, originally from undated article.