Coal power in China

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File:ChineseCoalPower opt.jpg{{Use dmy dates|date=May 2025}}{{Coal sidebar|state=collapsed}}

In the People's Republic of China, electricity generated from coal represents over half of all electricity generated in the country. It is a major source of greenhouse gas emissions by China.

China's installed coal-based power generation capacity was 1080 GW in 2021,{{Cite web |date=2021-08-25 |title=Chinese coal plant approvals slum after Xi climate pledge |url=https://www.scmp.com/news/china/politics/article/3146368/chinese-coal-plant-approvals-slump-after-xi-jinping-pledges |access-date=2021-09-06 |website=South China Morning Post |language=en}} about half the total installed capacity of power stations in China.{{Cite web |last=Yihe |first=Xu |date=2021-09-01 |title=China curbs coal-fired power expansion, giving way to renewables |url=https://www.upstreamonline.com/energy-transition/china-curbs-coal-fired-power-expansion-giving-way-to-renewables/2-1-1060377 |access-date=2021-09-06 |website=Upstream |language=en}} Coal-fired power stations generated 57% of electricity in 2020.{{Cite web |last=Cheng |first=Evelyn |date=2021-04-29 |title=China has 'no other choice' but to rely on coal power for now, official says |url=https://www.cnbc.com/2021/04/29/climate-china-has-no-other-choice-but-to-rely-on-coal-power-for-now.html |access-date=2021-09-06 |website=CNBC |language=en}} Over half the world's coal-fired power is generated in China.{{Cite web |date=2021-03-29 |title=China generated half of global coal power in 2020: study |url=https://www.dw.com/en/china-generated-half-of-global-coal-power-in-2020-study/a-57044984 |access-date=2021-09-06 |website=Deutsche Welle |language=en-GB}} 5 GW of new coal power was approved in the first half of 2021. Quotas force utility companies to buy coal power over cheaper renewable power.{{Cite web|title=Why China is struggling to wean itself from coal |url=https://www.hellenicshippingnews.com/why-china-is-struggling-to-wean-itself-from-coal/|access-date=2021-09-06|website=www.hellenicshippingnews.com}} China is the largest producer and consumer of coal in the world and is the largest user of coal-derived electricity. Despite China (like other G20 countries) pledging in 2009 to end inefficient fossil fuel subsidies, {{As of|2020|lc=y}} there are direct subsidies and the main way coal power is favored is by the rules guaranteeing its purchase – so dispatch order is not merit order.

The think tank Carbon Tracker estimated in 2020 that the average coal fleet loss was about 4 USD/MWh and that about 60% of power stations were cashflow negative in 2018 and 2019.{{Cite report

|url=https://carbontracker.org/reports/political-decisions-economic-realities/

|title=Political decisions, economic realities: The underlying operating cashflows of coal power during COVID-19

|last1=Gray

|first1=Matt

|last2=Sundaresan

|first2=Sriya

|publisher=Carbon Tracker

|date=April 2020

|page=19

}} In 2020 Carbon Tracker estimated that 43% of coal-fired plants were already more expensive than new renewables and that 94% would be by 2025.{{Cite report |url=https://carbontracker.org/reports/how-to-retire-early/ |title=How to Retire Early: Making accelerated coal phaseout feasible and just |date=June 2020 |publisher=Carbon Tracker}} According to 2020 analysis by Energy Foundation China, to keep warming to 1.5 degrees C all China's coal power without carbon capture must be phased out by 2045.{{Cite report|date=December 2020|title=China's New Growth Pathway: From the 14th Five-Year Plan to Carbon Neutrality|url=https://www.efchina.org/Attachments/Report/report-lceg-20201210/Full-Report_Synthesis-Report-2020-on-Chinas-Carbon-Neutrality_EN.pdf|page=24|publisher=Energy Foundation China|access-date=16 December 2020|archive-date=16 April 2021|archive-url=https://web.archive.org/web/20210416100821/https://www.efchina.org/Attachments/Report/report-lceg-20201210/Full-Report_Synthesis-Report-2020-on-Chinas-Carbon-Neutrality_EN.pdf|url-status=dead}} But in 2023 many new coal power stations were approved.{{Cite web |date=2023-08-29 |title=China's new coal power spree continues as more provinces jump on the bandwagon |url=https://energyandcleanair.org/publication/chinas-new-coal-power-spree-continues-as-more-provinces-jump-on-the-bandwagon/ |access-date=2024-01-19 |website=Centre for Research on Energy and Clean Air |language=en-US}} Coal power stations receive payments for their capacity.{{Cite web |last=Lushan |first=Huang |date=2023-11-23 |title=China's new capacity payment risks locking in coal |url=https://chinadialogue.net/en/energy/chinas-new-capacity-payment-risks-locking-in-coal/ |access-date=2024-01-19 |website=China Dialogue |language=en}} A 2021 study estimated that all coal power plants could be shut down by 2040, by retiring them at the end of their financial lifetime.{{Cite journal |last1=Kahrl |first1=Fredrich |last2=Lin |first2=Jiang |last3=Liu |first3=Xu |last4=Hu |first4=Junfeng |date=2021-09-24 |title=Sunsetting coal power in China |journal=iScience |language=en |volume=24 |issue=9 |page=102939 |bibcode=2021iSci...24j2939K |doi=10.1016/j.isci.2021.102939 |issn=2589-0042 |pmc=8379489 |pmid=34458696}}

{{multiple image

| header= Retirement and addition of coal-fired power capacity

| total_width = 450

| image1 = 2000- Retired coal-fired power capacity - Global Energy Monitor.svg

| caption1 = The annual amount of coal plant capacity being retired increased into the mid-2010s. However, the rate of retirement has since stalled,{{cite web |title=Retired Coal-fired Power Capacity by Country / Global Coal Plant Tracker |url=https://docs.google.com/spreadsheets/d/1t3gO35bzcVI8ekq9318jBUq6nd7UADcut4gY3vjHZMM/edit#gid=1751753356 |publisher=Global Energy Monitor |archive-url=https://web.archive.org/web/20230409194508/https://docs.google.com/spreadsheets/d/1t3gO35bzcVI8ekq9318jBUq6nd7UADcut4gY3vjHZMM/edit#gid=1751753356 |archive-date=9 April 2023 |date=2023 |url-status=live }} — Global Energy Monitor's [https://globalenergymonitor.org/projects/global-coal-plant-tracker/summary-tables/ Summary of Tables] ([https://web.archive.org/web/20230408201908/https://globalenergymonitor.org/projects/global-coal-plant-tracker/summary-tables/ archive]) and global coal phase-out is not yet compatible with the goals of the Paris Climate Agreement.{{cite web |title=Boom and Bust Coal / Tracking the Global Coal Plant Pipeline |url=https://globalenergymonitor.org/wp-content/uploads/2023/03/Boom-Bust-Coal-2023.pdf |page=3 |publisher=Global Energy Monitor |archive-url=https://web.archive.org/web/20230407125552/https://globalenergymonitor.org/wp-content/uploads/2023/03/Boom-Bust-Coal-2023.pdf |archive-date=7 April 2023 |date=5 April 2023 |url-status=live}}

| image2 = 2000- New coal-fired power capacity - Global Energy Monitor.svg

| caption2 = In parallel with retirement of some coal plant capacity, other coal plants are still being added, though the annual amount of added capacity has been declining since the 2010s.{{cite web |title=New Coal-fired Power Capacity by Country / Global Coal Plant Tracker |url=https://docs.google.com/spreadsheets/d/1j35F0WrRJ9dbIJhtRkm8fvPw0Vsf-JV6G95u7gT-DDw/edit#gid=647531100 |publisher=Global Energy Monitor |archive-url=https://web.archive.org/web/20230319120539/https://docs.google.com/spreadsheets/d/1j35F0WrRJ9dbIJhtRkm8fvPw0Vsf-JV6G95u7gT-DDw/edit#gid=647531100 |archive-date=19 March 2023 |date=2023 |url-status=live}} — Global Energy Monitor's [https://globalenergymonitor.org/projects/global-coal-plant-tracker/summary-tables/ Summary of Tables] ([https://web.archive.org/web/20230408201908/https://globalenergymonitor.org/projects/global-coal-plant-tracker/summary-tables/ archive])

}}

File:Electricity_generation_in_China_by_source.png

To curtail the continued rapid construction of coal fired power plants, strong action was taken in April 2016 by the National Energy Administration (NEA), which issued a directive curbing construction in many parts of the country.{{cite news|last1=Feng|first1=Hao|date=April 7, 2016|title=China Puts an Emergency Stop on Coal Power Construction|agency=The Diplomat|url=https://thediplomat.com/2016/04/china-puts-an-emergency-stop-on-coal-power-construction/}} This was followed up in January 2017 when the NEA canceled a further 103 coal power plants, eliminating 120 GW of future coal-fired capacity, despite the resistance of local authorities mindful of the need to create jobs.{{Cite news |last=Forsythe |first=Michael |date=2017-01-18 |title=China Cancels 103 Coal Plants, Mindful of Smog and Wasted Capacity |url=https://www.nytimes.com/2017/01/18/world/asia/china-coal-power-plants-pollution.html |access-date=2024-07-02 |work=The New York Times |language=en-US |issn=0362-4331}} The decreasing rate of construction is due to the realization that too many power plants had been built and some existing plants were being used far below capacity.{{cite web|title=Asian coal boom: climate threat or mirage?|url=http://eciu.net/press-releases/2016/asian-coal-boom-climate-threat-or-mirage|publisher=Energy and Climate Intelligence Unit|archive-url=https://web.archive.org/web/20160424145455/http://eciu.net/press-releases/2016/asian-coal-boom-climate-threat-or-mirage|archive-date=April 24, 2016|date=Mar 22, 2016|url-status=dead|access-date=February 14, 2018}} In 2020 over 40% of plants were estimated to be running at a net loss and new plants may become stranded assets.{{cite web|title=China's Carbon Neutral Opportunity|url=https://energyinnovation.org/wp-content/uploads/2021/02/Chinas-Carbon-Neutral-Opportunity.pdf|url-status=live|archive-url=https://web.archive.org/web/20210228073303/https://energyinnovation.org/wp-content/uploads/2021/02/Chinas-Carbon-Neutral-Opportunity.pdf |archive-date=2021-02-28 }} In 2021 some plants were reported close to bankruptcy due to being forbidden to raise electricity prices in line with high coal prices.{{cite web |date=2021-09-10 |title=Beijing power companies close to bankruptcy petition for price hikes |url=https://www.scmp.com/economy/china-economy/article/3148291/china-coal-fired-power-companies-verge-bankruptcy-petition |access-date=2021-09-12 |website=South China Morning Post |language=en}}

Falling capacity factors are forcing Chinese coal generation to take on an untypical role of peaker plants (outside of China gas-fired plants provide this capability, but Chinese authorities don't wish to be dependent of foreign gas).{{Cite web |last=Ritchie |first=Hannah |date=2024-02-14 |title=China is building more coal plants but might burn less coal |url=https://www.sustainabilitybynumbers.com/p/china-coal-plants |access-date=2025-01-03 |website=www.sustainabilitybynumbers.com |language=en}}{{Cite journal |last1=Li |first1=Yanbin |last2=Zhao |first2=Ke |last3=Zhang |first3=Feng |date=2023-01-15 |title=Identification of key influencing factors to Chinese coal power enterprises transition in the context of carbon neutrality: A modified fuzzy DEMATEL approach |url=https://www.sciencedirect.com/science/article/abs/pii/S036054422202309X |journal=Energy |volume=263 |pages=125427 |doi=10.1016/j.energy.2022.125427 |bibcode=2023Ene...26325427L |issn=0360-5442|url-access=subscription }}{{Cite journal |last1=Lin |first1=Boqiang |last2=Liu |first2=Zhiwei |date=2024-05-01 |title=Optimal coal power phase-out pathway considering high renewable energy proportion: A provincial example |url=https://www.sciencedirect.com/science/article/abs/pii/S0301421524000910 |journal=Energy Policy |volume=188 |pages=114071 |doi=10.1016/j.enpol.2024.114071 |bibcode=2024EnPol.18814071L |issn=0301-4215|url-access=subscription }} In February 2024 the National Development and Reform Commission (NDRC) announced upgrading coal plants for more effective flexible operation and developing the gas generation where local resources are available.{{Cite news |title=China to build hydro and gas, upgrade coal fleet for a more flexible power system |url=https://www.reuters.com/business/energy/china-build-hydro-gas-upgrade-coal-fleet-more-flexible-power-system-2024-02-27/ |archive-url=http://web.archive.org/web/20240503182027/https://www.reuters.com/business/energy/china-build-hydro-gas-upgrade-coal-fleet-more-flexible-power-system-2024-02-27/ |archive-date=2024-05-03 |access-date=2025-01-03 |work=Reuters |language=en-US}}

As part of China's efforts to achieve its pledges of peak coal consumption by 2030 and carbon neutrality by 2060, a nationwide effort to reduce overcapacity resulted in the closure of many small and dirty coal mines.{{Cite book |last=Zhang |first=Angela Huyue |title=High Wire: How China Regulates Big Tech and Governs Its Economy |publisher=Oxford University Press |year=2024 |isbn=9780197682258 |doi=10.1093/oso/9780197682258.001.0001}}{{Rp|page=70}} Major coal-producing provinces like Shaanxi, Inner Mongolia, and Shanxi instituted administrative caps on coal output.{{Rp|page=70}} These measures contributed to electricity outages in several northeastern provinces in September 2021 and a coal shortage elsewhere in China.{{Rp|page=70}} The NDRC responded by relaxing some environmental standards and the government allowed coal-fired power plants to defer tax payments.{{Rp|page=71}} Trade policy was adjusted to permit the importation of a small amount of coal from Australia.{{Rp|page=72}} The energy problems abated in a few weeks.{{Rp|page=72}}

In 2023, The Economist wrote:

{{Blockquote|text=Building a coal plant, whether it is needed or not, is also a common way for local governments to boost economic growth.{{nbsp}}... They don't like depending on each other for energy. So, for example, a province might prefer to use its own coal plant rather than a cleaner energy source located elsewhere.{{Cite news |date=November 27, 2023 |title=Will China save the planet or destroy it? |url=https://www.economist.com/china/2023/11/27/will-china-save-the-planet-or-destroy-it |url-access=subscription |access-date=2024-01-21 |newspaper=The Economist |issn=0013-0613}}}}