China's Coal Conundrum: A Shift towards Renewables

Strategic Insights -

China's rapid electrification is driving an unprecedented boom in renewable energy capacity, rendering coal-fired power stations an increasingly redundant option. While concerns persist about the high number of coal-fired power stations still under construction, China's pace of change is remarkable, with its renewables growth outpacing that of other developed economies. The country's coal mining industry, responsible for pollution and health problems, is also set for a radical overhaul.

Key Takeaways:

  • China's coal generation capacity has fallen by a third since 2015 in the G7 and EU, while electricity demand is rising as the world decarbonises.
  • 28% of China's energy consumption is now from electricity, compared to 22% in the US and 21% in the EU.
  • China's regional power grid system encourages regional coal-fired production, but is being transformed into a national grid, enabling control over which energy source feeds into it.
  • 594 GW of new coal capacity has been cancelled since 2015, and the growth of coal has slowed, with 475 GW of coal-fired capacity added in the 9 years before 2015, compared to 294 GW in the 9 years since.
  • A Global Energy Monitor report highlights the pollution, ground and water contamination, and health problems associated with the mining areas in China.
  • China has set ambitious targets, including a quarter of a million jobs disappearing from the coal industry by mid-century.
  • Shaanxi province, once the biggest coal-producing province, has set targets of 50% renewable energy capacity and 30% renewable generation by 2025.
  • China has built the largest solar farm in the world, installed solar panels along highways, and constructed over 5000 community-owned solar systems.

Statistics:

  • China's coal generation capacity in the G7 and EU has fallen by a third since 2015.
  • 28% of China's energy consumption is now from electricity.
  • 22% of the US's energy consumption is from electricity.
  • 21% of the EU's energy consumption is from electricity.
  • 594 GW of new coal capacity has been cancelled since 2015.
  • 475 GW of coal-fired capacity was added in the 9 years before 2015.
  • 294 GW of coal-fired capacity was added in the 9 years since 2015.
  • 1 in 4 of China's coal mining jobs will disappear by mid-century.
  • China aims to have 50% of its energy consumption from renewable sources by 2030.
  • Shaanxi province has already achieved 100% of its renewable energy target for 2025.

Sources:

  • IEA (no specific publication date mentioned)
  • Global Energy Monitor (no specific publication date mentioned)
  • Antonio Guterres, President of the UN (no specific publication date mentioned)
  • Maddie Evans (author of the original article)