In 2023, Beijing approved 66.7 GW of new coal plants and started construction on 94.5 GW—the highest level since 2015. Long-term contracts and mining companies are artificially sustaining coal's dominance.
China expands coal power despite record renewable capacity
In 2024, China made unprecedented strides in expanding its renewable energy capacity. However, at the same time, it also set new records in coal power plant approvals. Despite adding a record 357 GW of renewable capacity, Beijing approved 66.7 GW of new coal plants and launched construction on 94.5 GW—the highest level since 2015.
This development not only contradicts China’s transition toward clean energy but also raises concerns about President Xi Jinping’s pledge to “strictly control” coal use, according to a joint report from the Centre for Research on Energy and Clean Air (CREA) and Global Energy Monitor (GEM).
China’s coal power numbers in 2024
Last year, China continued its dual-track approach—expanding both renewables and coal. Not only were there no clear signs of a gradual phase-out of the most polluting fossil fuel, but coal development actually accelerated.
Key figures:
- 66.7 GW of new coal power capacity was approved. The pace picked up in the second half of the year after a slower start.
- 94.5 GW of coal power plants began construction.
- 3.3 GW of previously suspended projects resumed construction.
These numbers suggest that a substantial number of new coal plants will come online within the next two to three years, reinforcing coal’s role in China’s energy system.
However, there are some positive signals. The combined total of new and revived projects reached 68.9 GW—a decline from 117 GW in 2023 and 146 GW in 2022. This could indicate a potential slowdown in new project approvals, according to the report. The rate of new coal plants becoming operational is also decreasing, with 30.5 GW commissioned in 2024, down from 49.8 GW in 2023—although still in line with 2021 and 2022 levels.
Long-term contracts and mining companies sustain coal demand
Several factors continue to sustain coal’s dominance in China’s energy strategy.
Long-term contracts play a key role. Fixed coal supply agreements guarantee minimum operational hours for coal plants, discouraging the use of renewable energy. This creates a distorted market that slows the clean energy transition.
Additionally, mining companies are deeply involved in coal plant financing. Over 75% of new coal plants approved in 2024 are backed by firms in the coal sector, creating artificial demand that hinders the shift to renewables.
While China’s renewable energy expansion is historic, the continued reliance on coal highlights the complexity of its energy transition, as entrenched financial interests and policy decisions keep fossil fuels in play.
